Solera: Are touchless claims a pipe dream or reality?

For many people, filing an insurance claim fills them with dread – they envision that mountains of paperwork, emails and phone calls lie ahead. However, it doesn’t have to be this way - automated and touchless claims are the future.

Today, people want an Amazon-like experience and have switched from being familiar with processing claims online, to preferring it.

In fact, our research shows that 70% of consumers would switch insurers to achieve a faster digital claims experience, while 65% would choose a repairer using artificial intelligence (AI) to minimise the risk of error in the claims process.

Yet, the industry has some catching up to do to meet these new digital expectations.

Last year, my daughter was involved in an automotive insurance claim. My experience helping her through this claim in 2022 was identical to how it would have been handled in 1995. Situations like this aren’t uncommon, but it is worth examining why they’re happening.

The processes insurers use have not adapted to the capabilities of the new technology they already have. Insurance claims today involve more data than they did decades ago, yet the way that data is being handled and the number of touchpoints in the process haven’t kept up.

What is needed isn’t necessarily more tech, but a perception shift about the way technology should be integrated.

While people may be open to trying new technological solutions, they are hesitant about changing their workflow and established ways of getting things done.

Future of claims processing

However, I see a future - not far off - when a claim can be initiated and begin processing before the claimant gets back home.

Imagine you’ve just been in an accident. There’s a quick response (QR) code on the insurance card you carry in your car that takes you directly to your carrier’s claims portal app on your mobile.

You are instantly identified once the code is scanned and there are no extensive forms to fill out and no typing. Just a few clicks to take photos of your vehicle and any other vehicles involved, capturing damage and licence plate information.

From there, the app will activate, managing the claim from start to finish - providing the repair estimate, arranging for a local garage to do the work and setting up a vehicle rental.

Claims professionals and claimants can communicate through the app and everything customers need to handle claims is right there on a device that they carry with them every day.

We’re not there yet, but this scenario could be a reality in just a couple years. The tools are already there and the companies that act today to improve their customers’ digital experiences will reap the rewards.