26 Feb 2021
Straight-Through Processing (STP) is the claim experience that policyholders now expect
By: Jimmy Spears, MAL, MSPM, AIC, AAM, AIS
Now that consumers expect almost-instant gratification from their interactions with brands, why hasn’t the insurance sector kept up?
Just as Amazon has perfected the 2-hour delivery, insurance leaders need to improve how they deliver an outstanding customer experience. Straight-Through Processing (STP) offers the only scalable solution to meet the demands of today’s digital consumer, while retaining the insurer’s competitive edge through lower costs and greater accuracy.
STP helps businesses speed up transaction processing by streamlining data sharing across multiple points in a fully-automated manner without manual intervention. While it has been around for decades in the financial world, the same thinking can simplify the entire insurance process.
Now is the time to start putting STP into practice. Advances in technology and AI mean that major providers such as MS&AD (the top P&C insurers in Japan) are already implementing STP into parts of their claim process today.
With 50% of non-injury claims expected to be fully automated by 2025, here is why you can’t ignore STP for your claims operations:
STP for Customer Success
As consumers are able to quickly shop, sign, and pay for a policy online, they expect the same when it comes when processing a claim. And in a marketplace in which 4 out of every 5 customers will switch insurers if they feel they have had a negative claims experience, people want convenient, fast, and satisfying touchpoints with their providers.
STP can facilitate all of this. An automated claim process shortens the process cycle to ensure everyone receives a standardized and consistent level of service. STP is the catalyst to achieving real-time customer satisfaction.
STP for a More Efficient and Specialized Workforce
The automobile industry is facing a major, once-a-century turning point. Automobiles are increasingly computerized, while autonomous vehicles are on the verge of being introduced.
As a result, technical adjusters now need to acquire advanced skills and knowledge to deal with these technological advances that are changing the nature of the industry. However, if you ask an adjuster what task actually takes up the majority of their time, they will say processing high-volume, low-damage claims.
STP is the perfect solution for processing these types of accidents at scale, and with little to no human interaction. Adjusters can then focus their time on learning new skills and on processing more complex and higher-dollar claims to ensure proper investigation and settlement, which ultimately improves the consumer experience. By utilizing AI, it allows experienced adjusters and managers to devote themselves to more complex and specialized claims while increasing productivity by 30%.
A solution that learns and grows with your Organization
One of the biggest fears of adopting STP is the perception that by reducing the role of humans and implementing automation, the result is a solution on auto-drive that leads to inconsistencies and inaccuracies.
However, STP allows carriers to test, learn, and optimize to match the needs of their operations. With STP, insurers can begin to capture valuable data points and build on it year after year by implementing business rules and artificial intelligence-based algorithms to make the process smarter.
Your approach to STP shouldn’t be a “set it and forget” mentality, but one that learns and molds to your organizational needs. This results in an efficient process with more consistent business results while putting the customer back on the road faster.
In the US, carriers can now deploy Tractable AI across their auto claims, in partnership with Mitchell to pre-populate repair estimates. Tractable’s clients globally are seeing an improved life cycle turnaround from 30 days to 2 weeks, and are moving from processing simple claims towards more complex usage as they become more familiar with applying the AI to their specific challenges.
Want to know how our AI can help you accelerate auto claims? Contact us for a demo.