Decreasing Average Time to Settle

By Leveraging Modern Core Technology 

In the realm of insurance, the time it takes to settle a claim, known as the Average Time to Settle, is a critical metric that insurers must continually strive to improve. This duration, from the moment a claim is reported to its resolution, holds immense significance for insurers, impacting various aspects of their operations and customer satisfaction. 

The Benefits of Decreasing Average Settlement Time 

1. Enhanced Customer Satisfaction and Reputation: Faster settlement times lead to happier customers. When insured individuals receive prompt resolution to their claims, whether for personal property or personal injury, it significantly contributes to their overall satisfaction. Swift settlements not only restore customers’ losses but also enable them to return to normalcy quickly. Consequently, this positive experience enhances the insurer’s reputation, making it easier to retain existing customers and attract new business. 

2. Improved Risk Management and Reduced Litigation Risk: The expeditious settlement of claims reduces the likelihood of disputes escalating into litigation. Closing less complex claims swiftly allows claims staff to allocate more time and resources to handling complex claims and mitigating risks effectively. By addressing claims promptly, insurers can proactively manage risks, leading to better risk assessment and management practices. 

3. Lower Operational Costs and Enhanced Cash Flow: Efficient claims processes and faster settlements result in reduced operational costs for insurers. Streamlining workflows, automating repetitive tasks, and minimizing disputes contribute to long-term cost savings. Moreover, faster settlements lead to quicker disbursements to insured individuals, improving cash flow management for insurers, and enhancing financial stability. 

4. Competitive Advantage: Insurers that consistently settle claims quickly gain a significant competitive edge in the market. By providing superior customer service through swift claim resolutions, insurers can differentiate themselves from competitors and attract more business in an increasingly competitive landscape. 

Leveraging Modern Core Technology for Faster Settlements 

1. Analytics, AI, and Automation: Modern core technology integrates analytics, artificial intelligence (AI), and automation to streamline claims processing. AI algorithms analyze claim data, detect patterns, and flag claims requiring further review, enabling adjusters to prioritize and process claims efficiently. Predictive analytics models forecast claim outcomes and identify potential issues early, allowing insurers to proactively address them and reduce delays in the claims process. Automation eliminates manual tasks, such as data entry and document processing, accelerating claim processing and leading to faster settlements. 

2. Customer Self-Service Portals: Insurers offer customer self-service portals for digital claims submission, enabling policyholders to report claims online and track their status in real-time. Empowering policyholders to take an active role in the claims process reduces manual intervention, streamlines communication, and speeds up claim resolution. 

3. User Portals and Collaboration Tools: User portals facilitate communication and collaboration among claims teams, third-party service providers, and policyholders. Real-time communication, document sharing, and task management minimize communication delays, improve coordination, and lead to faster settlement times. Better integration of the core system with third-party systems allows for real-time data sharing, enabling faster decision-making and more accurate assessments. 

4. Flexibility Configuration Enables Continuous Improvement: Modern core systems offer flexible configuration options, allowing insurers to adapt and respond to changing market dynamics swiftly. By avoiding vendor dependency, insurers can quickly adjust their systems as operations demand. Continuous improvement and seamless adjustments ensure that the technology stack remains aligned with evolving business objectives, enabling insurers to stay ahead in a dynamic industry landscape. 

In conclusion, leveraging modern core technology enables insurers to reduce the average time to settle claims, leading to improved customer satisfaction, operational efficiency, and a competitive advantage in the market. By embracing advanced analytics, AI, automation, and digital collaboration tools, insurers can streamline claims settlement processes and deliver superior service to their policyholders. 

To see first-hand how your organization can significantly reduce average time to settle with SpearClaims^TM, our award-winning claims system built by industry experts on a modern no code/low code platform that delivers the power of built-in AI and Analytics while lowering your total cost of ownership, Schedule a Demo.  

To discover how Spear’s solutions are accessible to insurers of all sizes, Request Pricing.