Insurers call for greater claims transparency

Insurance professionals believe there should be greater transparency and automation in claims processes according to a recent RDT tech poll. The research highlights a call for change within the industry, driven by rising claims costs and inefficiencies in current systems.

When asked how transparent claims processes are, nearly all (94%) respondents agreed that they are not as transparent as they should be. In addition, the same respondents agreed that further automating the claims process would drive further efficiency and be advantageous for insurers, brokers, and policyholders.

Insurers also acknowledge the need to provide more granular details; 91% of respondents believe that claims processes should offer brokers and policyholders more or better access to detailed updates on the status of their claims.

However, the survey suggests that barriers to greater transparency are varied. Respondents attributed the main obstacle being the “inefficiency of legacy systems and processes”, while others cited a “lack of clarity and confidence in processes, leading to reluctance to share the real complexity”.

Other respondents suggested that the high costs associated with introducing transparency is significant, while another expressed concerns that “further transparency could prompt questions that policyholders may struggle to understand or prefer not to hear”.

Joe O’Connor, deputy CEO of RDT, said: “Transparency and automation are essential for modernising claims processing in insurance. The findings from our poll indicate a clear demand for more detailed and accessible claims information. It's encouraging that the majority of the market already understands the critical need for modernising claims, but it’s clear that hurdles remain.

“The challenges to achieving increased transparency and efficiency are undeniable but there are cost-effective solutions available to the market that too many ignore, potentially to the detriment of their policyholders and themselves.”

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