Claims management is a core pillar of the insurance industry. It represents the moment when insurers deliver on their promise to be there for their customers.
But today, insurers face a multitude of challenges that are placing extraordinary pressure on their claims handling processes, including an unprecedented surge in claim volumes, rising fraud, strained resources, and growing consumer demands for seamless digital experiences.
When it comes to verifying customer identities in claims, the need for insurers to modernize, streamline, and secure their digital verification operations to address these challenges has never been more vital, explains JP Mercieca, Commercial Business Development Leader at Interac Corp (Interac).
This past summer saw Canada’s insurers dealing with a record-breaking 228,000 insurance claims, largely due to natural catastrophes like flooding in Ontario and Québec, and the wildfire and hailstorm events in Alberta. That’s a staggering 406% increase over the 20-year average, the Insurance Bureau of Canada reported.
“In addition to handling overwhelming claims levels, many insurers are still grappling with using outdated, manual data collection and verification processes, like mailing cheques or requiring customers to send in void cheques. This not only slows down the claims submission process, but leaves insurers increasingly susceptible to fraud and cyber breaches,” Mercieca says.
The issue is also frustrating many customers and affecting the overall claims experience — potentially impacting customer retention. In fact, claims and settlement issues are the top public complaints in the regulated P&C and auto insurance sectors in Ontario, according to the Financial Services Regulatory Authority of Ontario’s 2021-22 Complaints Report.
It’s not just about pleasing customers and delivering on their promise. Excellent claims service will be a key differentiator for insurers competing in today’s marketplace that’s teeming with insurtechs, Mercieca adds.
Improving the claims experience
Interac VerifiedTM offers a solution to many of the challenges insurers face in validating customer identities and confirming banking details during the claims submission process. By enabling secure digital verification, Interac Verified helps automate key steps, saving time and resources while helping to combat fraud and improve customer satisfaction — ultimately with the goal of retention.
By utilizing reliable digital data sources, such as bank-authenticated systems or secure biometric checks, Interac Verified empowers insurers to quickly and securely verify customer identities.
“Customers can conveniently and quickly confirm their identity through their participating banking app on their mobile device or desktop, helping insurers validate the claimant securely and efficiently,” says Mercieca.
With digital verification, bank account details can be securely accessed in a manner that is user consent driven and can be done in just a few clicks. There’s no need for customers to manually submit void cheques nor for insurers to mail out cheques – processes which can be time-consuming, resource-intensive and vulnerable to errors.
The Interac Verified solution helps significantly mitigate the risk of fraudulent claims by ensuring the right person is receiving the claim payout. “There’s a high level of assurance that the customer is who they say they are, which helps insurers avoid fraudulent claims and deliver faster claim payouts,” adds Mercieca.
Streamlining the critical validation steps in claims processing also enables insurers to focus on delivering a seamless, trustworthy customer experience — which can help them gain a competitive edge in a crowded market.
Helping to deliver a promise
At its core, the claims experience defines the insurance industry. In today’s digital-first world, it must be fast, secure, and convenient.
With Interac Verified, insurers can transform digital verification operations, ensuring they’re well positioned to combat fraud and meet the evolving demands of their customers.
Most of all, it helps insurers build trust and better deliver on their promise to be there for customers when it matters most.
Take a deeper look at how insurance leaders can create digital transformation strategies that meet today’s challenges in Interac’s new report, and see what Interac Verified can do for your business.
®, TM are owned by Interac Corp. Used under licence.
