It takes roughly 30 days for insurance providers to process a claim. Of course, some claims might take longer, depending on the extent and complexity of the damages. The opposite is also true. But that’s the average that most people are bound to experience.
However, Millennials and Gen Z expect faster claims processing, alongside a holistic visibility into the entire process and a personalized experience across every touchpoint. This necessitates insurance companies to not only automate manual processes but also improve the overall policy management experience. Unsurprisingly, meeting these expectations is no short of an uphill battle, especially when all the systems and processes are fragmented, legacy architecture is driving the core, and employees are manually handling every facet.
The more sophisticated the customers become with technology, the more they desire to have the same level of service sophistication with their insurance providers. This is precisely where ServiceNow Financial Services Operations (FSO) platform is a valuable asset. From unifying siloed middle- and back-offices to automating complex claims processing, FSO empowers insurance companies to not just shorten the time it takes to settle a claim but also deliver a personalized, friction-free experience across every touchpoint.
For the purpose of this blog, we’ll explicitly focus on one of the insurance applications of FSO – Insurance Claims Core.
What Is Insurance Claims Core Application?
ServiceNow FSO allows organizations to seamlessly manage claims through a set of applications. These include Commercial Lines Claims, Personal Lines Claims, and Insurance Claims Core.
The Insurance Claims Core application is responsible for providing financial services institutions with a framework through which they can define flexible data structures and customize the decision flows specific to their business needs. Simply put, the application provides organizations with the power to:
- Administer the claims approval engine
- Ensure that the claims are genuine
- Map the path of action on a claim
- Monitor the claims against the set company guidelines.
For ease of access and management on the backend, the application defines different components, such as tables, properties, and user roles. It further provides the ability to read-write user roles so that there’s restricted access to the relevant claims data.
How Does Insurance Claims Core Make Handling Insurance Claims Easier?
Usually, in the course of settling a claim, an insurance company is plagued with siloed operations, overwhelmed employee base, and a lack of transparency. The chief cause of this is the manual handling of all data spread across multiple systems. Of course, there’s inherent complexity in handling claims as well. That’s because claims must be:
- Handled by experienced adjusters who can thoroughly understand the case
- Presented to adjusters in a manner that’s easy to understand and handle
- Subjected to an approval process where one or more individuals (superiors) have their reviews laid out
- Verified against claims-handling guidelines to ensure that the damages are not exaggerated, fraudulent, etc.
With that in mind, the claims process is quite an arduous job, even for the most seasoned employees. This explains why it takes almost a month and even more to process them.
How Does Insurance Claims Core Help?
Now, with the Insurance Claims Core application, it’s possible for organizations to have a seamless claims-handling process. This is because all relevant data is available at a single location and can be accessed immediately. But more importantly, concerned personnel can leverage set workflows – thanks to the claims approval engine.
This engine constitutes tables and decision flows to automate the claims process and make it more streamlined.
- Claim Coverage [sn_ins_claim_coverage]: This stores information about the insurance policy’s coverage.
- Claim Participant [sn_ins_claim_participant]: This stores all the information about all the participants involved.
As far as the decision flow is concerned, Claims System Properties help organizations map and enable certain paths to claim processing. Here’s an example of a property and its description:
- Property: Hierarchical approval required for claim payments?
- Description: Notifies the manager about the claim payment request submitted by the adjuster for review. When disabled, this request directly goes to the manager with approval authority. When enabled, it travels sequentially, regardless of whether the manager to receive the request has the authority to approve it.
All in all, the application significantly cuts down the time it takes to settle a claim, as well as reduces friction across the entire process. There’s a defined path to follow, and claims can be easily managed.
The Other Applications in the Suite
Apart from Insurance Claims Core, the Insurance Claims suite provides two more applications, as mentioned above. These are Commercial Lines Claims and Personal Lines Claims. For reference, both these applications help define the different stages of the claim process. The Insurance Claims Core application is automatically installed with both these applications and the FSO core application.
Altogether, these applications work to:
- Enable end-to-end automation for faster claims processing
- Minimizing the use of paper documents and the back-and-forth between the different parties
- Unify the otherwise disconnected systems to maintain consistency and visibility throughout the approval process
Insurance Claims Core – Critical to Improving Customer Experience
The result of leveraging Insurance Claims Core to its potential is an improved customer experience and reduced operational costs for the organizations. There’s real-time visibility into the status of the claims, making it even more convenient for the organization to provide the right support.
At Xceltrait, we help insurance companies leverage the power of ServiceNow FSO and ensure greater accessibility and efficiency when dealing with their claims. Get in touch with our experts today!