Insurance Claims Trends & Predictions
Snapsheet leaders recently sat down to discuss the trends they predict will take 2023 by storm. The insurance industry is dynamic and ever-changing, and this year will bring more disruption, advances, and opportunities for revolutionary change.
These five trends will continue to create opportunities for growth and innovation in 2023:
1. Insurance companies will balance the need for claims and payment automation and focus on personalized customer service by utilizing data to achieve their goals
It’s no longer enough for insurance companies to collect data. They must now find ways to collect and manage the correct data — then store it in ways that allow for easy access. Every carrier says they are a data-driven company, but if a carrier simply collects information, that does not necessarily mean they are making data-informed decisions.
Insurers have traditionally gathered a surplus of data or none at all. Even those that did collect and store customer data had limited ways to access it. Without meaningful analysis, that information didn’t help carriers improve their customer experience.
Now carriers are finding ways to use technology to balance automation with personalized service to provide an efficient and effective customer journey.
“2023 is going to be a very transformational year in the insurance space,” said Eric Waldinger, Chief Revenue Officer at Snapsheet. “Carriers are starting to question how they can do things differently because they not only want to - but need to - make big changes. Some have started to take a step in the right direction and I believe this year we’ll see many others follow through with making things happen.”
2. P&C insurers will quickly implement new technology to improve efficiency and reduce costs due to economic market shifts
Carriers are no strangers to change, but making quick shifts in claims operating models or strategies is challenging. To adapt to new technologies and workflows in 2023, carriers need to embrace agility and make swift changes. Improving efficiencies to reduce costs is driving technology investments within the insurance industry when there is a clear return on investment.
In the past, insurers had to focus on simply surviving the economic downturn and global inflation. Now, the tide is changing. Insurers are ready to re-focus on strategic growth and greenlight initiatives they previously placed on hold.
“2023 in context is a moving year. 2021 and 2022 were all about surviving the new norm. But in 2023, we can get serious about making claims operating model changes to address the burgeoning challenges like supply chain delays, labor rates, parts shortages, and other issues in restoration environments,” explained Andy Cohen, President at Snapsheet.
3. Collaborations between established insurance companies and insurtechs will become more common in the future
2023 will see many new revolutionary partnership movements. With new partnerships being announced daily, insurtechs and carriers everywhere are coming together to create transformational claims solutions for the industry. These collaborations are designed to solve specific challenges or to create widespread operational changes.
Snapsheet CEO Brad Weisberg described how the strong partnerships between carriers and insurtechs will drive results. He explained, “One of the major trends we're going to see in 2023 revolves around closer partnerships between carriers, insurtechs, and vendors in our space…to allow carriers to scale faster. It allows carriers to focus on the user experience of customer acquisitions and gives them more flexibility to collaborate and quickly innovate.”
Through its smart partnerships with best-in-class carriers, MGAs, vendors, and other insurtechs, Snapsheet brings innovative claims solutions & more to its customers.
4. Digital insurance distribution channels, such as online marketplaces and aggregators, will see continued growth in the industry
It’s clear digital distribution channels are here to stay. Customers demand a simple, intuitive digital experience that switches seamlessly to a more personalized approach when needed. In 2023, we predict different distribution channels - like online marketplaces and aggregators - will continue to develop.
Embedded insurance products are also a trend we see continuing to gain steam in 2023. Customers enjoy easy and low-effort experiences. Purchasing insurance at the point of sale, alongside a product you’re already buying, makes it a no-brainer - especially when they are sold alongside a trusted brand or product.
These simple distribution models will continue to impact the ease of purchase, which could lead to better uptake rates. Snapsheet’s claims management system delivers an intuitive, customer-first design to meet demands.
5. The need to comply with laws and regulations will require insurance carriers to prioritize legal compliance with minimal cost increase
Changes in the regulatory environment continue to challenge insurers, and staying ahead of compliance issues will always be critical. Having technology in place to help meet compliance and regulatory requirements is a way insurance carriers and their partners can continue to prioritize those needs with minimal cost increases.
Dan Colomb, COO at Snapsheet explained, “We continue to see regulatory changes driving the need for innovation in the insurance industry — and Snapsheet delivers. When there is a new idea or legislative concern, we respond quickly with system updates. Sometimes customers reach out to help us find ways to be more proactive and together we look for innovative ideas.”
Using technology like Snapsheet’s claims management system will help carriers meet regulatory requirements cost-effectively, while continuing to meet market challenges.
Learn how Snapsheet simplifies claims management, reduces claims cycle time, and lowers overall expenses!