Importance of Claims Management Software

In today’s extremely competitive marketplace, insurance companies are consistently challenged by new government regulations and an increase in consumer expectations. Managing claims effectively is crucial for both small and large insurance companies.

Rapid Settlement

• Claim settlement is just one aspect of the process. Several additional stages can be involved, prolonging the process.
• Claimants/insurance customers expect to settle claims quickly and effectively.
• High customer satisfaction can provide companies with a competitive edge.
• Reducing claim settlement will improve service and decrease customer complaints.Automated claims management software speeds up the process and lowers cost.

Customer Retention

• Claims management system enhances client satisfaction and assists in retaining customers.
• Set up claims efficiently, saving clients from unnecessary costs.

Lowered Cost

• Lowering costs by using a claims management process, will allow companies to past savings on to consumers.
• Higher claim cost reduces profitability and potential delays in claim settlement increase cost for insurance companies.
• Claims automation decreases operating costs.
• Decreasing errors, detecting fraud, and reducing time in claims processing increaseses profitability.
• Additional functions which reduce costs include development programs which aim to prevent the occurrence of claims.

Fraud Prevention

• Claims management helps avoid fraudulent claims by allowing questionable entries at their initial stages.
• Failure in detecting these claims at an early stage costs more for your business.
• Propagation of client discontent happens because illegal claims will reduce the settling time of genuine claims.
• Detection of fraud involves the use of data mining tools to develop models that identify fraudulent claim patterns.

Limit Litigation

• In many cases of insurance claim disputes, the company ultimately agrees to pay a reasonable amount if a customer has an authentic claim and presents supporting evidence along.
• Settling a claim quickly can avoid the chances of litigation, liability assessment is vital to achieving a quick resolution in a claim dispute.
• Insurers work to avoid disputes because it leads to increased company's cost for settling a claim.
• Boutique insurance companies are increasingly exposed to potential litigation rather than more favorable claim disputes.

JDi Data Corporation has been providing insurance solutions and insurance claims software for 30 years. The product suite includes insurance management software and claims management systems for property and casualty, medical malpractice, risk managers, third party administrators, etc. To learn more about JDi Data policy management software, visit our website.