The insurance industry is governed by many processes, rules, and subprocesses. These individual processes rest upon critical decision making, sets of manual tasks driven by people, weighed down by additional factors. The sheer complexity of the ecosystem mandates that large vigilant teams lead insurance companies, always staying one step ahead – of customers and competitors.
Should they underwrite the policy? What kind of risk are they willing to take? How much can policyholders be charged for taking on the risk? Will accessory factors mitigate the risk, and what are they? In the event of a claim, who gets covered by the policy, and for how much?
Insurance professionals – irrespective of the product or risk – are constantly making these critical decisions daily and doing it for multiple customers. From the outside, these decisions may be simple, but breaking them down exposes the true extent of their complexity. Be it simple details such as the policyholder’s name or the status of a claim, these questions and the decisions that arise from them help determine everything; whether a subrogation opportunity exists, a claim is a high risk, or even if potential fraud is happening.
Given this level of intricacy and the weight of decisions, are there better ways for insurers to follow due process? For example, can the basic tasks be taken care of while insurers focus on delivering better service or handling more complex claims?