By Jacqueline Guerrero Olivas, Sr Director of Alliances, InvoiceCloud
In 2025, digital-first claims, automation, and real-time engagement will set leading insurers apart. P&C insurers have already invested in digital first notice of loss (FNOL), leveraging cloud-based systems for increased agility. However, the next phase of digital transformation will separate leaders from the rest of the industry. Insurers must go beyond initial digital touchpoints to seamlessly integrate automation, straight-through processing, and end-to-end digital engagement - especially digitalizing payments. The key differentiator will be the ability to balance technical workflows with a personalized experience. Those that invest in these areas will drive efficiency, reduce cycle times, and enhance policyholder satisfaction.
Why Is the Claims Process So Critical for the Customer Experience and How Can Maximized Automation Help?
A claim is the defining moment in an insurer-policyholder relationship. While policyholders interact with insurers regularly for premium payments, their claims experience determines overall trust and satisfaction. A fast, transparent, and seamless process reassures customers and strengthens loyalty.
Many insurers have automated FNOL but neglect the payment process, leading to frustrating delays. Digital payments (Virtual Card, Direct to Debit, ACH, and Real Time Payments) provide immediate relief, especially in disaster situations where traditional check payments fail. In addition to eliminating processing delays, digital payments improve trackability, allowing policyholders to see exactly when and how they will receive their funds. Consumers today expect real-time updates and frictionless transactions and insurers that fail to modernize risk losing them to more tech-savvy competitors.
“An Accenture study suggests that nearly 50% of customers who have a bad claims experience consider switching carriers, highlighting the obvious importance for investment in claims processes,” said Michael Anderson, Global Industry Advisory Lead, Claims, Guidewire.
How Can You Ease Internal Fears That Automation Will Replace Personal Interaction in the Claims Process?
Not every policyholder wants a fully digital claims experience. Some prefer human interaction at key moments, while others embrace an end-to-end automated process. The key to successful claims automation is offering flexibility—allowing policyholders to engage how they prefer, without forcing them into a one-size-fits-all process.
For example, younger, tech-savvy customers may want a completely digital experience, while others may still want human touchpoints at critical decision points. Some policyholders may switch between digital and manual processes within the same claim. Insurers must build adaptable workflows that cater to individual preferences without compromising efficiency.
How Can Automation and Cloud-Native Solutions Help Improve Both Customer Service and Operational Efficiency?
Claims automation isn’t just about reducing costs—it directly enhances customer experience (CX) while improving internal operations. Many insurers mistakenly separate CX and efficiency, but in reality, they are deeply connected.
Investing in CX through digital modernization naturally drives efficiency. Self-service options reduce customer inquiries, automated workflows eliminate manual intervention, and digital payments remove check processing delays while improving transparency. Additionally, cloud-native solutions allow insurers to scale their automation strategies efficiently, adapt quickly to industry changes, and implement straight-through processing for streamlined claim resolution.
As digital expectations continue to rise, insurers that leverage cloud-based automation will create a competitive edge, reduce operational inefficiencies, and deliver a more frictionless policyholder experience.
The future of claims is end-to-end automation. Insurers that embrace digital workflows, flexible engagement options, and real-time payments will lead the industry. Those that hesitate will face rising customer dissatisfaction and operational inefficiencies.
One key takeaway: Automation is not about replacing human interaction—it’s about enhancing it. By prioritizing speed, transparency, and flexibility, insurers can build lasting customer trust and position themselves for long-term success. The time to act is now.
Michael Anderson, Global Industry Advisory Lead, Claims of Guidewire and Angela Abbott, AVP of InvoiceCloud recently partnered to share their insight on claims automation, specifically balancing CX and efficiency to shape the future of insurance. Listen to their conversation HERE.