3.5 Things to Know About Claims (Part 3)

Streamlining claims can provide great benefits to clients while helping advisers build long-term, profitable relationships.

Part 3 – Your claims process can become a revenue driver for your products! In our first two installments, which you can find here and here, we discussed that your claims process is a customer experience issue and that a company can reduce expenses within the claims process. This article is going to ask you to think outside the box and disrupt the way a life insurance claim is processed. First, let’s review a typical process for a life insurance claim:
  1. Claim process is initiated by the beneficiary.
  2. Claim packet is mailed to the beneficiary to complete.
  3. Beneficiary completes claim packet, includes any necessary documents and mails it back to the company.
  4. Insurance company receives the claim and initiates an internal claims process. More documents or verifications may be needed, and requests are sent to the beneficiary.
  5. Beneficiary completes additional requirements.
  6. Insurance company verifies and completes the claims process.
  7. Check is mailed to the beneficiary.
  8. Check is deposited into the bank of the beneficiary.
This is a very simplified version of a typical claims process. There may be some differences in this process from company to company. However, you get the basic idea of the process. My previous experience as a top financial adviser at a major company led me to believe that this process is stuck in the past, provides a poor customer experience and is in great need of an update. As part of my adviser role, I had the opportunity to speak at events and gain the perspectives of other advisers. I also spoke with my clients to really get a sense of their experiences with filing claims. Now, imagine with me that you are a financial adviser or agent for a life insurance company. You are the person who prospected the individual and identified a need for a life insurance policy. You built the relationship and gained the trust that allows you to sell a $1 million life insurance policy. GREAT! You just did them a great service. You offered someone peace of mind. Guess who gets to experience the forward thinking, care and love for the futures of spouses, kids, grandkids and legacy? The beneficiaries will be the only people who truly experience the amazing benefit their loved one left for them. Let me ask, would it be beneficial for you, the adviser, to provide an exceptional experience for the beneficiaries? Stay with me. See also: Finding Efficiencies in Claims Process   What if the new claims process was a technology solution that allowed your company to make this adjustment to the claims process? It could look like this:
  1. Beneficiary initiates and completes the claims process on a digital platform that has all the documents pre-filled for convenience. The platform allows beneficiaries to use their mobile devices to scan and upload any additional documents that are needed by the company.
  2. Insurance company receives all documents completed and signed. All documents and correspondence are associated with the correct claim in real time.
  3. Insurance company verifies and completes the claims process - all on a digital platform provided by the life insurance provider.
Here is where the revenue can be generated if your company is forward-thinking and truly wanting to be innovative. Remember when I asked you to imagine that you were a financial adviser? Now step back into that thought process. What if your company electronically notified and looped you into the claims process? Would that be valuable to you as the adviser?
  • Would this allow the adviser/company to create a new relationship that is built, and continues, on an existing relationship?
  • What if your company electronically sent you pre-filled account opening forms and asked you, the adviser, to reach out to the beneficiaries and help them through this process? Would that be valuable to the adviser?
    • Would the adviser have an opportunity to build a relationship with the beneficiary?
    • Would the adviser have chance to retain the $1 million instead of those assets getting deposited at a bank or competitor?
    • Would the adviser have an opportunity to present products or services that could benefit the beneficiary?
    • Do you think the beneficiary would find value in this?
Now imagine that you are the beneficiary. Would it be helpful to complete the claims process quickly, efficiently and on your time frame?
  • Would it be helpful to have a professional help you with the process and $1 million benefit you are about to receive from your loved one’s good planning?
  • Would you want to leave the same legacy for your heirs?
  • If the company provided you with a great user experience, a professional to help you through the process and genuinely wanted to create a lasting relationship with you, would you consider doing business with this company yourself?
See also: Global Trend Map No. 10: Claims   Based on my experience as a trusted adviser, I would find extreme value in a company that engaged and embedded me into the claims process. In addition, advisers have been through this process many, many times and can add true value to those who have not been through the process. When I was involved with the claims process, a few things happened:
  1. We were able to start a new relationship that is built on a common previous relationship. Most beneficiaries would think, “If dad trusted this adviser and company, I can too.”
  2. We were able to continue to provide service to a family who had already experienced the value of what our company offers.
  3. We were able to offer a true benefit and meaningful solutions to the beneficiary.
Stay tuned for the final issue – Part 3.5: Your company can be innovative and generate revenue with the help of insurtech startups.

Brent Williams

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Brent Williams

Brent Williams is the founder and CEO of Benekiva, a configurable SaaS technology platform that transforms the end-to-end life claims and servicing experience. He is responsible for overseeing day-to-day operations for the company.


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