Video assistance vs. traditional claims management Methods: which is the best?

In the insurance world, effective claims management is crucial for customer satisfaction and the financial viability of insurers. While traditional methods have long dominated this field, the advent of video assistance offers a promising alternative that could revolutionize this essential function. This article meticulously compares video assistance to traditional approaches to determine which method maximizes efficiency and customer satisfaction in claims management. Learn the pros and cons of each option and assess which solution might be best for your insurance.

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Definition of terms

To better understand and assess the respective merits of video assistance and traditional claims management methods, it is essential to clearly define these concepts and explore their application in the insurance industry.

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Video Assistance

Video assistance is a modern communication technology that uses live video to connect the claimant (the person making a claim) with a claims adjuster, without the latter needing to physically travel. This system can incorporate advanced features like augmented reality to help with accurate damage assessment in real time. This allows experts to guide claimants through the claims documentation process in an interactive and immediate manner.

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Use in Claims Management

In claims management, video assistance is mainly used to:

• Conduct rapid initial damage assessments.
• Reducing the need for site visits, which can significantly speed up the claims process.
• Improve the accuracy of claims reports through direct visualizations and expert guidance

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Traditional methods

Traditional claims management methods involve physical visits by claims adjusters to the scene of the incident to assess the damage. This approach may include a series of steps such as manual inspection, photo taking, and compiling reports based on direct observation.

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General operation

The traditional process is often characterized by:

• Longer delays between the notification of the claim and the final assessment, due to travel logistics.
• An in-person interaction that can allow for a more empathetic and detailed assessment, potentially offering a more personalized experience for the customer.
• Potentially high operational costs due to transport requirements and increased working time in the field.

These two approaches have unique advantages and distinct challenges, forming the basis for our comparison in the following chapters to identify the most effective and beneficial method for insurance companies and their customers.

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Benefits of Video Assistance for Insurance

Video assistance has quickly become a preferred option for claims management in many insurance companies, mainly due to its numerous benefits that improve both operational efficiency and customer satisfaction. Here is a detailed overview of the main benefits of this modern technology:

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Reduced Operational Costs

One of the major advantages of video assistance is its ability to significantly reduce the costs associated with the travel of claims adjusters. By eliminating the need for physical visits for initial evaluations or even some comprehensive evaluations, insurers can save on transportation and time costs, resulting in an overall decrease in operational expenses.

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Improving Customer Service Efficiency

Video assistance makes it possible to process claims much more quickly than traditional methods. Experts can assess damage and provide advice almost instantly, shortening the claims lifecycle. This speed of response can greatly increase customer satisfaction, who benefit from faster resolution and fewer disruptions in their daily lives.

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Reduction of Response Times

The ability to conduct remote evaluations without the delay associated with expert travel is a crucial advantage in situations where time is a critical factor. For major disasters, such as those caused by natural disasters, video assistance can help speed up the compensation and victim assistance process.

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Enhanced Training Capacity

In addition to its use for claims assessments, video assistance can serve as a platform for the continuing education of agents and claims adjusters. It allows interactive training sessions where trainers can show in real time how to assess different types of damage, which improves the overall quality of service.

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Flexibility and Adaptability

Video assistance offers unprecedented flexibility by allowing experts to manage several cases in parallel without traveling. This not only increases productivity but also the ability to respond quickly in times of high demand, such as after a major event requiring numerous simultaneous evaluations.

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By combining cost reduction, increased efficiency, and flexibility, video assistance is positioned as an advantageous solution for modernizing claims management operations in the insurance sector. These benefits make it an essential technology for companies wishing to remain competitive in a constantly evolving market.

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Advantages of Traditional Methods

Despite the rapid rise of video assistance in the insurance industry, traditional claims management methods maintain several significant advantages that may make them preferable in certain contexts. Understanding these benefits can help insurance companies choose the best approach based on their specific needs and those of their customers.

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Stability and Familiarity

• Customer Trust: Many customers are more comfortable with an in-person assessment, where they can interact directly with the claims adjuster. This interaction can build trust and allow for more nuanced and personal communication.
• Proven reliability: Traditional methods have been tested over the years and have proven to be effective in a variety of situations, providing a solid base of data and experience that companies can rely on.

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Personalized Management

• Detailed evaluation: On-site inspections allow for a more detailed and accurate assessment, especially in cases of complex damage that is difficult to assess via a camera.
• Adaptability: Claims adjusters can adapt their approach in real time based on the customer's specific reactions and needs, which can be critical in resolving certain types of claims effectively.

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Effectiveness in Certain Situations

• Complex cases: For claims involving significant structural damage or conditions that are difficult to assess remotely, the physical presence of an expert is often essential for a complete and accurate assessment.
• Coverage area: In areas where communication technology may be inadequate or non-existent, traditional methods remain the only viable option.

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Human impact

• Emotional support: In stressful or traumatic situations, such as after a major disaster, the physical presence of an expert can offer significant emotional support that cannot be conveyed in the same way through a screen.
• Conflict resolution: In-person interactions can be more effective in managing and defusing conflicts or misunderstandings that may arise during claims assessments.

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In summary, while traditional claims management methods may involve higher costs and delays, they offer a personalized and tailored approach that can be crucial in some circumstances. They remain an essential component in the arsenal of insurance companies, especially where video assistance may not be sufficient or appropriate.

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Optimal Use and Problem Solving with Video Assistance

To maximize the benefits of video assistance while effectively navigating potential challenges, it is crucial to understand the best practices and problem-solving strategies associated with this technology.

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Best Practices for Effective Use

• Daily integration: To get the most out of video assistance, integrate this technology into daily work routines, which will facilitate its access and maximize its use by all users involved.
• Continuing Education: Organize regular training sessions for all users to ensure that they are comfortable with the technology and can use all of its features, including Kolus's degraded mode that allows communication to continue in the event of a weak internet connection.
• Use of Visual Guides: Encourage the use of visual guides and annotations during video support sessions to clarify instructions and improve understanding between parties.
• Regular Feedback: Regularly gather feedback from users to identify opportunities to improve the tool and its use.

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Common Problem Solving

Connection issues: Kolus's degraded mode is an ideal solution when bandwidth is low. This feature makes it possible to maintain effective communication by sending successive high-quality photos, ensuring that the evaluation can continue even without a smooth video.

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• Resistance to change: Resistance to change can often be overcome by convincing demonstrations of the effectiveness of technology. Offer demonstration sessions that highlight how video assistance can simplify and speed up the claims management process.
• Security questions: Build trust in video support by using solutions that offer end-to-end encryption to protect transmitted data and by training users on data security best practices.
• Technical complexity: Simplify use for non-technicians by choosing intuitive user interfaces and providing accessible and responsive technical support.

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By adopting these best practices and being ready to solve common problems, businesses can fully benefit from the benefits of video assistance, while minimizing potential barriers to its effectiveness.