Imagine being in the digital era while still manually conducting operations. Well, this isn’t the ideal scenario, if you are looking to grow in insurance. Anybody who has filed for a claim or has applied for insurance would know the amount of time that goes into the completion of both these activities. This is where STP or straight-through processing comes into play. Read on till the end to learn about the transformative benefits of straight-through processing in insurance.
Straight Through Processing in Insurance
We live in a world of instant gratification. Time-consuming processes and manual operations significantly contribute to unsatisfactory customer experience. Customers are accustomed to quick and efficient services, so, when they do not get them, they can switch to another company. With STP in operations processing, the insurers will be achieving automation in insurance operations.
They can automate claims and policy issuance and accelerate the processes while enhancing accuracy. Additionally, they can reduce errors that increase customer dissatisfaction.
STP Insurance- The Transformative Insurance Benefits
95% of policies may undergo straight-through processing (STP) with no underwriting involved. Insurers are widely increasing their adaptation to STP in insurance. Here are the transformative benefits of STP in insurance:
Increased Focus on Customer Attention
With STP insurance in place, the insurers can focus more on giving enhanced customer experience. Certain claims require more attention, and the rest include minor injuries and minimal payouts that can be easily automated using straight-through processing. This means that there will be faster processing of claims.
With STP, the underwriter can focus on more complex claims, and this will help them to maintain transparency and consistency throughout the process.
Streamlined Insurance Operations
With rising claims applications, insurers need to adapt to reliable processes to increase efficiency and empower the agents to increase their productivity. The STP in operations processing will increase connectivity benefits across the ecosystem. This will reduce human involvement and also will lower the overhead costs.
More Efficiency, Data-Driven Insights
The efficiency that will be gained with STP in insurance will help the insurers to extend to faster underwriting and claims processing. With this efficiency, in the operational workflow, there will be faster approval of eligible policies without any delays. Additionally, you will be getting a treasure trove of data-driven insights which are crucial for strategic planning as well as staying ahead in the competitive marketplace.
Enhanced Risk Assessment
With STP, the insurer can enhance risk analysis, especially in motor insurance. STP in insurance operations will enable the underwriters to conduct risk analysis with the use of real-time data and advanced analytics that has enabled a more nuanced and dynamic approach to risk assessment and pricing
Accurate Pricing
Insurers who are equipped with STP in insurance operations can price the policies more accurately while attracting a strong customer base without losing their profitability. With this precision in pricing, the customers are more likely to purchase a policy as it will cater to their budget and risk profile, thus enhancing customer satisfaction and loyalty.
Are You Ready to Step Up with STP in Insurance?
While it would not be unfair to say that insurers are changing the conventional insurance landscape, staying ahead with the right insurance technology infused with STP is the key. iNube understands the importance of automation in insurance operations. The advanced insurance technology solutions at iNube come with in-built STP and NSTP processes to help insurers achieve the transformative benefits of automation in insurance with a unified solution.
Book a session with an insurance technology expert to learn more!
