Reduction of claim cycle time through process improvement

Abstract

With increasing insurance penetration from 2.7% in 2001 to 3.4% in 2018, the insurance firms have to deal with larger number of customers, thus impacting the average time to settle a claim. Turnaround time is one of the critical KPIs for insurance firms which signifies the operational efficiency of the firm. Unlike life insurance, auto insurance involves numerous complexities based on the scenario of the accident, coverages included in the policy, involvement of 3rd part injury, etc. Workshop or the service center where the vehicle is repaired is an important part in the claim processing for auto insurance. However, depending on the type of workshop that services the insured, the process followed would vary.