The travel insurance claims process is one of the most stressful in the insurance industry. TravelCard aims to use big data to help simplify the experience for policyholders.
Claims relating to medical care often involve policyholders covering some or all of the cost, before eventually claiming it back from their insurer.
With medical-related claims accounting for over half of the £386m ($499) total claims market according to the Association of British Insurers, a large number of travellers may be left facing high bills at the end of their treatment.
Some may be unable to cover them, increasing the importance of insurers being able to process and pay claims as quickly as possible to minimise not only short-term financial losses but also unnecessary stress.
Big Data to streamline to the process
Australian travel insurance provider TravelCard is aiming to streamline the claims process by using big data to analyse a wealth of previous claims data and develop a profile for a reasonable, straightforward claim. Should a policyholder’s claim fit such a profile then payment is made immediately to a prepaid Mastercard.
This approach represents further development in terms of both fraud detection and increasing the trust insurers have in policyholders. Using big data analysis will help identify fraudulent claims while automatically paying individuals who are not flagged, offering policyholders a much more streamlined process.
Such an approach could revolutionise not only the travel insurance space but other insurance markets.
With further developments in data analysis, using big data to profile claims and provide instantaneous payouts could be applied to markets such as household (where low-value claims could be quickly processed) and pet insurance (where profiles of specific breeds and common ailments could be developed).
The travel insurance industry is coming under increasing pressure to assist individuals suffering from pre-existing medical conditions by improving their access to cover. Simplifying the claims process in this area of travel insurance could help improve insurers’ reputation with those suffering from pre-existing medical conditions, giving them peace of mind should a claim need to be filed.
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