The benefits of straight through processing in insurance
One of the key parts of an insurer's automation toolkit is to build out and embed straight through processing (STP) across the claims lifecycle. By implementing true STP automation in key claim activities (eg, FNOL, document management, customer communications, fraud and subrogation predictive analytics, and payments) and across certain claim types, carriers can give customers a highly prized self-service ability, enhancing the customer experience and removing unnecessary manual touchpoints for a more efficient claims process.
STP can even make certain claims a no-touch or low-touch end-to-end process. Fast track claims (minor damage claims) are ripe for this type of intervention. By using STP for these claims, adjusters can then focus their skills on higher-dollar impact claims to ensure proper investigation and resolution. When a carrier begins to use STP interventions in fast track claims, they can start migrating some of the key elements of this claims automation (for example, automatic segmentation and triage, auto reserving, and customer notifications) across other claim types to boost efficiency, increase standardization, enhance the customer experience, and reduce costs. Figure 2 shows an example of how STP in fast track claims can work.