EFFECT OF CLAIMS DIGITALIZATION ON SERVICE DELIVERY BY INSURANCE COMPANIES IN KENYA
Abstract
Purpose of the Study: With technological advancement, many processes that heavily relied on physical interactions have been virtualized in a bid to make them more efficient and streamlined. The claims’ function plays a key role in the operations of insurance companies and digitalization of the processes can enable insurers focus more on customer experiences and improve service delivery. This study sought to establish the effect of claims digitalization processes on service delivery by insurance companies in Kenya.
Methodology: A descriptive research design was employed with the population being all 56 insurance companies in Kenya as at 31 December, 2021. Data was collected using questionnaires Descriptive statistics and regression analysis were used to assess the relationship between claims digitalization and service delivery.
Findings: Study findings indicate that for many insurance companies, claims digitalization has been implemented, though not fully. It was established that there is a strong positive relationship between claims digitalization and service delivery, hence implying that digitalization of the claims function impacts on service delivery. Claims automation, audit controls and back-end claims management emerged as statistically significant predictors of service delivery, with integration of third party service providers and self-service tools, not being significant predictors.
Recommendations: The study recommends that digitalization of the claims process be enhanced, by use of self-service tools and end-to-end claims automation. Claims eco-system, and databases of third-party service providers can further be developed and availed to customers, and training and upskilling of staff be enhanced on claims management alongside customer service. Insurance companies can also gather information from their records and/or clients to keep track of how loyal customers are. Further research can be done with a focus on service delivery from the customer’s perspective.
Key Words: Claims Management, Digitalization, Service delivery, Insurance companies
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