Handling STD claims using traditional procedures necessitates a significant amount of manual involvement. This entails doing things like filling out paperwork, confirming records, and placing follow-up calls.

According to EY's 2023 research, the approximate cost of a human transaction in the absence of self-service technology is $4.78. This amount might add up quickly when considering the several processes involved in the claims processing process.

The repeated outbound calls required to obtain missing data exacerbate this problem even further. In order to find the necessary information, some carriers allegedly make up to six calls every claim, which increases inefficiencies.

According to Simply Insurance, incomplete or inaccurate applications—often referred to as "not in good order" (NIGO) cases—result in the denial of around 40% of short-term disability claims.

The STD process's inefficiencies irritate workers who are already under stress from having to take a leave of absence.

Repetitive information demands, incomplete transparency, and claim determination delays all add up to a bad experience and lower overall satisfaction. For insurers, this can have serious repercussions in a competitive market where providing excellent customer service is a crucial distinction.

Automation and AI: Revolutionizing short-term disability claims

Carriers are finding that AI and automation are the key to improving their STD claims procedure. Time-consuming manual follow-ups are almost eliminated when regular operations like data entry, document collecting, and status updates are automated.

This expedites the claims process and improves transparency by allowing claimants to see the real-time status of their claims. By minimizing delays and lowering friction, proactive updates like return-to-work notifications further enhance the claimant experience.

Reduced call volumes and cost savings

The decrease in outgoing calls is one of the most obvious effects of AI in this field. Traditionally, calls are how insurers obtain information, respond to inquiries, and keep claims updated.

However, some carriers have been able to cut their outgoing call volume by 42% thanks to AI-powered platforms like Ushur's CXA Platform.

Without the need for human agents, AI can manage monotonous jobs, provide prompt replies, and gather vital data from claims.

This boosts overall productivity and policyholder satisfaction by lowering operating expenses and freeing up employees to address more complicated situations.

Improved client satisfaction and assistance

Beyond improving business effectiveness, AI also raises consumer happiness. Carriers make it easier for claimants to handle their claims by providing self-service tools like e-signatures and real-time updates, which lowers friction points.

Automated case and care management outreach further aids workers during their rehabilitation and helps them return to work more rapidly.

In a market where competition is fierce, these reduced procedures provide a smoother, more customer-focused experience, which is essential.

Cost-effectiveness and scalability

AI also offers insurers perks like cost savings and much-needed scalability. AI provides the capacity to handle enormous numbers of claims with ease, even for carriers who handle thousands of them.

Insurance companies can communicate with claims immediately thanks to automated technologies, which also reduce the amount of human paperwork and turnaround times.

Utilizing Ushur's platform, some carriers have claimed much quicker processing times, growing their operations in a matter of weeks while cutting expenses and raising customer satisfaction.

Inside the CXA Platform of Ushur

Many insurers have had issues when it comes to managing absence engagement, particularly with manual systems that generate delays and irritation.

These issues are addressed by Ushur's Absence Management Automation solution, which integrates smoothly with backend systems and automates data collecting through SMS exchanges.

Important information, such as dates of return to work, may be readily provided by claimants, negating the need for repeated calls and freeing up live agents to handle more complicated problems.

The numbers speak for themselves: 85% of claimants reply quickly, 50% do so within five minutes, and 90% do so within an hour, indicating a sharp increase in customer engagement rates.

This quick interaction shortens processing timelines from weeks to just a few hours, reducing call volumes. Customers who automate hundreds of messages every month and easily engage big claimant bases with Ushur's technology report significant operational efficiency and cost savings.

The administration of short-term disability claims in the future

Insurance companies that want to differentiate themselves from the competition and expedite absence management must employ AI and automation. These technologies are now essential.

Solutions like Ushur's AI-driven platform transform a previously difficult and time-consuming procedure into an effective, transparent journey by automating repetitive operations, reducing call volumes, and enhancing customer experience.

Those who use AI will be better positioned to fulfill policyholders' rising expectations as the insurance industry continues to change, while also cutting costs and producing better financial results.