Why to Apply Knowledge Management to the Insurance Industry

By Monica Kohn   |   May 2, 2018
Why to Apply Knowledge Management to the Insurance Industry

Knowledge management for insurance has become a critical tool that helps set price policies, determine risks, improve customer service, and control costs. In fact, knowledge management for insurance is crucial for both the front line insurance companies and their reinsurance partners.

The profitability of an insurance company relies upon its capability to accurately predict losses, price its insurance products for risk, and determine the correct premium prices to cover claims while providing a profit. This must be accomplished while remaining competitive.

Accurate pricing hinges on a company’s knowledge management abilities, which long ago moved away from data in spreadsheets. In addition to supporting your insurance companies operations and customer service, you need a robust system to satisfy auditors who want to see the tightest controls available for computing loan loss reserves.

Controlling Costs in Health Insurance

Healthcare costs are escalating, and knowledge management for insurance is helping to contain healthcare costs. Your knowledge management system must focus on core data and the true drivers of escalating expenses. With accurate data, your company can construct health plans, including co-pays, employee premiums, and group discounts. Plus, knowledge management for insurance must also include and analyze data on healthcare facilities and doctors within a specific discount network, which can mean discounts of 30-35 percent less than typically charged.

Knowledge management for insurance can also construct plans that include preventive care, screenings, and other features while driving exceptional customer service and better profitability.

Improving Customer Service With Knowledge Management

It’s not just answering questions a patient may have. Knowledge management will expand your ability to provide self-service options over mobile devices, which surpassed telephone contact as a preferred option for consumers since 2015. Even such tasks as scheduling equipment deliveries becomes automated and streamlined as coverage is confirmed through the system.

Perhaps more than any other industry, the insurance provider sector is constantly seeking ways to reduce paperwork. Knowledge management for insurance companies reduces the massive collections of paper applications and claims while improving efficiencies.

Increasingly, your insurance company must leverage technology as a primary method to equip your employees and customers with relevant information at the right moment. This produces lower expenses, increased productivity, satisfied patients, and better employee performance.

The benefits of knowledge management span the entire insurance value chain, from improving agent productivity with collaboration tools to reducing the time-to-market for new products. In the process, you increase customer satisfaction with self-service options, established FAQs, and agents equipped with accurate data to provide the best solutions.