The idea behind the implementation of technology in the Insurance sector is to make the Insurance processes much more efficient, comfortable and provide the customers with a simplified interface. In recent years when talks about Insurtech was ripe then it was all about blockchain, IoT, wearables, innovations labs and AI. But, as the things started to roll out, it doesn’t seem to be an easy road with expected results will not be visible anytime soon. The digitalization of the Insurance industry has begun with a boom but the challenges surrounding this whole new era are unlimited, and Insurers need to strike a balance between expectation and the practicalities.

The challenges of the Insurtech industry and Insurance as a service:

1. Data and more data

It is a matter of the fact that the available data for the insurers is unlimited which help them to underwrite policies, detect fraud, price the products that were otherwise not possible traditionally. Insurers are constantly gathering, incorporating data received from automobile sensors, home sensors, Amazon web services, social media channels into their business models. It is a great way to be efficient enough and provide relevant content to the insurants.

Reality: There is a widening gap between the available data and the ability of the insurers to process this data contextually and derive insights into it. The data is something that keeps changing continuously, and it needs to be processed and used quickly for the expected results. But, the truth is that insurers do not have any actionable information around this data as they lack the proper infrastructure for fast processing the datasets.

2. Automated customer service and the chatbots

The impact of AI and machine learning on InsurTech is profound, and it is most visible in the customer service department. The automated chatbots are programmed to provide an instant solution to customer queries without any delays.

Reality: Even though chatbots are being adopted by big insurance companies, but accuracy is still an issue. The more complex the chatbot is, the more problematic it becomes. No matter how intelligent a chatbot is, it can never replace a human. Insurers need to ensure that their bots offer a high level of data protection and are compliant with regulatory measures. There are still customers who want to talk to the customer representative, not an automated agent. So, chatbot can never replace the human representatives it can just be another option of communication.

3. AI and cognitive automation

Data analytics and AI are a boon for the insurance industry. The power of AI backed systems help insurers to accurately price risk, manage claims value and do a lot more than only providing insurance. For example, in health insurance, the insurance product is more like a health assistant and for auto insurance using car sensors for usage-based policies. All this sounds like an insurance-perfect technology which is ready to revolutionize the insurance industry.

Reality: The technical hurdles sprout at every stage of AI implementation. AI helps insurers, but it may prohibit them to consider some factors or introduce some new precise elements. The immense intrusion of AI into the systems poses a roadblock that is the more sophisticated and accurate AI becomes the capability of humans to interpret and understand it keeps growing bleak. It is a challenge for the state actuaries and the rate reviewers who are responsible for evaluating the vast number of risk-classifications and seeing how it influences other in the process. Rate determination for tomorrow requires a perfect balance between the insurers and the AI-driven risk pricing tools.

From the above, it can be concluded that the insurance industry is rapidly evolving introducing a new wave of innovation. But, the challenges are still persistent and to be successful insurance companies need to employ quality people with competent management and supporting technical infrastructure.

NPS in Insurance Claims: What Insurance Leaders Are Doing Differently

By : Divyanjali Gupta

Published on Jul 24, 2025

Customer Experience CX Insurance NPI In Insurance

Claims are the moment of truth. Are you turning them into moments of loyalty?

In insurance, your app interface might win you downloads. Your pricing might drive conversions.
But it’s the claims experience that decides whether a customer stays—or leaves for good.

According to a survey by NPS Prism, promoters are 2.3 times more likely to renew their insurance policies than passives or detractors—highlighting the strong link between customer advocacy and retention.

NPS in insurance industry is a strong predictor of customer retention. Many insurers are now prioritizing NPS to improve their claims experience.

So, what are today’s high-NPS insurers doing differently? Spoiler: it’s not just about faster payouts.

We’ve worked with claims teams that had best-in-class automation—but still had low NPS. Why? Because the process felt like a black box.
Customers didn’t know where their claim stood. They weren’t sure what to do next. And when money was at stake, silence created anxiety and dissatisfaction.

Great customer experience (CX) in claims isn’t just about speed—it’s about giving customers a sense of control through clear communication and clarity.

The Traditional Claims Journey

Forms → Uploads → Phone calls → Waiting
No real-time updates
No guidance after claim initiation
Paper documents and email ping-pong

The result? Frustrated customers and overwhelmed call centers.

The CX Gap: It’s Not Just Speed—It’s Transparency

Customers don’t always expect instant decisions. What they want:

To know what’s happening with their claim
To understand what’s expected of them
To feel heard and supported during the process

How NPS Leaders Are Winning Loyalty with CX-Driven Claims and High NPS

1. Real-Time Status Updates

Transparency to the customer via mobile app, email, or WhatsApp—keeping them in the loop with clear milestones.

2. Proactive Nudges

Auto-reminders, such as “upload your medical bill” or “submit police report,” help close matters much faster and avoid back-and-forth.

3. AI-Powered Document Uploads

Single-click scans with OCR + AI pull data instantly—no typing, no errors.

4. In-the-Moment Feedback Loops

Simple post-resolution surveys collect sentiment and alert on issues in real time.

For e.g., Lemonade uses emotional AI to detect customer sentiment during the claims process, enabling empathetic responses that boost satisfaction and trust.

Smart Nudges from Real-Time Journey Tracking

For a leading insurance firm, we mapped the entire in-app user journey—from buying or renewing a policy to initiating a claim or checking discounts. This helped identify exactly where users dropped off. Based on real-time activity, we triggered personalized notifications and offers—driving better engagement and claim completion rates.

Tech Enablement

Claims Orchestration Layer: Incorporates legacy systems, third-party tools, and front-end apps for a unified experience.

AI & ML Models: For document validation, fraud detection, and claim routing, sentiment analysis is used. Businesses utilizing emotional AI report a 25% increase in customer satisfaction and a 30% decrease in complaints, resulting in more personalized and empathetic interactions.

Self-Service Portals: Customers can check their status, update documents, and track payouts—all without making a phone call.

Business Impact

What do insurers gain from investing in CX?

A faster claim is good. But a fair, clear, and human one wins loyalty.

And companies that consistently track and act on CX metrics are better positioned to retain customers and build long-term loyalty.

At Mantra Labs, we help insurers build end-to-end, tech-enabled claims journeys that delight customers and drive operational efficiency.
From intelligent document processing to AI-led nudges, we design for empathy at scale.

Want a faster and more transparent claims experience?

Let’s design it together.
Talk to our insurance transformation team today.

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