Blog Post
From Complexity to Efficiency: How AI Streamlines Short-Term Disability Absence Engagement
More effective short-term disability (STD) communications and engagement presents a complex challenge for carriers and benefits administrators. The process is fraught with inefficiencies, primarily due to reliance on manual processes such as live calls and outdated methods for the completion of forms and capture of supporting documentation. These outdated methods not only consume significant time and resources but also create frustrating experiences for both employees and employers. In a landscape where client satisfaction and retention are paramount, carriers are increasingly seeking solutions that streamline these cumbersome processes. Enter proven, domain-specific AI and automation — technologies that promise to reduce administrative burdens, lower costs, and enhance the overall experience for all constituents. This blog post explores how AI can transform absence engagement from a complex, resource-intensive process into a streamlined, efficient system that benefits everyone involved — from initiation of claim through return-to-work.
The traditional approach to communications for STD claims relies heavily on manual processes — everything from filling out forms to gathering supporting documentation to making phone calls to chase down needed information. For instance, according to EY’s 2023 research, performing a single manual entry without self-service technology costs an estimated $4.78 per transaction. These costs accumulate quickly, particularly when you consider the multiple steps involved in the absence process, such as producing forms, double-checking data accuracy, and transferring information into HR systems. Furthermore, we have seen high outbound call volumes exacerbate the problem, with some carriers making as many as six calls per claim to track down necessary information that’s not in good order (NIGO). Further, according to Simply Insurance, approximately 40% of short-term disability applications are denied, often because the application was not in good order (NIGO).
These inefficiencies not only strain carrier resources but also degrade the absence experience for employees already facing uncertainty due to needing to file for a leave of absence. Long wait times for claim intake decisions, repetitive information requests, and lack of transparency cause frustration, leading to lower satisfaction and increased chances of customer churn. In today’s competitive market, where customer experience is a key differentiator, the need for a more efficient, customer-centric approach has never been greater.
By automating routine tasks such as data entry and information gathering, AI reduces the need for time-consuming manual follow-ups. This not only speeds up the absence process end-to-end but also enhances transparency, allowing claimants to easily track their claim status and receive proactive updates, and share important details such as their return-to-work date. The result is a more efficient absence journey that reduces friction and improves the overall experience for all parties involved.
One of the most significant benefits of adopting AI is the dramatic reduction in call volumes. Carriers traditionally rely on outbound calls to gather information, answer frequently asked questions, and update claimants on their status. However, with AI-powered conversational tools and HIPAA-secure workflow experiences, much of this communication can be automated — and we have seen this in action with the Ushur CXA Platform enabling client organizations to reduce their outbound calls by 42%. AI can handle repetitive queries, provide instant responses, and even gather critical information from claimants without the need for live agents. This not only lowers operational costs but also frees up staff to focus on more complex cases, ultimately improving efficiency and policyholder satisfaction.
AI’s impact on the claims journey goes beyond just reducing call volumes. It also plays a crucial role in enhancing customer satisfaction. A smoother, more transparent process directly contributes to a better customer experience. By offering self-service options like simple document e-signatures and automated updates, carriers empower claimants to manage their claims with minimal hassle, significantly improving their experience. The solution also supports automation of case and care management outreach, to support employees in their recovery, and get them back to work as timely as possible.
In addition to improving satisfaction, AI offers substantial cost benefits and scalability. For large carriers managing high volumes of claims, the ability to scale support efforts quickly and efficiently is crucial. AI allows carriers to engage with policyholders and claimants instantaneously through automated systems, rather than relying on manual calls and paperwork. In fact, we’ve seen this in action with our own customers, some of which were able to scale their operations in just weeks, reducing costs and speeding up the entire claims process. Faster resolutions not only enhance customer satisfaction but also lead to better outcomes for the carriers themselves.
Many of our customers have faced significant challenges with manual processes in Absence Engagement, particularly in collecting crucial claimant information. These outdated methods often led to high operational costs, delays, and frustration among both customers and staff. For example, some claims required multiple phone call attempts over several weeks, significantly slowing down the process.
The Ushur Absence Management Automation solution has been transformative in addressing these issues. By seamlessly integrating with backend systems, Ushur automates the collection of essential data and documentation such as return-to-work dates and medical treatment information, through automated SMS interactions. This solution streamlines the entire process, enabling employees to confirm necessary details effortlessly and reducing the burden on live agents to chase that information down.
The results have been remarkable across our client base. Real-time analytics reveal engagement rates as high as 85%, with half of the claimants responding within just five minutes and 90% within an hour. This rapid engagement not only slashes call volumes but also reduces claim processing time from weeks to under an hour. Customers utilizing Ushur’s platform have also achieved substantial cost savings and operational efficiency, automating tens of thousands of messages monthly and engaging with large claimant bases in a scalable, efficient manner.
AI and automation are not just technological advancements — they are essential tools for carriers and brokers looking to streamline absence management and differentiate themselves in a competitive marketplace. By automating routine tasks, reducing call volumes, and enhancing the customer experience, Ushur’s AI-powered solutions turn a complex, time-consuming process into an efficient, transparent journey. As the insurance landscape continues to evolve, those who embrace AI will find themselves better positioned to meet the demands of today’s policyholders while reducing operational costs and improving overall outcomes. To learn more about how Ushur supports Absence Engagement, discover our solution at https://ushur.com/solutions/use-cases/absence-management/.
