Enhancing Motor Insurance Claims Processing Efficiency through Simulation Modeling Approach: A Case Study of Tsehay Insurance S.C.
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Date
2025-09
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Addis Ababa University
Abstract
This study investigates the enhancement of motor insurance claims processing efficiency at Tsehay Insurance S.C. in Ethiopia through a simulation modeling approach. The research systematically integrates primary qualitative data gathered from stakeholder interviews with comprehensive secondary data sourced from historical claims records. This dual approach aims to identify and analyze critical bottlenecks that adversely affect processing times and customer satisfaction. Through meticulous analysis, the research reveals significant variations in processing durations, with some claims extending over a staggering 853 days to resolve. Such delays not only undermine customer trust but also erode the competitive edge of the insurance provider. The simulation modeling conducted in this study demonstrates that implementing automation technologies could potentially reduce overall claims handling processes times by approximately 30%, effectively addressing these inefficiencies and enhancing service delivery. The study provides actionable recommendations, emphasizing the need for standardized procedures, improved communication among stakeholders, and continuous training for staff to adapt new technologies. This study uniquely contributes empirical evidence regarding the impact of automation on claims processing efficiency and demonstrates how simulation modeling can effectively identify and mitigate workflow bottlenecks. Moreover the quantifiable benefits of automation, the research emphasize actionable recommendations aimed at refining claims processing practices. These include the establishment of standardized procedures that can enhance consistency, fostering improved communication channels among stakeholders and improving continuous training programs for staff. Furthermore, this study advocates for a customer-centric approach in the redesign of claims processes, emphasizing the importance of actively incorporating customer feedback to inform decision-making. By harnessing simulation modeling techniques, the study aims to promote data-driven strategies that enhance operational efficiency and elevate customer satisfaction within the insurance industry. The implication of these findings are profound for insurers aiming to optimize their claims processes in an increasingly competitive market, landscape, as they pave the way for future research endeavors focused on operational improvements and technological advancements in insurance practices.
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Keywords
Motor Insurance, claim processing, Simulation Modeling, Automation, operational efficiency, customer satisfaction