As an insurance data expert with over 10 years of experience in claims analytics and process optimization, I‘ve seen firsthand how technology is transforming claims adjustment. Claims adjustment is the crucial process of investigating damages, evaluating policies, and estimating costs to determine the insurer‘s liability for a claim. By improving claims adjustment, insurers can enhance customer satisfaction, reduce fraud, increase accuracy, and lower expenses.
Here are six technologies I‘ve seen generate immense value through more efficient and precise claims adjustment:
1. Video Chat
Live video chat allows policyholders to instantly share visual damage information and real-time incident details with claims adjusters. Platforms like Zoom, FaceTime, and proprietary insurer video apps are being utilized. This reduces fraudulent claims, as there is less time for claimants to misrepresent facts.
For example, after implementing video chat capabilities, Farmers Insurance reported a 30% drop in automobile claims fraud. By deterring fraud, insurers save substantially on claim payouts.
Video also improves customer retention. According to an EY survey, nearly 90% of clients consider claims processing speed and quality as important retention factors. Real-time video connections enhance convenience and satisfaction.
2. Advanced Analytics
Advanced analytics leverages past data to forecast future claim obligations. Predictive modeling, AI, and machine learning techniques are applied to historical claims data to identify patterns and generate insights.
For example, by studying 20 years of category 4 hurricane claims data in Florida, insurers can closely estimate potential damage and required reserves when the next category 4 hurricane hits. This allows for more accurate initial loss predictions during claims adjustment.
Liberty Mutual has used advanced analytics to reduce loss ratios by 5-15% in auto and property claims. More accurate claims reserves also prevent losses from under-reserving. Advanced analytics is especially useful for catastrophic claims prediction.
3. Custom Mobile Apps
Insurers are developing custom mobile apps for insureds that allow easy FNOL submission, claims status tracking, and real-time communication. These apps speed up information gathering for more efficient adjustment.
Per a 2021 KPMG report, over 20% of business insurance customers now prioritize digital claims processing when selecting providers. Younger demographics are demanding seamless mobile experiences.
Custom apps also facilitate documentation upload for damage verification. Geotagging confirms location, and image analysis can detect potential fraud. Insurers leverage ecosystems like AppExchange or build using low-code platforms.
4. Computer Vision
Computer vision analyzes images, videos, and drones captures from claims using advanced AI techniques. This automates damage assessment for more consistent, accurate estimates. It also provides 24/7 analysis not dependent on human adjusters.
By flagging anomalies between visual evidence and claimed damage, computer vision can detect potential fraud. According to research by Coalition Against Insurance Fraud, AI-enabled automatic image analysis reduced fraudulent claim payouts by up to 30% for some insurers.
Computer vision systems require extensive training data. Incumbent insurers with rich archives have an advantage. But insurance-focused computer vision models are also being developed by insurtech AI startups.
5. OCR and Handwriting Recognition
Insurers process piles of handwritten and scanned documents. Optical character recognition (OCR) uses AI to extract text data from scanned documents without human input. Handwriting recognition does the same for analyzing handwritten claim forms.
This eliminates repetitive manual data entry, freeing up adjuster time for more strategic analyses. OCR and handwriting recognition are built into intelligent document processing systems offered by vendors like HyperScience and IBM.
Per an Accenture study, automating data extraction from papers can save underwriters over 50% of their time – similar benefits are seen for claims adjusters.
6. IoT Devices
Internet of Things (IoT) devices provide troves of data that aid claims adjustment. For auto claims, telematics track precise accident time, speed, location, driving behavior and more. Home IoT sensors can inform details about property damage claims.
This data reduces fraud by confirming claim details and identifying false accounts. According to Verisk, integrating IoT data has helped reduce fraud rates by up to 15% for some private passenger auto insurers.
IoT also improves customer experiences by enabling usage-based coverage and providing claims status updates via smart devices. But insurers require robust cybersecurity and prudent handling of sensitive data.
Claims adjustment technology improves insurers‘ risk management, loss ratios, customer satisfaction, and competitive positioning. AI and analytics will become integral to virtually every claims process. However, improperly implemented tools could lead to poor data quality or algorithmic biases. Collaborating with experienced insurtech partners can help insurers adopt claims technologies successfully while avoiding pitfalls.
The future claims adjuster leveraging the right technology will spend less time on manual tasks, and more time on high-level loss analysis, customer service, and fraud investigation. Claims adjustment will rely more on automation but still require human supervision and intervention. Insurers that embrace the right innovations will gain a distinct advantage.