Changing Workforce
Even before the pandemic insurance companies and risk managers were experiencing a
shortage of skilled claims professionals. Unfortunately the "Great Resignation" has only
exacerbated the problem. As recently as five years ago, it was estimated that the average
years of experience for a claims adjuster was as high as 20 years. Today that number has
fallen to under 10 years, and in many cases, as low as 5 years. Inexperienced claims adjusters
simply put more pressure on risk managers and claims leaders to meet customer
expectations with rising claims volumes.
Claims Process Transformation
Fortunately, times are changing. The claims industry is in the midst of transformation that is
being driven by new data sources and emerging technologies. This section will review the
new technologies that are having a dramatic impact on the claims process.
Data and Analytics
Big data comes from a myriad of sources, both inside and outside the company. Data resides
in multiple disparate systems throughout the enterprise. There are a variety of formats,
including structured, semi-structured, and unstructured data. Insurers have been relatively
successful in their ability to capture large amounts of customer data; the difficult part is the
ability to harness that data and turn it into useable information.
In the claims process, the inefficiencies in data usage often results in poor claims outcomes,
lower customer satisfaction and reduced policyholder retention (which affects company
profitability).
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