As the number of vehicular accidents increases,
claims management systems also grapple with
rising repair costs and delays caused by auto
parts backlogs. Customer satisfaction is
suffering as a result; J.D. Power found that
automobile claims are returning to pre-
pandemic levels.
According to the Bureau of Labor Statistics, the
total number of workers' compensation claims
reported in 2021 was over 2.2 million, an
increase of 6.3 percent compared to the
previous 12 months.
Rising Claims Severity
Flood losses have been on the rise in recent
years, culminating in both in economic damage
(270 billion USD) and insured losses (111 billion
USD) during the 2021 year alone. Increasing
losses from natural disasters are not restricted
to the US. The UK was hit by 900 million USD of
economic losses from natural catastrophes
such as storms and flooding in 2022, while
Northwestern Europe was hit by a cluster of
winter storms in 2022 resulting in 4.1 billion USD
in losses.
These storms and bouts of intense flooding
aren't just damaging real world property –
they're also causing damage to insurers and
claims processes.
An increase in hazard risks strongly correlates
with increasing rates across all lines of business.
Economic storms, such as increasing inflation
and rising interest rates, force organizations to
re-evaluate their balance sheets as investment
income stagnates.
MODERNIZING CLAIMS MANAGEMENT | 2
