Better usage of customer data can positively
impact claims management in many ways:
Improved Claims Triage and Adjudication:
Insurers that leverage data at the First Notice of
Loss (FNOL) dramatically improve their claims
management process. The ability to capture
image and text data and apply analytics at the
outset can help to guide a simple claim to
straight-thru-processing (STP) or move a more
complex claim to a designated claim's
professional.
Claims Forecasting and Loss Reserves:
For any new claim, it is extremely difficult to
predict its size and duration. This becomes even
more problematic for long-term claims such as
workers' compensation and liability cases. The
ability to look at outcomes from similar claims –
quickly and accurately – enables claims
professionals to better calculate loss reserves
and understand how much money is left for
future claims.
Litigation Expense Management:
Managing costs is a critical part of the claims
process. And insurers are keen to manage
litigation expenses since these represent a
significant proportion of the overall cost of
claims. Case in point: the Insurance Information
Institute (iii) reports that "U.S. commercial auto
insurers saw their liability losses nearly triple
between 2010 and 2019, an era in which the
median jury verdict's monetary award almost
doubled."
Data can play a key role in addressing this issue.
Insurers have a plethora of historical claims data
that includes information on lawsuits, settlement
offers and court decisions - information that can
provide real insights.
MODERNIZING CLAIMS MANAGEMENT | 5
