insurance carriers. In other words, more knowledge equals reduced costs. The only way to create true claims omniscience is for all parties to have access to real-time claim data.

Traditionally, an insurance carrier e-mailed, faxed or phoned in claims to independent adjusting firms, all of which required that data be manually entered. From the point at which a claim was submitted, 24 to 48 hours could pass before the claim was entered in the adjusting firm's system. As claims were processed by adjusters, the carrier (and policyholders as well) had no real-time access to the status of any claim. It was not uncommon for policyholders to repeatedly call their carrier requesting updates, which in turn generated calls or e-mails from carriers to adjusting firms. Then, either the carrier or adjuster called policyholders back with an update. Multiple (costly) touches were needed to communicate a simple status update or other pertinent information to policyholders. This added complexity served to inflate costs and cycle times and created a "double whammy" to the insurance company, as good customer service was compromised in addition to the cost of adjustment.

When an independent adjusting firm has access to the carrier's information systems, greater efficiency can be realized. Once a policyholder reports a claim and the insurance company enters that in its system, the adjusting firm receives the assignment and has immediate access to all data to begin the claim process. "Best" practices would dictate that the adjusting firm is able to immediately make first contact with the insured through a call center before an adjuster has been assigned to the claim. Throughout the claim process, real-time updates are made by adjusters and are accessible to both parties. Carriers can also decide to grant policyholders access to their claim status via the Internet. In a manner similar to tracking an online order or package, policyholders can log into the carrier's system and view the claim's progress, thereby reducing overhead costs, eliminating many call center contacts, and freeing up adjusters.

Because the interface is web-based, policyholders can access this information anytime, anywhere without ever making a phone call.

The insurance industry has long lagged behind in the rapid adoption of technology. Although some adjusting firms have recently added web-based platforms, many have not fully integrated all of their systems with that of their clients to provide a comprehensive view of the full claims, estimating, and billing process.

Total integration of all systems is necessary to create a true flow-through environment. Systems requiring integration include:

• Enterprise Resource Planning (ERP) and / or Customer Relationship Management (CRM) systems.
• Claim estimation and claim dashboard systems.
• Web-based customer interface systems.
• Human resource systems.
• Accounting systems.

Considerations for Integrating with Adjusting Firms

For insurance companies seeking better integration and claim management with adjusting firms, there are several key criteria to ponder before integrating into a client's system.

Automating the internal system. Before an independent adjusting firm can receive information from an insurance carrier, the organization must have an automated system in place. Adjusting firms still receiving faxes or telephone calls, and manually inputting data into an archaic system will continue to lag behind. Claims need to be sent electronically from insurance carriers.

Full flow-through communication. While receiving data from the insurance carrier is critical, the tangible benefits for the carrier come from full flow-through and transparent claims information passing between the two. This means the adjusting firm receives claim data directly from the carrier, and that the carrier's system receives data about how the adjusting firm is processing it. This robust data exchange between a carrier and its claim adjusting firm is imperative to build a long-term relationship between the organizations.

Both firms need IT cooperation. Security concerns will be a top priority for both companies' IT departments when conversations about data sharing begin. It is critical for the system to address all security threats. The IT departments must work in tandem to understand that the security measures taken throughout the integration process will ensure a smoother install and a secure environment for the final product.

Multiple carrier systems. While an insurance carrier operates within a single environment, a large independent adjusting firm could easily be tapped into more than 50 carriers' systems at once. Plus, each insurance carrier uses a different system to manage its claims process. Carriers must partner with an adjusting firm that is agile and can work with different carrier systems to promote data integration.

Off-the-shelf claim adjusting solutions do not exist. There are many claim software solutions available on the market, but none provide full integration between the carrier and the adjusting firm. Because each carrier has a unique operating system, each integration is also unique, requiring new programming that can take anywhere from one to eight weeks to write and implement. Be leery of promises of too quick or simple integrations between carriers and their adjusting firms.

It's an Investment

Convincing companies to invest in any non-critical item at the moment is extremely difficult, which means carriers must identify which independent adjusting firms are willing to make the critical investment in systems and technology integration. While ignoring this tech trend may not cost an adjusting firm business today, it most certainly will tomorrow. More importantly, early adopting adjusting firms illustrate a commitment to carrier customers and can solidify a stronger, longer-term relationship

Win-Win Benefits of Integration

Data integration is the foundation of any partnership between an insurance carrier and an adjusting firm. Like all good partnerships, there are benefits for both. Most importantly, the benefits are also quite tangible to policyholders.

Integration speeds up the claim cycle and provides real-time data to policyholders -- two factors that directly impact the policyholder's experience and satisfaction level. Integration also increases the amount of information being communicated between the carrier and the adjusting firm while decreasing the human interaction needed to gain that knowledge. Lengthy phone calls can be avoided thanks to the accessibility of all pertinent information in one user-friendly system.

Integration allows the adjusting firm to provide superior service, therefore building better relationships with the carriers it serves. Automation also greatly improves the efficiency of the system and creates quality control measures. Finally, by having all the data in one place, adjusting firms are better equipped to manage resources, analyze data, and identify trends that further drive productivity and profitability in the future.

Carriers are challenged to respond to claims more swiftly than ever before. Often their response determines if they maintain the policyholder relationships. The carriers in turn are applying pressure to independent adjusting firms to provide faster, more accurate claim processing while still upholding superior customer service. Adjusting firms that meet this challenge by implementing an integrated bridge between a carrier's internal IT system and their own systems are setting themselves apart to lead the pack. And carrier companies continue to notice.

Listed below are points for consideration when planning system integration, along with the top five potential benefits.

What to Ask an Independent Adjusting Firm

Insurance carriers can increase customer satisfaction and decrease costs by partnering with an independent adjusting firm that can integrate seamlessly into their internal systems. Any carrier considering systems integration with its independent adjusting firms should be prepared to ask the following questions:

• Does your company have the ability to integrate your claim system with the multiple insurer claim systems of my firm?
• Is your claim system Web-based?
• What level of security does your firm have with respect to firewalls, disruption of service and loss of data?
• Is your claim system integrated with all estimating programs that are used by my firm?
• Is your claim system synced with and supported by a call center for customer relations?
• Is your claim system tied to your financial system to easily reconcile billings and payments?
• Do you have staff capable of developing and implementing a technology integration project with insurance clients?

Five Reasons to Integrate

1. Create a more seamless, real-time environment between company and adjusting vendors to provide a higher-quality claim experience for insureds.

2. Reduce costs associated with lost, delayed, or incorrect information flowing between your company and your vendors supporting the adjustment process.

3. Provide a faster and more transparent environment to evaluate and address key claim process performance issues between the company and adjusting firm.

4. Reduce redundant or lost claims between the insurer and adjusting firm.

5. Allow claim management more time to focus on measuring and improving customer service as opposed to troubleshooting and damage control.