System Capacity

Claims volume and activity can easily double or triple in the months following a major event. A reliable claims management system will scale to handle this increased load, and it will use data redundancy and off-site backup systems—all in real time—so that insurers are prepared for just about any scenario. Any downtime or diminished functionality can impede adjuster productivity as well as aggravate policyholders who may be willing to talk about a bad claims experience with family, friends, and acquaintances on Facebook or Twitter.

Integration

Before settling on a claims solution, insurers should determine whether it will integrate into their existing systems. Claims management technology alleviates this concern by seamlessly integrating with proprietary systems. For example, if an insurer has a first notice of loss (FNOL) system for its call center, an effective claims system will connect with it and automatically assign the claim to an adjuster once it has been captured. Technology also supports compatibility with the variety of file formats used in the industry and can easily communicate with the company’s internal systems to both promote claims-handling efficiency, and produce quantifiable results.

ROI

Ultimately, one of the most important criteria to consider is whether a new claims solution will generate measureable, sustainable improvements. Technology affords many ways to reduce costs and speed claims toward final settlement. For instance, communication systems facilitate coordination between insurers, adjusters, service providers, and policyholders to keep all stakeholders updated about progress. Tracking capabilities also monitor claims to make sure they don’t stall in the process.

High-powered analytics use audit algorithms to help insurers keep operating costs under control. To ensure accuracy, these audits inspect claims assignments for common errors, such as redundant repairs or missing estimate items. While some claims assignments are underestimated, many claims contain errors that, when corrected, refine the total claims value and verify that estimates appropriately match the type of work needed to repair damaged structures.

Leading claims management technology also provides users with graphical reports that track company performance for a number of metrics, such as response time for contacting policyholders, inspecting losses, and reporting findings, and then compare those figures against industry benchmarks. Users can then identify opportunities for future training to improve performance and exceed customer expectations.

While the current market has its challenges, it affords insurance professionals the opportunity to improve and innovate. One effective way to achieve that end is to adopt viable management solutions that enhance the claims journey. For those insurers looking to improve their claims management processes, the aforementioned criteria can serve as a valuable guideline to help them pick the solution that improves performance and ensures long-term financial stability to make certain they will be around for their policyholders for years to come.