Documenting and ranking business objectives may seem like obvious first steps, but a lot of managers do not make this initial effort. This analysis in particular is important because it ensures that a claims manager's most important goals are met first. Claims organizations can be more successful in gaining benefits from efficiency programs when managers clearly define business objectives and determine their order of importance. Managers can then use this ranked criteria to ensure that the most important guidelines are given precedence when dispatching assignments.

Audit Process Failures

Missed appointments are often unavoidable under certain situations. Perhaps it is because the claimant forgets about his or her appointment, or a job takes longer than expected and the appraiser is thereby detained. Claims managers should look at the frequency of and reasons for missed appointments. Is it because the appraiser does not have the correct customer information, such as the vehicle location or the customer's phone number? Is it because there was a breakdown in communication during the process such as when an appraiser arrives at the shop only to find the vehicle is not there? Did the shop let the insurer know that the vehicle is not on site? Did the customer let the insurer know that he or she could not keep the appointment?

Even if missed appointments seem inevitable, it is still important to document these process failures and the underlying reasons. Process failures should be categorized and measured to create actionable reporting. By examining process failures in detail, claims managers can better pinpoint the reason that inspection paths go awry and then use that information to put parameters in place to avoid these scenarios.

Analyze FNOL Processes

While processing assignments, effective resource management can drive noticeable results in reducing cycle time. Effective resource management ensures that the preferred inspection path is selected upfront, preventing the claim from being routed inefficiently or reassigned.

How can an insurer improve the initial field inspector selection process? First, claims managers should look at patterns in data to determine which criteria can likely predict a claim's outcome, such as potential total loss, salvage, or repairable. Then the claims manager should develop a set of questions that call center representatives can ask the claimant at FNOL. The answers should be recorded so that a preferred method of inspection is indicated for each outcome. For example, if a vehicle is 95 percent likely to be a total loss based on scoring, then an assignment should go directly to the salvage yard to pick it up and the claim should be routed immediately to the total loss unit for settlement.

Insight into how to route a claim efficiently at FNOL can certainly speed up the process. However, even if the claim is directed to the preferable inspection path, there is no guarantee that the appraiser has the correct skill set to evaluate the vehicle. With resource management tools, claims managers can define each appraiser's skill set so that field resources receive the best possible assignment. For example, what it your claimant requires an appraiser that speaks Spanish and can appraise motorcycles? In an automated system, skills can be entered for each appraiser so that the call center rep or dispatcher can ensure that the appropriate resource is assigned to the claim.

Field Appraiser Workflow Utilization

In most claims organizations, appraisers are split into territories that rarely overlap. Commonly used as a simple way to split up work, territories are based on a five- or nine-digit zip code so the dispatcher or claims handler can automatically assign a claim to an appraiser. Because the appraiser is familiar with the territory, navigating between different assignments is fairly efficient.

As simple and convenient as this sounds, claims managers should review territories to determine if their use maximizing the claims handler's time. Territories do have some drawbacks, including the fact that they do not take into account workloads and crossover opportunities. While managers work to produce the best routes, territories can constrain a dispatch automation system and prevent appraisers from being fully utilized.

In some circumstances, however, territories are necessary because of geographical constraints, such as bridges, rivers, or mountains. For example, in Louisiana, a state filled with swamps and levees, geographical territories can make a lot of sense. In areas where an insurer may have low density and perhaps only one or two adjusters for the entire state, like Montana, territories are also optimal. Dispatch Organizational Structure

By analyzing your operating model, you can assess whether your dispatch process aligns with your objectives, and therefore determine how the dispatch organization should be structured prior to automation. Claims organizations tend to organize their field appraisers using either a centralized or a decentralized method. A centralized method offers many benefits, including a reduced need for dispatching resources; consistency in the dispatching process across the organization; and the ability to reduce special concessions an appraiser may request of his or her dispatcher.

While a centralized method certainly has its advantages, claims managers must review whether this type of structure really benefits the organization. For example, a decentralized method may be the most sound to maintain if there is a larger ratio of dispatchers to field appraisers. Further, a dispatcher may be necessary if complex geography requires personal knowledge of landscape and traffic patterns. As much as an automated system helps with scheduling assignments, it does not have the ability to inform an appraiser that he or she should never go through the tunnel after 4 p.m. or that all assignments in a certain area must be seen between 8 and 11 a.m. because of safety concerns.

Bringing it Together

Once claims managers have gone through the five step process to analyze the dispatch process, they can determine what changes to make to improve outcomes. We recommend that a claims manager organize the dispatch operations as follows, provided that they meet the criteria set forth in Figure 1.

In addition to looking at organizational structure, claims managers can use the five analyses to determine if they need automation tools to achieve better business results. Automation can help the following:

• Determine the best inspection method early on.
• Ensure all parties are kept informed throughout the process via event triggers or notifications.
• Provide flexibility with dispatching to allow for both batch loading and drip assignments.
• Adjust priorities as needed during seasonal increases and catastrophe situations.

After a claims manager has completed analysis of the dispatch process, he or she will be in a better position to determine if an automation tool is required. From there, the claims manager can ensure that the tool is flexible enough to meet the intended business objectives.