Data greatly reduces the severity of claims payments, and carriers that incorporate third-party data and analytics into the claims lifecycle reduce bodily injury and property damage settlements, according to a recent study by LexisNexis.
LexisNexis analyzed more than 10 million features from A.M. Best's top 20 carriers and details the results in its "More Data, Earlier: The Value of Incorporating Data and Analytics in Claims Handling" white paper.
Acquiring more data reduces third-party bodily injury indemnity payments by 25%, the study reports. "More" data is identified as a telephone number and at least two other data elements, such as license plate, address or vehicle identification number. Data reduces the average expense by 47%, the average attorney fee by 25% and shortens the average cycle time by 14%.
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