Adding Value to the Policyholder Claim Experience

Contractor networks have become a valuable tool in delivering property claims services to policyholders. In the early days of property claims handling, the insurance carrier focus was on providing indemnification to their policyholder. When a claim was reported, the quality of service was focused on how soon an inspection and payment could be made to the policyholder. After all, when one reads a typical insurance policy all that is owed, by the insurer, is indemnification. Therefore, insurance companies created workflows and processes that utilized claim staff and independent adjusters as the method of inspection with a race to conclude claims as soon as practical.

During the late 1980s, contractor direct repair programs started to appear in the industry, with many contractors offering to provide free estimates to insurers. Some insurers saw this method of inspection as a less expensive option to inspecting the loss and also an opportunity to assist the policyholder in their time of need. While some programs had success, many discovered that informal contractor networks were not managed properly and came with a risk of potential customer service issues or inaccurate estimates impacting indemnity.