Data and analytics have become hot topics in the P&C space as many carriers have incorporated data and analytics into their application and underwriting processes.
But few carriers have truly integrated external data deeply into their claims process. To assess the effect of having more data earlier in the claims process, LexisNexis® Risk Solutions conducted a study that investigated how data affected the claims of several carriers listed in A.M. Best's top 20 ranked carriers.
The results? When carriers collect more data, earlier in the claims process, they experience significant benefits in cost and efficiency.
Our infographic below illustrates these positive outcomes by comparing claims that had less data (a telephone number and only one other data element, or no telephone number but all other elements) and those that had more (a telephone number and two or more other data elements). In this case, a data element is defined as name, address or license plate.
For third-party bodily injury claims, more data reduced average cycle times by two weeks and overall expenses by thousands. For third-party property damage claims, more data lowered average cycle times and average claims expenses by 15 percent.
The “More Data, Earlier” white paper dives even deeper into the subject. If carriers incorporate more data earlier into the claims process, they'll be able to decrease cycle times, reduce costs and improve the customer experience. Notably, our calculations demonstrate that there is a return on investment (ROI) for carriers that invest in increasing up-front claims data.
To download the “More Data, Earlier” white paper, visit lexisnexis.com/moredataearlier.
Todd Fannin is senior director of claims for auto insurance at LexisNexis Risk Solutions. He may be contacted at [email protected].
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