Using online dispute resolution for consumer claims
A new option for resolving claims offers policyholders neutrality, fairness and simplicity, letting them take care of business from the comfort of their homes.
As consumers demand more digitization and carriers move to fast track and virtualize claims, a new option is emerging — online dispute resolution (ODR).
Not just for subrogation, where E-Subro Hub is well established, and not just for experienced lawyers and adjusters, but also for consumers who want more transparency, efficiency and convenience. Not just for first-party claimants either; after all, third-party claimants impact brand, risk and the bottom-line more than ever before.
ODR represents major potential for insurance claims. Consider the small and medium-sized business (SMB) market for example, carriers can use ODR to streamline how they handle claims for auto BI, slip and fall, and workers comp, while simultaneously cutting legal spend and improving overall user experience. It’s a win-win for all involved.
How consumers can use ODR
Forbes recently proclaimed 2017 the year of the empowered customer. Largely driven by millennials at the moment, consumers have long demanded more control. From the personal computer to AOL, from TurboTax to LegalZoom, it’s utterly ubiquitous nowadays.
That is part of why ODR makes sense for consumers. Besides neutrality, fairness and simplicity, they can take care of business from the comfort of their home, at the local coffee shop, or on a lunch break. Really, it is up to them, and that goes a long way.
On the flipside, the current system often adds to their long list of anxieties — beyond medical bills, lawyers and mechanics, they may need to play phone tag with their adjuster or miss work to get deposed halfway across town.
Small claims court isn’t much better from their perspective either. It usually means a lot of red tape, service of process, guessing at relevant evidence, wondering if they will get more than 5-10 minutes to tell their story and more. It’s simple — consumers want to resolve disputes at their fingertips — it just hasn’t been much of an option to date.
In fact, we find that consumers and businesses alike generally want to settle their claims and move on… as long as it is fair and provided they feel heard. Unfortunately, they often don’t know where to start, aren’t sure who to trust, and have that 1-800-CALL-SAUL number so stuck in their heads they don’t even remember why it matters or what it costs.
Why consumer ODR makes sense for insurers
A streamlined dispute resolution process has clear potential benefits for insurance companies — cutting legal spend and shortening cycle time for starters. Carriers can also leverage ODR to improve user experience, enhance trust, and mitigate social media backlash.
Adjusters stand to benefit too. ODR can accelerate real-world training for junior adjusters who lack critical negotiation and mediation skills. Seasoned adjusters, on the other hand, can use ODR to give claimants more options at impasse — something in between direct negotiation and litigation.
All in all, despite it being remote and ostensibly impersonal in some ways, ODR can in fact help insurance companies build and maintain better consumer relationships. Video mediation, for example, can help personalize the claims process without placing a major burden on any one party. Moreover, it is another opportunity to show claimants just how willing the insurer is to make them whole again. That is especially powerful when you consider the vulnerability aspect.
Indeed, as the human element of insurance seems to slip away some, ODR presents a rare opportunity for restoring more of the personal touch everyone wants.
Stephen Kane is the founder and CEO of FairClaims, a consumer friendly dispute resolution platform that is faster, cheaper and easier than traditional options. Contact him at Kane@FairClaims.com.