Five technologies changing claims

The insurance industry has long been considered “ripe for disruption,” and InsurTech companies have been modernizing industry practices for years now. One area that’s just starting to see a technology makeover is the world of claims.

Here are five technologies that are making the claims process smarter and more efficient.

Related: Using online dispute resolution for consumer claims

No. 1: Texting

SMS (short message service, commonly called ‘texting’) is not new technology, but its application is pretty new in the world of insurance claims. It’s proven its mettle in the claims process as seriously destructive storms become the new normal.

Insurance providers tapping into the power of texting can check in with every policyholder in an affected area following a disaster. In fact, my company did this after Hurricane Irma last year. While many insureds lack access to landline and reliable call service in the immediate aftermath of a major storm, most can still send and receive texts.

Platforms like Sonar let you send mass texts in the way you would a mass email. Insureds who get the message can quickly reply with descriptions or crucial images of any damage. Agents in the office can start a claims report with that information. This means customer claims are filed quickly and handled much faster than was possible without SMS technology.

Even outside disaster scenarios, insurers with texting capabilities can check in with customers and answer questions more quickly and efficiently than over the phone or via web-based chat. These low-friction check-ins can reassure customers and therefore boost their satisfaction throughout a claims process — especially one that takes longer than they hoped.

Related: 9 reasons today’s insurance businesses need text messaging

No. 2: Drones

Again, drones have been around for a while. But using them for claims is fairly new.

After a disaster, insurance providers with drone cameras can (literally) swoop in and take footage of the insured’s property. These photos are typically better than those an adjuster can take, which means the damage can be assessed more accurately. Drones can feed the footage to computers instantly, which also cuts down on adjusting time. Last but not least, the use of drones keeps adjusters out of harm’s way; no need to climb precarious rooftops or enter unsafe structures after a disaster.

As with texting, drones allow insurers to start the claims process much faster, which can increase customer trust and loyalty.

Related: How drones are transforming the roofing industry

No. 3: Smart home technology

Centrally monitored alarms can help minimize the severity of a claim, but truly smart home devices can go a step further by actually preventing claims in the first place.

Take, for example, the latest wave of smart water monitoring devices. Some, like LeakBot, monitor the home for leaks, send leak detection notifications to the homeowner’s smartphone, and instantly connect them with a plumber to find the leak and fix it. Others, like Flo, monitor water flow, identify leaks, and automatically shut off the water when a leak is detected to prevent flooding.

The savings for both insurance providers and homeowners is often substantial.

Related: Smart home telematics and the opportunity for insurers

No. 4: Smart car technology

By now, most people know about smart in-car devices that monitor driver behavior and offer more accurate auto insurance premium pricing. Some of these features, like anti-theft monitoring and auto-braking, even help prevent claims.

But when it comes to processing claims, companies like Snapsheet are using tech to build transparency in the claims process, facilitate fast settlements, and help drivers get repairs quickly. The Snapsheet app helps drivers file claims from their phone, allowing them to take photos of the damage and have an adjuster review their claim within hours. On the back end, it helps insurers virtually process claims without sending an adjuster to inspect the damage in person.

The results are promising: According to Snapsheet, the average claim takes 2.5 days to resolve, and customers wait an average of only 2.7 hours between sending their photos and receiving an estimate.

Related: Assessing the increasing severity and frequency of auto claims (Video)

No. 5: Self-service inspections

Whereas traditional home inspections usually take 40 days to happen, companies like ViewSpection make the inspection process more efficient. Homeowners can use an app on their phone to self-inspect their home and send the photos to providers. This allows them to get the appropriate home coverage faster.

As for claims, these inspection photos can be used as a point of comparison for damaged property if the insured makes a claim later on.

Related: 15 ways to avoid home insurance claims during the winter holiday season

Data and speed: The new normal

Claims are perhaps the most contentious part of the insurance industry, in part because many insureds may mistrust the objectivity of claims adjusting. New claims technology and applications for existing technology have the potential to increase transparency and eliminate that mistrust. As these solutions become more ingrained in the claims landscape, the result will be a stronger financial position for insurance providers and better service for customers.

Related: Touchless claims can save the insurance customer experience

Lucas Ward (Lucas@Kin.com) is the CTO and co-founder of Kin Insurance, an Illinois company capitalizing on technology to make getting and using insurance quicker, easier and more accurate.