Technology and the claims process

While technology is improving many aspects of the claim process, empathy is still the most important tool in the toolbox.

As a result of increased efficiencies from technology, carriers may be able to reduce administrative expenses. (Photo: Shutterstock)

Emergency kit? Check. Fully charged cell phone? Check. New batteries in the flashlight? Check.

These are some of the common things an adjuster is always prepared to take along when inspecting structural damage on a reported claim. But how has innovation changed the way adjusters prepare for a claim before they even arrive at a property?

Talking tech

The advent of technologies like Google Maps now provides an adjuster with up-front data points about the property, information like roof and siding measurements, and insight into the pre-loss condition of the structure. The internet has also made an impact: not only does the adjuster now have easy access to any local news stories about the event, but it’s also made it easier to review and comply with any local or state bulletins that may be issued.

Now, technology such as drones is empowering the policyholder to provide the adjuster with aerial videos and photos of the loss. In addition, some policyholders are using smartphone apps to video chat with their adjuster in real-time. All of this can help greatly reduce the cycle time of the claim, which means the customer may be able to repair or replace damaged items and get back to “normal” more quickly.

Speaking of less time … if asked, a group of long-tenured adjusters would say that technology has positively impacted the amount of time it takes to adjust a claim today versus 10 years ago. There are opportunities that come with this shift. As a result of increased efficiencies driven by technology, carriers may be able to reduce their administrative expenses in the claims department. In addition, technological advances may offer the adjusting staff more time than ever before to devote to more complex claims and support customers’ emotional needs after a loss.

Ultimately, insurance companies are in the people business and regardless of the technology that may be involved in adjusting a loss, it’s human nature to lend a caring hand during a difficult or trying situation. The need for empathetic support typically varies by customer and type of claim. A total loss caused by a fire, flood or hurricane, or one that involves a fatality, may require the adjuster to provide a different level of customer experience rather than a minor theft claim typically does. Each situation is different, and that requires adjusters to constantly be aware of and adjust their approach as necessary to address and meet the customer’s needs regardless of the size or type of claim involved.

Assessing the damage

It’s also quite common for the adjuster to become emotionally invested in the relationship with the customer, which can prompt going above and beyond the actual claims handling. Some adjusters might find themselves checking in on the customers after the claim has closed to simply see how they are doing or performing some other conscious act that shows they care. The ability to display empathy is one of the most important and powerful parts of the adjuster’s role.

Technology and empathy are both critical to the adjuster’s ability to do a great job, but common sense and safety are just as important. No two claims are the same and adjusters often encounter unique and unusual situations in the work that they perform. Adjusters should always be using their common sense, experience and instructions. When inspecting losses, adjusters should always assess whether a structure is safe to enter. Even if a structure can be entered safely, an adjuster still needs to be prepared.

After a large-scale catastrophic event, such as a hurricane or wildfire, adjusters are often among some of the first people outside of first responders at the site of loss. Questions that adjusters should ask themselves include:

The world is experiencing not only more wildfire and flood events than ever before, but these events are also occurring with greater severity. In the U.S., 2017 and 2018 saw the highest levels of natural catastrophe losses in history; the third-highest was 2005.

According to the Munich Re NatCatSERVICE, wildfire losses in California alone reached unprecedented levels in 2017 and 2018. There were $24 billion in losses from the Carr, Camp and Woolsey California wildfire events in 2018.

Claims departments are addressing these new challenges with technologies that help them continue to provide exceptional service to policyholders. For instance, aerial and satellite imagery and the use of remote sensing technology can assist with the immediate assessment of widespread damage, even resulting in expediting the authorization of repairs before the impacted area is open to the public. Drones can be used in more localized situations, such as flash flooding, to accomplish the same result.

Technology has definitely changed the tools an adjuster can use when resolving a claim. Instead of manual tape measures, adjusters now use laser devices, while digital meters immediately reveal the moisture content in a wall or floor. However, while all of these advances help make the adjuster’s job easier, most importantly, these advances can help claims teams deliver a better customer experience.

However, one of the most important tools the adjuster has in his or her arsenal has not changed: human empathy. This personal touch ultimately results in a more satisfied customer, increased retention and positive word-of-mouth.

Bob Crowley (BCrowley@AMIG.com) is vice president of field claims for American Modern Insurance Group. Reprinted with permission.

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