Claims transformation is about using technology to give people new tools that help them be even better at what they do best, according to a panel of claims experts Novarica hosted at our recent Special Interest Group meeting.
Our guests, Laurie Pierman of Amerisure and Corey Graham of MMG, noted that many adjusters spend time on manual tasks that don’t require their expertise, such as gathering and managing basic information, sometimes fighting with legacy system limitations like field character counts and unsearchable claim notes as they do so.
These points of friction are driving claims transformation at many insurers. Laurie highlighted robotic process automation (RPA) and integrations to third-party data sources as technologies that have been major areas of focus, have generated real impact by streamlining manual processes, and are improving information availability for claims adjusters.
Another example of transformative technology is straight-through processing (STP), which relies on digital connectivity and high-quality third-party data and analytics. A recent Novarica study found that STP for claims is fairly rare; fewer than 10% of all transactions are processed straight through, and a majority of insurers don’t yet have capabilities in this area.
Our panelists pointed out that partial automation can have a major impact on adjuster efficiency, even when full automation isn’t possible. For example, an incoming claim might be automatically assigned to an adjuster with a matching skill set, or the claims system might automatically request police reports and check against the ISO index, so that the claim arrives to the adjuster with a significant amount of information pre-filled.
Claimant-facing digital capabilities, in the form of self-service customer portals, have also been a priority. As Corey pointed out, adjusters bring empathy to the claims process, but they can’t always be available. Making information about claim status easily available helps policyholders feel more confident in the process. It also helps insurers meet increasingly high expectations for customer experience.
Technology can make processes faster and data more available, but our panelists were skeptical that claims experts could be completely removed from most claims—nor would many insurers want that. As is often the case in insurance, using technology to make human actors better at what they do is the best approach.
Our next Property/Casualty Claims Special Interest Group meeting takes place August 5. Novarica insurer clients and Council members can register here. For more information on all of Novarica’s upcoming virtual events, see our webinar page.
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