We live in a 2.0 world - from the array of socialnetworking sites to the vast power of the Internet, technology isconstantly evolving and impacting the way we do business. In theinsurance world, advancements in technology mean more opportunitiesto enhance the claims experience for customers and carriers alike.A major part of this enhanced experience is due to innovations incontents claims, or Contents 2.0.

The State of Contents Claims Today

The current contents claims process often leaves insuredsfeeling confused and overwhelmed when faced with a loss sinceproperty owners are generally responsible for conducting contentinventories themselves. Carriers are then left with incomplete orinaccurate contents inventories. Carriers also lack systems, dataand analytical capabilities for accurately determining thevaluation of lost items. Additionally, the contents replacementoptions available for insureds through carriers are generallylimited to wholesalers who might not have the brands they want orneed.

Furthermore, settlements are issued through checks to theclaimant. Although this seems like a natural step, this process isproblematic in that it's costly to carriers and difficult forinsureds who often have a pressing need for funds. Additionally, ifthe insured has a supplement to the claim, subsequent checks needto be issued--costing carriers more money and holding up theprocess for the claimant.

The end result is an unpleasant customer experience for theinsured, often at a time of crisis when they need the best servicepossible from their insurance provider. Carriers also lose out dueto delays in the claims process and inaccurate contentsvaluations.

Thankfully, there are new contents claims technologies andcomprehensive solutions available that alleviate these pains. Thepayment process particularly is benefitting from such solutions -moving away from checks toward a system of pre-paid debitcards.

The Contents 2.0 Way - Plastic MakesPerfect

Pre-paid debit cards are an ideal solution for the pitfalls ofthe current check settlement system. As mentioned previously,transactions costs around each check are significant, often withmultiple checks per claim. Claims can also be held up due tofinancial institution check processing and approval requirements.Cards, on the other hand, are significantly less costly to produceand reload - reducing wait times and eliminating the need for abank account. Insureds also have the freedom to use the card inactual stores, not just online. Insureds can even use the cards towithdraw cash from ATMs if they decide it is cash they need ratherthan a particular replacement item.

Research has shown that consumers actually prefer the use of acard and online shopping platform in the replacement processinstead of a check. It's easy to understand why. Pre-paid debitcards in conjunction with an online shopping platform provide theinsured with flexibility and options for personal choice thataren't possible with paper checks. Insureds can use an electroniclist of their lost contents in a discounted online shoppingenvironment and receive their settlement on a prepaid debitcard.

A Winning Scenario

There are clear benefits to carriers when utilizing pre-paiddebit cards in conjunction with online shopping environments. Thisapproach makes the replacement process easier and faster forinsureds who have experienced a loss. These portals are a one-stopshop - offering comprehensive selections from participatingmerchants in addition to benefits like exclusive deals and coupons.Another benefit is the ability to add supplements directly on tothe same card, with no need to reissue.

The sites are convenient and secure for claimants, allowing themto check their balances and purchase history, and offering flexiblesolutions like dual activation. For example, in the event that ahusband and wife are divorced, dual activation allows forsafeguards against unequal distribution of funds.

Both the online shopping environment and the pre-paid debitcards integrate seamlessly with existing carrier methods. There areeasy, multiple activation methods and significant reportingavailable. Most importantly, no system changes are required.

For these reasons and more, the time for Contents 2.0 hasarrived.

Jon McNeill is the CEO of Enservio,which provides software and services to property insurance carriersand their policyholders nationwide for contents inventory creation,valuation, analytics and elective replacement.