Innovation and technology have played remarkable roles in the lives ofmillions. Think about where we would be without our smartphones,tablets, and the Internet. From a claims perspective, considerwhere we are today when compared to the manual processes of just afew short years ago. While this may seem amazing, the steps in ourindustry have paled in comparison to others in themarketplace.

It is now possible to shop without going to a store, bankwithout going to a bank, and travel to the other side of the globefor virtual meetings without ever leaving the home. The virtualworld is upon us where things, while often impersonal, have evolvedto the point where we see results with the click of amouse.

So what does this mean for the world of auto insurance? Is there a new virtual reality for insurers?The answer is yes, and it is the concept of self-serviceclaims.

Just as we shop, fly and communicate virtually, so too can weadjudicate claims. While not every claim will meet the model, manyclaims will; which in turn enables insurers to redeploy staff tomore complex situations.

Automate Low-Severity Claims

Self-service claims are designed to handle lower complexitysituations that do not justify the cost of dispatching a staffappraiser or an independent adjuster. Think ofthese situations, lower cost material damage claims thatcan be used to drive down severities, loss adjustment expense(LAE), and cycle time while improving both customer satisfactionand retention.

In the simple model, the accident victim contacts the insurerwho utilizes a predictive process to determine if the vehicle isrepairable. Based upon a variety of criteria, the claim may receivea self-service designation. At this point, the vehicle ownerobtains an estimate from their shop of choice that will, in turn,work with the carrier or business partner to achieve an amicableresolution.

Certainly this may be easier said than done, right? What aboutfraud, pre-existing damages or inflated repair costs. In thetraditional world, these would have all been valid concerns.However, with the right technology in place, all of these concernsare proactively addressed.

The key isn't that the process will fail, but rather that thecompany using the process lacks the right tools to ensure success.Carriers currently using this process are seeing dramaticimprovements in across the board metrics. They are also reaping therewards of being able to have existing staff focus on claims thathave traditionally higher leakage rates.

Customers are benefiting from the perception that they are incontrol of the process. Certainly, carriers never lose ultimatecontrol; however this empowerment creates goodwill amongpolicyholders who are only too happy to renew. Claimants may alsobe enticed by the insurer's awesome customer service and considerswitching providers.

This type of transformative philosophy will redefine the autoinsurance industry in years to come.

By leveraging innovative new technology, the virtual reality ofcloud estimating is now upon us. While this is just one facet ofthe future of claims, there has never been a better time to seizethe opportunity and the subsequent benefits.

“Innovation distinguishes between a leader and afollower” - Steve Jobs