From how we connect to how we do business, technology is—and hasbeen— changing the world in which we live. But with this disruptioncomes innovation, and the wealth of tools related to social media,mobile technology, and predictive analytics is staggering.

While technology offers many opportunities and potentialbenefits to P&C insurers, it also poses challenges, especiallyfor claims organizations. In this new era of visibility, the claimsprocess is under intense public scrutiny and must be constantlyre-evaluated and optimized. Recent disasters such as HurricanesIrene and Sandy illustrate this and seemingly solidifyinsurers' place under the microscope.

The reality is that customer expectations havealso perhaps never been higher. Customer satisfaction willcontinue to be a key differentiator in a highly competitive market,and insurers seeking to attract and retain customerswill need to streamline their claims operations onmultiple levels.

Brad Fisher, the vice president and director of the propertyclaims division at American Modern Insurance Group, knows a thingor two about using technology to optimize theclaims process, from FNOL to settlement. Recently we spokewith Fisher about the evolving role of technology at his companyand the new era in claims handling. Click on"Next" at the bottom right of this page to readwhat he had to say.

How is technology streamlining your company's claimsprocess?

American Modern has invested heavily in its IT infrastructureand software solutions in the last year to streamline each claimfrom first notice of loss (FNOL) to check issuance. Now that we arepaperless, information gathered during the claims investigation isavailable more quickly to others in the organization to support theclaims process. This enables us to handle analysis, authorization,and customer support while the adjuster investigates or responds toother claims. This should also improve accuracy, resulting infaster settlement, which averages less than 30 days.

Are certain technologies becoming more crucial for theclaims process than others? 

Claims processing is simply a microcosm of evolving attitudes inthe general marketplace in regards to an expectation of immediateaccessibility and response. So, mobile technology solutions thatare incorporated with high speed internet are helping us bettermeet that expectation by allowing customers and adjusters to shareinformation more efficiently.

How is technology changing the way adjusters performtheir jobs? 

One of the recent changes we have noticed is that many insuredsprefer to receive a text from the adjuster instead of a phone call.Also, for technology to be used effectively, more system trainingmust be provided for adjusters about how to use smart phones to,for example, share digital photos.

How is the role of the adjuster changing within yourcompany? What are some of the issues the industry must address interms of the quality and experience of adjusters?

One important change in our adjusters' role is to relieve themof responsibility for performing "non-value-added" tasks by usingsoftware to streamline the process and eliminate repetitive dataentry and administrative tasks. This, in turn, frees them up tofocus on conducting quality claims investigations in order toresolve our policyholders' claims both quickly and accurately.Product knowledge is not only a requirement for accurate claimssettlement, but also a significant driver of customersatisfaction. To have a staff of knowledgeable adjusters,companies need to invest in their hands-on training andeducation. Our industry needs to focus on educatingcollege students about the opportunities and rewarding careerswithin the insurance industry. 

How has mobile technology changed the wayclaims professionals go about performingtasks?

Mobile technology has enabled our field adjusters to have accessto more information while they are onsite during an inspection.That kind of immediate access to information and tools of the tradeat the loss site can enable them to resolve the claim faster andwith increased accuracy.

How has mobile technology changed case assignment, FNOL,location, and routing?

Our FNOL process includes loss assignment to the adjuster basedon the loss location. This then generates a text message withseveral initial data elements to enable the field adjuster tocomplete initial contact. We're in the process of installing astate-of-the-art new claims system that will allow us to leveragemobile technology considerably more while in the field.

What kind of feedback do you receive concerning customersatisfaction with the claims process, and how does this affectclaims processes?

We conduct telephone surveys with a sampling of policyholderswho have recently had a claim with us. This samplingincludes both policyholders whose claims were paid and those whoseclaims resulted in no payment. The feedback we receive from thesesurveys covers everything involved in the claims experience, fromFNOL through the resolution of the claim. We have a teamof claims associates that analyzes the feedback to confirm our topdrivers of satisfaction, as well as to identify areas where we canimprove the customer's experience. Based on this feedback,we can better team up with the product and marketing areas of ourcompany to enhance processes that are likely to improve customersatisfaction.   

How has social media affected claims? Do you monitorsocial media in terms of customer satisfaction? What steps can youtake—if any—to deal with unfavorable publicity about aclaim?

Social media hasn't materially affected the claims processbecause we have always been responsive to customerconcerns when those concerns were brought to our attention. As amatter of corporate policy, we never debate the validity ofdifferent opinions on Facebook or Twitter. Instead, we follow aprocess that is fairly common in the industry. We acknowledgereceipt of the social media message and, if we are able to identifythe person posting the complaint, we then reach out through anothermedium to discuss the claim. If it is not possible to identify theindividual, then we post a message of our own, encouraging him orher to reach out to the claims department via phone.

How satisfied are you with your claims administrationsystem? What areas work best?

We are currently in the process of updating our claimsadministration system. The new system will be able to bettersupport our growth and will bring more information directly to theadjuster. We will also be able to more fully integrate it withother systems so as to present real time claim status informationto our agents and policyholders through online portals.

What inroads are you making in the area of self-servicefor claimants?

Policyholders are able to file FNOL through our website. Thosewho create an online account with us are then able to access basicclaims status information on their own. We continue to look forways to use technology to enable policyholders to provideinformation that will assist in resolving their claims. For certaintypes of claims, when the policyholder chooses, we utilize theirdigital photography to assist in showing us the damage beingclaimed. This reduces the time required to settle the claim byeliminating the need for an on-site inspection. We areable to use their photographs to write an estimate of damages andget them a claims payment faster so they can get their lossrepaired, resulting in increased customer satisfaction.

How often do you reexamine your processes? Would you beable to share some examples of changes you have maderecently?

We re-examine processes constantly to ensure we are using the[most appropriate] new technology and customer feedback to improveour overall effectiveness. A few examples of changes we haveimplemented as the result of process analysis include EFT paymentsto vendors; printing of checks in the field; and obtaining bankstatus on a check when the claims payment changes so the adjustercan directly stop, void, and reissue a check, if needed.