Data and analytics have become hot topics in the P&C spaceas many carriers have incorporated data and analytics into theirapplication and underwriting processes.

But few carriers have truly integrated external data deeply intotheir claims process. To assess the effect of having more dataearlier in the claims process, LexisNexis® Risk Solutions conducteda study that investigated how data affected the claims of severalcarriers listed in A.M. Best's top 20 ranked carriers.

The results? When carriers collect more data, earlier in theclaims process, they experience significant benefits in cost andefficiency.

Our infographic below illustrates these positive outcomes bycomparing claims that had less data (a telephone number and onlyone other data element, or no telephone number but all otherelements) and those that had more (a telephone number and two ormore other data elements). In this case, a data element is definedas name, address or license plate.

For third-party bodily injury claims, more data reduced averagecycle times by two weeks and overall expenses by thousands. Forthird-party property damage claims, more data lowered average cycletimes and average claims expenses by 15 percent.

The “More Data, Earlier” white paper dives even deeper into thesubject. If carriers incorporate more data earlier into the claimsprocess, they'll be able to decrease cycle times, reduce costs andimprove the customer experience. Notably, our calculationsdemonstrate that there is a return on investment (ROI) for carriersthat invest in increasing up-front claims data.

To download the “More Data, Earlier” white paper, visit lexisnexis.com/moredataearlier.

Todd Fannin is senior director of claims for auto insuranceat LexisNexis RiskSolutions. He may be contacted at [email protected].