The evolution of claims management systems coupled with the use of data and analytics hasnot only changed the way we work, but also what we do. However, theprocurement, processing and use of police reports has trailed interms of progress. When it comes to efficiency, fast access topolice report data is critical. Today, more than 35% of policereport orders can be fulfilled immediately with the image of thereport and its data in a digital form returned directly into acarrier's claims management system.

Doing Things Differently

Carriers used to obtain reports directly from police agenciesusing mail or other means. Then, they began to leverage third-partyvendors who installed fax machines in the police departments,deployed couriers, and built regional mail centers to reduceturnaround time.

The process of ordering police records is often considered "busywork," completed by support personnel. In many cases, there is abacklog of police reports waiting to be ordered, which negativelyimpacts carriers' cycle time.

When the report comes in, an adjuster typically reviews it and may re-keysome data into the claims system. In some cases, the data elementsare captured and used, while others are placed in a folder andforgotten. A recent poll of claims professionals found that only55% of the carriers re-key some of the data.

Consider the expense incurred in acquiring these reports and thevalue of the data to a claim file. What could be done differentlyto increase the return on investment?

Embrace Technology

Police departments are quickly embracing more digital processes,which insurers can leverage. Although we'restill in the early stages of real-time electronic crash reporting,rapid adoption and expansion is expected over the next three tofive years. Many cruisers are equipped with laptops that allowofficers to fill out reports when responding to accidents, whichprovides greater accuracy than handwritten reports, whileincreasing officer safety.

Real-time access combines on-scene accident-reporting softwarewith online contributory databases. The software allows criticalvalidation rules to ensure the appropriate and essential data iscaptured correctly.

Think of the potential: immediate availability of police reportinformation in a digital format for claims processing. As soon as aclaim is filed, up to 35% of the time adjusters could pull up thereport on their screens, print it out and quickly use theinformation for claims investigations. This real-time interactioncould allow carriers to resolve claims faster.

Think of how digitized data elements from the report could beleveraged for advanced analytics — from identifying new trendsin claims to developing new workflows for faster processing.

Having police data available in a consistent formatcould provide new insights into loss exposures, loss location,injury causation and liability assessment. It could be used toalert an adjuster to a potentially severe file that could be routedto a more senior handler, or passed directly to an automated triageprocess. Actuarial departments could develop models to identifytrends in accident reports that could predict future events andmake proactive plans on how to mitigate potential changes in theinsurance environment.

Why Now?

The insurance industry is entering into a new era of real-timecrash reports by tapping into at-the-scene police reportingtechnology. Claims organizations will be able to resolve claimsfaster at a lower cost. In the end, accessing crash reports inreal-time will give carriers access to actionable informationthroughout the claims-handling process, ultimately leading tobetter results and a more competitive position in the market.