X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Carriers can save valuable time and money by streamlining the entire claims process with advanced data services to better understand the state of the property pre-cat event, calculate depreciation, and validate replacement cost at scale. Carriers can save valuable time and money by streamlining the entire claims process with advanced data services to better understand the state of the property pre-cat event, calculate depreciation, and validate replacement cost at scale. (Photo: Shutterstock)

As technology delivers greater and greater potential for optimizing risk assessment, improving the customer experience and streamlining processes, many insurance carriers are doing some deep thinking on how best to leverage these new tools. According to a report by Deloitte, insurance spending on artificial intelligence and data technologies is expected to rise 48% year-over-year, reaching $1.4 billion by 2021. The sectors that will see the greatest spend increases will be automated claims processing and fraud investigation and analysis, at 50% and 47% respectively. At this point, it’s not a question of if, but when carriers plan to implement these technologies in their claims departments — and current storm forecasts suggest that time is of the essence for carrier adoption.

Carriers took a significant hit to profits in 2017 — a record-high year for losses owing to natural disasters. Hurricanes Harvey, Irma and Maria resulted in combined insured losses of $92 billion. And if this year is any indication — the National Oceanic and Atmospheric Administration forecasts five to nine hurricanes in 2018 — major cat events will not let up. The growing pace of digital transformation, however, can prepare the claims department to face these external factors. When carriers focus their efforts on improving claims efficiencies and strengthening interdepartmental communications, the entire organization gains a competitive advantage.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.