Unplugging Claims

It takes only an instant to create a claim. With a bellowed oath, squealing brakes, rending metal, and breaking glass, the deed is done.

Unfortunately, processing the resulting claims is often not quite so simple and, next to settlement amounts, it is claim-processing speed that is most closely related to customer satisfaction. Despite insurers' past resistance, therefore, many are turning to technology. In doing so, they are discovering that a significant return on investment can be realized when claim adjusters are equipped with the right tools.

In a study conducted in October 2004, Gartner Distribution reported that only about 11 percent of property and casualty companies provided wireless technologies to their claim adjusters. Today, however, insurers are finding new ways of using wireless technologies to cut costs and improve claim cycle times. With bandwidth and security issues having been overcome in the last few years, implementations of wireless technologies in the insurance industry are on the rise.

Country Insurance & Financial Services, a 77-year-old auto, home, farm, and business insurer based in Bloomington, Ill., began using notebook computers for claim adjusters in 1998. The initial portable computers, which were not wireless, had several limitations, according to Greg Koester, Country's customer service manager. Adjusters were slowed by an inefficient method of receiving new assignments, a lack of precision in scheduling appointments, a minimum of one business day between assessments and settlement offers, and the need to phone or fax in requests for total-loss assessments.

To address these problems, Country looked to new technology. “We felt that we could work around many of those roadblocks and improve our assessment-settlement offer cycle times by moving to a wireless environment, so we retrofitted most of our existing laptops with wireless radio cards,” said Koester.

When the lease for those lap-top computers expired in 2001, Country went one step further, purchasing notebook computers containing integrated wireless modems and analog modems for adjusters working beyond the communication service provider's reach.

“The biggest benefit to the approximately 175 adjusters using the system is reduced drive time,” said Koester. “It averages an hour a day in time savings, reduces overtime, and is good for employee morale.”

Combining wireless capabilities with a global positioning system allows insurers' home offices to route adjusters based upon location and proximity to claims, which can further lower cycle time and decrease overall claim costs. With GPS units ranging in price from around $100 on the low end to more than $300, outfitting a company's entire field force would not be out of the question for most insurance companies, regardless of size.

Happy Insureds

Country's use of wireless technologies for claim adjusting and processing is not only boosting employee job satisfaction and productivity, it is proving to be even better for customer satisfaction. At regularly scheduled intervals, Country's estimating system automatically sweeps for new assignments and transmits them wirelessly to adjusters. Having adjusters receive new assignments in the field, based on who may be nearest to the next claim, improves cycle time, as time spent in transit is reduced.

“When adjusters complete one assignment, they log on and see if they have a new one, said Koester. “We get calls from customers wanting to know how we got an adjuster to the site so quickly. They love it.”

Once on the scene, Country's adjusters investigate the vehicle or property claims and enter all pertinent data into their estimating software. The electronic estimate and, if required, supporting digital images of the damage, are uploaded wirelessly, shaving days off the claim cycle. They then are posted on a secure web site, where they are accessible by VIN, customer name, or other search criteria.

By using wireless technologies and equipment, adjusters can do their jobs more efficiently than ever before. Writing the estimates on-site, with wireless technology, allows adjusters to ensure the accuracy of information and supporting claim data. This benefits both the insurer and the customer by reducing the chance that a supplemental report will have to be written and that a second visit to the site might be necessary.

The next generation of wireless technologies is right around the corner. Verizon Wireless, Sprint PCS, and Cingular all offer plans that provide mobile professionals, including claim adjusters, connection speeds of somewhere between 30 and 60 Kbps. In the near future, it is expected that EVDO and EDGE initiatives will provide even greater usage of wireless technologies with connection speeds of up to 400 to 600 Kbps.

With some research estimates indicating that, by the year 2007, nearly 60 percent of insurers will have implemented wireless technologies within their organizations on some scale, early adopters can stay ahead of competitors by educating and equipping their field personnel now. It is a step toward serving customers better. One that, ultimately, leads to increased customer satisfaction, improved customer retention rates, and, simply put, better business.

Mark K. Lund is the national sales manager for Panasonic Computer's Insurance and Financial Service Division. He can be at reached mark_lund@us.panasonic.com.