Claims Technology Q&A: Keeping Pace with Changes

Our systems challenge isn't enabling new mobile solutions, it is doing this in a manner where data and communications flow consistently across all touch-points.  This requires appropriate levels of consolidation and clean interfaces.  Systems designed for more dynamic business rules and more intelligent workflow are essential to support the mobile business model. 

The significant upside is we can improve the assignment process, as well as the routing of all communications during the settlement process, and we improve response-times for our customers. 

PC360: What kind of feedback do you receive concerning customer satisfaction with the claims process and how does this affect your internal claims processes?

Foster:   We are proud of our adjusters and the level of service they provide our customers. This is supported by the positive responses we have received from our customers and agents with whom we work. Are all customers satisfied? No, but we hope to learn from those who are not, and see if there are ways we can improve our processes so another customer doesn't encounter similar issues.

Lambert:  As soon as we settle a claim, our customers receive a survey. The survey uses the Net Promoter Score approach, inviting the customer to answer three questions and one of them is: "According to your last claim experience, would you recommend Industrial Alliance, Auto and Home Insurance to your friends and family?"  Every answer is then analyzed by the claims management team and, in the case of any dissatisfaction, we contact the customer to settle their dissatisfaction. When we notice that a part of our processes is perceived as annoying to our customers, we take action immediately by reviewing the failing processes and/or changing our rules and approach.     

Settel:  Homesite is a property insurer focusing only on the home, renter and condo market in the U.S.  Our claims service gets tested on every claim because our customers are dealing with deeply impactful and meaningful events which can include loss of home and personal possessions.  This gets magnified any time we have a catastrophic weather event.  These events create huge volumes of cases and it is essential that our claims team handle these complex assignments efficiently, accurately and with real empathy for our customer's circumstance.

We're already seeing examples of how mobile technology is improving our catastrophe response.  Not only can we scale up and enable our mobile workforce, but we are also providing self-service options to our customers.  In recent catastrophic events we have seen significant use of online FNOL, and we've introduced a mobile version of FNOL.  We have seen meaningful adoption of self-service after FNOL to upload photos, receipts and other materials and to check-in on status of the settlement process.  These self-service solutions, supported by automation and straight-through processing on the back-end, actually help maintain a more direct relationship between the adjuster and claimant.  We think that provides the best solution for effective settlement and customer satisfaction.

PC360: How satisfied are you with your claims administration system? What areas work best?

Settel: We're in the process of moving from our current claims admin system, which is in-house customized, to a more robust admin and analytics package from Innovation Group.  This move complements other important moves we have made over the past couple of years to improve our overall claims technology landscape. 

We are excited by our partnership with Innovation Group.  We will leverage their expertise and technology platform capabilities to shift work away from our in-house technology team and to provide faster time-to-market for our claims team, as it relates to claims administration and core processing.  This also allows us to shift internal resources toward innovating specific aspects of the claims customer experience, and to ensure this is consistent with our view of optimizing the overall policyholder experience and digital customer experience.

PC360:  How is technology helping streamline the claims process at your company and in the industry as a whole?

Lambert: At IAAH, we use technology as a tool to simplify the claims process and to offer a more efficient service operation. For example, we use technology to suggest the nearest garage to a customer by using postal codes.  This way we help save time.

PC360:  How is technology changing the way adjusters perform their jobs? 

Foster:  With the focus on business intelligence (BI) and data analysis post loss, adjusters are being asked to collect more information than ever before. We need to be cautious and keep this to a minimum by only collecting information that is going to be utilized. We should not collect information that does not help in the adjustment of the loss, or if it doesn't add value to the organization as a whole. We need to remember that an adjuster's primary responsibility is to adjust losses.

Lambert:  At IAAH, it is not only technology that changes the way adjusters perform their job; it is the mix of regular process improvements and, if needed, the use of new technology. Unfortunately, a lot of insurers introduce new technology without questioning their current processes. Very often, those processes could benefit from a good spring cleaning.

PC360: How is the role of the adjuster changing within your company? What are some of the issues the industry needs to face concerning the quality and experience of adjusters?

Foster:  The role of the adjuster is constantly changing. Adjusters must embrace and adapt to the changes or face being left behind. The adjuster role is highly technical. The need for strong analytical skills will continue to be necessary. Most executives I know recognize the shortage of adjusters and managers we will face in the very near future. I think many trade organizations and carriers are doing what they can to introduce and recruit people into the insurance industry.

Lambert: A few years ago, IAAH decided to reflect on our position toward customers: our Claims Service department became Assistance and Claims Service. By doing so, we wanted to state firmly that IAAH is there, first and foremost, to assist our customers during difficult moments, and that goes beyond simply repairing a car or cleaning a house after water damage. This philosophy has made us question and review our adjusters' role. Not only do they show empathy to our customers, but they strive to build a relationship based on trust.

PC360: How satisfied are you with your claims administration system? What areas work best? 

Foster:  Our claims administration system is great We are in the final stages of our implementation and looking forward to moving totally off our legacy system once and for all. As a result of our implementation, claims cycle time has reduced. Reserves are incurred and payments issued much faster. We couldn't be happier.

Lambert:  Our current system, AS/400, does not support web services, and therefore, we do not connect our current system with other web services.  This is one of the reasons why we bought a new insurance system: Exigen Suite, which includes the Exigen ClaimCore component solution.

PC360:  What inroads are you making in the area of self service for claimants? 

Lambert:  On day one of our upcoming Exigen ClaimCore deployment, we will be using the built-in Exigen web portal. The immediate benefit will be that the insured will be able to complete the first notice of loss (FNOL) and submit it to an adjuster. The customer will then be able to follow that particular claim through the web portal and see the payment history. In the near future, we will also enhance our web portal so our customers can complete and follow all the steps in the claim process on the Internet without taking extra time to talk to an adjuster.

PC360:  How often do you reexamine your processes to determine their quality? Any examples of changes you have made recently? 

Lambert: Industrial Alliance, Auto and Home Insurance relies on Lean philosophy (continuous improvement) to improve its processes. Since 2010, our claims team has had 5 kaizens (a Japanese word for "improvement" or "change" for the better) and several improvement missions. The new processes were reviewed and redefined by a group of employees. Their mandate was to eliminate the "non-value added steps" for the customers.    

The kaizens and improvement missions decreased the overall pending number of claims by eight percent in auto, and by 11 percent in home claims.  Additionally, when a customer calls during normal business hours, an adjuster answers immediately. Prior to the improvements made as a result of the kaizens, if the adjuster was on the phone with another customer, the voicemail used to activate so the next customer in the line would have to leave a message.

If we compare the payment delays of two similar catastrophes: windstorm Irene in August 2011 (47 days) to a catastrophe we had in Quebec in June 2012 (27 days), we notice a significant improvement of 20 days. The process is extremely easy on our customers. For example, we ask for fewer documents and fewer proofs of ownership, among other things. The settlement of a claim at IAAH is faster, easier and more efficient.

PC360: Are certain technologies becoming more crucial for the claims process than others?

Foster: Mobile technologies are so important in the claims process. Adjusters must be able to access and input new information from any location at any time of day.

PC360:  What inroads are you making in the area of self service for claimants?

Foster:  This is an area we have not entered into as of yet. We hope to be able to extend services to customers that add value and streamline the claims experience. We have to be careful not to spend resources on projects that customers aren't interested in or never utilize. You may be able to develop something you think is really super, but if customers don't use it, resources have been wasted.