There is one thing, however, that has remained constant and that is with each new technology, first we do things differently, then we do different things. – David A. Smith
This quote is indicative of most aspects of claims processing today. The evolution of claims management systems coupled with the use of data and analytics has not only changed how we work, but also what we do. However, the procurement, processing and utilization of police reports has trailed behind in terms of progress. When it comes to efficiency, fast access to police report data is critical. Today, more than 35 percent of police report orders can be fulfilled immediately with both the image of the report and its data in a digital form returned directly into a carrier's claims management system.
Doing things differently
Carriers used to obtained reports directly from police agencies using mail or other means. Then, they began to leverage third-party vendors who installed fax machines in the police departments, deployed couriers, and built regional mail centers in an effort to reduce turn-around time from approximately 18 to 10 days.
When the report comes in, an adjuster typically reviews it and may rekey some data into the claims system. In some cases, the data elements are captured and used, while others are placed in a folder and forgotten. A recent poll of claims professionals found only 55 percent of the carriers expend any effort to rekey some of the data.
Consider the expense incurred in acquiring these reports and the value of the data to a claim file. What could be done differently to increase the return on investment?
Embracing technology
Police departments are quickly embracing more digital processes, which insurers can leverage on the backend. Although we are still in the early stages of real-time electronic crash reporting, rapid adoption and expansion is expected over the next three to five years. Many cruisers are equipped with laptops and software that allow officers to fill out reports when responding to accidents.
Police departments like the technology because officers can complete and update reports faster with greater accuracy than handwritten reports, while increasing officer safety, Real-time access is made possible by combining on-the-scene accident reporting software with online contributory databases. The software allows critical validation rules to assist the officer in making sure the appropriate and essential data is captured correctly.
The use of electronic report data instead of waiting for paper files will enable insurers to review and close claims faster. (Photo: Shutterstock)
Think of the potential. As soon as a claim is filed, up to 35 percent of the time adjusters could pull up the report on their screens, print it out and quickly utilize the information for claims investigations. This real-time interaction could allow carriers to resolve claims faster. Think of how digitized data elements from the report could be leveraged for advanced analytics – from identifying new trends in claims to developing new workflows for faster processing.
Having data available in a consistent format could provide new insights into loss exposures, loss location, injury causation and liability assessment. The information could be used to alert an adjuster to a potentially severe file that could be routed to a more senior handler, or passed directly to an automated triage process for inspection and resolution.
Data elements could also be used for predictive analytics in other areas. Actuarial departments could develop models to identify trends in accident reports predicative of future events and make proactive plans on how to mitigate potential changes in the insurance environment.
Why now?
Consumers expect real-time quality service. In order to meet those expectations, carriers must embrace tools that enable similar performance. The insurance industry is entering into a new era of real-time crash reports by tapping into at-the-scene police reporting technology. Claims organizations will be able to resolve claims faster at a lower cost. In the end, accessing crash reports in real-time will give carriers access to actionable information throughout the claims handling process, ultimately leading to better results and a more competitive position in the market.
Todd Fannin (todd.fannin@lexisnexis.com) is director of insurance claims at LexisNexis Risk Solutions, where he works with claims leaders to create the solutions that help customers improve claims workflow processes and manage their bottom line. For more information, visit www.lexisnexis.com/risk.
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