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The claims experience is an inflection point for many insurance customers. It’s how they measure satisfaction with their insurance carriers. But handling claims has become more complex—not less.
The growing frequency and severity of natural disasters have required insurers to manage massive claim volumes in short periods. Hurricanes Helene and Milton, for example, generated more than 400,000 claims in Florida alone.
Volume is only one part of the problem. Insurers face additional hurdles related to cycle time, indemnity accuracy, and expense—all of which hinge on the ability to leverage good insurance adjusters.
Limited number of adjusters. There’s a talent gap and natural disasters only exacerbate this problem. During large-scale events, adjusters are overburdened, which can extend claim cycle times.
Assessment accuracy. Insurers rely on adjusters’ knowledge of the local area, expertise in property damage, and familiarity with state regulations. However, after catastrophic events, they often work with whoever is available, and if the adjusters are coming from other regions, they may lack local knowledge and specialized skills, leading to errors in claim assessments.
High cost. On average, it costs over $1,000 for an adjuster to handle a single claim. In the aftermath of a natural disaster, this expense multiplies quickly, placing a significant financial burden on insurers.
Emerging technologies are helping insurers address these challenges, from improving decision-making to reducing the need for on-site visits. Here are five ways insurers are both speeding up and enhancing the claims process today.
The claim may start with a drone. Drones can get information to adjusters faster. Drones, increasingly used in hard-to-reach areas, especially following a disaster, can provide rapid, detailed assessments. After Hurricane Helene, drones surveyed areas inaccessible due to damaged infrastructure, including inaccessible bridges, and collected information immediately.
Homeowners embrace DIY assessments. Virtual adjusting solutions are enabling policyholders to take an active role in claims processing. Instead of waiting for an adjustor to arrive, these platforms enable insureds to take pictures of their property damage and upload it to the claims team. They are also user friendly providing clear instructions to the homeowner so they know exactly what they need to document.
Automation means happier adjusters. A large part of an adjuster’s role is communication. Insureds want updates and summaries of their findings. While maintaining communication is important, it is also time consuming.
Automated and generative AI powered communications tools review reports and create summaries making it easy and fast for adjusters to share the information with the insured. The tools can also generate automatic emails providing updates or answering routine inquiries. It enables adjusters to keep in contact with insureds while giving them more time to review more properties.
The power of gen AI decision making. With a limited adjuster pool, having access to the most experienced adjuster is not always possible. But generative AI solutions are helping to make sure that no matter which adjuster the insurer ends up working with, they can make informed, accurate decisions. These tools can take the claim file and compare it to years of historical data and state regulations to provide better insight. They provide access to the same knowledge base that an expert in that particular area would have.
Bringing it all together. Combining data from various sources accelerates claim resolution. Platforms that integrate information from virtual adjusting tools, pre- and post-disaster drone surveys, and AI-based CAT models enable insurers to initiate claims processing within 24 hours of an event. This consolidated approach shortens resolution times from weeks to days.
Breaking down the barriers
Despite the availability of transformative solutions, some insurers are slower to adopt them. Legacy systems can pose compatibility challenges. But many modern tools operate independently, such as through external portals, reducing the need for complete system overhauls.
It can also be challenging because a single solution doesn’t address every issue. Identifying the right technologies and incorporating them into workflows is a big undertaking for insuers. Working with a partner that is able to advise on the right combination of technologies to fit the insurer’s particular needs and integrate them into their current workflows can help make implementation easier.
In an increasingly complex claims environment, leveraging technology plays a critical role in delivering exceptional service to their insureds. By embracing innovations like drones, virtual adjusting tools, generative AI, and integrated data platforms, insurers can streamline their processes, reduce costs, and enhance the overall claims experience.
Ryan Stokes is Vice President, Business Development, Claims TPA & Solutions at Xceedance, a global leader in consulting, technology, operations support, and data solutions for the insurance sector. He focuses on growing the TPA/claims solutions with new partners and exploring new markets. Ryan has extensive knowledge and expertise in the property and casualty insurance industry, specifically in claims management, valuation and loss adjustment services.
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