10,000+ claims executives gather for Connected Claims USA Virtual by Insurance Nexus and Reuters Events

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Connected Claims USA has officially launched as the first fully virtual claims event and remains the world’s largest and most senior claims event (June 23-25, 2020).

 

As uncertainty becomes the new normal, it has never been more important for the insurance industry to pull together to support customers and claims handlers alike through this difficult time. Claims transformation is more urgently needed than ever before.

 

It’s true that we’re in a period of disruption, but from disruption, I believe, can come transformation and growth. And that’s what I hope we do as colleagues, is lead through this and make this industry better” said Eric Brandt, EVP and Chief Claims Officer at Allstate.

 

That is why Brandt and other executives will speak at Connected Claims USA Virtual, the largest ever gathering of claims executives, available free to the industry. “This is an opportunity for the entire industry to collaborate, inspire and lead” said Emma Sheard, General Manager of Insurance Nexus by Reuters Events.

 

Also confirmed to speak are Mike Fiato (Chief Claims Officer, Liberty Mutual), Bryant Vernon (Chief Claims Officer, Aviva Canada), Jeanette Ward (Chief Operating Officer, Texas Mutual), Evan Scarponi (Chief Claims Officer, Prudential) and more.

 

Register for free today

Connected Claims USA Virtual attendees will form the largest insurance claims community, taking part in a multitude of interactive online sessions, discussing and dissecting the issues at the heart of claims. Attendees will also be afforded a virtual networking suite, digital exhibition, tailored practical workshops and more – you can find out more and register on our website.

 

Mariana Dumont

Head of USA Operations

Insurance Nexus

Phone: +44 (0) 207 422 4369

Toll Free: 1 800 814 3459 Ext: 4369

Email: mariana.dumont@insurancenexus.com

 

Insurance Nexus is part of FC Business Intelligence Ltd. FC Business Intelligence Ltd is a registered company in England and Wales. Registered number 04388971, 7-9 Fashion Street, London, E1 6PX, UK

 

Insurance Nexus is the central hub for insurance executives. Through in-depth industry analysis, targeted research, niche events and quality content, we provide the industry with a platform to network, discuss, learn and shape the future of the insurance industry.

 

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Shared Claims Software is the Future

Share key on the keyboard, 3d rendering,conceptual image.

By Direct Claim Solution (DCS)

So, you are considering a new claims software system. Your organization wants something great. You imagine a system that enables users to reduce costs and cycle time and increase throughput dramatically.

 

You also want to improve the vendor process and workflow efficiencies. You expect your new system to be in place for the next 20 to 30 years. With that in mind, it should be adaptable for growth as well as the inevitable changes.

 

Here’s the question. Are you thinking about extending access to your service providers using a shared claims software system?  If not, why not?

What is a Shared Claims Software System?

A Shared Claims Software system allows an organization to extend direct access to external stakeholders. That’s right. In addition to optimizing the efficiency of internal staff and management, a shared system makes your service providers better. It does this by simply allowing users that are external to the organization to have login credentials and a set of defined permissions to view, add, edit or extract information.

 

In a shared system, specific workspaces that you populate and view are shared directly with others. Because risk and insurance involves a large number of vertically aligned service providers in the chain, a shared solution is a highly effective way of bringing many specialists together to a common location for information exchange. To create such a solution, the system designers must possess in-depth knowledge of each user’s contribution within the big picture workflow.

 

The key advantage of a shared solution for a claims department is that a common workspace eliminates the need for internal staff to request reports, receive and process reports and then re-type summary information. For many claim professionals, those tasks take up 80% or more of their entire workday. Worse yet, much of the effort is not ‘value-added’ because it is heavily administrative and only partly analytical.

 

There is a better way. In having direct access to the system, service providers such as defense counsel, damage appraisers, and assigned experts can deliver their work-product in the exact format and order preferred by you “their customer.” Direct access eliminates the need for processing, interpretation, and transcription from an externally provided document. It’s a direct pour into the claim mold.

 

The key disadvantage is that external service providers have access to your system. But never fear, this is where smartly designed software offers one of its most valuable tools. That is the two-pronged security feature of data isolation and user permissions. In data isolation, claim records not assigned to a vendor are not accessible.

 

Further, a “Rights and Permissions module” defines what pages and functions can be seen and operated by users based on that user’s assigned role. Limitations can be set such that external users may only view and edit certain areas of the system such as the litigation or subrogation screens. A rogue external user can be prevented from modifying data in places that should not be modified. And, a single question on the user-setup page tells the system who is “internal” and who is “external.”

 

External users can be “walled off” from viewing claim records that are not within their responsibility. With these security features, access is a highly manageable risk.

The Use Case for Litigated Claims

A perfect example of the benefits of sharing is seen in the litigation handling context. Litigated claim files rightfully garner a lot of attention. These are files that result in an exponentially higher cost in terms of time, energy and money. They often involve several outside service providers to assist with coverage issues, fact investigation, witness statements, legal research, and valuation.

 

Companies spend massive dollars on discovery and settlement efforts for litigated files. These matters typically have the longest cycle time and largest negative financial impact on results. So, how can a shared system minimize the blood-letting on a litigated file?

 

First, it is important to understand that a shared system does not change the respective roles and responsibilities of the parties involved. There is still a claim professional responsible for the overall handling of the claim file to resolution. That claim professional assigns and manages all service providers working the case.

 

Service providers perform a variety of functions from investigation and legal research to appraising damage and theorizing causes. Service providers conclude their work with reports that include findings, opinions, and recommendations.

 

The Problem – Excessive costs of information exchange between claims professionals and service providers. These costs are evidenced by rising headcounts, increasing pending claim volume, and increasingly poor quality of claims handling amid a level inflow of claims.

 

Current Process – The industry is predominantly using litigation report templates and emails to communicate. The defense firm (service provider) typically has dozens of clients, and each client has its own version of the “proper” litigation report template.

 

Claims professionals send email notifications to defense counsel to request overdue reports and grant extensions of time. Few claims professionals can keep up with their litigation caseload. Their requests for information and subsequent review of that information is often severely delayed. Defense attorneys are often unable to keep up with reporting deadlines and either fail to submit reports or submit them untimely for various reasons.

 

Additionally, defense firms are unable to keep up with the template differentiation across clients and subsequent changes in those templates as dictated by each insurance company from time to time. In this kind of slow traffic, claims start to turn sour for everyone involved.

 

Shared Software as A Solution – With a shared system, the claims professional directs the system administrator to add the service provider as a “vendor” on the claim record. Once complete, that service provider defense attorney can directly access the litigation management screen and other select features within a cloud-based system. Fields and content can be populated by the defense attorney with key information summarizing investigations, legal research, and valuation of the claim along with procedural developments in the case. Demands by plaintiffs can be tracked, and recommendations can be entered directly into the claim system.

 

This direct access eliminates the need for the defense attorney to locate the most up-to-date litigation template, and then complete and send for review. In turn, the claims professional must receive the report and translate or interpret key data into respective claim system fields. The shared solution brings the voice and the eyes of everyone involved in the same location where collaborative claim analysis can be accomplished.

The Answer is Multiple Choice – A truly innovative claims process puts customers first

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Technology is an important enabler for innovative claims but understanding how, when, why and where the customer wants human interaction and having the skills to deliver it is often the critical last mile.

 

Insurance Nexus, part of Reuters Events asked three industry leaders to reveal their unique take on insurance claims innovation. To download the free whitepaper, with contributions from Economical, Wawanesa and Aviva, click here: https://bit.ly/2XOnTAh

 

What does innovation mean for you? Is it about incremental improvements in current technologies or process? Perhaps innovation should be more radical, the only true innovation being the wholesale disruption of a service or sector?

 

Certainly, there’s no lack of examples of either of these in the insurance sector. On the one hand, improvements in data management, technology integrations and a mobile-first approach has made all sorts of activities from generating quotes to claims reimbursement faster and more hassle-free than ever.

 

On the other, new services are springing up to tackle previously unmet customer needs, services that look unlike any model the insurance sector has seen before. Services such as Lemonade, which boasts the industry’s fastest end-to-end claims process. Settlements in a matter of not weeks or days, not even hours, but seconds. Or Metromile, which allows microinsurance at scale, allowing customers to insure only their small part in the growing sharing economy.

 

But experts have more recently suggested that the true innovation isn’t in the apps or platforms themselves, but in the way carriers choose to deploy them. And choice is the operative word. Technology shouldn’t be helping carriers dictate new ways of claims management. Instead, it should be opening up a whole landscape of choice around where, when and how customers want to manage their claim, in some cases subverting even the most current thinking around what it means to be a modern, tech-driven insurer.

 

To download the free whitepaper, with contributions from Economical, Wawanesa and Aviva, click here: https://bit.ly/2XOnTAh

 

 

Do not hesitate to get in touch to further the conversation.

 

Graham Proud
Global Head of Connected Insurance Research, Insurance Nexus
Reuters Events
Tel: +44 (0)20 7375 7221
graham.proud@insurancenexus.com

Delivering Empathy at Scale Webinar Featuring Insights from LexisNexis Risk Solutions, Liberty Mutual, Auto Club Group and Farmers Insurance

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Leveraging automation can be a double-edged sword. As customers look for simpler claims processes and access to information, it can be easy to put tools into place that make customers feel left out of the loop, unheard, and wary of the process. To make automated claims work at optimal levels, companies need to embrace the technology early, and actively work to deliver maximum value to the customers. The first insurers to make it through the gap will win the day.

 

When customers make claims, they are generally under great stress, uncertain of the outcome, and sometimes in the midst of the most trying times of their lives. The job of insurance providers and agents should be to deliver service that customers want, service that is informative, reassuring, and that has the human touch. With automation, we can reach more people, deliver more information and service faster – but how do we do that without sacrificing that all-important human element: empathy?

 

During a webinar discussing how insurance carriers can ‘Deliver Empathy at Scale’, Bill Brower (Vice President – Auto Claims, LexisNexis Risk Solutions), Mike Fiato (Chief Claims Officer, Liberty Mutual), Lori Pon (Director of Claims Transformation and Claim Service Center, Auto Club Group), Samantha Santiago (Head of Claims Strategy and Automation, Farmers Insurance) and moderator Alan Demers (Founder-President, InsurTech Consulting) shared their insights into the possibilities for the claims ecosystem.

 

Alan Demers opens the discussion saying, “I was excited because of the importance of where we’re headed as an industry, through automation and self-service, and then trying to find a balance […] from a human standpoint into the value of empathy itself.”

 

The idea of scaling empathy is more ambitious than it might seem. Anyone with experience growing a business may already know why. The fact is that some services scale well, and others do not. Generally, uniquely human qualities – things that are not generally manufactured – do not scale well. Reproducible goods scale incredibly well. That’s why a Hollywood blockbuster film is worth spending hundreds of millions to make. The owners of the final product can make copies with considerable ease. The same goes for novels, trinkets, and goods of all kinds.

 

But, how do we scale empathy?

 

Consider the fields of nursing, home care, or childcare. These are tasks that require an individual human. They cannot be duplicated without creating a new human to perform them. So, scaling empathy seems impossible, right? Well, modern information technology may have something to say about that.

 

Demers makes a very important point – how do we define empathy? The dictionary definition is “the ability to understand the feelings of another”. But when put into the context of claims-handling it “may be described as anticipating needs and delivering on them”.

 

Any time a claims agent deals with a client making a claim, they are dealing with someone experiencing a personal loss. It could be a profound loss, or it could be relatively minor, but it is always significant. Hence the value of empathy.

 

At that, Bill Brower touches on the topic of the “touchless claim” in delivering empathy.

 

From Traditional to Touchless:

Bill began by explaining the common physical damage claims processes including traditional claims, Fast Track Claims which includes Direct Repair and Virtual Claims Processing where customers provide smart phone photos of damaged autos for adjusters to prepare repair estimates remotely normally in hours.  Bill said the move to Fast Track and Virtual processes were driven by technology advances like the introduction of computers and digital cameras for claims back in the 1990’s and Virtual began due to the high quality of cameras within the smart phone beginning around 2013.  Therefore, with continued advances in technology and the availability of real-time claims data Bill predicts the next evolution in claims processing will be a touchless claims process.  Bill defines touchless claim as “a process similar to Virtual Handling- except no claims adjuster or carrier employee is involved in the process. Technology is used to report the claim, capture damage or invoices, run a system audit and communicate with the customer electronically. If the claim meets the approved criteria, the claim is automatically paid without human intervention.”

 

Brower notes that insurance carriers continue to enhance and fast track processes while offering virtual claims handling options for customers that have not yet decided on a repair shop.  Bill explained that while virtual claims processing began around 2013, it grew dramatically starting around 2017 and for the next three years”.

 

He goes on to note that, based on a LexisNexis Risk Solutions report that found that 95% of claims executives were either using virtual claims today or moving to virtual claims in the near future, “the next logical step seems to be touchless claims.”

 

Although a great many steps have yet to be taken before touchless claims is common in the industry, Brower points to the obvious advantages that fewer touches has for the carrier and the customer. “If you can get to the point where maybe just one person is involved in the claim that would certainly be an improvement in many operations as carriers surveyed shared that it’s still common for 3 or more claims professionals to be involved in even a simple non injury auto claim.”

 

Delivering Empathy at Scale Now:

Mike Fiato provides key insights into how insurers can quickly provide empathy at scale with technologies available now – in this case, Fiato refers to Liberty Mutual’s adoption of two-way texting technology. Crucially, this service allows the customer to still have a strong connection to their insurer with the added advantage of more convenience for them, and lower cycle times for the insurer.

 

“If you can build trust and provide peace of mind,” Fiato concludes, “and the claim does not require face to face, or phone to phone contact, you can create an experience that the customer is wowed by or satisfied with and still accomplish the goals that you want.”

 

The Power of Empathy

Lori Pon discusses empathy as a preventative process: “no matter how outstanding our claim service delivery is, a claim always disrupts the customer’s life. As a consumer, how important would it be for your insurance company to actually alert you in advance of danger?”

 

The first impulse to this challenge might be to simply allow the customer to fill out a text field explaining the loss in plain language. However, in the absence of advanced AI, this would still require the eyes and effort of a human being. That is the opposite of scaling. Therefore, AI is deeply integrated with these solutions as a matter of necessity.

 

That’s not to say that people don’t play a role. Pon underlines how important it is that “your staff is aimed with the information they need to better personalize the claim experience based on the customers preference claims is the most critical moment of truth in the insurance lifecycle, you do not have a second chance to make that first impression”.

 

Finally, Pon outlines how insurance carriers can determine their “secret sauce”. Discussion of the importance of working with the right partners throughout these transformation processes is particularly frequent within the industry today and is arguably just as important as the technology itself. As Pon concludes, “it’s not about low touch or high touch – it’s about using the right mix of technology, people and processes to deliver the right touch.”

 

Empathy as more than emotion:

Sam Santiago argues that “the biggest part of delivering empathy is about providing choice and being there and looking at ways to improve overall response times… whether it’s in person through the text, on video, or however we choose to interact with them. It’s being there for them in their moment of need.”

 

This is absolutely right. How can an insurance carrier provide empathy to customers if they can’t be there for them in the first place? A customer would certainly feel more relieved if they were able to communicate with their insurer as quickly as possible through whatever channel they are most comfortable with.

 

To hear the full webinar including the Q&A, you can access the full webinar here.

 

Deliver Empathy at Scale with Liberty Mutual, Farmers Insurance, AAA and LexisNexis Risk Solutions

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For insurance carriers, automation can be a dangerous game as customers demand both a frictionless, automated claims process and access to understanding claims handlers. How do you find the right balance?

 

With chatbots at FNOL, image analytics estimating damage more accurately than any human, and complex claims being fast-tracked to claims adjusters, virtual claims handling delivers the efficiency that customers expect with the empathy customers need. Join our panel of experts as they share insights into how to leverage virtual claims to deliver empathy at scale.

 

To explore the strategies and tools that enable insurers to deliver empathy at scale despite increased automation, Reuters Events is bringing together a panel of senior claims executives; Mike Fiato (Chief Claims Officer, Liberty Mutual), Samantha Santiago (Head of Claims Strategy & Automation, Farmers Insurance), Lori Pon (Director of Claims Transformation and Claim Service Center, AAA) and Bill Brower (Vice President – Auto Claims, LexisNexis Risk Solutions) as well as our moderator Alan Demers (President-Founder, InsurTech Consulting) for a live webinar, ‘Deliver Empathy at Scale – Virtual Claims Handling as the Future of Efficient, Customer-Centric Claims’ on February 13th at 11:00AM ET.

 

Register for this webinar here

 

Registrants to this webinar, sponsored by LexisNexis Risk Solutions, can expect to explore the following:

 

  • Give the customer more than they expect! Boost NPS while reducing cycle times by automating routine processes to offer a seamless customer experience that gives the customer the power of choice
  • Quick Wins with Quick Estimates: Integrate image analytics AI and automated documentation for increased accuracy and estimation speed to see reduced loss adjustment costs
  • Create a Superior Employee Experience: Reallocate your claims teams to focus on complex claims to maximize human efficiencies and provide true job satisfaction
  • Be there 24/7: Deploy AI and Chatbots to handle routine claims 24 hours a day to be there for customers at any time they need you

 

Register for this webinar here

 

This webinar is being run in conjunction with the upcoming Fourth Annual Connected Claims USA Summit, taking place June 24th–25th, at McCormick Place. Welcoming over 1200 senior attendee, Connected Claims USA is the world’s largest gathering for claims executives striving for efficient, customer-centric claims processing. More information can be found on the website at https://events.insurancenexus.com/connectedclaimsusa/

 

Mariana Dumont

Head of USA Operations

Insurance Nexus by Reuters Events

Phone: +44 (0) 207 422 4369

Toll Free: 1 800 814 3459 Ext: 4369

Email: mariana.dumont@insurancenexus.com

 

Insurance Nexus by Reuters Events is part of FC Business Intelligence Ltd. FC Business Intelligence Ltd is a registered company in England and Wales. Registered number 04388971, 7-9 Fashion Street, London, E1 6PX, UK

Insurance Nexus by Reuters Events is the central hub for insurance executives. Through in-depth industry analysis, targeted research, niche events and quality content, we provide the industry with a platform to network, discuss, learn and shape the future of the insurance industry.