Companies spend billions of dollars each year on technology to improve their processes and accuracy. Among those emphasizing innovation is Nationwide, which has changed its staffing landscape because of technical advancements. According to a Nationwide statement, “Long-term investments we’ve made in technology, innovation, and streamlined operations are shifting our workforce needs.”
Services from thousands of InsurTech companies worldwide were gaining traction before the pandemic stunned the world, but they were put in full spotlight in 2020 as companies needed immediate solutions for conducting the brunt of their business remotely – from selling insurance and settling claims to maintaining superior customer service.
Even as people return to work and navigate “the new normal,” the emphasis on technology has only increased. Just in the first nine months of 2021, global investment in Insurtech start-ups totaled $10.5 billion – a record-high for the period, according to an article by Routers.
This popularity may be attributed to three characteristics InsurTechs can offer compared to human employees.
Advancements in InsurTech have helped insurance carriers, which use them as an extension of their workforce. Photo Credit: “Artificial Intelligence” by Gerd Altmann / CC BY 4.0
1. Speed
Much like the exponential increase in desire for next-day delivery services, policyholders want their insurance needs handled as quickly as possible.
InsurTech has helped expedite underwriting processes by reducing the need for onsite inspections through the use of drones, MLS data, and virtual surveys, among other technology-based services. Other innovative offerings can accelerate claim settlements by simplifying how policyholders file a claim, hastening scheduling processes, and offering faster data delivery through applications and portals.
Automations also reduce the time it takes to contact insureds, gather all the information, and decide how to settle the claim. CCG IQ expanded text and email automations for its insurance services companies, HVACi and StrikeCheck, and eliminated the need for more than 150,000 insured phone calls. Instead of playing a game of phone tag that wastes time that could be spent evaluating equipment, CCG IQ uses a blend of automations and personnel to contact insureds within 15 minutes of a claim assignment to obtain details and assessment scheduling availability.
Policyholders expect everything to happen at the speed of light, including solutions for their insurance needs. Photo Credit: “Timelapse Photography” by Chuttersnap / CC BY 4.0
2. Consistency
Adjusters within one company may handle claims differently than their peers, even unintentionally. For example, one may not inspect all claimed equipment to verify cause of loss and scope of damage. Another may not research to confirm that replacement equipment is of Like Kind and Quality or is priced at market value. These can lead to inaccurate results or unnecessary claims leakage.
Some InsurTechs have developed methods to ensure certain insurance processes remain consistent for every policy and claim. Carriers decide the rules the claim must follow and the next steps. For example, an insurer has implemented a rule that all claims with surge and lightning as the reported cause of loss must first obtain a StrikeCheck lightning verification report. Based on the results, the claim then follows a pre-determined path, such as desktop review services, an onsite assessment, or straight to settlement. An adjuster doesn’t have to look at the claim until it has gone through this process, and each claim is handled the same way.
3. Up-to-the Minute Results
Insurance professionals have a lot on their plates with multiple things having moving parts. They often don’t have the time or the resources to check price changes or equipment availability, for example.
Insurtech companies have filled that need with repair estimators, easier methods to access pricing databases, and other solutions to have necessary data at adjusters’ fingertips.
Eliminate the calculations and remove the guesswork through programs Insurtechs have built to support more accurate settlements. Photo Credit: “Keyboard” by Daniel Friesenecker/ CC BY 4.0
HVACi, the nation’s leading assessment company for HVAC and Refrigeration equipment, utilizes some of these programs to provide the most accurate repair and replacement cost recommendations. Adjusters can trust the provided information to make more confident settlement decisions. Having the most up-to-date data increases accuracy, which reduces claims leakage risk and improves overall carrier practices.
Leverage Technology and Personnel
Carriers are constantly looking for methods to reduce costs, improve accuracy, and increase efficiency. InsurTech companies have proven technology-based services can blend seamlessly with those goals through speed, consistency, and up-to the-minute results.
It’s unlikely the insurance profession will be replaced by technology, but InsurTech support can improve processes and services that will benefit both carriers and policyholders.
CCG IQ and its suite of solutions were built on the foundation of leveraging insurance experts with technology innovation to deliver comprehensive and efficient residential and commercial claims support. CCG IQ is a great addition to a carrier’s roster for claims accuracy and speed thanks to its automations, progressive data-gathering services, top leaders with insurance expertise, and team of thousands of vetted technicians nationwide.
