On-Demand Claims Solutions

Published on 12/10/2020 by Bar List Publishing

On-Demand Claims Solutions

2020 has been quite the year, and especially so on the insurance front. Besides the obvious and ongoing pandemic and the challenges it brings, we also saw record-breaking activity this Atlantic hurricane season that was true to many predictions. 

With a steady onslaught of damage and devastation, an already taxed insurance industry found itself facing a deluge of new claims. Both insurers and policyholders had a lot at stake, and it’s possible that the response wasn’t always as nimble as it could have been. Many feel that this scenario is a prime example of why on-demand, technology-driven claims handling is the way of the future.

Insurance and Technology Converge

This year, remote working has become the necessary norm. And while off-site work can present hurdles, it also opens up possibilities for a more talented and diverse workforce, available in virtually any location. In light of an ever-growing gap between need and availability of top-notch insurance claims adjusters, that’s a major plus, especially when considering the sheer volume of claims springing up across the country. 

Insurers are also spending more on claims today than in years past. So finding ways for technology to help manage ballooning expenses is on their radar. Combine these factors with the current pandemic-induced necessity for remote work and insuretech solutions seem to be a natural fit. Streamlining the claims process is an obvious place to start. But will it work well for policyholders?

Convenience Without Compromise

Most insurance policy holders are already accustomed to using their mobile device for just about everything. And a host of claims organizations do currently offer virtual, technology-based inspection and adjusting services. 

With app-based claims handling, a loss-assessing algorithm assigns the reported claim and an inspector uses an app to collect relevant data. That’s passed on to an experienced insurance claims adjuster who will review the information and then complete the claim, sending it to the insurer. From the customer’s end, it’s even less hands-on. The entire process is sped up to what feels like light years from yesteryear’s slog of paper trails and back-and-forth phone calls. 

For insurance claims managers, semi-automated or self-lead claims handling could seem to be a gift in an already very busy year. But could the trend to favor on-demand services end up underserving customers? Well, when adopting new technology or processes, success depends on how implementation is handled. And when it comes to automated claims handling, there’s no need to compromise service for convenience. It all comes down to being selective.

Selective On-Demand Solutions

In any type of disaster, claims vary widely. A storm might demolish an entire building while a home down the street only sustains light roof damage. And coastal properties often bear the brunt of a storm’s destruction. Each situation carries untold variables and contingencies.

Because the intricacies of the wide array of possible claims will vary, it makes sense for insurers to have a deep and broad toolkit. That way they can conserve financial and logistical resources, assigning the right claim to the ideal insurance adjuster. Simple claims can be streamlined, while more complex situations will shift to the talented and experienced insurance claims managers that insurers have always depended on.

If implemented well, this system could help all parties involved to get through any current or future claims surge. Here’s how companies can ensure that moving to virtual insurance claims management during a pandemic and in the wake of a devastating hurricane season is a boon, not a bust:

  • Consistency. Inspections and estimates that are thorough and follow a consistent process will prevent reopening a closed claim or delay closing due to missing data.
  • Tools. Drones and other tools will ensure that appropriate data is collected without deploying estimators or taking undue risk. 
  • Flexibility. When a simple claim turns out to be complex, a flexible system enables a quick reassignment to a full-task adjuster and avoids delays. Customizable services allow for quick access to key data and for configuration with in-house standards.
  • Data. Inspectors need to be able to capture, label, and classify an array of images for reference by various parties. And trusted third-party sources should be available through the system to help move the claim along.
  • Integration. For an on-demand claims handling system to work seamlessly it needs to be integrated with an insurer’s existing technology and allow claims managers to access information across platforms. 

The 2020 Atlantic hurricane season was accurately predicted. Something else that experts point to is a significant labor shortage, not just from low numbers of available adjusters, but also because of increasing disasters. These converging vectors could result in exponential new claims to handle. And as the country works through the economic toll of the COVID-19 pandemic, the road to economic recovery will likely continue to uncover loss exposures

Industry experts are taking this year as a ready-made study to show the vital importance of implementing a more automated approach to certain types of claims. This on-demand model is already on the rise, and while we recommend balance and caution, right now could be the best time to grow this option and benefit insurers, claims adjusters, and customers alike.

Work With Experts

Insurance news tells us that going virtual has its perks. Just be sure that it’s done right and it will serve you well. But regardless of how you decide to approach on-demand solutions, you will always need experienced estimators with unmatched industry expertise who can provide consistent and equitable outcomes. As you navigate this inevitable shift, know that The Bar List insurance network will continue to be your trusted reference source for insurance claims adjusters. We work with the top-tier insurance adjuster resources you need to get business done, and we proudly stand behind the insurance claims managers we list. Let us help you to worry about one less thing – give us a call today to learn more.