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Loss adjusters must reassess role as technologytransforms sector

by rasaad.jamie@informa.com

The question for loss adjusters is not how many different technologies they can bring to bear on a claim, buthow to use their unique position to restore trust in the insurance industry

THE USE OF DRONES RATHER THAN FIELD VISITS TO PROVIDE LOSSADJUSTERS WITH ONSITE IMAGERY HAS EXPANDED OVER THE PAST 18MONTHS

Source: David Wall/AlamyStock Photo

Covid-19 has had a profound impact on the insurance industry as far as technology is concerned, butnowhere more so than in the claims management sector. Indeed, for most loss adjusters, it is hard to think ofa single part of the claims process that has not been fundamentally reshaped or in some way augmented bytechnology over the past 18 months.

What is really remarkable about this transformation, according to claims professionals, is not only the speedof development of these new capabilities across the sector, but also the speed of adoption and the frontlineintegration of the new technologies by loss adjusters and third-party claims administration companies.

There is no doubt the impact of lockdown and the shift to remote working acted as a signi�cant accelerant tothe adoption by the claims management sector of virtual claims handling work practices. However, insiderssay it is important to bear in mind the industry was already moving in this direction pre-Covid and, in manyinstances, the technologies and skills required to operate in this manner were already available not only toloss adjusters, but also to insurers and insureds.

08 Jun 2021 ANALYSIS

Rasaad Jamie

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“I would say the pandemic has simply moved the claims industry faster along a road it was already on,”Andrew Bart, president, loss adjusting, international, at Crawford & Company, says. Before the pandemic,the claims management industry was already under signi�cant pressure to enhance ef�ciency, improveresponse times, build deeper connections with both insurers and policyholders and, ultimately, increase thelevels of satisfaction for every stakeholder in the claims management process.

 

Business case

What the pandemic did do, according to Bart, was make a more compelling business case for investment inthe technologies and capabilities that can play an integral part in achieving those goals, “particularly when itcomes to eliminating simple and repetitive tasks and freeing up expert resources who can play a moreexpansive role in addressing more complex losses and enhancing the direct working relationship with theclient”, he says, adding. “What the pandemic has essentially done is to elevate these capabilities from beingan option for companies to consider, to an integral part of their claims management process.”

“We need to fully understand where new approaches and technologies are trulydelivering the most signi�cant productivity increases and the greatest improvements incustomer service”

But many loss adjusters, including Bart, are now calling for a period of assessment as the insurance sectormoves towards a post-pandemic working environment. “We need to fully understand where new approachesand technologies are truly delivering the most signi�cant productivity increases and the greatestimprovements in customer service,” Bart says. “There will be multiple takeaways from the circumstancescreated by the pandemic and it is imperative we work to extract full value from what has been a verychallenging period.”

 

Time out

It is necessary to take time out to re�ect because the insurance industry is at a pivotal moment in its history.This is partly because of the way in which Covid-19 has transformed the risk and claims landscape generally,but more speci�cally because of the litigation relating to business interruption claims, which has damagedthe reputation of the industry as a whole in the eyes of the public. “We have a valuable opportunity tochange that perception. As claims managers, we �nd ourselves in a unique position as a bridge to restorethat trust between policyholders and insurance companies,” Eric Malterre, chief client of�cer at SedgwickInternational, says.

As with any misjudged response by the re/insurance industry to a major catastrophic event around the world,the damage suffered as a result of the business interruption litigation should remind all industrystakeholders to work together more collaboratively, Malterre says – for example, by exploring public-privatepartnerships to build capacity and broader coverage with the ability to service events at a global level. “Wecan expect these types of events to recur and perhaps even more frequently. Covid-19 reminded us we needto be better prepared to deal with such crises ahead of their occurrence,” he adds.

Andrew Bart

Crawford & Company

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Loss adjusters push forwardon multiple technology fronts 

First notice of loss (FNOL) reporting is one of theareas in the claims environment that has seensigni�cant adoption of new technologies,according to Bart.

Smartphone applications for FNOL reportinghave become a much more prominent componentof the claims process during lockdown, he says:“Such technology is integral to creating that end-to-end remote claims management capabilitycombined with adjusting expertise.”

There has also been an increased recognition ofthe value provided by robotic process automation(RPA) in the claims process and the automatictriaging of claims. This includes the introductionof platforms to handle very large numbers of low-level claims with little or no human intervention,a development that has largely been necessitatedby pandemic restrictions.

Another area that has come into its own is theuse of remote imaging technology to capturecritical onsite data in the aftermath of a major

Nobody expects the sector’s increased reliance on technology and digital solutions over the past 18 monthsto end any time soon. These solutions include the use of drones and other digital tools (which have grownsigni�cantly during the pandemic) to replace �eld visits. The same applies to the initiatives across theindustry to automate aspects of the claims management process to simplify and improve customerexperience while reducing costs.

“Covid-19 has shown us that global businesses need to be able to rely on their partners…it is reliable partners that work quickly, have the global reach and the local expertise, thereputation, the scalability, the balance sheet strength and the connectivity that can helpthem face uncertainty”

But digital technology is not the solution in itself, Malterre argues. “It’s about solving customers’ problemsand improving their experience of the claims management process. This involves better use of data andbehavioural science, combined with the application of speci�c skills and technical knowledge to managethose claims effectively,” he says.

It is no longer a question of understanding andmeasuring the aftereffects of the pandemic inbusiness terms, Malterre says. It is aboutacknowledging and embracing a new reality, whichbrings challenges but also new opportunities. Theseopportunities, according to Bart, reside not in howmany different forms of technology can be broughtto bear on a claim, but in how these capabilities canbe integrated into the life cycle of the claim in themost effective way. “It’s about building them intothe claims infrastructure at the right points and inthe most user-friendly way possible so the adjuster,insurer or policyholder can fully capitalise on themultiple bene�ts of this rapidly expanding digitalecosystem,” Bart says.

 

Empowerment

There are many challenges ahead, but the goodnews is the new technologies can help to put boththe insurer and the policyholder in a much morecentral position in the claims management process.That increased level of empowerment is a centraltenet of the ongoing evolution of the connectedclaim, according to Bart. “It’s about creating anenvironment in which every component of the

Eric Malterre

Sedgwick International

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loss. These high-resolution images can be madeavailable to insurers within 24 hours, Bart says.This allows adjusters to conduct virtualwalkthroughs that allow for speedier decision-making, improved collaboration and ultimatelyspeedier resolution.

“In addition, such capabilities are also being usedto speed up the repair process by enabling repaircompanies to conduct assessments, provideestimates and agree work virtually,” he adds.

But loss adjusters are pushing forward onmultiple technology fronts. “We continue to seeadvancements across the full spectrum oftechnologies, including the further integration ofRPA into the claims process, the integration ofdigital automated estimate review platforms intoloss adjusting and managed repair services, aswell as the broadening of the scope of self-servicecapabilities, which is particularly important givenchanging customer expectations which is acritical disruptor for our industry,” Bart says.

For example, Crawford is enhancing its ownFNOL technology to improve the digital claimsintake process, improve data capture and expandthe range of channels through which users cansend claims data. “We are also advancing ourend-to-end digital desk claims managementplatform, with improved integration of smarttriage claims segmentation, as well as creatingthe ability for clients to employ these capabilitieswithin their supply chain via a software-as-a-service model,” Bart adds.

Crawford has also developed a new self-serviceproperty claims management tool, according toBart. Designed for properties, policyholders takeshots of the structure and damage via asmartphone app and the adjuster receives acomprehensive measurement report and a 3Drendering of the structure with accuratemeasurements, allowing the loss adjuster tosettle the claim quickly and accurately. “We arealso exploring the use of this tool in the pre-lossarena to ensure underwriting accuracy,” Bartsays.

process is seamlessly linked, in which the righttechnologies are employed at the most effectivestage and in which relevant, actionable data can�ow effectively to all parties in this developingecosystem.”

Malterre warns the insurance industry is facing aonce-in-a-lifetime challenge. In response, he says,being agile, well-connected, better prepared andworking collaboratively will be essential for everystakeholder in the claims management process ifthey are to succeed, both now and in the future.“More than ever, Covid-19 has shown us, as claimsmanagers, that global businesses need to be able torely on their partners when they need them themost. More than ever, it is reliable partners thatwork quickly, have the global reach and the localexpertise, the reputation, the scalability, thebalance sheet strength and the connectivity thatcan help them face uncertainty,” Malterre adds.