Digital transformation can be a seamless process that leads to reductions in cost per claims and an increase in customer satisfaction
Wes Jones, CoreLogic
The coronavirus pandemic has pushed insurance, an inherently conservative industry founded on minimising risk, into a new reality. Consumer expectations and health regulations have forced a new way of transacting business. In the past, underwriting inspectors, appraisers and claims adjusters regularly made appointments to visit properties on-site. But now the industry has been forced into working remotely and virtually, both out of its own offices and policyholders’ homes.
Technology adoption spurred by the pandemic has added significant efficiencies to a traditional industry. First notices of loss (FNOL) are being reported electronically and claims payments are being paid digitally. The use of photo and video imagery, secure online applications to submit documents, and the scoping and gathering of information for underwriting and claims have all matured and scaled rapidly.
CoreLogic® is uniquely qualified to help companies make this difficult transformation. With a comprehensive property database that can power digital solutions and better decision-making, underwriting and claims software platforms that allow for efficiency, the industry’s only fully open API with plug-and-play options to allow for rapid adoption of new technology, and the Digital Hub Alliance™, where any insurtech startup can partner with CoreLogic and connect with other insurtech, supply chain and insurance vendors, no one is better suited to help insurers transform. The adoption of CoreLogic technology has shown significant benefits to carriers and supply chain partners, with a 20 to 40 per cent reduction in process steps for claim handling, a 20 to 30 per cent reduction in call centre volume on claims, a significant reduction in cost per claim, and even increased policyholder satisfaction.
Applying for insurance, working through inspections and getting paid for claims can be a pleasant experience and entirely virtual. It is a model already successful in the banking and financial sector, and insurance needs to follow suit. Insurers can still achieve conservative, risk-averse goals while using a new, transparent and improved consumer experience approach. The carriers and supply chain vendors that have done this correctly are making holistic, enterprise-wide changes to their business, rather than taking just a singular step forward, such as allowing policyholders to merely apply online or submit a claim online.
Transformational change, rather than incremental change, can be challenging. But with the right approach the industry can succeed in this change, and policyholders can benefit.
For more information about CoreLogic’s vision for insurance visit corelogic.com/protect.
Podcast sting music credit: ‘Rising Images’ by Philip Guyler (PRS), Audio Network