Live Connection

Will new technology solutions focused on simplifying claim processing become de rigeur in the property and casualty insurance industry?

Live video collaboration technology, a relative newcomer in available claims-processing tools, aims to transform the first notice of loss (FNOL), inspection and settlement processes both for the insurer and the policyholder through the use of smart devices.

Traditionally, the p&c insurance industry has been slow to adopt new technologies, but even very cautious markets experience breakthroughs. With the ubiquity of smartphones and tablets, policyholders are becoming increasingly involved in the claims process.

Thanks to digital communication channels and live video collaboration tools, processes that used to take weeks can now be completed in as little as 24 hours. And faster, more-informed claims resolution is inevitably what lies at the core of customer engagement.

Live video collaboration enables a policyholder to report damage by connecting directly with his or her claims representative and launches the inspection, scoping and settlement process soon after the damage occurs.

Using the camera on a policyholder’s smartphone or tablet, the claims representative can perform a complete and secure site inspection without leaving his or her desk. The claims rep guides the policyholder to capture the information required to finalize the estimate via the audio and video controls of the live collaboration tool.

The information gathered through the virtual site inspection, in effect, allows the claims representative to assess the damage remotely and determine which repair services will be required when the policyholder calls to report a claim.

SAVINGS DOWN THE LINE

There are several benefits associated with using live video collaboration tools – one of the most obvious is that less time must be spent at virtually every stage of the claim process.

Because calls from policyholders can be triaged at the FNOL phase, many policyholders can expect to have their virtual site inspection occur within minutes of reporting the loss.

The time it typically takes to schedule a site visit between the adjuster and the policyholder, not to mention the amount of time adjusters spend travelling to loss locations to assess damage in person, can be repurposed to deliver higher levels of customer service.

The policyholder’s video collaboration with the insurance carrier helps to eliminate inefficiencies in the period following FNOL and contributes to better time management for both insurance company staff and the policyholder. This process, in turn, enables desk adjusters to document the damage in real time, effectively bypassing time-consuming site inspections and, in some cases, engaging repairers or mitigation specialists as soon as the damage is assessed.

Live video collaboration technology also makes it possible for insurance carriers to make more efficient use of staff in times of catastrophes when adjusters must be dispatched across wider geographic areas or must handle a larger than normal volume of calls.

Additionally, collaborative technology is developed to run on ultra-low bandwidth and function seamlessly in locations with limited network conditions. As such, it proves to be critical in high-volume emergency situations.

While significantly compressed claim settlement timelines are a key benefit of using the technology, nothing is perhaps more telling of its usefulness than the cost savings generated as a result.

Since the interaction between the policyholder and the insurance carrier happens entirely over the phone, there is no need to send a staff adjuster or an independent adjuster into the field for a site inspection, which can end up costing the carrier upwards of $400 on average.

While there is a fee associated with using live video collaboration tools, there is a significant return on investment for the technology even without taking into account the reduction of other expenses, including those accrued as a result of staff travel times to loss locations, liability costs and scheduling delays.

ENHANCING ACCURACY

Estimate accuracy is another key advantage of using live video collaboration. Having direct engagement between the policyholder and the claims representative early on in the claims process means estimates created and information collected using these tools are of at least equal accuracy to those completed using conventional methods.

Geocoding capabilities for all video recordings and photo documentation captured at the loss location, full-resolution imagery capture and retention of the video session all contribute to a complete and accurate documentation of the claim.

THE ROAD TO SELF-SERVICE

Notwithstanding the benefits of granting policyholders the ability to help report damage and engage directly with their claims representative when needed, live video collaboration technology is just one of the tools that carriers are examining as they move to investigate which claims might, ultimately, have the potential to be self-settled by the policyholder.

New and timely data about environmental factors, high-resolution imagery and cloud-based technologies, coupled with the Internet of Things, all contribute to the accomplishment of this ultimate goal. They add a high degree of verification to create the trust required throughout such an approach.

Meeting this goal leads to a more streamlined settlement process – and one in which the policyholder plays an important role in how the damage is reported and recorded.

Some insurance carriers are looking to embed parts of many of these tools, including live video collaboration, into their existing mobile apps, creating a new level of engagement and ensuring that policyholders take away a positive customer service experience.

ADOPTION BY INSURANCE SECTOR

Reporting, inspecting, estimating and documenting claim damage does not have to be a cumbersome experience, and collaborative technology solutions can help make this often-difficult process more convenient and seamless for policyholders.

The use of this sort of technology is starting to change the p&c industry and is in line with increasing consumer demands for self-service through policyholders’ preferred digital channels.

The p&c industry seems to be showing a positive response to live video collaboration technology. A number of insurance carriers throughout the world, including USAA in the United States and Argenta Assuranties in Belgium, are already using live video collaboration tools and almost every Top 25 insurer in North America is in the process of evaluating the technology to determine whether or not it is a good fit with their operations and broader digital strategy.

Are Canadian insurers ready to take the leap forward?