P/C Insurers Must Improve Underwriting Amid Competitive Pressures

Meet Bob, Claims Superhero

Bob is a straight up superhero. It’s not such a big leap to think of Bob this way, given claims adjusters help make people whole every day after some unfortunate incident. But, how did Bob reach superhero status? His many years of experience are incredibly valuable to his customers. With his uncanny knack for knowing when to ask probing questions and when to lend a sympathetic ear, his customers often remark how Bob was ‘really there’ for them in their time of need.

Still, Bob wasn’t one to rest on his laurels. He developed an immense superpower that allowed him to see into the future and prevent accidents before they ever happened. World peace was a world with no accidents, no turmoil!

A bit farfetched? Truth be told, that was just a cool dream Bob had one night. What he actually found was something much more useful. In the real world of complex work comp claims, Bob realized the value in leveraging the latest tools to understand early on the trajectory of claims and their potential to skyrocket.

Claims adjusters are busy and focused on properly handling claims in a swift and efficient manner. And, they have the added pressure of knowing that the outcome of their work directly affects an insurer’s bottom line. Leveraging predictive models can help their process and pinpoint crucial information necessary to effectively triage a claim. Things like knowing more definitively the likelihood of a claim spiraling out of control (jumpers), the need for a nurse case manager, ultimate payment predictors, and so on.

A LexisNexis study pointed to the value of advanced analytics. When implemented early on, insurers experienced the following impact to ROI:

  • 15-25% lower severity payments
  • 25-29% lower attorney involvement
  • 5-15% shorter cycle times

Advanced data analytic approaches to managing claims is growing, especially to account for a wave of experienced adjusters retiring from the industry. Valen is creating a conversation around claims and the arsenal that creates claims superheroes, like Bob, in your organization. We’d be happy to hear from you. Request a conversation.

ABOUT THE AUTHOR:

Kirstin Marr, CMO of Valen Analytics, has a passion for building companies that invent leading-edge technologies to improve customers’ lives and solve the inefficiencies that exist in traditional marketplaces. As the chief brand advocate for Valen Analytics, she helps pave the way for Valen’s clients to lead the innovation initiatives required to compete in today’s marketplace. Before Valen, she ran business-to-business marketing for internet technology pioneer and market leader, ServiceMagic.com (now HomeAdvisor).

Kirstin has a long-standing commitment to philanthropy and community leadership. Most recently, Kirstin is leading the Insurance Careers Movement coalition, a grassroots initiative of more than 850 insurance organizations raising awareness of what insurance has to offer young professionals. She has been involved in several non-profits focused on Science, Technology, Engineering and Mathematics (STEM) education, among other non-profit causes.