The number of automated processes within any given vehicle continues to grow as technology progresses. Fully autonomous vehicles are on the horizon and insurance companies need to prepare themselves for this reality. Autonomous vehicles will change claims management to a significant degree. Some examples of these changes include:
- Targets of claims and lawsuits
- How adjusters allocate liability
- An increase in product liability claims
With incidents involving traditionally operated vehicles, most claims and lawsuits target one or more drivers. By removing drivers from the equation, individuals will turn to the car and technology manufacturers. Technology may be insusceptible to distractions and alcohol, but it can wear down over time. Experts expect many autonomous vehicle lawsuits to focus on the potential for fatigued software to malfunction.
Meanwhile, insurers will need to consider how they will assign liability after a customer makes a claim. Another liability headache adjusters should expect is dealing with shared ownership of a vehicle. Autonomous vehicles come with a hefty price tag, so more than one individual may own and operate the vehicle. This adds an additional layer of complexity to allocating liability.
Expect More Product Liability Claims
Specialists are predicting a rise in product liability claims for one significant reason: money. Car manufacturers and software development companies have much deeper pockets than one individual does. This makes them a lucrative target. Engineers responsible for crash avoidance algorithms could also find themselves liable or pulled into lawsuits.
While autonomous vehicles pose certain difficulties for insurers, experts agree the technology will reduce accidents. Insurers may need fewer dedicated auto adjusters as a result, but they will need a proportionate increase in product liability adjusters. Regardless, insurance companies need to examine their current claims management process. To learn more about custom claims management solutions, contact the experts at Actec.
As more cars integrate some sort of smart technology, auto insurance agents find themselves wondering if they will soon be out of a job. While OEMs can report accidents and get the first notice of loss (FNOL) process rolling, agents can rest easy. Customer, particularly younger customers, still want a human element involved in their claims process. This is great news for insurance agents as Generation Y made up the largest portion of auto insurance claimants for 2016 at 40%—this is a 7% increase from 2015.
Some fraudulent insurance claims are obvious right away. For example, a customer may call to claim he or she was in a hit-and-run accident. They may describe the car as red, but pictures from the scene show blue paint transfer. While the agent managing the claim may never know the truth of what happened, a customer’s motive for filing a false claim is usually financial. If the customer recently lost their job or has excessive monthly car payments, that may be their incentive to offload the vehicle. Most claims do not involve fraud, but agents should make themselves aware of the following warning signs.
The State of California recently amended the California Workers’ Compensation Uniform Statistical Reporting Plan. As of January 1, 2017 it now requires insured employers to report first aid claims to their claims administrators. This does not apply to self-insured organizations that handle claims in-house.
The insurance industry is sometimes slow to adapt to new technologies. However, as of 2015, almost 70% of adults in the United States own a smartphone. This is almost twice the number of adults who owned a smartphone in 2011. With smartphone ownership skyrocketing, insurance companies cannot afford to overlook mobile applications.
First notice of loss plays a critical role in many organizations. The manner in which data is reported, transmitted, managed, stored, organized, and used will dramatically impact the efficacy of an FNOL operation and everything it touches. Whether in use by an insurance carrier, an airline, or other FNOL-dependent organizations, success has been redefined by the widespread implementation of technological advancement. What kinds of technology play such an important role?
Integrating your claims process with technology can provide a number of benefits. Your company can reap most of these benefits through the collection and analysis of data. Simply having the data is not enough, though. Claims management should use the data to improve operations, discover trends, and forecast future claims.
When a customer first contacts their insurer, this is the best chance to have a lasting and positive influence on their experience. However, if the notice of loss process is not efficient or requires a lot of leg work on the customer’s part, they will likely have a long-term negative association with their insurer. Once the customer initiates the process, other factors begin to affect their overall perception as well. Communication with employees, ease of understanding the claims process, and how fast the insurer handles their claim all contribute to the customer’s final opinion.
There several important terms when discussing first notice – some may seem esoteric, others mundane. But understanding their full meaning and method of execution can dramatically improve business operations for organizations of all shapes and sizes. A positive FNOL interaction is key to successful business operations – from client relationship management to risk reduction.