What You Need to Know About Insurance Trends for 2018

Posted on

March 5th, 2018

shutterstock_251707783 sm Rapid technological advancement is changing the insurance industry. Insurance companies need to make themselves aware of the latest trends poised to disrupt their sector. Only then can they develop a strategic plan to innovate and compete against rival organizations. Read on for trends expected to change the insurance industry as we pass through 2018.

Personalized Insurance Premiums

In previous years, insurance premiums were often generic. For example, two neighbors living on the same street, driving the same car, of the same age and gender, would likely have near identical premiums. However, this is not an accurate representation of their risk. Several other factors can affect an individual’s relative level of risk, and technology now allows insurers to tap into that data. Wearables such as Fitbit watches, smartphone apps, and telematics can all provide information to construct a premium specific to the individual’s lifestyle.

All-in-One Insurance Policies

The public has grown weary of multiple insurance policies. They need a policy for their car, for their home, for their health, for their prized possessions, and sometimes even their pets. The sheer number of policies can be dizzying. Compounding their frustration is many individuals use one insurance company for their policies because they can bundle to get discounts. As a result, people want a package deal. One policy to cover all of their needs in one location. With the use of artificial intelligence (AI), insurers could make recommendations based on how different areas of coverage interact with each other.

Blockchain Ledger Technology

The blockchain era is here, and commercial industries are jumping onboard. Blockchain technology allows for cryptocurrency transactions. While this will not disrupt how customers interact with insurers, it will disrupt the existing platforms for wholesale, commercial, and reinsurance transactions. This is noteworthy because these particular areas have yet to advance into the internet era.
There are significant changes coming to the insurance industry, and providers need to prepare and adapt. With our expertise, Actec can help insurers navigate the challenges ahead. To learn more about the shifting insurance landscape, contact us today.

Do You Know the Best Way to Prevent Car Insurance Fraud?

Posted on

February 19th, 2018

Andrew

impacted car Technology has forever changed how insurers interact with their customers. However, this is not always to the benefit of both parties. With increased online interactions (i.e. quotes, claim submissions, payments, etc.) came a rise in fraud. While banks and retailers have taken the lion’s share of negative press, the auto insurance industry is just as susceptible to cybercrime and fraud.
However, not all fraud affects the auto insurance industry in the same ways. For example, customers commit soft fraud such as lying about how many miles they drive per year or where they store their car. This affects an insurer’s ability to provide accurate quotes. Digital fraud poses a much bigger risk, as it is more likely to affect an insurer’s bottom line. To make matters worse, according to the Coalition Against Insurance Fraud, fraud is mounting. More than 60% of auto insurers confirmed a dramatic increase in fraudulent cases over the past three years.

Balancing Customer Satisfaction with Fraud Protection

Insurance customers, millennials in particular, want seamless interactions with their insurance provider. They also want a variety of communication methods including emails, texts, websites, and online apps. They also want rapid claims resolution so they can receive their money as soon as possible. While this is exceptional for the customer experience, it leaves significant opportunities for cyber criminals to abuse. Solid digital fraud prevention software can help flag common markers of fraud, but that only goes so far.
The greatest challenge facing insurers dealing with fraud is a lack of IT support. Fraud detection software can trigger several false positives, and not every agency has the workforce to sift through which are legitimate and which are fraudulent. As a result, insurers across the nation are increasing their IT budgets to balance the need for superior customer experiences with fraud detection and prevention.
First Notice of Loss (FNOL) represents the greatest opportunity to identify fraud, but not all agencies are utilizing it to its full potential. Fraud investigators rely on claims triaging to notify them of potentially fraudulent claims. However, without a robust trove of data, many adjusters rely on their instincts to forward on potential fraud cases. Improved technology can revamp the claims triaging process to use current and historical data to identify fraud with greater accuracy. This also helps expedite legitimate claims so customers are not held up waiting for payment because of a false positive.
Fraud is not going to stop anytime soon so insurers need to develop strategies to manage it now. To learn more about identifying and reducing fraud risks, contact the experts at Actec today.

3 Surprising Trends Pioneering the FNOL Revolution

Posted on

February 12th, 2018

Andrew

what's next img Several factors are driving change when it comes to First Notice of Loss (FNOL). Before sophisticated technology became commonplace, first notice of loss was almost universally initiated via a phone call. Now, policyholders can log onto their computers or phone apps to trigger FNOL. Although this change seems monumental, it is nothing compared to the latest trends looking to shake up the industry.

The Shifting Definition of Work

Until recently, the workforce was 100 percent human. With the rise in artificial intelligence (AI) and machine learning, however, that is set to change. Machines can now finish several tasks in minutes that would take humans several hours to complete. While businesses cannot and should not automate all tasks, automation is changing how people perform their jobs in the insurance industry.

The Cycle of Retiring and Rising Employees

The insurance workforce is on the precipice of major change. The industry expects around 70,000 of its professionals will retire in the coming year. While many are looking to millennials to fill that gap, there is the significant problem that almost two-thirds of them have a negative view of the insurance sector. Even though millennials will make up almost half of the workforce by 2020, the insurance industry will still have a labor problem on its hands if it does not change millennials’ perception of the insurance sector.

The Decline of Mobile App Use

In two years’ time, experts predict that mobile app use will drop by 20 percent. However, this does not mean technology is a waning trend. Instead of using mobile apps to initiate FNOL or ask claims questions, people will utilize chatbots. This technology relies on AI and language processing to complete simple tasks while providing satisfactory interactions. Even though many rebuke the idea of chatbots, this technology has made major strides in recent years. The experience is so seamless that many individuals do not realize they are chatting with a machine rather than a person.
Insurers need to keep up with industry trends or risk falling behind their competition. That is why Actec offers FNOL and full cycle claims solutions to address insurance company’s needs. To learn more about improving FNOL and claims processing, contact us today.

Top 3 Insightful Trends for Successful Claims Management

Posted on

January 22nd, 2018

Andrew

shutterstock_138016598 - Copy At the start of every New Year, insurers look for innovative ways to improve their business strategy. However, with a dizzying number of trends flooding the industry, it can be difficult for insurers to ascertain which trends will withstand the test of time and retain their value. Actec understands this predicament, and, as such, put together the following list of essential trends adopted by successful insurance firms.

The Human Touch

Artificial Intelligence (AI) and machine learning are here to stay, but that does not mean insurance providers never have to interact with their customers again. When a customer calls to file their first notice of loss (FNOL) after an accident, they want and need human kindness. While machines are fantastic at processing data, they lack the empathy and finesse required to manage FNOL.

Contextual Connectivity

Insurers need to increase how often they are in contact with their customers, but providers do not want to run the risk of irritating their clientele. While text messaging and email make communication easier than ever, an irritated customer is not an acceptable outcome. Insurers need to make their messages valuable to the customer. For example, a customer requesting information about homeowner’s insurance does not want a barrage of questions and quotes; they want good coverage to protect one of the biggest financial investments of their life. By understanding the context of the customer’s situation, insurance providers can adapt their conversations to help solve the customer’s problem rather than complicate it.

Perfecting Business Operations

Insurers that want to succeed need to make improving business operations a top priority. Accepting the existing state of affairs can lead to complacency, decreased customer satisfaction, and customer turnover. Part of the improvement process should include reexamining and revamping the claims management process. FNOL represents the single greatest opportunity insurers have to deliver superior customer service. If a customer is dissatisfied with their FNOL experience, it is almost impossible to win them over later in the claims management cycle. To learn more about improving your claims management system, contact the experts at Actec today.

How to Catch Fraud Before You Pay the Claim

Posted on

January 2nd, 2018

Andrew

Insurers catch most instances of fraud after they already paid for the claim. However, it is harder to get money back from a fraudulent claim than it is to prevent fraud in the first place. This was not always the case. With the rise of powerful analytics, insurers can use the data to make predictive models. These models can trigger an investigation into a claim if it contains markers of previous cases of fraud. This will allow insurers to stop fraud before paying the claim.

How Data Models Work

Data analytics are not new, but insurers had not been able to use them to their full potential until now. Statistical modeling and machine learning were not readily available in the past, but the technology has made significant strides in recent years. For example, an insurance agent could always survey claims data and try to draw conclusions. However, this method would prove too slow and too prone to error to be reliable.
With machine learning, the insurance agent presents the machine with sets of data (in this instance, true claims and fraudulent ones). The machine then learns over time how to develop insights into these sets of information. The machine can then use this knowledge and apply it to new claims. Through this method, the machine can interpret with reliable accuracy if a claim is high risk of being fraudulent.

Catching Fraud During FNOL

It is best to identify fraud during or right after first notice of loss (FNOL). This is because each step after FNOL is investigative or communicative. It is easier to look for fraud at the outset of the claim than to go back after the fact and try to find the relevant information.
Internal and external data are both relevant for fraud detection. Internal data, the information insurance agents collect, can provide common fraud statistics. However, external data is just as important for statistical modeling. This includes information such as regional demographics or weather conditions during the time of the loss. All of this data combined creates one premier set of data to use for predictive modeling.
Fraud is not the cost of doing business—at least not anymore. Fraud detection and prevention will always be a crucial element to claims management, but, with new technology, insurers can simplify and expedite the process. They can even identify fraud before they pay the claim. To learn more about claims management and fraud prevention, contact the experts at Actec.

How Powerful Telematics Technology is Changing FNOL

Posted on

December 18th, 2017

Andrew

Car driver The auto industry is no stranger to technology. Automotive technology has allowed for drastic improvements in driver safety as well as increased connectivity. With the rise of telematics, first notice of loss (FNOL) underwent a significant transformation.

Understanding Telematics

Telematics is more than just data. It is a connection between onboard computers and wireless technology. This connection allows the vehicle’s computers to share information with several platforms, improving safety and forever altering the FNOL landscape. One of the first major uses of in-vehicle telematics was with communications and security systems. If an individual was involved in an accident, the vehicle’s communication system could call for help on the driver’s behalf.
Another use for telematics was adjusting car insurance prices based on driver behavior. Insurance companies use a variety of factors to determine each individual’s insurance rate. However, with telematics, a driver could secure better rates by proving they do not speed, make hard brakes, and so on. Now, insurers can use telematics to establish FNOL as well.

Telematics and FNOL

Vehicles equipped with computers and sensors can do more than dial out for help in the event of an accident. Those sensors can pull details adjusters need to start the claims process such as where the accident occurred, how fast the vehicle was traveling at the time of the accident, what areas of the car were damaged, and more. This can allow the adjuster to begin working on estimates, expediting the claims process.
FNOL telematics allows insurance adjusters to resolve more claims in less time, which provides a boost to customer satisfaction. Happy customers are also more likely to recommend their insurer to friends and family, which can increase the customer base as well. To stay up to date with the latest FNOL technologies, contact the experts at Actec.

Successful Claims Management with Superior FNOL Data

Posted on

December 4th, 2017

Andrew

shutterstock_306793247 - Copy Claims intake specialists cannot optimize the claim intake process without the right information. Missing analytics and failing to use the right tools can result in delays, unnecessary expenses, and frustrations for both the agent and the customer. Harnessing the power of quality data at the onset of a claim is vital to successful claims management. For example, insurers can gain insights from claims data to sort and prioritize claims to ensure they reach the right adjusters.

Gather Data at FNOL

The best time to collect information about a claim is when a customer initiates First Notice of Loss (FNOL). Insurance agents should ask for information about the loss, any injuries or damages that occurred, and encourage customers to collect as many photos of the incident as they can. Mobile apps often allow customers to upload photos, which can be a great help to adjusters.

Funneling Claims

Collecting all the relevant data at the outset of the claim can help insurance companies filter the claim through the right channels. For example, data collected about injuries during FNOL can help adjusters triage the claim. The severity of an injury can determine the route a claim takes. If an insurance agent has to transfer the claim to an injury team later down the line, it may require the new agent to redo work on the claim. This wastes time and money as well as reduces customer satisfaction. Proper data collection can help avoid this issue and get the claim to the correct adjuster from the start.
While early information gathering is key, insurance companies need a full-cycle claim solution for effective claims management. Actec’s claims management solutions include complete FNOL activity tracking to support the claims process. To learn more about using FNOL data for effective claims management, contact us today.

Newer Technology Proving Unpopular for Claim Filing

Posted on

November 17th, 2017

Andrew

shutterstock_138016598 - Copy Technology is booming in several industries, the insurance sector included. However, while customers are more than happy to use mobile apps to buy insurance and review their policies, they hesitate to manage their claims this way. J.D. Power conducted a customer satisfaction study focusing on auto insurance and found only nine percent of customers provided first notice of loss (FNOL) via the internet or mobile app. Surprisingly, younger generations also prefer to provide FNOL by phone as a meager 12% reported their claim via digital means.
This would not be a major cause for concern if not for two facts:

Insurers have invested heavily in technology, and for good reason. The frequency, severity, and cost of claims are on the rise so they need to automate much of the claims process to help manage expenses.
Customer satisfaction with technological FNOL plummeted 16 points. This means that not only are insurers using technology more often, their customers are not happy about it.

However, not all is doom and gloom for insurance apps. Where insurance technology shines is with status updates. While only 16% of insured individuals use a mobile app to receive updates about their claim, their satisfaction is 33 points higher than those who do not. However, this trend skews toward Generation Y and Millennials. Pre-Boomers, for example, do not care for mobile updates. However, as younger generations begin to eclipse all other insured generations, their preferences will take center stage.

What Does This Mean for Insurance Providers?

Customers prefer the human touch when providing FNOL, but technology still has a place in the claims process. To ensure the greatest customer retention and growth, insurers need to tighten up their FNOL process. They also need to train agents on how to maximize customer satisfaction during the FNOL phase of the claim. From there, insurance companies can automate some of the claims processes without disappointing their customers. Actec can help insurers achieve these goals with our custom claim intake solutions. To learn more, contact us today.

Documentation Secrets for Successful Claims Management

Posted on

November 1st, 2017

Andrew

shutterstock_138016598 - Copy Proper documentation is crucial to closing insurance claims with a positive outcome. As the saying goes, “if it’s not documented, it doesn’t exist!” That’s why insurance adjusters need a full-cycle claims system to help them document all facts relating to liability, damages, coverage, and more. This information is especially helpful if a new insurance adjuster picks up the claim part way through processing.

Tips for Documenting Claims

Documenting claims is a delicate business. Claimants often experience anxiety or lack of focus when attempting to communicate, and notes that make sense to one adjuster may be confusing to another. Below are several suggestions for effective documentation.

Provide regular training on documentation. The methods for documenting claims continue to improve as claims become more complicated. Training adjusters on the latest documentation procedures is key for quick and efficient claims resolution.
Log everything. Whether it is a phone call, a face-to-face consultation, or an inspection, the adjuster should keep notes. It is impossible to remember the specifics of every claim so detailed notes are essential.
Focus on the facts. It is easy to read into a client’s emotions, but this can result in biased documentation. For example, making a notation such as, “The client was distraught,” without the client saying so themselves is conjecture.
Time-stamp and geotag all photographs and videos. Visual evidence is an excellent way to support written records. However, an adjuster needs to be able to prove when and where they took the photo or video. Recording the date, time, and location digitally crucial.

Maintaining accurate and up to date notes on a claim is an important element of the claims management process. Poor documentation can prolong a claim and affect customer satisfaction and retention. To learn more about effective claims management, contact the experts at Actec.

Is Your Claims Management System up to Par?

Posted on

October 18th, 2017

Andrew

shutterstock_306793247 - Copy Insurance companies encounter a number of hurdles on their way to business success. Aside from the inherently competitive nature of the insurance field, companies must also remain compliant with strict regulations as well as meet growing customer expectations. An effective claims management process plays a significant role in a company’s relative success within the industry. In particular, a company’s claims management process needs to find ways to control costs, decrease incidents of fraud, and keep customers happy.

Reducing Expenses

The longer it takes an insurance company to settle a claim, the more it costs the insurer. This is because of increased administrative costs. One way to mitigate this is to automate some of the claims management process. For example, investigating a claim by hand without automation takes much longer and is prone to errors. Resolving errors draws out the amount of time it takes to close a claim. Automation can also detect incidents of frauds. Long processing periods, errors, and fraud all eat into a company’s profits, so it behooves insurers to invest in some automation technology.

Identifying and Handling Fraudulent Claims

When an insurance company pays out for a fraudulent claim, the cost does not stop with them. The customer also takes on the burden of this unnecessary expense as premiums often increase to account for the added expenditure. Claims management software can help detect fraud and trigger an investigation well before the insurer settles the claim.

Closing Claims in a Timely Manner

The amount of time it takes to settle a claim has a direct correlation to the customer’s overall satisfaction. Swift claim resolution also gives companies a competitive advantage over those who take longer to settle claims. Expediting the claims process also saves time and money as well as boosts customer satisfaction.
The best way for insurers to address costs, fraud, and claims processing time is with an efficient claims processing system. This is why Actec offers full-cycle claim and incident reporting solutions. Contact us today to learn more about managing risk and settling claims while improving customer satisfaction.