Harness the power of data for claims processing

Harness the power of data for claims processing

Many of the most successful businesses in America, from insurance firms to sports teams, use predictive analysis to maximize profits, reduce expenses and increase efficiency. In an article for Property Casualty 360, Judith Vaughan describes how claims processing data can be a valuable source of information for companies seeking an advantage in the marketplace.

  1. Add efficiency in claims assignments: Predictive claims analysis can be used to assign claims to the right adjuster at the appropriate time, based on the data a company has at its disposal. In this situation, the more experienced adjuster is assigned the potentially high-cost claims, while the less experienced adjuster is given smaller claims. It sounds obvious, but those costs are not always evident when claims are first reported. Predictive analysis, however, can reveal those sometimes hidden costs.
  2. Improve the claims processing cycle: Historic data offers insight into how customers prefer to be reached, options for service (repairs, treatment) and more. Predictive analysis of claims data can ensure that each customers get the appropriate response to their claims, receiving prompt, cost-effective care in a timely fashion.
  3. Grow relationships with customers: Predictive analysis of claims data can help companies improve their relationships with their customers. When a claim is filed, it is often a stressful time for the customer, and data can help companies anticipate the problems a customer may face before they occur, helping an adjuster to deal with an issue before the customer even realizes the need exists.
  4. Reduce fraud: Predictive analysis of claims can help companies detect – and eventually reduce – the fraudulent ones. According to the National Insurance Crime Bureau, an estimated 10 percent of all property and casualty claims are fraudulent, but only 20 percent of those claims are detected. Analysis of claims data can reveal where fraud is most likely to occur and help identify potential red flags. Even spotting just a few types of fraudulent claims can save a company millions in the money it pays out.

As more and more companies outsource their claims adjustment services, the data becomes more robust and the analytics derived from it become stronger and more accurate. It’s not a perfect predictor of future trends and issues, but if gives companies a basis to build upon in their efforts to become more efficient and more successful.

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