Lisa Bartlett explores the systematic approach to managing every aspect of the claims journey which is helping clients get a firmer grip on claims inflation costs.
Never before have we seen so many independent factors combining simultaneously to drive claims inflation. In these unprecedented times, Crawford’s focus on claims management efficiency has never been more valuable to our clients.
The economic environment and the disruption stemming from factors including COVID-19, Brexit and the war in Ukraine have created a string of knock-on effects that mean claims are not only more expensive, but also can take longer to settle.
Property damage costs have surged, as hampered supply chains have restricted available resources and led to a spike in the price of many building materials. Sums insured are sometimes proving inadequate, leading to disputes or difficult conversations between insurers and their clients about reinstatements, policy limits and indemnity periods.
While there are some aspects of inflation beyond the insurance industry’s control, we at Crawford see opportunities to control the cost of the claims process through proactive management. At the core of our approach are technology, managing all the services needed to work towards efficient restoration and an unerring focus on ensuring policyholders receive the optimal response to a loss.
Decisions we make on deploying the right adjusters and contractors at the right times are critical to the duration and cost of the claims cycle, and the customer experience. From the first notification of loss, automation plays a valuable role in claims segmentation and resource allocation. We use AI to achieve a rapid, network-wide response to loss events, by supporting decision-making, and connecting adjusters, policyholders and necessary service providers.
Applying a laser focus to every aspect of the customer’s step-by-step experience of a claim, we are constantly innovating to streamline and accelerate the process. For example, we partner with insurtechs to use 3D modelling and imaging to speed up property claims. And our new livestock portal can reduce the claims process from days to a matter of minutes.
A key tool in combatting claims inflation is our managed repair solution, Crawford Contractor Connection. It enables claims managers or insurers to deploy resources quickly and efficiently, as needed, by assigning contractors centrally from a pool of professionals, reducing supply-chain risk.
Contractor Connection’s great value is in building the right partnerships for us to deliver to clients. All the contractors are vetted, and the network enables them to connect directly and efficiently with the policyholder. It’s a system that breeds trust.
The benefits of the managed network model are significant, particularly in this inflationary environment. Work that might have taken weeks to get done can now sometimes be done in a few days. Dealing with trusted partners results in greater consistency and reliability, producing more accurate estimates, better timeline management and fewer errors, revisions and return visits. It reduces expense and accelerates restoration.
Claims spend during the restoration process is another area in which proactive claims management can mitigate the effects of inflation. Actions that can help to control costs include responding quickly to estimates, which may be valid for only a few days in a volatile pricing environment; enhancing scrutiny of the scope of work in estimates; and using multiple suppliers and transport options when possible.
Innovation is a way of life at Crawford. The challenges of inflation provide further motivation to us, as we continue to reimagine the claims ecosystem for the benefit of our carrier clients and their policyholders.
