Blog

Man with vr headset touching a data analysis concept on a touch screen with his finger

<p id="ember1075" class="ember-view reader-content-blocks__paragraph">In the insurance world, the information provided by claims is becoming increasingly important. Often much of the focus is on quantitative data, but effect strategies must also address the qualitative data. While quantitative data offers the hard numbers and metrics, qualitative data provides context and insights from conversations, underwriting referrals, and discoveries made throughout the claims process. Both types of data play a crucial role in shaping a comprehensive understanding of risks and customer needs. The focus cannot just but on the numbers, but must consider the people. Both in what data the people hold and what data they need.</p><p id="ember1076" class="ember-view reader-content-blocks__paragraph"><strong>Making Claims Data Approachable for Underwriters</strong></p><p id="ember1077" class="ember-view reader-content-blocks__paragraph">For underwriters, the challenge lies in making claims data—both quantitative and qualitative—less daunting and more relevant. Rather than overwhelming them with extensive spreadsheets, it's about providing a clear understanding of their specific book of business, blending hard data with the nuanced stories behind the numbers for more informed decision-making.</p><p id="ember1078" class="ember-view reader-content-blocks__paragraph"><strong>Tailoring Data for Every Level</strong></p><p id="ember1079" class="ember-view reader-content-blocks__paragraph">Data needs within an insurance company vary depending on one's role. Management requires broad insights for strategic planning, while frontline staff need specific, actionable information. Developing systems that cater to these varying needs is key to enhancing communication between underwriters and claims teams.</p><p id="ember1080" class="ember-view reader-content-blocks__paragraph"><strong>Leveraging Technology to Bridge Gaps</strong></p><p id="ember1081" class="ember-view reader-content-blocks__paragraph">The rise of cloud computing platforms like AWS and Azure has revolutionized data handling, especially for smaller entities like MGAs and TPAs. These advancements level the playing field, allowing smaller firms to engage in sophisticated data analysis and maintain competitiveness.</p><p id="ember1082" class="ember-view reader-content-blocks__paragraph"><strong>Integrating Communication Channels</strong></p><p id="ember1083" class="ember-view reader-content-blocks__paragraph">Integrating effective communication channels between claims and underwriting is essential. Modern, affordable technology facilitates these connections, ensuring that both quantitative and qualitative data are efficiently shared and utilized across departments.</p><p id="ember1084" class="ember-view reader-content-blocks__paragraph"><strong>Empowering Small Insurers and MGAs</strong></p><p id="ember1085" class="ember-view reader-content-blocks__paragraph">Small to medium-sized insurers and MGAs are uniquely positioned to benefit from these technological shifts. Their agility allows for rapid adoption of new technologies, providing a strategic advantage in a market where comprehensive data analysis is crucial.</p><p id="ember1086" class="ember-view reader-content-blocks__paragraph"><strong>Encouraging Collaboration and Comprehensive Data Focus</strong></p><p id="ember1087" class="ember-view reader-content-blocks__paragraph">As we look towards the future, it's imperative for insurance entities, regardless of size, to maintain a balanced focus on both quantitative and qualitative data. Collaborating closely with claims and underwriting departments is essential to determine what data is needed and how best to deliver it. By doing so, insurers can ensure they are fully equipped to make informed decisions, tailor their products effectively, and ultimately enhance their relationships with customers.</p><p id="ember1088" class="ember-view reader-content-blocks__paragraph"><strong>#InsuranceData #UnderwritingEvolution #ClaimsDataSimplified #FrontlineUnderwriting #DataAccessibility #CloudComputing #AWS #Azure #Insurtech #OperationalEfficiency #StrategicPartnerships #DataDemocratization #CustomerCentricInsurance</strong></p>

Claims Data in Underwriting: Achieving Balance and Benefit

man in gray hoodie holding black smartphone

<p id="ember1422" class="ember-view reader-content-blocks__paragraph">Throughout my career, I've gained a keen appreciation for the intricacies and challenges unique to the claims industry. As I took on my role as President of <a class="app-aware-link " href="https://www.linkedin.com/company/royal-claims/" data-test-app-aware-link="" data-mce-href="https://www.linkedin.com/company/royal-claims/" data-mce-selected="inline-boundary">Royal Claims Services Ltd.</a> , I raised technology to a key element in the business as I believe our current technologies have have the potential to reshape how we approach our core processes. We are at the edge of a digital transformation in claims. This isn't merely a trend or a buzzword, but a tangible shift we must address or be left behind.</p><h3 id="ember1423" class="ember-view">A Legacy of Paper-Driven Processes</h3><p id="ember1424" class="ember-view reader-content-blocks__paragraph">Our industry, particularly in the realm of claims, has traditionally been dominated by paper. Claims forms, policies, assessment reports – all tied to the tangible, physical world. It's a system that served us well for decades, but today's rapid technological evolution demands a change.</p><h3 id="ember1425" class="ember-view">The Immediate Future: Harnessing Data in Claims</h3><p id="ember1426" class="ember-view reader-content-blocks__paragraph">The potential to harness data for claims processing is immense. Imagine real-time analytics pinpointing fraudulent claims, systems tailoring policy adjustments based on individual data, and AI-driven tools predicting and managing risks. The future of claims isn't just about digitizing existing processes; it's about reimagining and optimizing them for greater efficiency and customer satisfaction.</p><h3 id="ember1427" class="ember-view">The Daunting Challenge: Legacy Systems and Data Integrity</h3><p id="ember1428" class="ember-view reader-content-blocks__paragraph">But herein lies the challenge: the deeply entrenched legacy systems and vast swathes of unvalidated data. While these systems are a testament to our industry's rich history, they stand as barriers to the innovation we so desperately need. Shifting from them is not a mere upgrade—it's a transformation.</p><p id="ember1429" class="ember-view reader-content-blocks__paragraph">Furthermore, having data is one thing; ensuring its accuracy is another. Quality insights and reliable decisions stem from validated data. The task ahead is twofold: modernizing systems and ensuring data integrity.</p><h3 id="ember1430" class="ember-view">The Strategy: Tackling Challenges One at a Time</h3><p id="ember1431" class="ember-view reader-content-blocks__paragraph">In a rapidly evolving technological landscape, it's tempting to think that we should address all challenges at once, revolutionizing every process in a sweeping move. However, I argue for a more focused approach. By methodically addressing one issue at a time and building upon each success, we cultivate a foundation that's strong and adaptive. Each solution serves as a stepping stone, gradually paving the way for comprehensive transformation. This structured approach not only ensures thoroughness but also allows us to adapt and refine our strategies based on real-world results, ensuring lasting and effective change.</p><h3 id="ember1432" class="ember-view">The Urgency: The Time is Now</h3><p id="ember1433" class="ember-view reader-content-blocks__paragraph">The call to action is not for the distant future or even the near future. It's for now. We stand on the cusp of a new era, and delay is a luxury we cannot afford. Companies that don't recognize and act on this urgency risk not just stagnation, but obsolescence.</p><h3 id="ember1434" class="ember-view">Conclusion</h3><p id="ember1435" class="ember-view reader-content-blocks__paragraph">Claims processing is at the heart of our industry. It is the delivery of a promise by insurers. By modernizing and harnessing the power of data, we don't just enhance this core process; we redefine the very essence of what it means to deliver that process. I urge all professionals and leaders in our industry: recognize the imperative of the moment and embark on this transformative journey. We owe it to ourselves, our businesses, and, most importantly, to our customers.</p>

Blog

Claims Data in Underwriting: Achieving Balance and Benefit

The Future of Data in the Insurance Industry: Navigating ...