Just 18 months ago, LexisNexis® Risk Solutions introduced the concept of a future “Touchless Claims” process for the P&C insurance industry. This is a visionary idea that leverages data and technology to automate a simple auto claim from the First Notice of Loss, through liability decision, damage assessment and payment without any insurance personnel touching the claim. The insured initiates the process by using customer-friendly self-service tools to report and process a non-complex auto claim.
LexisNexis Risk Solutions commissioned a blind study of insurance claims executives across large, medium and small insurers in winter 2016/2017 and again in summer 2018 to learn how claims are processed today and – more importantly – how claims processing will be managed in the future. To inform the study, we outlined the three most common auto claims processes (Traditional, Fast Track, and Virtual) and introduced a new concept called Touchless Claims. The four processes are described below:
Key findings of the latest study include:
- Virtual Claims processing (via photo or streaming video technology) has been adopted by 95% of insurance executives surveyed in 2018 vs. 79% of executives surveyed just 18 months ago.
- Claims executives considering or open to Touchless Claims increased to 79% vs only 42% just 18 months ago.
- Claims executives who implemented some form of claims automation report fewer touches, faster claims service, increased customer satisfaction scores and up to 50% reduction in loss adjustment expenses.
Even though the concept of Touchless Claims is not yet fully adopted, it still provides insurance executives with a directional focus for future claims processing. Based on our survey, the top 20 insurers (measured by direct written premiums) are the most engaged, with claims automation at 93%, while engagement for the top 50 insurers stands at 70%.
For an industry that tends to be slow to change, this is a dramatic increase over a short time period.
Claims executives who implemented claims automation quickly saw measurable benefits, as shown in our survey results below:
*2019 Future of Claims Study
Overall, this study shows that claims executives are serious about claims automation and it reveals a sense of urgency to adopt low-touch or Touchless Claims processes, driven by numerous measurable benefits. Our study also includes consumer survey data that is very compelling. In January 2019, LexisNexis Risk Solutions will release a white paper sharing a comprehensive review of the results of this study. New in this edition, our study will also compare and contrast carrier and consumer opinions on claims automation and satisfaction with the claims process as a whole.