Despite a shrinking workforce of claims adjusters and limited resources, claims departments across the country are feeling the pressure to reduce expenses, identify and battle fraud, and enhance customer service. Today’s market burdens require carriers to move past the traditional claims-handling process, to enable a more nimble, flexible claims process.
To meet these challenges, many property and casualty (P&C) carriers have incorporated third-party data and analytics into their application and underwriting processes. Few, however, have taken it a step further and integrated the data into their claims process. When it comes to claims, carriers often rely on data and analytics as an investigatory tool. But, by using this data as an operational tool first, claims can be resolved faster, and with lower overall costs.
LexisNexis® conducted a study to investigate the effect of having more data earlier in the claims process and found considerable benefits to claims outcomes.
For third-party bodily injury settlements, the study found that more data earlier resulted in:
- 15-20% lower severity payments
- 25-49% lower attorney involvement
- 5-15% shorter cycle times
With regard to third-party property damage claims, results showed that earlier data resulted in:
- 10-15% lower severity payments
- 8-15% shorter cycle times
*Ranges reflect variations by state.
In the LexisNexis Risk Solutions white paper, More Data, Earlier: The Value of Incorporating Data and Analytics in Claims Handling, we share key findings from the study of more than 10 million features from A.M. Best’s Top 20 personal auto carriers. Results from the study demonstrate that there is a noteworthy return on investment for carriers that invest in increasing use of up-front claims data. Click here to download the whitepaper.