Technology Solutions for Insurance Companies (With Case Studies)

Technology Solutions for Insurance Companies (With Case Studies)

Zurich Insurance, Nationwide, and Allstate were some of the large insurance companies who have used new data sources such as social media posts to improve their insurance underwriting processes. Meanwhile, Farmers Insurance and the New York Life Group have improved their straight-through processing by eliminating manual processes through automation. As for those that implemented digital improvements to their portals, Liberty Mutual and the Allstate Insurance Group have added intelligent chatbots to improve their web and mobile interactions with their customers.

1. New Data Sources for Insurance Underwriting

Zurich Insurance

  • Zurich Insurance is a large global insurance company with a market capitalization of $45.4 billion.
  • The company engaged the services of Carpe Data to curb rising claims costs as part of its underwriting model.
  • Carpe Data, a technology company in California, offered its ClaimsX solution to Zurich.
  • ClaimsX is marketed by Carpe Data as its “innovative claims monitoring solution” that can creatively use alternative and emerging data.
  • ClaimsX enabled Zurich to make full use of publicly shared web data to facilitate real-time claims evaluation. The solution also helped automate the decision-making process from the time that a claim was filed until it was settled.
  • ClaimsX’s predictive digital content also helped Zurich to perform advance audits on those who are more likely to file for injury claims. The solution also helped Zurich in uncovering those cases where there are conflicting data between the claimant’s profile and the claim filed.
  • With this solution, Zurich was able to proactively prevent fraudulent claims. On top of this, the insurer was also able to decrease the time needed to process the payment for verified claims.
  • The company is now scaling this solution in all its global branches.

Allstate

  • The Allstate Insurance Group is a large insurance company with over $30.6 billion worth of net premiums written.
  • https://www.prnewswire.com/news-releases/allstate-finds-fraud-faster-with-innovative-data-company-300562421.html
  • Allstate Insurance also availed of the service of Carpe Data to combat insurance fraud.
  • Carpe Data will provide its analytics solution to enable Allstate to make use of highly predictive digital data when processing claims under its underwriting policy.
  • The “fully automated data and predictive scoring solution” of Carpe Data will allow Allstate to make full use of essential online data to better evaluate the risk involved and come up with the right business decision.
  • As an example, a third party filed a claim where it was mentioned that the person will not be able to work as a result of injuries from an accident.
  • However, when Carpe Data turned to alternative data sources such as the claimant’s public social media pages, there were photos and videos found of the person rock climbing and horseback riding. The dates of the photos and the videos coincided with the dates on when the person mentioned being too injured to work.
  • This alternative data source from Carpe Data gave Allstate all the information that it needs to flag fraudulent claims more effectively.
  • Overall, the solution from Carpe Data enabled Allstate to better assess the risk involved with each claim.
  • Carpe Data’s solution also helped the insurance firm to deliver better underwriting services to its clients while ensuring protection from fraudulent transactions.

Nationwide

  • The Nationwide Group is a large insurance company with over $18.8 billion worth of net premiums written.
  • https://www.dig-in.com/news/allstate-and-nationwide-among-insurers-using-public-data-sources-in-fraud-detection
  • The insurer has availed of the services of Verisk Analytics to fight against fraudulent claims.
  • As part of the service, Nationwide will use Verisk’s ClaimsDirector software to assess claims as they get filed for the first time.
  • The full Verisk technology solution allows its clients to access a business intelligence dashboard where they can see all the relevant data needed to perform advance risk analysis and arrive at the right decision.
  • With the help of Verisk, Nationwide was able to prevent a fraudulent transaction from pushing through.

2. Improving Straight-Through Processing

Farmers Insurance

  • Farmers Insurance is a large company with around $14.3 billion worth of net premiums written.
  • https://thelabconsulting.com/rpa-in-insurance-robot-process-automation-in-insurance-claims-processing/
  • The insurer engaged the services of Pegasystems to improve its processes.
  • Pegasystems is a technology company that creates software for operational and customer-engagement processes.
  • The company helped Farmers Insurance implement an automated software solution.
  • The solution aims to help the customer service agents to respond quickly to the specific requirements of Farmer’s small business clients.
  • The solution will provide intuitive real-time support for the agents.
  • The automation protocol also include other productivity tools such as a pre-filled application form for those agents who are onboarding new customers. This eliminates the manual process needed to fill up the form from scratch.
  • After a year of deploying the automation, it was reported that the insurer was able to double its market share.
  • Aside from this result, the duration needed to generate a quote was reduced from 14 days to 14 minutes.
  • Farmer’s umbrella-policy sales also rose by 70%.
  • On top of this, a revised policy system was implemented in less than five months.
  • Overall, the satisfaction level of both the agents and the clients increased.
  • Farmers also deployed another automation program to “automate a complex and routine process for claims adjusters.”
  • This automation program aims to decrease the current processing times, increase the efficiency of the workflow, and reduce the disbursement processing time from weeks to hours.

New York Life Group

  • The New York Life Group is a large insurance company that has around $8.8 billion worth of direct premium.
  • The insurer also engaged Pegasystems‘ services to create an “automated back-of-office application called Processflow” as it struggles to handle one million back-office transactions annually.
  • New York Life also aims to have the tasks within its workflow to be handled by a business administrator instead of an IT specialist.
  • With this solution, New York Life hoped to make its workflow smarter to enhance its processes and make its employees more efficient.
  • Once Processflow was deployed, the business administrators were able to accelerate process transformations, change the steps, or modify the chronology of the steps.
  • So far, around 84 out of 128 steps in a given workflow were either modified or appended to the system by a business administrator instead of an IT specialist.

3. Digital Portals Improvement

Liberty Mutual

  • Liberty Mutual is a large insurance company with around $28.6 billion worth of net premiums written.
  • The insurance firm provides a voice-controlled chatbot that is compatible with Amazon’s Alexa.
  • Through the chatbot, clients can easily renew their insurance or file a claim by talking to the bot.
  • Since the data is given in the form of a conversation, the process of completing a form is more convenient and less tiring.
  • A well-developed chatbot can focus on the required input for the form. It will only capture the required fields, thereby reducing the time needed to talk to the end customer.
  • This new feature can help the company in efficiently dealing with routine customer requirements. This way, it can allocate the effort of its human customer service employees to more value-added and complex processes.

The Allstate Insurance Group

  • The Allstate Insurance Group is a large insurance company with over $30.6 billion worth of net premiums written.
  • The insurance company launched its chatbot called Allstate Business Insurance Expert, or ABIE on its website to interact with small business owners.
  • These business owners contribute a certain set of expertise and insights to the communication flow.
  • The chatbot was specifically created to respond to the inquiries of small businesses and to strengthen the bond between small business insurance clients and Allstate’s agents.
  • The chatbot was programmed to handle the conversation flow to ensure that it can properly hand-over the discussion to a live insurance agent.
  • ABIE is developed from an award-winning chatbot that was previously made for Allstate agency owners who are small business owners as well.
  • Allstate and Jorsek collaborated to create ABIE through easyDITA, a structured content platform that was developed by Jorsek.

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