Customers today are more tech-savvy and also more demanding. This is, in part, a result of the constantly evolving smartphone industry. It appears that consumers have a growing desire to receive information and conduct business on their mobile devices. Like most professional fields, the insurance industry is changing thanks to advancements in mobile technology. In fact, according to an Economist Intelligence Unit (EIU) report, 62% of insurance executives believe that mobile technology will transform the insurance industry forever. Approximately 32% of insurance agencies are currently collecting mobile data, and that number is sure to grow steadily in the coming years. More influential, perhaps, is the fact that mobile is quickly becoming the mode of choice for major customer interactions. A 2013 World Insurance Report found that 20% of customers consider access to mobile policy information a critical factor in choosing an insurance provider.
Lessons from the Auto Insurance Industry
The auto insurance industry has notably seen tremendous change as a result of technology. In particular, there has been a major shift toward virtual claims handling. With virtual claims handling, a policyholder can capture images of the damage and report a claim electronically so an adjuster can then assess it remotely. The next advancement for claims automation is touchless handling, where almost no human involvement is required. In a recent LexisNexis Risk Solutions interview, auto insurance carrier executives reported an average two to three day cycle time for virtual claims handling, which is 80% shorter than those using traditional methods. They also reported that virtual claims handling enhanced the customer experience, increased satisfaction, decreased loss adjustment expenses, and allowed for more efficient allocation of human resources. Additionally, all those interviewed anticipate that over the next five years use of self-service options will increase and telematics data will be used in claims investigations.
Technology for the Property Insurance Industry
Property insurance seems to be the next logical industry to benefit from the use of mobile technology. Many of the applications currently being employed to handle auto insurance claims can also be used in cases of property damage. HOVER is a specific example of such technology. Insurance carriers can invite policyholders to download the HOVER app and take ground level photos of their home with their smartphone. Those photos are then uploaded to the cloud, analyzed using a patented technology, and converted into a scaled 3D model. This interactive model conveys accurate line lengths and surface area measurements for every exterior facet of the home. The use of this technology can help insurance carriers and adjusters reduce claims adjusting costs, decrease cycle times, and improve customer experience.
Reduce Claims Adjusting Costs
There is a price to pay every time a claim needs to be adjusted. Time and money must be spent on sending an adjuster out to assess a claim in person. Similar to what we are seeing in the auto insurance industry, mobile technology can help defray costs of traditional claims adjusting in property insurance claims. For example, by using a technology such as HOVER, there is no longer a need to send an employee or adjuster to a home with a tape measure, notebook, ladder, and camera to asses the situation. The average time it takes to measure a property by hand is one to two hours. That is time better spent elsewhere. Instead, a policyholder can take a few photos of their home with their smartphone and share those with their carrier. Aside from time savings, you can also save an average of $350 by eliminating the need to send someone onsite.
Decrease Cycle Times
After a catastrophic event, it is of critical importance to a policyholder to have their claim processed as quickly as possible. One of the most significant effects of incorporating technology into the auto insurance industry has been decreasing cycle times. There is no reason the same cannot be true for the property insurance industry. Technologies like HOVER offer an elegant solution while also engaging the homeowner in the process. Homeowners can start the claims process immediately by taking the necessary photos of their home. HOVER can then provide all exterior measurements and up-to-date photos of the home, which will allow you to accurately assess damage and speed up the processing of a claim. You no longer need to waste manpower by sending someone out to the home to inspect the property, and payouts can be made quickly and confidently without leaving your desk. On top of that, cycle times can easily be decreased from weeks to days and in some cases even hours, allowing homeowners to start the repairs more rapidly.
Improve Customer Experience
Keeping your policyholders happy is always of utmost importance. This ensures customer retention and the future health of your business. One way to keep your customers satisfied is to improve the overall customer experience by offering speed, efficiency, and convenience. A platform like HOVER can be useful to that end. HOVER decreases the time it takes to resolve a claim, so homeowners can have their homes restored quickly. It may also eliminate the need to schedule a visit from a claims adjustor to assess damage in person or at a minimum reduce the time they need with the homeowner onsite. Further, HOVER provides homeowners with a 3D model of their actual home which they can use to discover new products and design options, and to show their contractor what they want their home to look like after the renovation project.
Embracing Modern Methods
Join your fellow insurance professionals who are seeing their businesses run more efficiently and profitably by using modern mobile technology to their advantage. HOVER can positively and forever transform the way you do business if you are willing to embrace the change.
Sign up for our free trial here if you’d like to try out HOVER. Any questions? Feel free to reach out to us and we’ll gladly help.
