Technologies, Tools and Data Combine to Deliver Centralized Control, Localized Response to APD Claims

The world has a local focus.  Organizations of all shapes and sizes have implemented strategies to support the local execution of business practices and services. The insurance industry followed suit, with many carriers decentralizing.  Regional offices were empowered to set procedures and enact decisions that would benefit local policyholders. This worked for a while and likely gave a lift to customer service at the micro level. Over time however, the negative impact on operational efficiency and carriers’ buying power put the debate over centralized vs. decentralized decision-making back on the table.

Advances in technology make it possible to have the best of both worlds: centralized operations that offer a single command and control structure where strategy is defined, process is developed, and efficient decision making is in place, while providing a local touch in regional claims handling.

The evolution of connected business networks, configurable platform technologies and the use of data are combining to create efficient, automated environments that make businesses run smoother, smarter, and more profitably. For example, today’s leading networks connect insurance carriers with repair facilities, policyholders, parts suppliers, salvage pools, satellite offices, and remote employees.  Technology platforms empower least-cost, highest-functionality claims workflow applications.  Data gathered by that platform from across carrier networks, helps to inform and advance decision-making, while standardizing operations and guiding strategy.

Critics of centralized operations cite the potential for lower customer satisfaction levels due to a lack of personalization. This friction—operational efficiency rubbing against customer satisfaction—is critical to address before any move to a centralized management process is executed. The importance of delivering on policyholder expectations is essential to success in today’s consumer-centric marketplace.

To keep pace in today’s world and deliver on consumer expectations for products and service, centralized operations can be a claims executive’s best strategy. We’ll share insights into the key process steps that are benefitting from a centralized approach so you can decide if it’s time for your organization to give centralized operations another look.

Consumers are More Engaged in the Claims Process

Nearly 50 percent of consumers are always connected to, and interacting with, their mobile and digital devices, according to Vivaldi Partners Group.¹ So it’s not surprising that many of them expect to be able to interact with the companies they do business with through their preferred device. Insurance carriers are no exception and many consumers expect that they will have an active role in the claims and repair process. This can be great news for carriers prepared to offer mobile solutions that facilitate policyholder engagement.

For certain repairable claims under $1,500 (approximately 40% of claims are below $1,500²)carriers might give customers the option to handle the front end aspects of gathering claim-related information. Consumers take the required photos, input any required data and submit the claim to the carrier. Often, the damage is slight enough and the photographs clear enough that the estimate can be written by a desk appraiser in minutes.