In today's claims environment, a physical damage claim is nothandled solely by the adjuster. Rather, it is passed along alengthy line of multiple parties inside and outside the claimsorganization. Staff and third parties, including tow companies,rental agencies, salvors, parts suppliers, other insurers, andglass companies, make up this “extended enterprise,” which consistsof all the individuals that need to collaborate at some pointduring the process of settling a claim. With so many handlersinvolved, how do managers promote efficiency throughout the varyingstages of the claim?

When it comes to improving performance management, increasedcommunication during the claims process is instrumental inraising efficiency levels. Because reductions in cycle time andloss adjustment expense (LAE) are dependent upon moving the claimquickly, a miscommunication that slows down the process may becostly. How does a claims manager prevent increased settlement timeor reduced accuracy from a missed connection point with field staffor a third party? The answer resides within the underlying platformthat supports an insurer's physical damage workflow. With the rightset of support tools, an insurer can easily share informationacross the extended enterprise, thereby accelerating the claimsprocess significantly and ensuring that customers are delivered thebest possible outcome, increasing satisfaction. 

Streamlining Communication

Many insurers already have some sort of integration with theirprimary partners in place, as partner communications are such acrucial part of the claims process. Why should an insurer invest ina single platform when multiple integration points with theirpreferred partners already exist? While loosely integrated systemsprovide some of the important information that partners andinsurers need, these details may not be extensive enough to ensuremaximum efficiency.

For example, in a claims scenario that requires that a car betowed, a loosely integrated system may leave detailed gaps that canbe costly in terms of efficiency. With basic integration, theclaims management system will provide the tow company staticdetails such as policy number and vehicle information at firstnotice of loss (FNOL). However, when the tow truck arrives topick-up a vehicle from storage, additional information may benecessary. If not properly notified, then a driver may arrive atthe storage facility to find that the vehicle has not been releasedor was perhaps moved.

Another common occurrence is that the towing yard in possessionof the vehicle does not have the correct delivery address. Lackingthe proper event notifications—or the ability to transmit digitallysigned vehicle release forms to the tow driver or yard during thetowing process—can cause fees to add up quickly, slowing cycletime, and increasing the potential for duplicate tow charges. Preventing Delays

Parts optimization is another area that has potential to benefitfrom improved communication across the extended enterprise. Someinsurers have guidelines in place for parts utilization on estimates. At a first glance, a deskreviewer may reject an estimate for a 2001 Toyota Corolla thatspecifies an original equipment manufacturer (OEM) hood. But whatif the only available aftermarket hood is on back order, or arecycled hood is not available from a nearby junkyard? By beingable to collaborate with the desk reviewer up front electronically,the appraiser can make the right economic trade-off whereappropriate. If the cycle time delay is more costly than thesavings on the part, then the appraiser can then go with the newpart and avoid a negative impact to their key performanceindicators (KPIs) during desk review. On the back end, thisprevents delay in the approval of the claim as well as unnecessaryrework.

Getting on the Same Page

Appointment scheduling can also cause slowdowns in the claimsprocess. It is very easy for a field appraiser to make anunnecessary trip in the event that a customer cancels anappointment at the last minute. Rework may also be required if theappraiser arrives at the shop to find that the vehicle has beenmoved elsewhere. When dealing with moving pieces, a single platform that providesconsistent event notifications can prevent extraneous trips andreassignments. 

Even in a claims environment that has the availability of singlesign-on between applications and integration, a staticimplementation does not work well because constituents areconstantly moving around. A single platform is powerful becausedata is available across the entire extended enterprise. Moreover,this allows an insurer to reduce rework, increase claims accuracyand efficiency, and reduce expenses and cycle time. As a result,insurers can drive better outcomes because of the availability ofcross-sectional information that moves through all applications. Evaluating the System

When looking for a single vendor solution for your physicaldamage workflow, the following requirements can be used to assistin your assessment:

Seamless Communications

• Does the system provide the ability to communicate and connecteasily with third parties?
• Are common messaging, collaboration, and alert capabilitiesused?
• Can communication and traceability occur for any claimartifact?

Consistency 

• Do all modules use a similar user interface and labels?
• Is there one common method for deployment, delivery, andlicensing?

Flexibility

• Can a user access the most critical parts of the applicationeven when in a disconnected state?
• Are multiple workflow types accommodated?
• Can an insurer make workflow changes without intervention fromthe platform vendor?
• Does the system provide configurable user management?

Common Data Warehouse andReporting

• Does the system integrate enough parties and processes that theinsurer can obtain a complete picture of claims performance?
• Does the reporting capability allow for performance analysisacross different third-party vendors?

By using the above criteria to evaluate a single vendor system,claims managers can realize the benefits of faster cycle times andsmoother workflow that data sharing and seamless communications canprovide.