Insurance CFOs and Claims Leaders should be worried- Policy Experts annual analysis of UK home claims by policyholders shows Accidental Damage is No.1 in the list followed by Theft and Escape of Water.
You could well be seriously underestimating a large hit to the bottom line.
Our UK insurance customers have processed over 1 million claims through our Digital Claims Platform 360Siteview. The eFNOL, self-service claims journey quickly exposes opportunistic fraud- in fact policy holders do the work for you!
30% to 35% of opportunistic claimants voluntarily withdraw A&D claims. Why? Those over-egging the claim or dishonestly claiming see their "story" unravel. First they submit a brief description of the accident. Then 360Siteview sends secure links to provide photos and after that video evidence to give context to the claim.
A third of claimants realise their claims do not stand up to scrutiny. Rather than be caught out, they voluntarily withdraw the claim as the photos and then the video show the text description of the claim to be highly suspicious ( to the claimant that is). Claims handlers (adjusters) also have the benefit of the metadata in photos and videos.
Amazing how many damaged TVs are photographed in the same house as claimed. Or wine stains in carpets obviously the result of many spills over time. This optimised eFNOL exposes this opportunistic fraud without the need for expensive AI w=hich rarely flags such fraud.
For every 10,000 claims a year at, say, £550 net per claim that adds up to £1.9 million- a big hit to the bottom line that insurers bear unknowingly. Except our customers of course.
Straight-through-Processing (STP) is not the answer for this opportunistic fraud as such automation is automatically paying out unnecessarily. An effective digital claims journey tailored to each peril is the answer and not only and we have proved it.
AI does have its place of course. For complex and professional fraud we offer our Fraud Solution joining unstructured, semi-structured and structured data with analytics to flag and prevent fraud. We recently added our explicit Personal Injury Solution to tackle under-reserving and inefficient manual processing of claims.
Combined with 360Siteview this is the digital transformation of claims that innovative insurers are adopting. Not just for Home but Motor, Travel, Pets, Speciality and Commercial.
One digital platform for all categories from high volume simple claims to low volume complex claims
- Digital Claims Journeys from FNOL to Settlement
- Comms and Orchestration Hub
- Fraud and PI Management
- Real-time and Trend Analytics
- Supply Chain digitisation
- Broker/TPA digitisation
SMA recently published an independent report defining the optimal "Next Gen" No-Code Digital Claims Platform to:
- Delight customers
- Collapse Costs
- Motivate Claims Teams
SMA based the ideal on 360Siteview. Shouldn't you find out more?
Get a copy of the report here.
Citing its claims data for the first half of 2019, the provider said theft or attempted theft now makes up 20% of Policy Expert’s accepted home insurance claims. This represents a continuing climb from 15% in 2013 and 18% last year, meaning theft’s one-fifth share of the claims pie is the highest percentage recorded by Policy Expert. In fact, according to the insurer, theft has now become its second biggest source of claims. It has overtaken escape of water, which stands at number three. Topping the claims board is accidental damage.