Auto Insurance Game Changer #4: Using Telematics in Claims
While an increase in smartphone ownership has introduced problems in auto insurance, advancements in telematics technology are revolutionizing auto insurance and its role in the mobile world today. This five-part blog series addresses the problems facing auto insurance and the Game Changers solving them.
Problem: How do we improve the claims process to reduce costs and increase customer satisfaction?
The key component in settling claims is information. It is required to confirm coverage, determine liability, assess what is going to be repaired or replaced, and ultimately, close the claim.
Today, an adjuster’s investigation relies on gathering information from the drivers involved in the crash, witnesses, and sometimes even police reports for information. This investigation is an involved process requiring the adjuster to track down a number of parties to verify the information reported. The adjuster ultimately must decide what information to incorporate in their investigation. When information is biased, incomplete, or inconsistent with one another, the insurer and the policyholder may pay more than necessary at the end of a long claims process.
Today, insurers can use telematics in claims to reconstruct crashes and introduce more information at the beginning of the claims process to settle claims faster. Vital information like the number of impacts, where those impacts occurred on the vehicle, and the location and time of the crash can be pre-filled in their claims management systems for review.
Receiving unbiased, accurate facts within minutes of a crash enables the insurer to do the following:
- Improve customer satisfaction by processing a claim faster. Having critical crash details like time and location sooner in the process helps the insurer make decisions faster. This reduces the amount of time the customer is waiting for the claim to be settled.
- Collect information more efficiently. Time on the phone can be spent confirming the data gathered by mobile sensing, asking the right questions, and helping with the customer during a stressful time. This also reduces the need to verify details from multiple parties.
- Pay the right amount. With accurate data, insurers can assess damage more accurately, making the right decisions about loss.
Game Changer: Telematics tells the true story of the crash by providing unbiased and accurate data, leading to increased operational efficiency, lower costs, and higher customer satisfaction.