Modern Insurance Magazine Issue 61

EDITORIAL BOARD
A Networked Approach to
Controlling Claims Inflation
Never before have we seen so many
independent factors combine to drive claims
inflation. In these unprecedented times,
Crawford’s focus on claims management
efficiency has never been more valuable to
our clients.
The economic environment - and the disruption stemming from
factors including COVID-19, Brexit and the war in Ukraine - have
created a string of knock-on effects that mean claims are not only
more expensive, but can also take longer to settle.
Property damage costs have surged, as hampered supply chains have
restricted available resources and led to a spike in the price of many
building materials. Sums insured are sometimes proving inadequate,
leading to disputes or difficult conversations between insurers and
their clients about reinstatements, policy limits and indemnity periods.
While there are some aspects of inflation beyond the insurance
industry’s control, we at Crawford see opportunities to control the cost
of the claims process through proactive management. Technology
lies at the core of our approach, managing all the services needed to
work towards efficient restoration and an unerring focus on ensuring
policyholders receive the optimal response to a loss.
Decisions we make on deploying the right adjusters and contractors
at the right times are critical to the duration and cost of the claims
cycle, and the customer experience. From the first notification of loss,
automation plays a valuable role in claims segmentation and resource
allocation. We use AI to achieve a rapid, network-wide response to
loss events, by supporting decision-making and connecting adjusters,
policyholders and necessary service providers.
Applying a laser focus to every aspect of the customer’s step-by-step
experience of a claim, we are constantly innovating to streamline and
accelerate the process. For example, we partner with insurtechs to
use 3D modelling and imaging to speed up property claims. Our new
livestock portal can also reduce the claims process from days to a
matter of minutes.
A key tool in combatting claims inflation is our managed repair
solution, Crawford Contractor Connection. It enables claims managers
or insurers to deploy resources quickly and efficiently, as needed, by
assigning contractors centrally from a pool of professionals, reducing
supply-chain risk.
Contractor Connection’s great value lies in building the right
partnerships for us to deliver to clients. All the contractors are vetted,
and the network enables them to connect directly and efficiently with
the policyholder. It’s a system that breeds trust.
The benefits of the managed network model are significant,
particularly in this inflationary environment. Work that might have
taken weeks to get done can now be complete in a few days. Dealing
with trusted partners results in greater consistency and reliability,
producing more accurate estimates, better timeline management
and fewer errors, revisions and return visits. It reduces expense and
accelerates restoration.
Claims spend during the restoration process is another area in which
proactive claims management can mitigate the effects of inflation.
Actions that can help to control costs include responding quickly to
estimates, which may be valid for only a few days in a volatile pricing
environment, enhancing scrutiny of the scope of work in estimates,
and using multiple suppliers and transport options when possible.
Innovation is a way of life at Crawford. The challenges of inflation
provide further motivation to us, as we continue to reimagine the
claims ecosystem for the benefit of our carrier clients and their
policyholders.
Lisa Bartlett,
President, UK & Ireland, Crawford & Co.
What’s Shaping Claims
and Repairs in 2023?
As an integrated salvage, dismantling and
vehicle recycling company that provides a
range of business solutions to our insurance
clients, we are heavily involved in the claims
process from start to finish. This gives us an
industry-wide overview of what is happening,
and offers the opportunity to respond in the
best way possible and continue our support of
the industry.
There are multiple factors shaping the claims and repairs landscape
at the moment – one major player being inflation. It’s all over the
news, we’re feeling it personally, and the UK business market is
certainly reeling from the effects as well. Current inflation is being
driven by energy, fuel and food costs, which is ultimately ramping up
prices across the board – including that of vehicle repairs.
The cost-of-living crisis is certainly making consumers think
differently, with many suppressing their spending and looking at costsaving
initiatives to keep afloat. It is no surprise to hear that repairers
are going through the same thought process, as their margins
continue to be squeezed thanks to increasing production costs. Our
sales of green parts show that the CO2 and cost savings achieved (up
to 75% off RRP) are an attractive addition to the claims and repair
ecosystem.
Sustainability is another hot topic for 2023, as the pressure continues
for insurance companies who are looking to partner with suppliers
that align to their own ESG strategies. This pressure is coming from all
angles, including the general public and the UK Government.
I’m proud to say that as the first green parts supplier in our industry
to provide recorded CO2 savings at a part level, we are helping to
support the decarbonisation of the claims supply chain.
As we head into the remaining half of 2023, we have the power to
change the landscape. However, we can only do this by working
together.
Tom Rumboll,
UK Managing Director for IAA, and CEO of SYNETIQ
MODERN INSURANCE | 21