Reduce Your Risk of High Indemnity and Long Cycle Times with Accurate Data
In this highly competitive market, insurers are constantly looking for ways to improve operational efficiency, and the industry’s recent attention to performance scorecards and metrics to measure key performance indicators (KPIs) is underlining the need for managers to obtain accurate data from the first notice of loss (FNOL). Throughout an insurer’s operations, claims processing is seen as a key area where loss costs can be improved and process improvements can be introduced. At Audatex, we believe that improving the claims process starts with accurate collision estimating.
Did You Know?
From 2007 to 2013, an average of 55.4¢ for every dollar of revenue was spent on claims paid out to policyholders while 20.6¢ of revenue was spent on operating expense, the largest expense being employee compensation . These add up to 76¢ per revenue dollar which does not leave much room for other expenses or a healthy profit margin. This reveals an urgent need to find ways to streamline the claims process and focus on improving indemnity costs, while optimizing employee usage.
Accurate Data Controls Indemnity
Like indemnity, access to accurate vehicle data can help make estimating a one-time process. By knowing each and every option on the vehicle, inspection is quickened and parts procurement becomes error-free. The correct data saves adjusters time in the option capture process, reduces the need for costly supplements, and removes the extra time required to negotiate an estimate. Combined together, cycle time and the shelf life of the claim are greatly reduced; this is all a result of obtaining accurate vehicle data on the first claim visit.
So, What Data Do We Need?
The key to controlling indemnity and improving cycle time lies in knowing everything about the vehicle from FNOL. The body shop, the customer, and compliance all depend on this accurate estimate to push the job efficiently through the entire claims process. Being able to identify a complete list of factory-installed options and any other optional packages on the vehicle enables an accurate appraisal of the damage. Traditionally, this process has been a manual one, requiring the appraiser to physically select options through an original equipment guide (OEG). We are all aware that human processes are error-prone and time consuming and these factors must be contributing to the high claim payouts and expenses that take away from an organization’s bottom line.
But there is another way.
We recently shared the hidden value in the last six digits of a vehicle’s VIN. AudaVIN is the only VIN decoder in Canada that decodes the entire 17 digit VIN. This means we enable you to tap straight into the manufacturer’s production options code to know exactly every trim and option the vehicle is outfitted with. Having this data sets your claims process in the right direction on day one and improves both indemnity and cycle time. Imagine, one simple tool that can help to improve three major areas of concerns for any claim: loss costs, expenses, and customer satisfaction.
Interested in AudaVIN? See our product brochure and call 1-844-AUDATEX to book a demo.
 Facts of the Property and Casualty Insurance Industry in Canada 2015. Insurance Bureau of Canada (IBC), 2015.