Proactive claim prevention can drive customer satisfaction and growth for insurers. Leading insurers of tomorrow are harnessing the power of claim data and prioritizing claim prevention to drive customer value and competitive advantage. Mitigateway enables claim prevention for insurers and improves loss ratios by:
- -Targeting the Most Important Claims
- -Designing Targeted Inspections
- -Quantifying the Impact of Prevention Solutions
Targeting the Most Important Claims
Historical claim data analytics can be a powerful tool for insurers to identify the frequency, severity, and causes of high impact claims. By leveraging this data to identify patterns and trends, insurers can develop targeted prevention solutions that reflect their portfolios’ unique risk profiles.
For instance, if an insurer notices a high frequency of water damage claims in a specific geographic region or from a certain type of plumbing product, they could develop prevention solutions that encourage customers in that area to install water alarms or perform regular maintenance on their plumbing systems.
By taking proactive measures to address potential risks, insurers can prevent high impact claims, improve their loss ratios, and provide a better customer experience, resulting in increased profitability and a competitive advantage.
Designing Targeted Inspections
Insurers can use claim history to determine the appropriate level of risk inspection to prevent significant losses. Under-inspecting can lead to more claims, while over-inspecting can be costly and inconvenient. By finding the optimal balance between risk inspection and cost, insurers can prevent sizable losses while minimizing the impact on customers.
For instance, when inspecting an electrical transformer, a visual inspection may not be enough to prevent failure, while oil inspections could be too burdensome. In the case where historical claim data suggests that a particular transformer type is associated with frequent fire claims due to overheating, thermographic inspections would be a more effective method for detecting and preventing heat-related issues than visual inspections or oil sampling.
By analyzing claim history, insurers can prioritize their inspection efforts where they are most productive, leading to better loss ratios and an improved customer experience.
Quantifying the Impact of Prevention Solutions
Analyzing claim history is essential when quantifying the effectiveness of the inspection activities performed by the risk prevention teams. Auditing inspections allows insurers to assess the quality of their inspection protocols and ensure they are effective in reducing losses.
By monitoring and quantifying the results of their inspection activities, insurers can identify areas where their risk departments are performing well, and areas that require improvement. This helps insurers to maintain high-functioning risk departments that can proactively manage risk and prevent losses. In turn, this leads to a better customer experience, improved loss ratios, and greater profitability.