The Role of Digital Automation in Today’s Property Claims Lifecycles

What automation means today and what it does for modern property insurance professionals

Those who use insurance technology (Insurtech) know how critical automation is.  

Automation occurs when a machine performs tasks or initiates and carries out workflows — a series of tasks and processes — with minimal, or even without, human intervention. Built-in triggers prompt machines to carry out tasks, eliminating the need for manual actions.  

Since the first personal computers became available, digital automation has evolved significantly. The earliest and simplest forms of digital automation involved computers completing single tasks or a linear set of tasks based on a clear set of rules. Complex automation involves a system of multiple, integrated technology platforms and applications that connect through the cloud to route multi-directional workflows that can result in different outcomes.  

Automation today touches the multiple phases of the claims lifecycle, from First Notice of Loss (FNOL) all the way through claim resolution. The technology enables carriers to calculate proper loss cost at the lowest expense, all while providing the best, most personalized customer experiences possible. 

Here is how modern automation plays a role at each step of the claim lifecycle: 

First Notice of Loss (FNOL) 

Before digital automation, insurance companies had to rely on teams of people to handle customer calls to report losses. Taking calls from one individual at a time and manually collecting their information to begin claims processing was time-consuming and labor-intensive.  

Then, with the advent of online claims intake systems in the early 2000s, policyholders could report losses through virtual portals. Through these same portals, customers could track the journey of their claim, simply by logging onto the Internet. They didn’t have to rely on insurance carrier representatives to personally take their information or inform them of progress. This was a time-saver for policyholders and claims professionals, who were then unchained from phones and could tackle claims as they came in, with all the data ready for their review. 

Automation advanced further as cloud-based solutions emerged in the 2010s, and FNOL processes became even more efficient. Due to unlimited data storage, cloud-based automation allowed companies to scale so they could manage increased claims volumes. Policyholders can now file claims through mobile devices, making the process more convenient, which often leads to more timely claims reporting. 

These automated systems take care of data collection, requiring claims professionals to intervene only in more complex cases.  

Dispatching Adjusters 

Without digital automation — namely, online and cloud-based automation — dispatching adjusters to claims sites is a cumbersome, manual process prone to errors. Human dispatchers must manually track resource availability, capacity, and skillsets.  

These un-automated processes often involve a blend of spreadsheets, calendars, and different systems that do not integrate or work together. Without automation, it is difficult — and time consuming — to remain organized and to assign the ideal employee to each claim task.  

Today’s automated dispatching technologies like Dispatch™ from CoreLogic® optimize the process, by automatically assigning professionals to claims tasks based on criteria established by the user — location, licensure, required skills, type and complexity of task, and more. This approach ensures that the right insurance professional gets to the right job without unnecessary delays.  

By integrating with a company’s claims management system and/or resource manager, Dispatch automates complex workflows. It updates adjuster schedules, capacity, skillsets, and licensure in real-time, eliminating the need to maintain multiple systems for dispatching work.  

By getting resource allocation right quickly, insurers go a long way toward providing the best possible customer service experiences while controlling loss costs effectively. 

Property Inspections 

Tools for automating inspections and scoping processes are crucial for quickly creating accurate claims estimates.  

Inspect™ and Scope™, also from CoreLogic®, are mobile and desktop tools that automate property damage assessment and inspection workflows, helping adjusters quickly generate accurate claims estimates.  

With Inspect, users can capture property photos and store all essential forms and documentation. Designed for third-party inspectors, this solution streamlines communication between the field and the office to eliminate the need for in-house adjusters to conduct manual data entry based on notes provided by on-site adjusters. 

Inspect allows carriers to establish customized inspection guidelines for adjusters, including forms and questionnaires to help ensure alignment with company policies, regulations, and best practices. This not only ensures inspection efficiency and accuracy but also minimizes the need for reinspection. 

Scope was designed for roofing claims, so it integrates with aerial CAD technology to determine roof measurements and automatically calculate material needs, reducing human error and saving valuable time. Adjusters can capture images via mobile devices, and Scope will automatically generate damage assessments and cost estimates. The tool also includes a “repair versus replace” calculator to guide the most cost-effective decisions. 

These two solutions integrate, too. Information from Inspect also feeds Scope to prepare an initial estimate. 

Estimation Auditing 

Automating claims estimation auditing facilitates the dream of straight-through processing, where estimates can be reviewed and validated without human oversight.  

Auditing solutions like Validate™, also from CoreLogic®, automate claim estimate reviews against company guidelines and customized rule sets to quickly confirm the accuracy of claims estimates.  

Validate can assign validation scores to estimates. If estimates achieve a certain score, they can be automatically processed for payment, without human review. This reduces the workload for auditors, allowing them to focus on more complex estimates that technology cannot automatically approve. The results of using Validate are faster claim resolution and enhanced accuracy in cost assessments. 

Validate can integrate with other tools, too, so it can automate reviews for many kinds of cost estimates, including those for water mitigation. 

The Future of Automation in a People-Focused Industry 

Automation will continue to evolve to conquer more complex workflows, and artificial intelligence will play an increasing role in enhancing automation.  

No matter how far automation evolves though, insurance carriers will still need humans to solve nuanced problems and nurture customers who benefit from a human touch. The nature of work may change, but it will change for the better. 

To learn more about automation and artificial intelligence in claims — and across the insurance organization — read CoreLogic’s eBook, ‘The Role of Artificial Intelligence Across the Property Insurance Ecosphere.’ 

©2024 CoreLogic, Inc. All rights reserved. While all of the content and information is believed to be accurate, the content and information is provided “as is” with no guarantee, representation, or warranty, express or implied, of any kind including but not limited to as to the merchantability, non-infringement of intellectual property rights, completeness, accuracy, applicability, or fitness, in connection with the content or information or products or AI features thereof and assumes no responsibility or liability whatsoever for the content or information or the products or AI features thereof or any reliance thereon. CoreLogic®, Dispatch™, Inspect™, Scope™, and Validate™ are the trademarks of CoreLogic, Inc. or its affiliates or subsidiaries.