This post is part of a series sponsored by CoreLogic.
When a disaster occurs and a policyholder files a claim, adjusters need to quickly create a comprehensive estimate of the damage so they can begin the repair and replacement process. For many insurance claims, these price estimates must include estimates for both structural damage and personal property damage.
The estimating process for personal items is especially complex and time-consuming due to the sheer number of items that need to be included in the estimate. The complexity in pursuing this part of the estimation is compounded by the difficulty in determining the value of each item. For example, assigning a value to electronic items that are no longer available requires a lot of research and takes valuable time. Also, no matter how extensive the appraiser’s research is, the final value may be higher or lower than the value of the item.
Insurers see three major challenges in item quoting: delays in quote preparation and inaccuracies in item quoting, which lead to policyholder mistrust and dissatisfaction, and costly involvement of third parties. We need to leverage technology solutions to help us overcome them.
Digging into the challenges of content estimation
- Significant delay in content estimation
Developing estimates for personal items is time consuming, and it often takes months to find replacement prices through extensive internet research that is difficult to organize. Additionally, delays may occur as item estimates may be given lower priority due to the urgency of other claims procedures, such as emergency repairs, cause and origin investigations, and preparation of structural estimates. there is. This increases overall claims cycle time, increases administrative costs for insurers, and reduces policyholder satisfaction.
- Inaccurate claim payments
Incomplete and inaccurate pricing It is common, even normal, to make inaccurate payments based on estimates of goods. Underpayments lead to customer dissatisfaction, and overpayments lead to missed claims. Inaccuracies can also lead to policyholder dissatisfaction and mistrust, costing insureds and insurers additional time and money.
Freight forwarders often outsource the personal items portion of the quote. However, this is an expensive option to get the job done. Additionally, the work is not done when the independent appraiser or service provider finishes. Estimates still need to be sent back to the in-house appraiser for review.
The more parties involved, the more expensive and time-consuming the process becomes, especially if there are inaccuracies in the quote or disputes by the policyholder.
Solutions for appraisers: Web-based centralized property estimation technology solution
To address these challenges, in-house appraisers can utilize personal item estimating software. This allows users to perform web-based searches for all items. This is a centralized base for conducting comprehensive internet research for all items for quotation. By leveraging web-based solutions to generate product quotes, insurance companies can streamline and create more efficient workflows.
An example of CoreLogic’s web-based inventory estimation solution is Content™, a self-service feature within Workspace™. It’s a comprehensive end-to-end claims workflow management solution with resources for inspectors, property appraisers, and even restoration professionals.
Content allows appraisers to enter inventory of items into a web-based search engine and determine the most up-to-date price for each item. When the appraiser selects an item from a thorough internet search, it is automatically added to the estimate. Users can combine all priced items into an inventory of priced items, making it easier to create quotes. Content calculates replacement cost, depreciation, and actual cash value for personal items, all in one easy-to-read format.
Content is embedded within the workspace, so adjusters don’t have to navigate multiple systems to complete a quote and move it through the review and validation process. For all claims, users can create both line items and structure estimates within Workspace.
How the content addresses common challenges related to item quoting
With an intuitive Internet-based search component, Contents significantly reduces the time required to research and price products. If the same product is not available, the system also allows users to search for substitutes of similar quality, type and quality. Content streamlines and shortens the item quoting process by eliminating the need to consult multiple sources for pricing and eliminating the need to outsource the process. This solution allows price search for different items within the same user-friendly interface.
With content that is part of the workspace, adjusters can create structure and item estimates within a centralized system, reducing both estimates and cycle time. Having both claims in one system simplifies the reporting, review, and tracking process.
To help users accurately price their products, Contents provides evidence of current pricing and fosters positive relationships between airlines and policyholders during the claims adjustment process. Users can document and demonstrate online pricing sources to policyholders, increasing reliability, reducing disputes, and also shortening claims cycle times.
Contents also enables appraisers to quickly price inventory with comprehensive and accurate prices on their own, eliminating the need for carriers to involve third parties in the product quoting process. Save time and billing costs by keeping control of file processing in-house.
Use of content
Using a web-based solution that integrates with other billing solutions can add tremendous value to your bill estimating process. This content helps adjusters overcome major challenges in quoting personal items, reducing the time needed to complete quotes, increasing policyholder confidence, and increasing the efficiency and independence of in-house adjusters. ultimately saving time and reducing costs.
To learn more about CoreLogic’s Content™, contact us today.
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