Monitoring individual claims can be a costly and time-consuming process for insurers as they seek to manage expenses and improve loss ratio performance while meeting their obligations to policyholders.
In collaboration with CLARA analytics (“CLARA”), the leading provider of artificial intelligence technology in the insurance industry, ClaimsMonitor.X leverages Natural Language Processing (NLP) to constantly read claims notes to identify if adjusters are following best practices – or an alert is sent to the supervisor. Aon’s time studies have shown that supervisors spend over 40% of their diary time reviewing open files to determine if the claim is being handled in compliance with the insurer’s internal best practice guidelines. Having the ability to focus on only those claims that require intervention will increase the productivity of a claims supervisor’s time – enabling them to focus on customer service, resolution strategies, complex claims, coaching and performance management.
The new approach builds on Aon Inpoint ClaimsMonitor® software solution for claims auditing by extracting unstructured data using NLP and artificial intelligence. To date, insurers only had the internal resources required to review a sample of claims cases. The new CMX platform enables them to review claims across all lines of business and take a holistic view of their performance. This identifies areas for cost management, while meeting insurers’ obligations to policyholders.
Dave Ertmer Senior Vice President of Claims for US insurer West Bend has implemented CMX for his auto line of business and has already seen results. Dave commented: “CMX allows our supervisors to be alerted when critical claims actions are not being followed allowing for supervisors to take corrective action to avoid leakage and improve customer service of claims handling on open claims. We have already seen close to a 20% improvement in the contact and investigation of claims which will directly impact claims outcomes. Additionally, the reporting on unstructured notes data is something that allows our managers to get insights into adjuster performance that was never easily accessible unless you could read every claim.”
John Wang, head of claims for Aon Inpoint, commented: “ClaimsMonitor.X brings an exciting opportunity for insurers to benefit from the power of artificial intelligence and NLP. By leveraging our experience with over 100 P&C carriers in consulting and software engagements, we have contributed to the delivery of 2% to 4% in loss ratio improvement. We continue to add new solutions to improve adjuster performance and claim outcomes. Artificial Intelligence coupled with CMX will revolutionize the next generation of claims leaders and organizations. Our growing collaboration with CLARA reflects Aon’s technological evolution to deliver new products that meet clients’ needs today and tomorrow, in a transparent and efficient way.”
Neil Harrison, Global Chief Claims Officer for Aon’s Commercial Risk Solutions business, added: “Our clients expect and deserve best in class claims services from insurers for both claim process and outcomes. This solution has an important role to play in ensuring these expectations are met. Speed and accuracy at all phases of the claim journey are key for insurers and customers alike.”