I was pleasantly surprised, and shocked, when I heard the phrase “cool beans” used in a commercial not too long ago. The term was popular when I was in high school. Over the last four or five decades many new phrases and words instantly considered everyday language have been created throughout the halls and cafeterias of local schools. Words like tripping, take a chill pill, oh snap, no duh, binge, selfie, and photo bomb spread like wildfires throughout campuses. If you didn’t learn them quickly and find a way to use them, you might have been considered out of the loop. Thankfully most faded away over the years but a few still are heard from time to time, even possibly in a commercial.
While we thought learning new catch phrases to stay up to date with the crowd was over after high school the world threw us a curve ball this year and sent a whole new set of terms now heard in everyday conversations. Social distancing, flatten the curve, and certainly not new but reimagined, remote workforce.
The insurance industry has been inventing and reinventing terminology as long as people have had property. In the last few years phrases like loss creep, claims leakage and touchless claims have sent the industry into a frenzy of technology to keep up with the terminology. These phrases quickly took us out of our sleepy, soft market and dropped us into a hard one where reinsurance rates are rising, and risk mitigation is becoming serious business. These terms would never be considered rad or gnarly, but the solutions offered by VIP Software are.
Loss Creep – refers to increasing loss estimates and reported losses from previous events such as a large hurricane. Often referred to as a tail. (Artemis, n.d.)
What kind of technology rises up to combat words like loss creep? Data analysis.
Data Analysis allows us to analyze claims and mitigate risk like we have never been able to before. Predicting what is coming so companies can be prepared for events means the tail doesn’t catch us off guard. The wider the data set the better a company can prepare and plan to reduce loss creep. Used to develop metrics and improve standardization in the industry. If these types of systems had been more utilized in the past, the loss we are dealing with from Hurricanes Irma, Michael, Maria, and Typhoon Jebi would be minimalized.
Claims Leakage (CL)– lost dollars through claims management inefficiencies that result from failures in existing processes. (IRMI, n.d.)
This is one of the most important concerns to insurers. CL is costly to the bottom line in a big way, developing anywhere within the process from first contact to claims closing. Expense management systems simplify the claims function through automation. Taking the process from reconciling expenses with the correct claim to managing payments (STP). Not only does removing human error save time and loss but the reporting function allows risk managers to monitor claims more efficiently.
Touchless Claims – A process or workflow that is similar to Virtual Handling except no claims adjuster or insurance employee is involved in the claims process. (Haas, n.d.)
Everyone’s favorite new term. With Covid and workforces moving remote it only makes sense that “touchless” is becoming more popular and based on studies most policy holders prefer it, which should be no surprise since each generation becomes more technologically advanced then the previous. To truly become “touchless”, expense management and data analysis are a necessity. The world is advancing and companies like VIP Software are making sure that the technology is there as new terminology develops. They are the people who create the solutions for the words that develop throughout the hallways and break rooms in insurance companies everywhere. They look out for you like an older brother in high school making sure you’re not lost in the crowd and out of the loop.