Using an Assignment Network and Real-Time Analytics to Manage Catastrophes

By Jim Loveland

Add soaring fuel costs, problems in the financial market, and an uncertain economy to the host of new challenges that property claims managers face when a catastrophe strikes. Each catastrophe creates its own claims-handling challenges and often has a unique impact on local construction costs. As staff begins to mobilize at a disaster site, claims professionals need immediate, accurate information about estimate activity and construction costs.

Claims assignment networks, such as Xactware’s XactAnalysis® network, are a critical component in accurately tracking estimates and cost trends and providing updates. With this tool, adjusters are automatically assigned claims that include up-to-date regional pricing research for the local area. The assignment also includes geocode information to help out-of-town staff quickly locate the loss, even when street signs and landmarks are lost or damaged.

Catastrophe managers can set company service standards and receive alerts when those standards are not being met. Estimates can easily be reassigned, and multiple adjusters may work on the same claim without redundant effort or loss of claim information.

As the network processes claims and analyzes information from current estimates in real time, estimate and pricing trends are immediately revealed. Those trends help managers spot potential issues and quickly resolve them. When pricing-trend information from estimates is coupled with a separate program of research that surveys material, equipment, and labor costs, managers get an accurate picture of evolving construction costs for each catastrophe. Larger catastrophes often require frequent pricing updates that address changing market conditions and help prevent price gouging.

To help managers and quality-review specialists monitor estimates, it’s important that photos, notes, floor plans, and even audio files are attached to estimates. The XactAnalysis network adds its own quality-review audit tools that automatically catch potential errors.

The claims assignment network is a critical tool that helps managers juggle the myriad demands of catas­trophe claims management and the new demands of a troubled economy.

Jim Loveland is president and chief executive officer of Xactware Solutions, Inc., the leading provider of estimating systems for the property insurance, remodeling, and restoration industries. Xactware’s technology tools include software estimating programs for PCs and tablet PCs, as well as online systems for replacement-cost alculations, estimate tracking, and data trending in real time.