whereas the second section examines
hail loss questionable claims (QC) submitted during the same timeframe.
One of the most dramatic takeaways
in NICB’s overall assessment is the sheer
volume of claims processed by its member
companies. In fact, more than 2 million
hail damage claims were processed from
January 1, 2010 to December 31, 2012.
During this period, the largest number of
claims originated in Texas, which logged a
total of 320,823. In 2010, 2011 and 2012,
Texas saw 557, 741 and 795 hail events, respectively. NICB notes that claims activity
follows the hail storm activity as posted
on the National Weather Service’s Storm
Prediction Center. Trailing behind the
Lone Star state is Missouri, with 138,857;
Kansas, with 126,490; Colorado, with
118,118; and Oklahoma, with 114,168.
Despite the overwhelming rise in hail-
related damage claims overall, the num-
ber of related QCs submitted to NICB for
closer inspection was more subtle. In to-
tal, 3,829 QCs, designated with a loss type
of “hail,” were reported between January
1, 2010 and December 31, 2012. Hail loss
QCs decreased 4 percent between 2010
and 2011, then increasing 4 percent be-
tween 2011 and 2012. Once again leading
the way, Texas was the state with the larg-
est combined total of hail loss QCs, fol-
Forest Fire | continued from p. 9
caused a combined $567.4 million in insured losses- about $117 million more
than initially estimated last year.
The Waldo Canyon Fire, the costlier of
the two, triggered 6,648 homeowner and
auto claims, and the High Park Fire triggered 1,293 claims.
“[The Black Forest Fire] is somewhat
lowed by Illinois, Colorado and Arizona.
The top ten states on the list represented
76 percent of the total hail loss QCs during
the 2010-2012 timeframe. For instance,
Texas reported 1,053 QCs, or 28 percent
of the total number of QCs between Janu-
ary 1, 2010 and December 31, 2013.
different to the Waldo Canyon Fire, which
was unique to Colorado; while most of our
large-scale fires occur in mountainous areas, this affected city blocks and left what
looked like tornado damage, with some
structures untouched and others burned
to their foundation,” says Walker. “The
Black Forest Fire damaged decades-old
single-family dwellings and many outbuildings containing horses and barns.”
Aite: Insurers Losing Out on
$36B Through Missed Tech Opps
Insurers can drive down their claims costs by $36 billion if they embrace technology innovations allowing them to better manage their information assets, says an industry analyst.
“The waste in this industry is shocking,”
says Aite Group Senior Analyst, Property
& Casualty Group, Stephen Applebaum.
The consulting group has released a
report, “ 10 Startups Transforming P&C
Claims: A US $36 Billion Opportunity,”
says that by adopting innovative claims-technology solutions, insurers would not
only stop wasting money, but improve their
relationships with their customers and reduce their yearly double-digit retention
losses. The report reviews ten technology
companies Applebaum says are innovative
leaders with a lot of buzz in the industry.
“All of the companies have the potential
to fundamentally change the claims process and improve it,” he says.
For example, the report says Enservio
provides a suite of software and service solutions to help property insurers correctly
price policies, settle and pay claims, and
help policyholders replace their insured
Symbility Solutions offers cloud-based
technology—using smartphones or tab-
lets—that produces “accurate, simplified
property claims field appraisals on mobile
devices” to improve “claims work flow and
In the report, Aite recommends carriers
embrace technology for the purposes of:
■ Promoting and leveraging open-market
electronic parts procurement solutions
to improve auto physical damage claims
■ Adopting new property and contents
solutions for homeowners and commercial property and contents claims.
■ Optimizing property and injury claims-
By Mark E. Ruquet, PropertyCasualty360.com
■ Driving out fraudulent, duplicate and
inflated medical injury costs in auto and
workers’ compensation claims.
■ Streamlining the recorded claims statement process and leverage data.
As a whole, the industry does a poor job
of making the necessary technological advances, especially in the area of claims, Applebaum says. Only a few have made great
strides. The report cites Allstate, Amica,
Chubb, Farmers, State Farm and USAA.
Applebaum says he believes the best
hope for change lies in the younger generation of professionals—often referred to
as Millennials—who grew-up with smartphones and tablets and will not tolerate
a future of pen, paper and file cabinets.
Aite’s report is available to subscribers
and available for individual sale through