How Insurance Claims Dashboards Package Helps Insurers Battle Economic Downturn

Going into 2023, insurers facing challenging global market conditions must demonstrate remarkable flexibility and resilience in order to overcome a host of economic hurdles – from rising inflation and interest rates to natural catastrophes to the looming threat of recession.

In the US, Property and Casualty (P&C) insurers are being squeezed by expenses and the rising costs of claims. The recent uptick in inflation has added to the challenges that insurers are already facing from the pandemic and natural disasters. According to McKinsey, in 2021 rising prices in the US contributed to an approximate $30 billion increase in loss costs – the amount an insurer must pay to cover claims.

Why a Claims Dashboard is Important?

Personal insurance claims are being driven by extreme price increases of associated goods and services. For example, the prices of motor vehicle parts and equipment rose by 22.8% between June 2021 and June 2022; the cost of used cars and trucks rose by 14 %.

What this means for insurers is that they will need to be smart about adjusting their pricing strategies and strengthen their operational resilience to ensure that they are prepared for an uncertain future.

Building resilience dashboards for insurance claims

Insurers would do well to be ready with the right tools that will enable them to have visibility of the value at risk, time to deploy, and the relevant investments required, as well as ensuring that they have the appropriate resources to tackle the challenges ahead.

That’s why we at Five Sigma have designed a package of new Resilience Dashboards that allow insurers to focus their efforts and innovation on improving time to resolution, controlling indemnity expenses and reducing claims leakage.

Using our Resilience Dashboards allows insurance leaders to take a deep dive into critical claims data such as initial handling time, claims cycle time, pending claims inventory, recovery and forecasted recovery amounts, cost of exposures by severity and productivity in order to boost profitability and drive better business outcomes in an uncertain reality.

How does the insurance claims dashboard work?

Five Sigma’s new Resilience Dashboards package empowers P&C insurance leaders to help them handle the current economic downturn. It includes six powerful data analytics dashboards that enable insurers that help insurers become resilient to current market conditions:

  • Initial Handling Dashboard: Everyone knows that “time is money” and this couldn’t be truer when it comes to claims. The Initial Handling dashboard highlights the adjuster’s time to first interaction, by contact channel (phone call, email or SMS) and drilldown per channel, with the ability to filter based on specific time period, adjuster, claim channel, etc. So the organization can pinpoint how to handle claims better and faster.
  • Cycle Time Dashboard: The key to successful claims operations is paying the right amount of money at the right time. The time it takes to make a claims payment is a good indicator of how long it will take to resolve a claim. This dashboard highlights days to first payment, by month and by coverage type, so the insurer can drill down into their performance.
  • Pending Inventory Dashboard: Pending inventory is the bane of every claims organization. The more inventory the insurer has, the more it costs and the more the adjusters lag behind. This dashboard lets insurers keep a close eye on inventory and track claims that are taking too long to close. It shows average claims closed per month; total reserves vs. pending claims; and open and closed claims per month.
  • Recovery Dashboard: Subrogation and salvage is vital to bring money back into the organization and reduce overall loss ratio. This visual dashboard lets insurers easily see if the organization’s actual subrogation performance is aligned with anticipated recovery, average cycle time to recover money, and more.
  • Severity Dashboard: You always need to know what your severity is. Knowing the average indemnity cost per exposure will help insurers understand payment trends. This dashboard lets insurers dive into what they are paying and how much its costing them, including claims trends, average exposure costs incurred by exposure, payment by incident types as defined in the LOB product, and more.
  • Productivity Dashboard: With this visual dashboard, insurers can take a deep dive into their staffing and productivity. They can find key information in simply charts, such as MoM open and closed claims and their percent change, closing ratio, closing ratio percentage, and this can be filtered by team, adjuster, date, etc. No coding or scheduling needed.

Resilience Dashboard Advantages

These six dashboards go a long way to ensure that insurers have all the data and reports they need to face the challenges of the current economic reality. The Resilience Dashboard package offers a number of business advantages to the insurer:

  • Offers instant automated reports, which provide a clear picture of the health of the organization and help to ensure that the insurer is paying claims at the right time for the right amount, and maximizing recovery options.
  • All data is at the insurer’s fingertips, is downloadable and can be exported and isolated according to time frames, teams, adjusters, channel types, etc., for easy analysis, saving the time and effort of data analysts
  • Automated reports assist in enabling the organization to stay on top of optimum staffing and productivity.
  • Reports on how long it’s taking to recover money that effectively reduces the loss ratio help the organization predict its financials.
  • Clear ROI as these types of reports usually requires a data analyst up to six hours a day of manual work to generate reports.

Advantages of an insurance dashboard

When looking ahead to an uncertain period, underscored by inflation and recession, insurers need as many intelligent tools as possible to make sure they are not only ready for what is to come, but are also in a position to remain financially stable and outlast their competitors.

An intelligent claims system that not only functions automatically and offers advanced recommendations to its adjusters, but also provides a range of sophisticated reporting dashboards that offer advanced analytics of the organization’s health is key to weathering the storm and coming out on the other side stronger and more resilient.

Five Sigma’s Resilience Dashboards are changing the game for insurers who are looking for every advantage in a challenging reality. Six sophisticated dashboard offer automatic analysis of critical claims data and instant reports so insurers can take immediate action and be flexible, while cutting costs. In the current environment, this is key to strong business outcomes and resilience.

Five Sigma - AI-Native Claims Management Platform

Five Sigma offers an AI-native claims management platform that streamlines every step of the claims process. With full visibility of the claim at a single place, advanced automation, and data-driven insights, Five Sigma empowers adjusters to excel, speeding up claims handling and improving policyholder satisfaction. Adjusters are freed to focus on decision-making and customer service. 

For insurers, MGAs and TPAs, Five Sigma is a risk-free solution that unlocks unprecedented benefits quickly. Insurers gain unparalleled visibility into their claims and operations. The result is a significant reduction in Loss Adjustment Expenses. Five Sigma is a future-proof platform that is always up to date for the benefit of all its customers and gives insurers the agility to handle any claim faster, add new Lines of Business in less than a day, and accommodate new business models easily, enabling you to adapt swiftly to market changes ahead of the competition.

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