Summary - Fast Track Claim
TheFastTrackClaim®electronic property claim adjusting
process is a new web site, patent pending business process and procedure that provides property insurance carriers and other
risk management and property claim processing companies with a patented service that will automate and revolutionize the property
claim reporting and claim adjusting process.
This new process will save millions of dollars in property claim adjusting
expense. It will provide the ultimate in property claim customer service with rapid claim payments. There will be no more
reporting the claim to the insurance agent for the claim to be reported to the company and an adjuster assigned. The customer
will no longer wait, sometimes for days, for the adjuster to call and investigate the claim, the facts and damages before
issuing a claim payment. The claim will now be submitted online over the World Wide Web and adjusted within hours on the same
day it is reported. A check will be issued quickly and the claim paid and closed the same day it is reported. There will be
no follow-up calls from an adjuster to document their claim. The process uses a client’s business rules and claim adjusting
A normal distribution of property claims is skewed with the greatest frequency and number of property claims
consisting of the lower dollar valued claims. It is well recognized by management in property claims that approximately 75%
of all property claims submitted to the insurance and risk management industry are under $25,000. Of this, approximately 50%
are under $15,000 and 25% are under $10,000. There are millions of property claims reported and settled each year totaling
billions of dollars.
Typically the claim is reported to the agent or insurance company over the phone or faxed into
the company. The claim is matched to the coverage and assigned to an adjuster. That adjuster will investigate the claim, document
the cause of loss, confirm the loss is covered, adjust and pay the claim, if covered. The expense associated with this process
is referred to in the industry as the loss adjustment expense, both allocated and unallocated. An insurance company’s combined
ratio is the dollar value of the loss called severity plus the loss adjustment expense. The industry strives for a combined
ratio under $1.00. Historically they will run $1.05 to $1.20 or higher. This means for every dollar of premium collected the
insurance company is paying out $1.05 to $1.20 or higher in covered damages plus loss adjusting expense. To survive the insurance
company must control costs and provide quality claim service. Using fasttrackclaim.com will result in lower loss adjustment
expense while maintaining control over severity.
Fast track claim is an old insurance industry term once used by insurance
companies to identify claims of high frequency and low severity reported to and handled by the insurance agent on behalf of
the insurance company. There typically was no payment to the agent for this service. It kept him/ her close to the customer
and facilitated in their establishing a rapport with the customer. The agents would adjust and pay the claim using insurance
company checks or drafts. This practice has become obsolete over time due to the greater production demands placed on the
agents and the insurance company’s desire to keep cost and expenses down.
This new, sophisticated online process FastTrackClaim®
will now fulfill this service and result in the insurance company meeting their goal to keep cost down and provide fast, efficient
and fair claim service. This process takes the advantages of the World Wide Web, computers and artificial intelligence to
provide the ultimate property claim service. Once optimal performance is confirmed the systems are linked by electronic data
interface (EDI) and the process is fully automated to adjust and conclude claims.
Insurance companies can request all
losses be reported to a web site with the domain fasttrackclaim.com to utilize this new process. Additionally in the event
of a catastrophe the companies can advertise the web site as a source for their customer to receive immediate service. Many
of the customers affected by a catastrophe will report and have their claim processed and approved online. The claim will
be adjusted and paid in days rather than weeks and months needed to handle a large volume of catastrophe claims.
invention uses a system of steps, logic and artificial intelligence to approve a property claim. The claim is first reported
online using a series of online questions. The customer completes the questionnaire and depending on the answers and the carrier
instructions (business rules) the claim may be adjusted by application of the adjusting rules and paid automatically. If the
claim does not fit the criteria for automatic payment it results in a notice of claim sent to the carrier for assignment of
an adjuster. Either way, rapid payment or notice of claim, the process will speed up the handling of property claims, reduce
loss adjustment expense and provide the ultimate in property claims services.
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