Helping Insurers Scale through Technology Enablement

As seen in Insurance CIO Outlook, September 1, 2017

Since its inception in 2013, Falcon Insurance Company has experienced rapid growth and diversification.

Accelerated growth often tends to illuminate processes that don’t scale to accommodate that growth. For Falcon, claims correspondence was identified as an area that could benefit from improved automation. The team at Falcon turned to their core systems provider, Insuresoft, for assistance. Falcon leverages Insuresoft’s policy administration suite, the Diamond System, for policy, billing and claims.

As part of the collaboration process, the teams assessed the current claims correspondence workflow. Falcon’s claims team explained how they had developed and maintained a catalog of standardized claims letters prior to the Diamond implementation. The letters were made available to the adjusters and clerks via a shared file folder. Adjusters would create and customize the documents as Microsoft Word documents outside of the Diamond claim system and then attach the correspondence to the particular claim file. Adjusters and clerks were responsible for printing, assembly, and mailing of their claim letters. As Falcon’s business grew and diversified into additional states, the manual process became a bottleneck.

Falcon and Insuresoft set out to design an automated claims letter solution that would scale to meet the needs of the growing business. Linde Wolff, Vice President of Client Services at Insuresoft, has worked with dozens of insurers on similar challenges and was excited about the opportunity to help the team at Falcon. “Most insurance companies are trapped in their existing claims processes, unable to harvest the potential of modern technology. At Insuresoft, we understand their pain points and support insurers throughout their transition to automation,” explained Wolff.

Within months, the teams had developed a fully functional, dynamic claims letter solution. The dynamic letter solution provides Falcon with consistent formatting of letters, while maintaining proper structure and content. Moreover, the solution has automated the mapping of address and claims information while still providing users with the flexibility to enter dynamic data into the letters.

Wolff credits Insuresoft’s R&D department and the history of nearly three decades in bringing about cutting edge technology to both traditional insurers and up-and-coming insurtechs. The Diamond System is one of the few claims systems that have been in production for nearly 25 years, providing support to over 30 insurance companies and managing general agents across all 50 states. It processes almost three billion dollars of commercial and personal lines of property and casualty insurance premiums annually and continues to innovate the processing of insurance transactions.

With automated dynamic data letters, Falcon has fully transitioned to an outsourced mail processing facility. Falcon’s utilization of the dynamic letter process has increased adjuster productivity an estimated 10-15 percent. With the increase in efficiency, employees are increasingly satisfied with their ability to focus on managing claims and not having to deal with more clerical functions. Showcasing the power of Diamond with this successful effort, Falcon will look to expand their partnership with Insuresoft to help optimize other functions within the claims operation.

Falcon is a great example of how working together can bring efficiencies way beyond the original scope of a core system integration. “This project began with a conversation around a need for efficiency, and resulted in a successful endeavor saving Falcon time and money within their claims department. We are creating innovations for our partners. They rely on us to deliver technology enabled solutions that deliver value to their consumers and business partners,” said Wolff.

Click here to download the In$urance CIO Outlook article.