Friday, June 3, 2016

Commercial Insurance Providers Using Technology to Improve Efficiency

Many commercial insurance providers today are using technology to make sure they get things right. Insurance has long been a numbers game. While it may play out in the individual stories of people and companies on the ground, the bigger battle for providers is fought on spreadsheets, where actuaries figure out the risks of certain things happening. People who plan to buy insurance should understand how their rates are set, and perhaps more importantly, how their claims will be categorized. A commercial claims adjuster will work on your case, using all the technology available to make a determination on how much money you end up with. Here's what commercial insurance providers are doing today.

A sabermetric approach to setting rates
In baseball, teams use statistics and advanced analytical methods to choose their players in free agency and in the draft. This is called sabermetrics, and a similar approach is being used in the insurance world. Companies are coming up with advanced metrics to figure out just how much to charge you for insurance. Many different inputs go into this calculus. The insurance providers assess you on the basis of your age, marital status, credit rating, and much more. Because these factors play such a critical role in how much money you'll end up paying, you can control the price by ensuring that your factors are positive.

Adjusters with technology
Claims adjusters are in the business of figuring out just how much money you should receive. In the past, they might eyeball the figure, paying you roughly how much you asked for. This is changing, though, as the dollar amounts in play have gotten higher. Many commercial insurance companies are insuring that their claims professionals are equipped with analytical equipment. One thing they focus on is equivalent claims. If similar claims have been filed, an adjuster will have a record of how much was paid to the claimant. This helps to keep the payouts consistent, and it can often save money for the insurance provider.

Insurance companies are getting smarter with every passing year. They are learning that using technology is a good thing that will provide them with an advantage. This can be a bad thing for commercial insurance policy holders. You may find yourself paying higher rates or receiving less money for your claim because of the way modern insurance companies operate.

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