With increasing remote work as a byproduct of the pandemic, many lenders and insurers are learning how to navigate new challenges. The strain on communication can delay claims processing and affect settlement times. Fortunately, Verisk has innovative solutions to help expedite the total loss process.
Manual lienholder processes can be slow, inefficient, and onerous during high-volume times.
Identifying the Challenges
When a vehicle has been deemed a total loss, it can take days—potentially even weeks—before the lienholder is notified, and even longer to receive payment for the loss. Meanwhile the policyholder who needs to understand settlement figures before purchasing a new vehicle, may bear the greatest inconvenience.
The march of Hurricane Ida and its resulting aftershocks from the Gulf Coast to the Northeast destroyed some 250,000 vehicles in August and September of 2021, according to Verisk estimates. When Hurricane Harvey made landfall in 2017, an estimated 500,000 cars were lost in the rising waters. When a hurricane strikes, call volumes can increase rapidly, overloading networks and causing longer wait times that diminish customer satisfaction.
Highly Manual Process
Identifying whether a lienholder exists is often the first step in a process that involves insurers contacting lenders by phone, email, fax, or even regular mail. These manual processes can be slow, inefficient, and onerous during high-volume times. Settling total loss claims involves multiple touchpoints among insurers, customers, and lenders. Furthermore, all information needs to be current and accurate before settlement. Any errors or inaccuracies can cause delays. Drawing from multiple sources, Verisk can provide data points needed to help settle total loss claims quickly and accurately.
High Volume Requires Real-Time Tools
Automating the exchange of information between lenders and insurers can improve efficiencies. Verisk can provide industrywide lien, policy, and loss data to help settle claims quickly.
With these solutions, lenders can be automatically notified when the financed vehicle has been deemed a total loss, and insurers can automatically receive vehicle payoff information, which can lead to expedited payouts. The automated process can help simplify and streamline total loss claims to improve the customer experience.
A Fresh Approach to Automation
As the industry continues to navigate through climate change, the next catastrophe could be on the horizon. With the right data, lenders and insurers can gain significant competitive advantages by leveraging technology that automates the claims process.
Drawing on extensive data assets, including industrywide claims databases composed of billions of data points, Verisk is uniquely equipped to bridge the gap with its next-generation solutions:
- Lien Check automatically provides payoff information insurers require to settle claims with policyholders. This can help reduce cycle times and loss adjustment expenses to increase customer satisfaction.
- CV-VaaS automates the verification process by collecting key information from insurance policy and vehicle loan databases to help ensure the loss payable clause is correct, helping to protect lienholder interest.
- Total Loss Alert automatically notifies lenders when a financed vehicle is deemed a total loss, reducing manual processes to improve settlement times.
Together, in an automated fashion, these solutions can help seamlessly connect the lending and insurance industries.
Learn more about tools that can help provide faster, more efficient customer service.