145 230,wed-assi

Reinventing First Notice of Loss and Accident Reporting

……. in a world without police services

presented by

Accident Support Services International

6.17.2015

(c) 2015 Accident Support Services International Ltd.

Presenters • Stephen Applebaum, Managing Partner,

Insurance Solutions Group • Steve Sanderson, President & Founder

Accident Support Services International • Ron McBride, Chief of Police (ret.) • Ken Dusenbury, Director Claim Relationships,

CAA Insurance Company


• claims innovation/transformation • “new consumer”/customer-centricity • claims: the moment of truth • real customer service; hi-touch + hi-tech • Canadian market previews U.S. trends • predictive analytics in FNOL • U.S. accident volume/claim frequency

actually growing (c) 2015 Accident Support Services International Ltd.

History of Accident Support Services Int’l

• in business since 1994, privately owned & operated

• developed in partnership the Insurance Industry, CICMA and Police Services


Benefits

• increased customer service and retention

• reduction in “creative damage” and insurance fraud


Ron McBride, Chief of Police (ret.)

• lack of funding for police services – the new

normal • today’s social environment • Ontario experience – leader in change • how changes in policing will impact your

industry


Ken Dusenbury, Director Claim Relationships CAA Insurance Company

Key claims/carrier benefits of ASSI relationship: • ASSI-Claims relationship delivers multiple values • brand equity • adjuster productivity • Anti-fraud support • “Lean” process • customer centricity


Ken Dusenbury, Director Claim Relationships CAA Insurance Company

Key claims/carrier benefits of ASSI relationship: • ASSI-Claims relationship delivers multiple values • brand equity • adjuster productivity • Anti-fraud support • “Lean” process • customer centricity (c) 2015 Accident Support Services International Ltd.

CSI increases as claims cycle time decreases

“Insurance companies are placing more emphasis on training their employees and representatives to be customer-centric, especially during the interaction process” Jeremy Bowler, senior director of the global insurance practice, J.D. Power

Source: J.D. Power 2014 U.S. Auto Claims Satisfaction Study (c) 2015 Accident Support Services International Ltd.

CSI increases as claims cycle time decreases

• satisfaction with the claims experience impacts customer retention and referrals

• 2014 U.S industry average cycle time was 13.4 days from loss report to repair/return of vehicle

• improvements in satisfaction with insurers’ handling of complex claims are largely due to insurers managing customer expectations with respect to the timing of the claim and moving the claim along more quickly

Source: J.D. Power 2014 U.S. Auto Claims Satisfaction Study


claim self-service is not!


estimated value of reduced accident claim report time is $245- $470 per claim • direct to shop $100 to $125 • reducing FNOL cycle time:

o storage fees $ 95 to $195 o rental car costs $ 50 to $150

savings range $245 to $470 Source: CCC Information Services, October, 2014


additional ROI.........measurable savings • reduced attorney penetration • lower repair severity through higher DRP penetration • elimination of “creative damage” • reduction in second tow costs • improved triage/workflow to ensure best adjusting resource • better support for at-fault determination • higher subrogation identification/recovery • additional underwriting opportunities (prior damage) • more accurate, earlier reserving • enables greater use of analytics/claim management reporting • ID suspicious claims alerts/SIU referrals and fraud detection


thankfully, traffic accident fatalities have decreased an impressive 25% over the last 10 years (from 38,477 in 2003 to 30,057 in 2013) ……………………. however.... Source: U.S. Federal Highway Administration and NHTSA, Traffic Safety Facts 2013

U.S. Auto Accident Trends


U.S. motor vehicle crashes in 2010 cost almost $836 billion in loss of productivity and loss of life (medical cost component 10%)…or $400 for each licensed driver Who pays?-- Everyone! • Private insurers…………………………………………………………………………………………….50% • Individual crash victims………………………………………………………………………………..26% • 3rd parties inc. uninvolved motorists, charities and health care providers…..14% • Federal revenues………………………………………………………………………………………….. 6% • State and local municipalities…………………………………………………………………………3% Overall, those not directly involved in crashes pay for nearly three-quarters of all crash costs, primarily through insurance premiums, taxes and travel delay Source: NHTSA, The Economic and Societal Impact of Motor, Vehicle Crashes, revised 2015

The cost of U.S. auto accidents


excess payments due to fraud add up to 17% to auto injury claims

Source: “Fraud and Buildup in Auto Injury Insurance Claims”, Insurance Research Claims, February 2015


257.5

259.4 259.0

257.3

265.0 265.6

269.3

250.0

252.0

254.0

256.0

258.0

260.0

262.0

264.0

266.0

268.0

270.0

272.0

2007 2008 2009 2010 2011 2012 2013

U.S. Registered Vehicles (millions)

4.7%

Source: Federal Highway Administration, R.L. Polk & Co. and NHTSA (c) 2015 Accident Support Services International Ltd.

205.7

208.3

209.6 210.1

211.9 211.9 212.1

202.0

204.0

206.0

208.0

210.0

212.0

214.0

2007 2008 2009 2010 2011 2012 2013

U.S. Licensed Drivers (millions)

Source: Federal Highway Administration, R.L. Polk & Co. and NHTSA (c) 2015 Accident Support Services International Ltd.

[VALUE]

5.8

5.5 5.4

5.3

5.6 5.7

4.8

5.0

5.2

5.4

5.6

5.8

6.0

6.2

2007 2008 2009 2010 2011 2012 2013

U.S. Vehicle Crashes (millions)

Source: Federal Highway Administration, R.L. Polk & Co. and NHTSA


Source: ISO, a Verisk Analytics Company

4.85

5.04

4.87

5.20

5.35

5.48

5.69 5.75

5.57

5.71

4.50

4.70

4.90

5.10

5.30

5.50

5.70

5.90

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Private Passenger Collision Claims Frequency (claims per 100 car years)


and 2015 new car sales are up….. total sales projected to hit 16.9 million units in 2015, a 2.5 percent year-over-year increase and the highest since 2005 Source: Kelly Blue Book, May 2015


“Metro stops responding to non-injury crashes” Las Vegas-Review Journal 2/15 -------------------------------------------------------------------------------------- “Springfield police will stop responding to most non-injury accidents” KY3 TV, Springfield, MO 8/2014 ------------------------------------------------------------------------------------- “Police not responding to non-injury accidents in Oklahoma City” The Oklahoman, 2/15 -------------------------------------------------------------------------------------- “Toledo Police only responding to injury accidents” WFSB.com, Toledo, OH 2/15


KEY TAKEAWAY Vehicle accident data not collected and shared among and between insurers, law enforcement and other primary stakeholders can not possibly be used to enable change or improvement in outcomes…..and the consequences of that are real and significant. (c) 2015 Accident Support Services International Ltd.

Q&A ask the experts

ACE booth 114 (c) 2015 Accident Support Services International Ltd.

145 230,wed-assi

Documents

police services c

accident reporting

insurance fraud c

industry c

accident volumeclaim

caa insurance company

assiclaims relationship

insurance industry