One year and an investment in technology have had a huge impact on how adjusters for Farmers Mutual of Nebraska process their claims. A year ago Farmers Mutual’s adjusters were largely working in a paper environment. They would go out to a claim site to inspect a loss, and prepare a handwritten estimate. If the loss was too severe to handwrite an estimate, they would prepare the scope notes of the damage and return to the office to complete the estimate using software located on their desktop PC.

Today, their adjusters are using convertible tablet PCs with a new tablet-based estimating solution from Symbility that allows them to perform the bulk of their work directly at the loss site.

A Tale of Two Upgrades On two different sides of the world, two insurers, with slightly different focuses but both with the core goal of improving the efficiency of electronic and mobile communications, became early users of Exchange Server 2007. For Allianz General Insurance Malaysia Berhad, one of the top three general insurers in Malaysia, an upgrade to Exchange Server 2007, prompted in part by regulations, will help the firm introduce mobile and electronic communication tools that it previously was unable to offer and to more easily archive communications for regulators. Bloemers Nassau Groep participated in the Rapid Deployment Program primarily to evaluate the high availability options, according to Steven van Houttum from Microsoft technology partner Solfit Training and Consultancy BV. However, several Outlook Web Access features will affect both mobile users and email communications. For example, administrators can remotely delete business data on a cell phone that has been lost or stolen using the standard Exchange Management Console, and now the users can wipe the device themselves through Outlook Web Access. The administrator has the ability to block this function on users. In terms of email, users can send links to a file share or SharePoint site rather than a large document, for faster delivery and less mailbox space. An administrator can control which file share and SharePoint sites can be accessed this way. Also, when a user receives an attachment, a Word document for example, Exchange can render it, avoiding the performance and security concerns of a download. Meanwhile Allianz General Insurance tested Microsoft’s Direct Push technology, which was first introduced in Microsoft Exchange Server 2003 Service Pack 2 (SP2) and is supported by Exchange Server 2007. Users at Allianz General Insurance will be able to receive email messages on their cell phones without requiring synchronization. “Before, organizations wanting push mail needed to subscribe to a service like Blackberry,” said Edwin Lee, a consultant from the Southeast Asia infrastructure team of Avanade who led the deployment with Allianz. “For push mail to work, you need a server inhouse that is capable of providing these features.” The Direct Push Technology works with cell phones or PDAs. Users get a notification that an email has been received and will get the first couple of sentences of it on the mobile handheld device, explained Lee. The user can then use a button on a device to read more of the email. The device must also be Windows enabled. Allianz rolled out Exchange Server 2007 in a beta version in the second half of last year and tested the Direct Push with 30 users, said Chee Yit Kok, a consultant from Avanade from the Malaysia infrastructure team who was a primary contact on the project. After a successful test the company decided to license the product and roll out Direct Push to the rest of the management team this year. Exchange Server 2007 will also allow Allianz General Insurance to try many other electronic communications options that had previously been unavailable to them, Lee said. “A typical financial industry player does not allow Hotmail or MSN because they need something that is secure within their environment,” Lee said. As a result, features like instant messaging that are common on such public services have often been off limits. Exchange Server will give the firm the technology to offer instant messaging and meet the regulatory control and archiving requirements around it. They will also be able to conduct Web meetings over the interface and integrate fax with email. “Allianz has been using a lot of faxes and this will integrate into the email so that the user will be able to retrieve or send faxes from email,” Lee said. Meanwhile, Allianz General Insurance deployed the technology on 64-bit hardware, which will enhance performance and allow increased speed with less footprint. Exchange 2007 will also help Allianz General Insurance save in storage costs. It makes better use of storage and allows administrators to use lower cost Direct Attached Storage rather than more expensive Storage Area Network (SAN) storage. As for the future potential of the technology, van Houttum of Solfit is looking forward to Windows Mobile 6. “Windows Mobile 6 will be interesting because an Exchange administrator can control the security settings to a large extent, including data encryption and disabling functionality, for instance the camera,” he wrote in an email exchange. Avanade’s Lee envisions a future with even more integration. “To paint a more unified picture, the latest release of Exchange makes possible the next step of CRM and Exchange Server 2007 integration. This is not something specific to Allianz but it’s something I have tried to evangelize to customers – the benefit of having a true unified view to include customer profiles. The client interface and Outlook can have a more seamless integration that is something that could interest financial services firms from the perspective of customer service.”

The solution has proved so successful that 75 percent of their adjusters have actually asked that their desktops be removed from their offices.

“That’s something we really didn’t expect. We knew the tablet PCs would be really useful for the adjusters while they were out in the field, but we didn’t think they would replace our desktop PCs – at least not so quickly. We were looking at having to upgrade all our desktops in the near future so that is a big cost savings that we never anticipated,” said Jamie Frederickson, director of field services with Farmers Mutual of Nebraska.

The adjusters are using Fujitsu LifeBook convertible tablet PCs equipped with mobile claims processing software from Symbility Solutions. They also have traded in their tape measures for laser measuring devices called Distos, and they even went as far as to put small printers in adjusters’ cars to help them be as productive as possible while in the field.

“This is a whole new avenue for us, so we decided if we were going to make this move that it had to allow our adjusters to be more mobile,” Frederickson said.

“There were really two issues tied to our prior method of processing claims,” Frederickson said. “One was that adjusters would inspect a loss, take scope notes to capture data about the damage and then go back to the district office to input it. There was a lot of duplication going on.”

The second issue was that in the previous property estimating system that Farmers Mutual had been using, the pricing database had gravitated toward breaking down repair operations into individual components rather than the more comprehensive unit cost approach that the Symbility solution provides.

“By breaking it down into individual components of a larger process there are more opportunities to make mistakes and to forget to include something. It’s simply much easier to prepare an accurate estimate on a unit-cost pricing database basis,” Frederickson said. Farmers Mutual was already familiar with the pricing database that the Symbility solution utilizes, because it is based on the same pricing data found in the Craftsman Book.

After investigating the technology, Farmers Mutual decided to pilot Symbility in 2005. The successful pilot was followed by a full implementation in 2006. The first step was to select the tablets, and Farmers Mutual went with convertible Fujitsu LifeBook tablets instead of a “slate” to give adjusters the flexibility to use a keyboard as well as a stylus pen.

The tablets give the adjusters access to all documents, forms, templates and prices right in the field as they are handling the loss.

In addition to making work easier for the adjuster, the goal of the technology is to reduce time delays and to be responsive when trying to serve the insured when claims are received, said David Chalmers, vice president of business development and marketing for Symbility Solutions.

“Before they get back to their vehicle they can wirelessly send the completed claim file to the team back at the office. It’s an ecosystem that takes advantage of everyone within the team and helps to drastically reduce time delays,” Chalmers said, noting that Symbility is the only pen-based PC claims management to truly take advantage of a Tablet OS.

The software also allows adjusters to build diagrams on the fly on their tablets. Using a laser measurement tool called a Disto, which is Bluetooth-enabled, so it can communicate with the tablet PCs, adjusters can take measurements, and automatically input them into the tablets wirelessly at the push of a button. This makes building highly accurate diagrams, quickly, using the measurement inputs, a dream. In terms of training, adjusters were given a six-hour course that was very hands-on. Upon completion of the training, they were up to speed and using the software to create claims.

As Symbility is a .NET-based system, insurance examiners can look at the estimate and answer questions while adjusters are still out in the field before the file has been imported into their claim management system.

“In terms of how it is built from a technology perspective, it’s a true .NET system – open standards make it easy to connect to multiple document management systems, claims management systems and other back ends. It’s very friendly in terms of integration with new organizations coming on board,” Chalmers said.

In some cases, Frederickson said, adjusters are able to provide the policyholder with an estimate during the site visit, and this type of response time has been a powerful customer service tool.

“It’s very intuitive and very accurate – you can take measurements to the nearest inch – and the program automatically deducts for missing wall, floor, or ceiling space. From a customer service perspective it is being very well received,” Frederickson said.

Frederickson noted that the solution has already improved their productivity, and believes these improvements will become more apparent in their loss adjustment expense (LAE) ratios as further scheduled enhancements are made to the Symbility solution and their adjusters become more proficient at using the solution to its full capability. The customer response has been strongly positive, he said.

“Customers should expect their claims to be handled accurately and efficiently. Symbility helps us meet those expectations. The program is very integrated so you are often completing multiple tasks simultaneously. This allows you to complete an estimate in a portion of the time it takes other estimating programs. When you are finished you have a solid, well-constructed estimate that is easy to follow and understand. Included with the estimate are 3-D type diagrams of the structure. The estimate package you are able to present to the policyholder is very impressive,” he said.

Chalmers noted that overall Symbility clients have reported that use of the technology has led to a measurable boost in renewal rates from customers who file claims.

“A critical factor in a policyholder’s decision of whether to renew their policy is how well they believe they were treated on their prior claims submission. With the easy process, detailed analysis on the site, and the ability to turn around the money so much faster, not to mention more accurately, clients have said they’re seeing a tangible three to four percent increase in renewals of those clients who’ve had losses. It doesn’t sound like a lot, but it’s a substantial amount over time,” he said.

Chalmers noted that the longer a claim stays open, the more difficult it will be to close and the more it may cost both the insurer and the insured. The efficiency and speed that Symbility’s mobile solution introduces can help to combat this “loss creep.”

He also noted that for some insurance companies, a side benefit has been that they can better monitor the activity of field teams.

“Supervisors back in the office can easily communicate with field adjusters, send/receive updates from them, and transmit documents both ways, at the push of a button. You cannot put a price tag on this type of wireless integration,” he said.

For Farmers Mutual, fire and water damage represents the largest percentage of their property claims. Farmers Mutual has found that the program provides a thoroughly comprehensive solution for handling these types of losses.

“One major advantage of this system is it allows you to complete every aspect of the estimate directly on site. This really helps ensure you’ve accounted for all the damage and assessed it properly. The way the database is formatted allows you to use it as a checklist for looking through each of the different product categories to make sure nothing has been overlooked,” said Frederickson.

Farmers Mutual also uses Symbility for wind and hail damage. In an early February interview, Frederickson noted that Symbility had been refining its product for wind and hail damage and a new release expected later in February would further facilitate diagramming of exterior elevations for those situations. (The new release was announced on February 21.)

“It has worked efficiently for our adjusters but a new release this month on the exterior elevations part of the program will make it easier to diagram and estimate the damage to each elevation,” he said. “It was nice, and because of our strong partnership with Symbility, we were able to make a lot of recommendations to the program as far as wind and hail are concerned.”

Chalmers expects some of these varied disaster scenarios might prove to be key target areas for Symbility. He noted that many insurers have catastrophe teams that come in after major storms or disasters, as a result of the claim spike in an area. These teams have increasingly been given a green light to pursue technology that is intuitive, ultra efficient, and will shorten the learning curve to prevent a backlog of claims from piling up, he said.

The newest Symbility release, mobile claims 2.8, which debuted in late February, includes almost 200 new features. Among the enhancements to the new version: it will be easier to make notes directly on 3-D diagrams; time tags will record the exact time of loss; a search and replace engine will make repeat changes easier; and administrators will have new abilities to view documents, among other features. Mobile claims 2.8 is also certified with Microsoft Windows Vista Business and Vista Ultimate to deliver key platform compatibility.

www.farmersmutualofne.com

www.symbilitysolutions.com