Paying claims typically represents 2/3 or more of every premium dollar. While it is natural that policyholders should expect to receive payment when they face adversity, the process is not simple or automatic. In fact, in 2019, homeowners’ insurers averaged 8.8% in loss adjustment expenses (III).
The traditional incumbent insurer experience of sending out an adjuster and manually estimating a loss is starkly different than the Lemonade way of initiating a chat, video conversion, and automatically adjudicating a loss. However, the path to Lemonade like experience is not something that can be done instantly. Carriers must upgrade their core and build claims automation to be able to change the custom claims experience.
Hear from insurance influencers to keep up with the InsurTechs through claims automation and core system evolution.