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Drones are helping insurance companies process auto and homeowner claims faster, according to a story in the Wall Street Journal. By using automation and drones equipped with photo-taking apps, claims that usually take 10 to 15 days to process with in-person visits can be handled in two or three days, according to some insurers. This reduces claims-handling costs and improves customer satisfaction.
Insurers also claim that automation reduces the size of payouts. “The faster you can settle a claim, typically the less you can settle it for, so there is a direct financial incentive,” said Matthew Josefowicz, chief executive of insurance-technology consulting firm Novarica to the Wall Street Journal.
“Soon, the entire claims process—from notifying insurance companies when damage occurs to estimating repair costs — could be done with no human input,” according to Bill Bower, vice president of claims for LexisNexis Risk Solutions.
In recent years, the number of days it takes for an auto insurance claim to be paid has decreased slightly from 13 days in 2010 to 12 days in 2016, according to customer satisfaction surveys by JD Power. But the time taken to pay property claims has increased from 13 to 17 days over the same period. Still, customer satisfaction with both auto and property claims has improved a few percentage points since 2010.
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