For the largest national insurance companies, automation is a way of life. They are able to dedicate the required resources and manpower to implement a fully automated claims system, and in turn, enjoy its benefits.

But what about the hundreds of insurance companies that aren’t national in scope? Should they learn to operate without increased DRP repair percentage, increased employee productivity and – what really matters – happier customers? AAA Mid-Atlantic didn’t think so, and made claims automation a priority.

“It’s something all the large carriers were already doing,” said Lou Neidich, director of business process automation at AAA Mid-Atlantic. “We aren’t a national company, but moving to an automated system was something we couldn’t put off any longer.”

Neidich and AAA wanted to focus on creating an automated system that would enable them to send loss reports to their DRP partners and independent appraisers in a timely fashion.

“Our current process to submit a request for appraisal assignments required several redundant steps and multiple key entries,” said Neidich. The assignment could not be completed until after the initial First Notice of Loss Report was taken. These tasks were identified as time consuming with possible errors occurring and created delays. The implemented design reduced the allocated time by incorporating the appraisal assignment process within the initial First Notice of Loss. Once completed, the assignment interface electronically sends the assignment to CCC Information Services.

Creating a loss report is the first step in the repair cycle and quite possibly the most important from a customer’s point of view. Customers expect to have their damaged vehicles inspected and an estimate created soon after reporting the crash. This can’t happen until a loss report is sent to an appraiser. And, an inefficient process for creating and transmitting these reports can cost insurers – both in customer satisfaction and capital.

Neidich and his team called CCC, a company AAA had been using for other technology projects since 1992. Neidich, along with CCC Technical Product Consultant Bob Wagner, conducted an audit of the process, interviewing dispatchers, operators and other employees who participate in the loss report process to fully understand its short falls and how it can be improved.

“By interviewing various members of the AAA Mid-Atlantic team, CCC was able to understand where its challenges were and what they were looking for in a solution,” said Wagner. “We took this valuable information and built an assignment interface to CCC Autoverse. This solution streamlined the assignment process, enabling AAA to use the claim folder to view documents related to the estimate.”

When the audit was completed, the team created a workflow chart and began to review their findings. They concluded the best way to make the process better was to create a direct channel of communication between employees who create a loss report and the appraisers who write the estimates.

“Our people, along with several developers from CCC, sat down and began writing code. They (CCC) worked on the interface and our team started on our CICS database,” said Neidich. “The end result was a new system for transactions and communications with CCC.”

The loss report process has been simplified. A loss report is taken over the phone from the customer. The adjuster taking the report then sends it to CCC via CCC Autoverse, where it is then passed directly to a DRP partner, or to a AAA dispatcher who passes it directly to an appraiser.

The new system not only accelerates the loss report process, but also gives AAA the ability to view photographs online. Instead of waiting for the appraiser to mail photos or bring them in to the office, adjusters are able to log onto the Internet and view them.

“I timed how long it takes to submit a loss report to CCC and then direct it to the appropriate appraiser source,” said Neidich. “It now takes four seconds.”

Saving time isn’t the only benefit AAA has experienced since switching to an automated system. Electronic communication between staff appraisers and strategic partners also enhances customer service.

Neidich continued, “The project was certainly a technical success, but CCC’s support, lead by Client Consultant Andrea Serano, was what really helped to bridge the gap in terms of getting a system in place that would allow us to meet our objectives as well as bring additional value to our customers.”

AAA Mid-Atlantic provides a wide range of personal insurance, travel, financial and automotive services through 53 retail branches and regional operations centers.

Jeanene O’Brien is director of marketing services at CCC Information Service Inc.