An article for Claims Management by Eric Gilkey recently looked at some of the insurance industry "revelations" that have resulted from this year's storm conditions. One of the points he discussed was the relationship between hailstorms and determining an appropriate date of loss. Unlike other kinds of natural disasters, hailstorms can be hard to track to a specific date of damage.
The source quotes Patrick Pollard of Verisk Climate, who described the problems that can stem from misclassifying claims and being unable to treat them correctly. He estimates that as many as 30 percent of hail-related claims are assigned an incorrect date, and that the effects could be magnified by the number of claims generated in each storm. The source adds that hundreds of thousands of claims may be misclassified this year alone, leading insurers to spend money unnecessariy.
Ultimately, Pollard said that claims with the wrong dates can be "assigned to the appropriate catastrophe reinsurance treaty in place, which means the insurer might not get the recovery it deserves."
"Therefore, it's imperative that the data quality is there so that insurers are assured that each and every claim associated with that catastrophe has the right date, since some of these treaties are very time sensitive," he added.
The Insurance Information Institute (III) reports that Texas experienced the highest amount of average claims loss at more than $859 million. Oregon had the highest amount of average claims severity at more than $9,000. Texas alone has been the source of more than 20 percent of claims for more than a decade, the III also said.
Ensuring accuracy in claims processing involves accounting for several factors, including the original date of the storm. Claims outsourcing to BrightClaim's professional staff allows for each claim to be verified and connected back to the correct storm date.