Business News: LexisNexis, Mercury, Clearcover and Snapsheet, Tower and myMatrixx

A study by analytics provider LexisNexis Risk Solutions found that in-line water shutoff systems correlate with a decrease in water claims by 96 percent, confirming the value of smart home technology to insurers.

The study also found that those without water shutoff systems reported a 10 percent increase in water claims events over the same time period.

LexisNexis said the study measured changes in the number and severity of water-related home insurance claims with the Flo by Moen Smart Water Shutoff device against an uninstalled control group of homes in the same geolocation one year before and after installation.

The national study found that prior to installation, 2,306 Flo homes had an average claims severity far greater than the control group two years prior to installation of the device, signaling a possible tipping point driving organic adoption of these devices, LexisNexis said. The study also saw a corresponding 72 percent decrease in claims severity one year after installation of the device, indicating that smart water shutoff systems are working.

“Intuitively, it’s easy to imagine that a device like this would help prevent water leaks and significantly reduce the cost of insurance claims due to water damage, but we had to see it to believe it, and that’s what we’ve begun to do with this study,” said Dan Davis, director of Internet of Things and Emerging Markets, Insurance, for LexisNexis.

Mercury Insurance says it is offering homeowners who need to file homeowner’s insurance claims a “close-to-contactless solution” through an app that uses video to capture and assess property damage.

Christopher O’Rourke, vice president of property claims for the Los Angeles-based carrier, said to ensure the safety of insured and staff, the carrier will use use technology that “allows policyholders to take claims handlers on a virtual tour of their homes in real-time to assess the damage and create an estimate.”

“Should this approach be insufficient, we limit the number of people visiting the home through the use of virtual inspection technology by our network of general contractors,” he said in a press release.

If a house needs repairs due to a covered homeowners insurance loss, the damage will require evaluation to determine the repair costs and professionals will have to restore the property. Mercury said it uses contractors who comply with Centers for Disease Control and Prevention.

Snapsheet, a Chicago-based virtual claims management provider, is integrating its software with the direct auto insurance platform used by Clearcover.

Snapsheet’s service-as-software claims management platform fully automates the claim process, allowing consumers to file electronic first notice of loss forms and sending payments directly into customers’ bank accounts, the company said in a press release. The software also automatically assigns tasks and dispatches work.

“We’re redesigning the model of running an insurance company, and advanced technology is at the core of our business,” stated Kyle Nakatsuji, founder and CEO of Clearcover.

Clearcover, a managing general agent that is also based in Chicago, sells insurance direct to the consumer online and through a smartphone app.

Snapsheet said it has completed nearly $6 billion in appraisals for more than 100 clients, including many of the largest insurance carriers in North America and third-party administrators.

Tower MSA Partners and myMatrixx will present a free webinar for workers’ compensation professionals on settling legacy claims at 2 p.m. (EDT) May 20.

Tower Chief Compliance Officer Dan Anders and myMatrixx Chief Clinical Officer Phil Walls will speak.

“As claims age, the percentage of spend for prescription drugs increases as does the likelihood that the injured worker will become a Medicare beneficiary,” Anders said in a press release. “Often, high drug costs pose insurmountable barriers to settlement.”

• Anders and Walls will break down these barriers and recommend ways to overcome them during the hour-long webinar. Attendees will learn:
• How to define and quantify legacy claims using analytics;
• Methods to identify these claims’ cost drivers;
• Effective ways to work with PBM and MSA providers to reduce pharmacy costs and close claims;
• Best practices in pharmacy management to prevent legacy claims.

To register, click here.