(PRWEB) January 17, 2005
The biggest irony in the insurance business is that in an industry based on trust, there is so little actual trust in the end-to-end insurance transaction. Policyholders donÂt trust that their property will be valued fairly in the event of a claim. Claims handlers suspect policyholders of fraud. Underwriters donÂt trust anyone. And all agents trust is that theyÂll be stuck in the middle when trouble happens.
There is a better way to insure personal property: establish trust between the policyholder, company, and agent before the application is ever signed and continue that trust throughout the life of the policy. While there are inventory systems in the marketplace that claim to do this today, they all share the same fundamental shortcoming. They are one-sided systems that do nothing to establish an ongoing method of communication between everyone involved in the insurance transaction. There needs to be a trust-enabling Âhub,Â a secure system that has shared access by customers, carriers, and agents.
What the industry needs is a way for property to be inventoried and values to be captured accurately at the time of policy inception and for insureds to be able to easily amend that inventory over the life of their policy.
The framework Home2Net Services has established will revolutionize the insurance transaction by creating trust throughout the process. It will bring individuals and families piece of mind and allow insurers to take advantage of technology resources they already have or can easily acquire.
Personal Asset Database:
Home2Net Services starts with an imaging and inventory system, but it differs from current systems for two main reasons. First, inventory systems in the market today put individualsÂwho, again, have little knowledge of insurance requirementsÂin control of the process and in possession of the inventory list. Also, inventory processes average over 600 images taken and up to a day to completeÂhardly convenient for policyholders.
Inventory systems lack a database that customers can easily update and that insurers can access, upload, or directly integrate into their policy administration systems. This is why that at the core of Home2Net Services is a Personal Asset Database (PAD), a web-based system with the ability to provide a data feed via XML or traditional EDI to insurersÂ policy administration systems.
Being web-based, the Personal Asset Database, PAD, also provides an easy, convenient way for policyholders to update their insured personal property via a Personal Asset Portal. Ultimately, linked accounts to the portalÂsuch as credit card and bank accountsÂcould automatically update a customerÂs PAD as soon as purchases are made.
What the PAD does is allow companies to charge the exact premium for the values insured. This is not just tiered raring based on bracketed property values; this is the potential to rate for the exact type, location, and value of property insured. Therefore, underwriting changes from evaluating variables to compiling actual dollar values.
Other, long-term benefits to the insurance industry of controlling tangible personal property through Home2Net Services are many, including:
Â Reducing fraud, padding and double-dipping
Â Reducing litigation
Â Reducing multiple policy copies, policy handlers and unnecessary stakeholders
Â Involving policyholders in the overall trust system and increasing knowledge of the insurance process
Â Eliminating the need for up to 10% of independent adjusters
Â Reducing the need for onsite loss adjustment
Â Uncovering non-property problems, such as life-safety hazards, through ICS inspections
Â Enabling real-time underwriting via integration with PAD
Stephen B. Temple
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