Original text here from Patrice Bernard (LinkedIn)
Qorus's award for innovation to its implementation by Société Générale Assurances provides us with an opportunity to delve into the Weather Claim Control solution, which enables managers to almost instantly verify the legitimacy of weather-related claim declarations.
While parametric insurance is gaining popularity, unfortunately, it's not suitable for all policies. Despite its particular suitability for weather-related risks, it becomes more challenging to implement when the damages do not align with a fixed, predetermined scale, such as in the case of real estate properties. However, this limitation doesn't prevent the use of similar technologies to optimize the handling of these complex cases.
Thus, the strategy of the startup (French, despite its name) Weather Claim Control is to offer insurers the integration into their claim handling process—through either an independent web access or, even better, for an enhanced user experience, via an API—of its weather phenomenon analysis models. This allows for the rapid qualification of claims (requiring only three pieces of information and a click), based on formal and objective criteria.
For utmost accuracy, crucial to prevent any disputes, the system's engine relies on multiple reliable sources, supplemented by algorithms that can detect hyper-local events like tornadoes or gusts of wind that might be missed by national station networks. Customized to the contractual conditions of the adopting company, it provides either a confirmation of eligibility for compensation or an independent certificate justifying denial.
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The immediate response in the initial step of its process, to accept (or not) a claim, is clearly the primary benefit for the insured. One can imagine it being followed by an automatic damage assessment via imaging technology, accompanied by an immediate compensation offer and its disbursement. The speed advantage is also significant for the insurer, saving on investigation time (and its potential uncertainties).
However, when the startup talks about enhancing trust by providing irrefutable evidence in case of rejection, it might be veering into overly optimistic territory. With one of its sales arguments being the observation that nearly a third of "storm" coverage claims are incorrectly accepted, there's a risk that cost-cutting objectives might prevail and lead to customer dissatisfaction, despite the official justifications. This will require an increased use of diplomacy and education to smooth things over.
Naturally, Weather Claim Control's positioning is welcome in the current context of climate change and its significant impacts on insurance. Any means to increase the reliability and automation of management acts are valuable in the face of escalating risks, and this offers an excellent complement to parametric approaches.
