With 64% of homes undervalued by 27%, insurers are losing premium dollars and policyholders are not fully protected. That's according to Jonathan Kost, claims director at Marshall & Swift/Boeckh (MS/B), citing the results of the New Berlin, Wis.-based company's July 2003 ITV Quality Index.Claims adjusters can help generate revenue, which can drop to the bottom line, by participating in an insurance-to-value (ITV) initiative, he says. "If you have your claims adjusters-while they're out at a loss location doing a physical inspection-actually perform ITV calculations and pass that information back to the underwriting department, the carrier can garner a more accurate premium and the consumer is fully insured."

In addition, carriers can use analytics to capture data as a claim file is being adjusted and effectively model and propagate best estimating practices throughout the field, says Kost. This ensures adjusters produce consistent, accurate estimates, which reduces indemnity as well as costly supplements filed at the end of the process.

"For insurers that have implemented best practices throughout their adjustment force, we've seen about a four-point improvement in their combined ratio," he says.

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