News Archive
Merlin implements Xactware software to deliver market leading indemnity spend control
20/05/2009
Merlin is the first Claims Management Company in the UK to offer to the insurance market the new Xactimate and XactAnalysis technology, developed by Xactware and already proven in the US where it is used by 18 of the top 25 property insurers.
Merlin’s innovative new Total Claims Management Service has shown a significant cut in indemnity spend on property related claims by improving the speed and accuracy in which repair costs are estimated and reported to the insurer. The system also enhances Merlin’s Contractor Services offering by significantly improving the validation process and improving transparency of the fulfilment process.
Xactware’s applications significantly increase the accuracy of each scope and estimate and improves communication during the settlement of a claim which means that Merlin is able to reduce claim lifecycle and indemnity spend across a wide spectrum of projects from re-instatement to complete re-builds.
Xactware enables Insurance Companies, Brokers, and Policyholders to view the same details including schedule of repairs, photographs, sketched floor plans, and project plans. It allows a plan of the building to be drawn quickly and efficiently with precise dimensions including the length, height, and width of a room and the component parts within it. It will take into account different ceiling types (sloped, peaked, etc.), window types and shapes (sash, bay, etc.), as well as the materials (e.g. plasterboard, masonry, wood, etc.) used in construction. It also allows details to be included about baths, toilets, kitchen units and decorations (e.g. tiles, wallpaper. etc) – indeed every part of a house, its fabric and its contents that may be subject to a claim.
A sketch is created that can be viewed in plan or 3D, digital photos can be attached within the sketch to pinpoint the damage in each room so that subsequent reviewers of the estimate can see both an accurate sketch and an actual image of what they are looking at in case of any doubt. Each estimate is uploaded to Merlin for review before it is sent to the insurer, and skilled claims technicians or adjusters / surveyors can authorise repairs from their desktop / laptop.
Xactware builds a repair estimate with a level of detail and information that has simply not been possible before, according to Richard Webster, Chief Executive of Merlin: “The estimate shows not just a total cost of repair, but breaks this cost down so that an insurer or broker can see, for example, how much has been allocated towards the volumes and values of paint/materials and how much for labour.
“Whereas in ‘traditional’ property claims estimating we may have allowed for around 2,000 different variables in regards to cost, this new software gives us in excess of 25,000. The level of detail is extraordinary.”
What is also impressive is how Xactware can help dramatically reduce wastage, as Richard continues: “Typically a contractor will replace items in a room damaged by a fire, flood or a leakage, when in fact they might easily be cleaned and repaired. Smaller items such as ironmongery and locks on a door might be replaced when again they could be re-used. Although the individual cost of such items may only be three or four pounds, multiplied over hundreds of thousands of claims the amount saved by the insurer could be considerable. It is also better for the environment.”
Xactware has other features worthy of note: once an estimate is completed, it interrogates the information for omissions or inconsistencies to allow the user to re-check the data. Using the example of a scope involving damage to a wallpapered wall, an estimate might include a quote for the removal and replacement of an area of plasterboard as well as the removal and replacement of the wallpaper covering the plasterboard. Obviously, wallpaper does not need to be removed from plasterboard that is being discarded. This error will be flagged and the estimator will have the opportunity to amend the scope so wallpaper is replaced but not removed. By removing common estimating errors, significant savings can be made.
In smaller projects, where perhaps only one room has been affected, the contractor or surveyor on-site is able to load the required data and produce an estimate for review with the policyholder. A process that might have taken three or four days to complete can now be concluded within hours.
Richard Webster believes that Xactware delivers real competitive advantage: “Although widely used in the US, Merlin is the first UK claims management business to adopt the product in the UK,” he says. “Given our commitment to reducing costs and cycle times in relation to claims, we believe that this is a significant step forward since property costs are a significant element in any insurers Indemnity Spend.” Our service using Xactware will also significantly improve the customers experience during the claims process by reducing the number of ‘handoffs’ on the claim and providing a detailed plan of the repair process which is communicated to all the shareholders in the claim.
Jim Loveland, Xactware’s President and CEO, says the relationship with Merlin is a major step forward for claims management services in the UK: “Merlin is a key partner with unique insight and a reputation for outstanding service. Xactware is delighted that Merlin has chosen to integrate Xactware products into its cutting-edge claims management offerings.”
For further press information, please contact:
Catherine Hurst
0151 343 1777
catherine.hurst@merlinclaims.com
