360Globalnet – the no-code digital claims company – today warns that UK motor insurers will need to combat potential unforeseen consequences of the Whiplash Reforms and the data ‘quicksand’ within the Official Injury Claim (OIC) portal due to be launched in May 2021.
The intention of the portal was to reduce whiplash claims costs and fraud but over 60% of the fields in the new form that will be offered to people to register their claims contain free text entry. 360Globalnet carried out analysis that indicates that c.75% of claims previously registered in the MOJ Claims Portal on claim registration will now fall within OIC Portal jurisdiction. This will amount to millions of fields per year submitted that will be in unstructured data formats leaving insurers being swallowed into data quicksand.
Without same day processing of this unstructured data into structured analytical views of granular claimant information, 360Globalnet believe insurers find themselves at the mercy of claimant representatives looking to repeat the LASPO effect of 2010 using damages based agreements to ‘guide’ customers away from the self-serve ideal of the portal.
It is too early to know what proportion of claimants will be supported by representatives, but it is possible that it will be a significant majority.
360Globalnet will provide Insurers with access to 100% of their data for interrogation, fraud detection, profiling and analysis – including free text quicksand – to marry the claims profiling, fraud prevention and cost control that is likely to be necessary.
Paul Stanley, CEO 360Globalnet, says: “The OIC portal started with great intentions but the devil is in the detail. We can now see significant new challenges hitting insurers in a matter of months that could be exploited more quickly than they can react.
He added: “Our aim is to work with insurers to prevent data issues becoming the hole into which claims costs are needlessly poured. The ability to access and analyse unstructured data in real time will be critical.”
360Retrieve is an advanced unstructured data analytics platform where “locked up” text-based information can be transformed into analysable data for enhanced anti-fraud results, injury and legal claims profiling, advanced management information and GDPR compliance. It is used by insurers to maintain full analysis of claims exposure even when key data is presented in unstructured and semi structured formats.
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