Genpact has had a traditional presence in offshore-based adjudication support services for the property & casualty sector but is now, supported by its acquisition of BrightClaim, aiming to reposition as a disruptive provider of claims managed services.

The acquisition of BrightClaim provides Genpact with deep onshore domain and loss adjusting capability, which Genpact is looking to combine with its offshore services and a new digital operating model to enhance its value proposition to P&C firms.

In particular, Genpact is looking to extend its value proposition beyond the traditional BPO proposition of expense control to impact both loss control and customer satisfaction. Its new value proposition for low-medium complexity claims across property and auto encompasses:

• Claims operations cost reduction of up to 40%
• Improving customer experience, CSAT, and NPS by 10%-20%
• Reducing the cost of losses by 3%-5%.

Introducing a New Digital Process Model for Claims

While most carriers have introduced apps and self-service at the front-end, and use of photos has become commonplace in auto claims, Genpact perceives that there has so far been a much lower level of innovation in property claims processes and is aiming to take advantage of this lack of delivery maturity. Genpact has accordingly established a new digital business model that encompasses end-to-end claims services across both property & auto claims. It includes:

• FNOL & claim set-up: using digital channels, IoT and smart home sensors, Intelligent Automation for claim set-up & verification, analytics & Big Data for claims triaging, fraud and subro identification
• Loss estimating: use of photos and drones and computer vision to enhance turnaround time and improve customer service, and integration of estimating tools with claims systems
• Adjudication: automation of fraud, subro and litigation propensity using analytics & Big Data; and using Intelligent Automation in support of claims verification, updating, and communication
• Special Investigation Unit & Litigation Management: supported by Big Data and analytics
• Payment, recovery & claim closure.

BrightClaim: Complementing Genpact’s Offshore Services with Onshore Desk and Field Assessors

Earlier this month Genpact acquired BrightClaim, a P&C claims administrator company based out of Atlanta founded by ex-Crawford executives. BrightClaim and its associated company National Vendor have full P&C policy lifecycle claims and administration capabilities for low and medium complexity claims, including an extensive network of contractors. BrightClaim segments its business into:

• Property field services
• Catastrophe
• Contents services (through BrightClaim’s 2016 acquisition of National Vendor)
• Liability/auto
• Warranty (now viewed as non-strategic)
• BrightServ (managed repair program through its network of contractors, includes a partnership with Home Depot).

BrightClaim has around 200 employees in Atlanta and Austin conducting desk reviews and estimation and managing BrightClaim’s network of ~1,000 field property adjustors. These field loss adjustors could also be used as a desk appraisal resource as Genpact increasingly replaces physical onsite reviews with photos from mobiles sent by the customer and drone images, the latter being particularly applicable for property roofing assessments. Genpact intends to incorporate drone services into its delivery and has several drone pilots underway with carriers. The fact that BrightClaim’s field loss adjustors are contractors rather than employees made the acquisition particularly attractive as it facilitates the drives towards an increasingly digitized service delivery model.

BrightClaim has its own loss adjusting systems which connect to core insurance systems such as Guidewire and legacy P&C platforms and to the principal estimating platforms used in the U.S. Genpact will create a common platform around these using PNMSoft for workflow and incorporating automation and cognitive technologies to achieve its new digital business process model around claims.

Extending Targeting to Mid-Tier P&C Carriers

BrightClaim has around 100 P&C carrier clients, including half of the top 20 U.S. carriers, and there is some overlap with Genpact’s existing U.S. P&C client base. Its focus is on low to medium complexity claims which can be more readily digitalized, with a 70/30 mix between personal and commercial. In the property space, Genpact will target personal and light commercial claims, while all auto third-party liability activity is in support of personal claims.

Genpact’s priority is the top-tier P&C firms where it is looking to sell three broad groups of services while demonstrating synergies and digital integration between these:

• FNOL & claims triage, likely to be a growing area of activity with Genpact promoting how analytics can drive value downstream in the claims value chain
• Loss adjusting and claims adjudication, using blended onshore/offshore delivery
• Subrogation, fraud, and recovery services.

In addition to targeting top-tier carriers for transformation of parts of the value chain, the BrightClaim acquisition also creates an opportunity for Genpact to target mid-tier U.S. P&C carriers with end-to-end claims services supporting them in the digital transformation of their entire value chain. Several conversations of this type are already underway.

Genpact has been on a bit of an acquisition spree recently, and this is not likely to pause. BrightClaim is a U.S. operation, and Genpact is looking for a similar opportunity around claims management services in the U.K., Germany or the Netherlands – expect to see another regional claims-related acquisition.