RiskStream’s RAPID X Solution
An Overview
Industry Problem
Personal auto insurance carriers lack an automated digital process for exchanging first notice of loss (FNOL) data with other carriers. Existing processes are overly manual and inefficient, resulting in higher operational costs, longer claim resolution times, less accurate data, and lower customer satisfaction.
Company Background
The Institutes RiskStream Collaborative is the insurance industry’s largest blockchain consortium, with a membership of more than 30 leading carriers, brokers, and reinsurers. RiskStream serves the industry as a neutral, collaborative, and non-profit resource, focused on solving multiparty business process challenges.
Our solutions and applications typically involve cross-party data sharing and verification from our member’s integrated systems of record, using our private permissioned network. Carriers, brokers, and reinsurers lead all areas of the consortium’s activity and governance through boards, committees, and application-specific working groups.
RiskStream’s RAPID X Solution
The RiskStream Collaborative’s RAPID X solution eliminates the need for manual transfer of claims data between personal auto carriers. Using RAPID X, participating carriers can send FNOL data from their claims system to another carrier’s claim system and can receive information from other carriers in the same fashion. This is done securely, seamlessly, in real time and in compliance with GDPR, CCPA, etc.
RAPID X leverages a private permissioned blockchain network where FNOL and loss data is shared from a system of record, matched with data from the other carriers participating in the loss event, and updated from the other carrier’s systems of record. The application also tracks simple liability, enabling straight-through processing.
Currently, RiskStream is leading discussions about the adoption of this SaaS solution with carriers who comprise more than 50% market share of the US based private passenger auto insurance market.
Efficient Run Costs for RAPID X
Because of the unique non-profit nature of RiskStream, its industry-centric positioning and the efficiency of its SaaS platform (Canopy), run costs for the use of RAPID X are exceptionally low. To encourage early adoption, The Institutes are providing subsidies. Actual costs are determined by the market share position held by the participating carrier and range from $0 to $41,000 in years 1 and 2. All run costs are approved by the Advisory Board and longer-term are expected to increase in a reasonable manner as usage and adoption increase.
RAPID X Benefits (Savings) Could Amount to Over $150 Million Annually for Industry Participants
RAPID X delivers numerous operational, financial, and strategic advantages to member companies, including:
Claims Intake Savings – As the first carrier exchanges data across the network, the second carrier will receive this loss data in their system, which will reduce the time spent gathering, confirming, and entering information. Our analysis indicates this could save up to half a million hours of work per year, resulting in up to $10 million dollars in annual industrywide savings.
Data Sharing Savings – Generally, there is a significant back and forth between carriers, typically done via phone or email, to fill in data. RAPID X automates this data sharing process, reducing the time spent sharing information. Our analysis shows that up to one million hours of work per year could be saved, resulting in approximately $20 million dollars in annual industrywide savings.
Vendor Pre-fill Savings – Direct data exchange between participating carriers eliminates the need for data intermediaries, resulting in savings of $3 -$12/claim. Our analysis demonstrates that this could lead to $23 million dollars in annual industrywide savings.
Simple Liability Determination Savings - Automated capture of simple liability agreement early in the process reduces handling and cycle time, leading to less manual effort. Simple liability determination is estimated to occur in about one third of claims, which results in estimated annual industrywide savings of $10 million dollars.
Improved Customer Satisfaction through Faster Claims Resolution - Faster exchange of information reduces claim cycle time, which is correlated with an improved customers satisfaction. Estimates indicate that over $100 million dollars could be saved annually industrywide through improved customer satisfaction associated with use of the app.
Positioning Companies for the Future:
Additionally, through its many technological features, and because it is a solution designed by the industry for the industry, RAPID X positions member companies for the future in ways that stand-alone and self-built solution cannot.
Ease of implementation and integration with any claims system – The system uses well-documented APIs, providing easy connection to all claims systems. Integration adapters with Guidewire, DXC, and other core systems, are available or being developed.
Industry-Centric design and development – Because RiskStream employs a very defined labs process for development and delivery, features within the application always represent what the industry wants.
A collaborative SaaS application with easy set up and low support requirements – RiskStream provides support and maintenance, reducing the need for extensive internal IT resources, while the member-agreed to Business Network Operations agreement ensures cooperative participation on the network.
Future network growth and opportunity – Once it is established for RAPID X, the network and data exchange enable participants the ability to leverage the technology to achieve other mission-critical improvements, for example with salvage title, or fraud review.