When Do You Trust Your Gut? When Do You Trust the Data?

If you haven’t already experienced that moment when you are confounded, scratching your head, asking yourself, “ Should I trust my gut or should I trust the data?” , you will! As digital transformation accelerates and customers demand more from insurance companies, this question will become more prevalent. So, let’s tackle it!

First, what is meant by "trusting your gut"? This phrase, also referred to as “trusting your instinct”, “having a hunch”, “an inner voice”, making a “professional judgment”, or “intuition” is a subconscious visceral feeling that occurs in the Limbic system, or behavioral and emotional, part of the right side of our brain. It is an instinctive genius that gives us the ability to detect patterns that might otherwise be overlooked. This internal power does have a role in decision-making.

Delving into the decision-making sciences or behavioral sciences, our gut instinct has been scientifically proven to hold value for executive level thinking, specifically for making decisions regarding corporate strategy, strategic planning, marketing, public relations, human resources and research and development. However, the use of our “gut instinct” has also been proven to have limited value in production environments, operations, management, and finance. For purposes of this discussion, it has limited value in operational claims handling.

Like by-stander “eyewitness” accounts of automobile accidents or crime scenes, eyewitnesses have been proven to be grossly unreliable compared to data points and images collected from cameras, drone data, video surveillance, dashcams and other technologies which capture actual accident or crime data.

Yet, ironically, it is often taught to new claim handlers and adjusters that they should use their “gut” to make decisions and uncover inconsistencies in the claim process. What we know about human behavior is that we have human tendencies to see patterns where none exist. This phenomenon is known as “overfitting the data”. We also know that with experience, there is a human tendency towards “overconfidence” in decision-making that results in flawed claim decisions. This can be tested using the same techniques that have been used to determine that as humans, we have only a 50/50 chance of detecting a lie that is told to us by another person.

So, what is the best approach? Do we deny and ignore our gut instinct in the claims processing environment? Or what is the role of data in our decision-making? What we have learned at Care Bridge International and through research and development, is that the best approach is to acknowledge our human instinct and validate that instinct with real data points.

How can we validate our human instinct as it relates to claims? With Care Bridge’s Analytic-Powered Dashboard you can have immediate analytic capabilities at your fingertips to validate your intuition. Specifically, claim data points, those seemingly small data points can be used to solve your BIG data problems to drive better claim outcomes.

The advantages of dashboard analytic capabilities include:

1. Transparency and Accountability for Claim and Risk Management through benchmarking, monitoring, and reporting.

2. Insights to contribute to Continuous Process Improvement of the Claims Workflow

3. The ability to tie business decisions to analytic insights that offer your customers confidence in your claim’s management program.

4. Consistency in claim outcomes

5. Efficiency and greater productivity can be gained through actionable insights.

If you would like to learn more about Care Bridge’s simple Walk, Run, Sprint approach to digital transformation for Claims, that can save you 70% or more right now, Contact Us to Request a Demonstration or Consultation and Follow our LinkedIn Page

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