Crawford & CompanyA global provider of claim services,
business process outsourcing, and consulting services
Disruptions in Claims HandlingMay 14, 2014
Today’s Presenters
Jeffrey T. BowmanCrawford President and Chief Executive Officer
Kevin B. FrawleyExecutive Vice President and Chief Executive Officer
Property & Casualty - Americas
Brian S. FlynnGlobal CIO and Executive Vice President
FORWARD-LOOKING STATEMENTS
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• Forward-Looking Statements
This presentation contains forward-looking statements, including statements about the future financial condition,
results of operations and earnings outlook of Crawford & Company. Statements, both qualitative and
quantitative, that are not statements of historical fact may be “forward-looking statements” as defined in the
Private Securities Litigation Reform Act of 1995 and other securities laws. Forward-looking statements involve a
number of risks and uncertainties that could cause actual results to differ materially from historical experience or
Crawford & Company’s present expectations. Accordingly, no one should place undue reliance on forward-
looking statements, which speak only as of the date on which they are made. Crawford & Company does not
undertake to update forward-looking statements to reflect the impact of circumstances or events that may arise
or not arise after the date the forward-looking statements are made. Results for any interim period presented
herein are not necessarily indicative of results to be expected for the full year or for any other future period. For
further information regarding Crawford & Company, and the risks and uncertainties involved in forward-looking
statements, please read Crawford & Company’s reports filed with the United States Securities and Exchange
Commission and available at www.sec.gov or in the Investor Relations section of Crawford & Company’s
website at www.crawfordandcompany.com.
• Class A and B Shares
The Company’s two classes of stock are substantially identical, except with respect to voting rights and the
Company's ability to pay greater cash dividends on the non-voting Class A Common Stock than on the voting
Class B Common Stock, subject to certain limitations. In addition, with respect to mergers or similar
transactions, holders of Class A Common Stock must receive the same type and amount of consideration as
holders of Class B Common Stock, unless different consideration is approved by the holders of 75% of the
Class A Common Stock, voting as a class.
Corporate Overview
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Crawford & Company at a Glanceat market close May 2, 2014
Exchange/Tickers: NYSE: CRDA and CRDB
Trailing 52 week High/Low: CRDA: $4.82-$9.83
CRDB: $5.62-12.12
Market Capitalization: $560.1 million
Quarterly Dividend: CRDA: $0.05/quarter
CRDB: $0.04/quarter
Analyst Coverage: Greg Peters, Raymond James
Mark Hughes, Suntrust
Adam Klauber, William Blair
55 Source: Bloomberg
$1.2 Billion in Revenues 700 Locations70+ Countries 8,500 Employees
Our Global Strength
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Crawford Provides More Than Claims Services
P&C outsourced claims services provided about $579 million, or 50%, of total Crawford revenue
• Claims services is a mature business in most geographies
• Revenues are driven by claims volume, which is affected by regional economies, economic growth
• Severe weather and natural disasters can create volatility in claims volume
• Global Technical Services is the leader in mega-claims
Another $584 million, or 50%, was derived from higher-value added business services
• Business Process Outsourcing (BPO)
• Third Party Administration
• Managed Repair Services
• Legal Settlement Administration
• Consulting
• Medical Management
• Analytics
• Forensic Accounting
Approximate 2013 Revenue Mix
Consulting BPO Claims Services
$579
$431
$153
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What Is Disruption? dis·rup·tion (noun): to cause (something) to be unable to continue in the normal way; disturbance or problems that interrupt an event, activity, or process.
Our industry is undergoing significant technology-led disruption and we are delivering solutions to remain relevant through that disruption.
Examples of Major Disruptors in the Claims Space
• Managed Repair Networks
• Analytics
• Mobile Applications
• Business Process Management (BPM)
• Social Media
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Disruptive Technology in the
Claims Management Space
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Why Do We Care about Claims?
Factors 2013 Rank 2011 Rank 2009 Rank 2007 Rank
Claims service & settlement 1 3 3 4
Financial stability / rating 2 1 1 1
Value for money / price 3 2 2 2
Industry experience 4 4 5 6
Capacity 5 7 4 Not Ranked
Long-term relationship 6 6 6 Not Ranked
Flexibility / innovation / creativity 7 8 7 3
Ability to deliver a global program 8 9 8 8
Speed and quality of documentation 9 10 10 5
Risk control and engineering 10 Not Ranked Not Ranked Not Ranked
How important are the following to you in your choice of insurers?
(Rank 1-10; with 1 =highest priority)
A recent industrysurvey asked:
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Source: AON
Claims Management High Priority for Insurance Carriers
• Claims handling is the number one issue for buyers of insurance
• Most carriers understand the need to balance a great customer experience while reducing loss adjustment costs – BUT few have perfected it.
Claims management can make or break the customer relationship.
Potential to
delight
Critical for
promoter
creation
Critical for detractor
avoidance
High
Low
Low High
Source: Bain & Company
Policy
issue
Advice
and
quotation
Claims
management
Policy
adjustments
Policy
renewal
Information
request and
first contacts
Potential to anger
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Social Media Managed RepairNetworks
Analytics
MobileApplications
BusinessProcess
Management
Claims Processing Disruptive Forces
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Social Media Managed RepairNetworks
Analytics
MobileApplications
BusinessProcess
Management
Managed Repair Networks
Source: KPMG Analysis, SNL Financial, and Industry Expert Interviews
Shift to Managed Repair Networks
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Direct-to-repair through Managed Networks
‘11= 2.07m
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
06 07 08 09 10 11 12 13 14F
P&
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mill
ions)
“Addressable” carrier P&C volume of claims (US)
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
06 07 08 09 10 11 12 13 14FP
&C
Cla
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ions)
P&
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ions)
Carriers are driving the growth of the “addressable” market for independently managed repair networks to increase customer satisfaction and drive cost out of the claims process
“The concept of “managed networks” are gaining traction with carriers, preferred and guaranteed contractor networks are where the industry is heading”
-Former Chief Claims Officer
Crawford Contractor Connection℠
Contractor Connection is a technology-enabled, business process outsourcing (BPO) platform and best-in-class industry leader of contractor managed repair networks for residential and commercial losses.
• North American network of nearly 5,000 general and specialty contractors
• Fully credentialed contractor network ensures customers’ protection and security
• Recognized by J.D. Power as #1 emergency service provider in recent study
• Additionally, 4 of the top 5 carriers rated by J.D. Power for customer satisfaction partner with Contractor Connection
• Over 250,000 assignments per year and growing rapidly
• Approximately $1.5 billion in estimates
• 200+ staff dedicated to providing exceptional customer service
• Delivers increased policyholder satisfaction
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Well-Defined Managed Repair Process
Managed Repair Five-Point Quality Assurance
Performance Management
• Electronic Estimate Review
• Technical Scope and Quantity Audit per
Industry Guidelines
• Independent Reinspection
• Customer Satisfaction Surveys
• Performance Objective Monitoring
System (POMS)
Performance Metrics Reporting
• Client Program Results
• Net Promoter Scoring
• Industry Benchmark Comparison
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Social Media Managed RepairNetworks
Analytics
MobileApplications
BusinessProcess
Management
Business Process Management
“The whole is more than the sum of its parts.”- Aristotle
“Crawford BPM” + Analytics + Mobile
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+
Predictive Analytics
Business Process Management
Process Automation
+
Mobile Technology
Task Automation based on Predictive AnalyticsANYWHERE / ANYTIME
Crawford Business Process Management (BPM) Program
Minutes to seconds
Days to minutes81% improvement in field processes90% streamline in call center operations41% enhancement to Broadspire processes97% gain in certain back office efficiencies74% reduction in process time47% boost in productivity69% faster cycle time
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Automated Assignment & Scheduling
Assignment rules based on:• Adjuster capacity• Specialty• Certification• Location• Client SLA
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Social Media Managed RepairNetworks
Analytics
MobileApplications
BusinessProcess
Management
Analytics
Uses of Predictive Modeling
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Emerging Opportunity
Predictive modeling applications in claims drives upstream benefits for underwriting, pricing, and rating in addition to enhancing policyholder satisfaction.
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Crawford Command Center
Tracking Inventory
Rapid Deployment
Predictive Analytics
Custom Client Reporting
Command Center Analytics Superstorm Sandy Dashboard
GTS Strategic Loss Management (SLM)
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• Web based, secure, collaborative environment
• BPM-based processes, customizable workflow and business rules
Command Center Predictive Analytics
Adjuster Capacity Analytics
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29
Social Media Managed RepairNetworks
Analytics
MobileApplications
BusinessProcess
ManagementMobile Applications
Crawford CAT Connect
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• Virtual workforce of CAT adjusters
• Social media enabled• Mobile• Skills / credentials-based• Location-aware• Award-winning
Worldwide GTS Adjuster Search
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Site Assessment
• Time-in-process reduced from days to minutes
• Voice-to-text dictation replaces back office process
• Instant video & photos of claim site
• Voice notes
• Global deployment
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Social Media Managed RepairNetworks
Analytics
MobileApplications
BusinessProcess
Management
Social Media
Crisis Mapping – Social Media
• Satellite imagery
• Drill down to street view
• GPS coordinates
• Facebook – Twitter – LinkedIn Instagram – YouTube postings
• Impact analysis
Reckless Social Media Mistakes Uncover Workers Compensation Fraud
Warehouse worker claiming back injury prevented him from working posted that he bowled a perfect game on his Facebook page.
Judo instructor filed for total and permanent injury, and later posted dates he was available for class instruction.
Out with the old…
In with the new…
Crowdsourcing15 seconds of theory
• Social media to brainstorm / solve complex issues
• Collective intelligence - a million heads are better than one
• Crowd wisdom - aggregating the individual solutions of many is often better than collaboration for problem solving
• New media technology - helps cast a wide net to harness this talent
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What if…
Solutions to our disruption problems were crowdsourced?
Crawford & CompanyA global provider of claim services,
business process outsourcing, and consulting services
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Recognized for Award Winning Technology & Service
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Six Consecutive Years!
• Grow business and increase revenues through broader market coverage, investment in future business platforms, and launch of new products
• Create a global GTS powerhouse by adding world-class adjusters and further expanding our industry-leading breadth of services
• Develop significant cost advantages by further increasing our operating efficiencies across the globe
• Enhance our data management and analytics capabilities by leveraging the Risk Sciences Group and developing our data analytics consulting business
• Remain a great place to work by continuing to attract, engage and retain the best talent and by improving their productivity with innovative technology solutions
• Further expand our environmental sustainability initiatives through eco-friendly purchasing policies and solutions
2014 - 2016 Strategic Initiatives
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Global Footprint
World’s Largest Independent Provider of Claims Management Solutions
Global BPO Platform
Global Catastrophe Response
Innovative Technology Platforms
Analytics
RiskTech
Risk Sciences Group/Dmitri
Global Claims Management System (CMS)
Command Center
Specialized Resources
Legal Settlement Administration (GCG)
Global Technical Services (GTS)
Medical Cost Containment
Contractor Connection
Crawford Specialty Markets
Gaining Market Share
North American Vertical
Global Consolidation of TPA Vendors
Emerging Asia Pacific & Latin American Markets
Crawford is Positioned for Shareholder Returns
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