Startup Firm Quickly Builds National Network of Contractors with Vendor Management Software

Rapidly Rolling Out a Nationwide Network

Seeing an opportunity, Rick Hayne decided to put his 30-plus years of property and casualty (P&C) insurance experience to work and launch a new company that would manage adjusters and construction contractors for insurers and banks.

To seize that opportunity, the newly created Nexxus Solutions Group needed technology that would allow the Orlando, Florida, firm to quickly build a network of credentialed vendors that could be managed efficiently and transparently while scaling for a growing number of states.

Nexxus chose CSC’s Vendor Solutions Suite. Running in a hosted environment with minimal investment in hardware and maintenance, the software manages the assignment of contractors to claims, tracks and measures their credentials and performance, and provides metrics to insurance and claims executives that allow them to reduce both operating expenses and service costs.

Automating the Assignment Process

The workflow goes like this: An assignment from the insurance company or bank that owns the property is put into the system and goes directly to the contractor, based on ZIP codes and specialties. The contractor – whether a roofing, plumbing, electrical or general contractor – has 15 minutes to accept it and then 30 minutes to contact the insured customer, or the outreach rolls over to the next contractor on the list.

The contractor who accepts the assignment then goes out to assess the job, recording that activity in Vendor Solutions Suite through a secure Internet connection. Then, within 24 hours, claims managers have an estimate, photos and other information needed to determine the extent of damage.

“You see it on one system that allows the adjuster and the contractor to see it all in one spot,” Hayne said. “It’s definitely enhanced our communications.”

Centralizing Workflow and Communications

The CSC software also provides automation that has greatly leveraged the staff capabilities of a company that, after launching in December 2011, built a network of 500 contractors in less than a year by growing its relationships from Florida up the East Coast and west into Texas.

The network includes national, home-office-endorsed agreements with several of the top restoration and reconstruction companies in the country, including corporate franchises and independent operations.

Contractors and claims managers are not typically technologists, so an intuitive interface gives front-line users of Vendor Solutions Suite the ability to be up and running efficiently with minimal training time. “That part was easy, the training part,” Hayne said. “It’s been a really easy transition from how we were doing things.”

“Our clients can go into the CSC system and see the photos of the damage, see the house, see the progress of the claim. So they feel comfortable throughout the process as all this is happening,” Hayne said.

“Without a system like this, we would need 10 more people,” he said.

Managing Credentials and Performance

In addition to ensuring that damage reports are addressed, repairs made and claims filed, Vendor Solutions Suite allows insurers and banks to ensure that contractors are properly credentialed, bonded and insured themselves, and to monitor the performance of those making the repairs.

Facilitating that is an audit function that tracks key performance indicators. “The system allows us to identify the best performers based on cycle times and touch points by the customer. The highest score comes up first. So we do pay for performance, and the system allows us to identify who, in fact, is performing,” Hayne said.

After 3 decades of working for major P&C companies, Hayne knew well the opportunities for a company doing what he saw as a new trend and something he was sure would offer value to the insurance company, contractor and insured property owner alike.

He also knew that new technology would be needed to make it work efficiently and that, at first, a small operation would be his best bet. “CSC was the last company I talked to,” Hayne said. “I thought they would be too big, too expensive. But they absolutely were not.”

Instead, he said, he found a partner in CSC and Vendor Solutions Suite. “The people from CSC saw value and a future in our company, and they worked with us to design a solution that was good for them and for us,” Hayne said. “We continue to brainstorm back and forth on enhancements to make the product even better. It’s been great.”