Four considerations for claims transformationPosted on June 21, 2012 by Michael Costonis
I recently wrote an article for PropertyCasualty360 explaining why insurers need to look at their claims function with new eyes. When it comes to updating the claims playbook, there are four key issues that insurers should consider.
Data and analytics
Insurers have long been aware of the value of data and analytics to the claims function, but today they must consider how new data sources can help them improve the accuracy and efficiency of claims operations. For example, social media and location-based platforms create opportunities for insurers to offer more timely, relevant products.
Ongoing Accenture research on claims efficiency shows that claims professionals spend nearly half their day in activities that don’t affect the outcome of the claim. The financial impact is tremendous. In the US property and casualty industry alone, an improvement of 2 percent could generate $11 billion.
The talent challenge
Claims was one of the early targets of cost-cutting measures, and today, there are fewer claims professionals than in the past. The remaining claims workforce must be customer-oriented, collaborative and innovative—and, must focus on activities where they can provide value-added services and drive outcomes. Notably, they will operate in a highly distributed fashion, requiring collaboration between claims professionals, customers, vendors and suppliers.
Technology as a differentiator
Successful claims transformation depends upon an insurer having appropriate technology capabilities. Insurers today need to be agile, and so does their claims architecture. Because no one can predict the future, technology should have the ability to integrate with other systems, and be configurable. The claims architecture needs to be agile and future-proof, and enable insurers to capture and respond to data in real time to improve customer interactions.
To learn more, read Update the Claims Playbook for Optimal Outcomes in PropertyCasualty360.