Four considerations for claims transformation

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.

Claims efficiency

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.

Michael Costonis

About Michael Costonis

Michael Costonis is executive director of Accenture’s Insurance practice for North America. He is responsible for setting the overall vision and strategy for the practice, as well as pursuing new client relationships. Costonis has twenty years experience developing, managing and deploying large scale technology systems, business processes, and strategies for some of the world’s leading insurers, including property & casualty, life, and multi-line insurance companies. In his career with Accenture, he has worked with more than 50 leading insurance clients in 14 countries around the world. In addition to his role as North America industry executive director, Costonis is the lead for Accenture’s global claims services. In that role, he oversees claims strategies, assets, capabilities, and sales development. He also has led Accenture’s Insurance Solutions practice in North America, where he was responsible for driving growth for Accenture’s asset-based business in Insurance, including claims, underwriting, and policy administration. Costonis has authored several articles in leading insurance trade publications, and has been quoted in The New York Times, Bloomberg News, Reuters News, Best’s Review, Insurance & Technology, InformationWeek, National Underwriter, Technology Decisions, and the Philadelphia Inquirer. He has spoken at several leading industry conferences in the U.S. and internationally. Costonis received a bachelor’s degree in political science from Swarthmore College (Swarthmore, PA). He is based in Philadelphia.

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