Last week, I introduced how P&C insurers plan to invest in new core claims systems to manage risks, meet client expectations and optimize claims outcomes. This week, I’ll talk about how insurers plan to use data analytics to improve their claims process—and I’ll refer to the Accenture North American Claims Investment Survey to show how insurers are responding to future industry challenges.
Insurers unable to compete on analytics
The 2012 survey shows 66 percent of insurers have claims management systems that are incapable of collecting and analyzing data to improve decision making. Most current systems cannot take full advantage of available information such as consumer insights or asset damage records collected by RFID devices.
Current tools and new trends in using data
Insurers reported using the following data in their claims processes:
- 80 percent of insurers use offline data from spreadsheets and databases
- 74 percent use structured data commonly found in the core claims system
- 62 percent use unstructured data such as voice, text, picture or videos
Insurers currently using social media, predictive models or location-based data are in the minority. According to Accenture research, advancing analytical capabilities is the second highest investment priority for P&C insurers to improve their core claims systems. Notably, predictive models are especially attractive to insurers planning to invest more than $25 million in their claims function.
Next week, we’ll delve into how insurers are hiring and training new claims handlers as aging professionals begin to retire.
To learn more, download the North American Claims Investment Survey (pdf; opens in a new window)
Visit this blog in upcoming weeks for interesting insights from the Accenture North American Claims Investment survey. Read other posts in the series: