When we surveyed 50 C-level executives working in claims functions, the overwhelming response was that technology improvements are necessary to achieve the agility and flexibility needed in today’s market. In fact, we found that over the next three years:
- On average, US P&C insurers plan to invest $17.5 million in claims improvements.
- Twenty-six percent of respondents plan to invest over $25 million in claims technology.
- On average, insurers with net premiums written (NPW) above $500 million plan to invest more than those with NPW below $500 million: $20.2 million vs. $14.8 million.
- In total, US P&C insurers will spend an estimated $2 billion on claims investments.
And at the top of their priority lists? Upgrading or transforming legacy systems to achieve better agility and flexibility. Join me next week as I explain some of the complications associated with upgrading—especially since many insurers use multiple applications to settle claims. To learn more:
- Read the survey: North American Claims Investment Survey: A Foot in Today, a Leap into Tomorrow for P&C Claims Functions (pdf; opens in a new window)
- View the Accenture North American Insurance Claims Investment Survey infographic