Compliance, Reporting, and Policyholder Satisfaction
cumbersome manual handoffs and work-arounds that only increase costs and can
lead to policyholder dissatisfaction.
Effectively managing claims has historically proved to be a complex task, to put it mildly. With so many steps and variations in each process, it is no wonder that insurers struggle to consistently improve claims operations. Because total cost of indemnity represents a significant portion of an insurer’s costs, reducing the expense of claims processing is imperative for any insurer.
However, cost efficiencies cannot come at the expense of a policyholder’s service needs
and right to receive a fair and equitable settlement for a valid loss. Given that the claims
experience is a primary driver of policyholder satisfaction and loyalty, the need to deliver a high-quality experience is equally as important as cutting costs.
Insurers pursuing opportunities to transform and optimize claims functions frequently consider packaged applications. All too often this technology-driven approach
ignores the business outcomes an insurer is trying to achieve and fails to consider the
people, process, and integration components needed to enable holistic improvement. In
addition, packaged applications rarely offer the agility needed to support claims operations and processes that undergo frequent change, forcing insurers to adapt their business to the way the system works. The result is isolated and broken processes beset with
Advanced business process management (BPM) technology has proven to be
a far more effective solution for enhancing
claims operations than inflexible packaged
applications because it delivers the strategic capabilities insurers need to enable
an optimized claims-processing environment. Traditional packaged claims solutions are not helping insurers achieve their
strategic business objectives. Whether the
goal is to lower claims costs, improve service, or both, insurers need more than inflexible packaged applications if they are to
successfully institutionalize and improve
the claims practices that drive differentiation in their markets.
So how does an insurer strike a cost-effective balance between claims efficiency and policyholder service? Insurers can start by optimizing their claims
value chain—as in the people, processes
and resources required to achieve the
optimal claim outcome—to improve
the efficiency and effectiveness of claims
operations. A key part of whether any
given insurer is successful at this will be
determined by how strong a role BPM
plays in the equation.
With advanced BPM technology, insurers can unlock the business value of
the claims process to substantially improve productivity, drive brand commitment, minimize risk and loss exposure,
and improve the insurer’s competitive
position. BPM offers a distinctly different approach to claims optimization as it
delivers the tools insurers need to achieve
an optimized claims processing environment that improves efficiency, drives
policyholder satisfaction, and mitigates
regulatory and financial risks.
There are six key competitive advantages that insurers can leverage with