case management, insurers can manage
the orchestration of a complex claims process across multiple systems, analytic tools,
data stores, or third-party services. This
unique capability allows insurers to marshal the right resource at the right time, in
pursuit of the best-case claims outcome.
Because advanced BPM provides rules-driven processes, insurers no longer have
to rely on adjusters to be the key drivers
of the claims process. Instead, automated
case management can be easily integrated
with back-end systems, accessing and using appropriate assets in real-time as part
of the streamlined process.
Carriers that are able to master these
ideals can spend more time delivering on
their customer commitments and better
managing total indemnity expenditures.
In addition, carriers will have the innate
ability to implement more agile claims
processes that provide real business
benefits. This means they will be able to
further differentiate themselves from
competitors. In an already stressed market where numerous natural disasters are
BPM To The Rescue
The demand on insurers to improve performance and increase profitability while delivering
distinguished customer service is getting more intense. To successfully meet growing
pressures, many have adopted a holistic management approach focusing on the alignment
of all aspects of an organization with the desires of clients. Known as business process
management (BPM), the approach promotes business effectiveness and efficiency.
It has been touted by many as one of the top tools with which P&C insurers can optimize their
operations. BPM specifically holds promise for insurance, because it enables companies to
model, analyze, and test business processes independent of core systems. Process problems
can therefore be easily identified, and companies can manage process variety (offering
various processes for a single task for different user groups).
The use of BPM suites will result in insurers being more customer-centric, driving improved
user experiences through the Web channel, faster transaction processing, staffing
productivity improvements, lower cost of transaction processing, more-consistent decision-making, improved risk management, and enhanced customer service.
Source: Gartner, Inc., a leading IT research and advisory firm.
weighing on their resources, if not their
bottom lines, insurers can drive substantial gains in short time periods across
customer satisfaction, retention, market
share, and competitive advantage—all
while reducing losses and claims leakage.
These business benefits are readily
achievable, and many have already been
realized by some carriers. However, it’s
hard to explain why some still haven’t
gotten more serious about it. The time
couldn’t be better for them to double
down on this. K
Tom Harrington is principal of Global
Property & Casualty Insurance at Pega-
systems. He may be reached at Thomas.