activities and results. These analytics not
only offer a view of the overall claims processes effectiveness, but can also identify
trends by office or event. Insurers may
discover that they performed better in
certain catastrophe events than others.
With that knowledge they can then begin
to assess the ‘why.’
While BI tools have much to offer a
claims operation, these technologies don’t
come without challenges.
Getting quality data into one acces-
sible location is no small task. More data
creates more work and the insurance
process, by its very nature, continues to
produce more data. Modern adminis-
tration systems are better at capturing,
retaining, and managing the data than
their predecessors. Additionally, claims
departments are now getting more gran-
ular in coding loss cause, claim type, or
injury detail. Combine data from multi-
ple claims processing systems or multiple
TPAs and there is even more to manage –
but, also more to consider in the analysis.
For most claims organizations, using
analytics is a new venture that comes
with adoption and learning curves. The
most efficient and effective claims processing still requires interactions between people. While technology is a tremendous enabler and can help automate
many of the tasks in claims, interaction
between individuals is inherently part
of the process. Sure insurers can use BI
to measure every aspect of the claims
process and find ways to improve, but
people have to be part of that process in
order to effect transformation.
The key for an organization is to integrate analytics into the business process
and do more than measure productivity.
Analytics should provide additional insights and flag unusual events, balancing
these discoveries with knowing when the
human touch may result in a better outcome. In this context, BI measurement
tools should also be applied to inform
people, not just to measure everything
and catalyze change.
During the past few years, BI has
moved up the insurance process value
chain from a nice to have to a must have.
As insurers are learning more about BI,
they will continue to find new uses for
analytics in every area of the insurance
Business intelligence should be viewed
as a journey rather than a destination
with a goal of continuous improvement.
After all, with more and more good data
being produced daily there is always more
to analyze and discover. K
Ericka Billue is a senior solution product
representative at iPartners. She may be
reached at email@example.com;
678-710-0600, ext. 240.