Given the intense competition and profound change that is underway in the property and casualty (P&C) insurance market, many insurers are looking for ways to differentiate themselves in the minds of consumers. Claims management has been an area of strategic focus and significant
investment. Top-performing insurers recognize claims management as among the most
important customer-facing processes, and one in which they can make or break customer relationships. That is the fundamental reason why insurers seek to enhance their
service offerings and strengthen their ties to policyholders, brokers and agents through
superior responsiveness, speed and user-friendliness.
Of course, the imperatives to reduce operational costs and boost overall process efficiency are ever-present in insurance. Every dollar invested must produce tangible
value—and claims transformation programs are no exception. Within claims, the focus
always starts with minimizing leakage.
Increased regulatory scrutiny has been another driver of claims transformation. From
HIPPA to Medicare Secondary Payer (MSP) rules to new requirements associated with
the Dodd-Frank law, insurers face the challenge of complying with the full range of
new rules and regulations in financial services, including those forged in the post-crisis
On a practical level, that means they must report more (and more detailed) data than
ever before, and face significant fines and penalties for non-compliance.
For many P&C insurers, the goal has been to create more competitive, flexible and scal-
able claims operations. While some have
seen bottom-line benefits from improved
claims handling and reduced expenses, the
benefits have often been limited by a siloed
approach; that is, too many insurers have
invested in “point” solutions that allow
them to comply with MSP regulations, for
instance, but don’t fully integrate processes
or data flows for optimal process efficiency