Building the Case for Claim Transformation

The P&C insurance industry is undergoing sweeping change as carriers are placing increased emphasis on innovation to differentiate themselves in a crowded, mature marketplace. Claim management has increasingly become an area for strategic innovation, with insurers directing a significant amount of focus on claim-related business and technology initiatives to improve customer service, total claim results, operational efficiency, and staff retention. While a soft market has some companies shifting gears toward more top-line concerns, the carriers that will ultimately take a leading position will invest in claims to promote further market differentiation, gain market share, and protect their bottom lines.

Those companies that choose to stick with their current claim operations risk being left behind. One significant risk is claim contagion, the negative trickle-down effect of poor claim operation performance, which can eventually extend to all business operations. Furthermore, the claim organization plays a pivotal role in a carrier’s ability to satisfy its regulatory obligations. Historical under-investment in the regulatory compliance area has made the claim function a consistent and leading offender as carriers struggle to address their mounting compliance requirements and to pay out the fines associated with noncompliance.