Thus, the opportunity for P&C claims handling improvement to impact insurer profitability is enormous in several key areas:

Claims Adjusting Efficiency--Well above 40 percent of claims adjuster's time is spent on activities that do not actively assist in bringing the claim to a prompt and reasonable conclusion. Inefficiencies lead to longer claim settlement times which can impact customer satisfaction, drive up litigation rates and negatively impact indemnity payments. Worse, these inefficiencies waste valuable adjuster time--an ever diminishing resource.

Claims Indemnity Management--Medical cost inflation, for example--a key driver of both special and general damages--averaged two full percentage points above the Consumer Price Index between 2000 and 2010.