More investment in claims-management integration practices will benefit the bottom line of property and casualty insurers, chief claim officers say in a survey from Towers Watson.
In its 7th P&C Claim Officer Survey, Towers Watson says insurers' chief claim officers (CCOs) feel they are benefiting from reviews and updates to their best practices, and from improvements in technology. However, the report says, more integration of these processes is needed to gain their full potential.
"A more integrated approach to claim management can help insurers simultaneously improve customer service and financial results, increasing both policyholder and investor satisfaction," says Brian Stoll, director, P&C practice for Towers Watson, in a statement. "Technology investments in this area help insurers better identify and respond to trends culled from data-driven analytics, and make it easier to implement predictive models and best practice models and best practice enhancements that carriers are developing to improve claim performance."
Of 41 respondents to Towers Watson's survey, 56 percent say they have made major modifications to their claims best practices within the past year. Twenty percent say they have made major changes within the past 36 months, while 24 percent say they have not made any changes in the past three years.
A total of 75 percent of the CCOs surveyed believe "active review of claim best practices is a necessity and have made major changes within the last three years," says Towers Watson.
Large carriers were more likely to make changes, with 92 percent of CCOs in those companies saying they made changes within the last 36 months, compared to 63 percent of small-carrier respondents and 70 percent for mid-size respondents.
As for the types of changes favored by CCOs, 63 percent said system technology enhancement improves claim-handling assignments and workflow processes. The report says the expectation is that "companies will more fully integrate best practices protocols into their automation."
The use of predictive modeling is also growing, the report notes. Of those responding, 63 percent are beginning "to explore the use of predictive analytics in their claim operations."
"Predictive modeling applications are growing in claims, with fraud the initial focus…," says Stoll. "Carriers making the investments are increasingly recognizing benefits."
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
