Insurers Missing the Boat with Claims Technology

Claims operations are getting headline coverage lately, driven in no small part by recent references to Accenture’s claims survey listing core systems replacement, data and analytics, and workforce growth as the top three priorities and Celent’s claims fraud report highlighting reduction in fraud as one of the key levers to near term profitability. 

Executives appear to be in agreement that improving combined ratios will be more easily achieved than increasing underwriting profits, at least until the economy returns to a more reasonable footing.  At the same time, increased competitive intensity has executives asking their claims departments to improve their delivery of service excellence and their operational efficiency.  Apparently the previously achieved efficiencies have been quickly absorbed by increased investments in technology, putting most claims departments back where they started.  The race is on to pair carriers with the solutions needed to deliver on these demands.