In recent years, the insurance industry has witnessed intense competition for customers across every segment of the market. Claims has become a central front in this heated battle for market share.

It is no surprise, then, that many carriers have made significant investments in claims transformation initiatives and forward-looking insurers are adding a higher-quality customer experience to their list of critical outcomes. Market leaders have come to view a quality customer experience as a means to demonstrate true customer centricity and differentiate based on the strength and the stability of their brands.

The business drivers for broad-based transformation are clear and well recognized:

• More empowered consumers, with higher expectations for information on demand, service efficiency and reliability, and an increased propensity to switch carriers
• Outdated technology infrastructures that limit the ability of claims organizations to gain integrated customer views and provide tailored and responsive service
• A proliferation of channels and touch points through which to engage and service policyholders—which consumers expect to use for a broad range of tasks
• Intensifying competitive stakes, with rival carriers more aggressively pursuing new customers
• The imperative to combat increasing rates of fraudulent claims activity, reduce the claims leakage associated with longer claims cycles, and increase the accuracy of claims payments.

The customer experience is something of a common denominator across these transformation drivers, as companies realize it is essential to overall customer loyalty.