During the past decade, companies across the insurance industry have invested tens, or even hundreds, of millions of dollars in claims transformation. These programs became an imperative for carriers struggling with processing effectiveness and data management issues, and facing the risks of regulatory non-compliance and loss of market share.

Legacy claims operating models and technology systems limited the ability of insurers to compete in the modern marketplace, with its quickly rising consumer demands and urgent need to reduce processing costs. Without claims transformation, efficiency levels and performance were simply not where they needed to be for insurers to effectively compete.

These first-phase transformation initiatives largely focused on replacing or upgrading core claims processing platforms to improve operations and productivity. However, a significant number of carriers that achieved baseline success with initial transformation programs have not yet fully harvested the value of the vast amounts of data they now capture. That's why forward-thinking organizations now look beyond the initial value propositions of increased speed, quality, and efficiency in claims processing to Claims Transformation 2.0 initiatives, which are focused on harnessing the power of advanced business intelligence (BI).