Spurred by a looming personnel crisis, the rising number of massive catastrophes and a search for savings, insurers are putting an increased focus on claims operation technology, according to industry professionals and analysts, who say these factors and other pressures over the past few years have resulted in an emphasis on tech changes that range from the back office to frontline adjusters.
The actions they describe involve everything from systems and software to global positioning software and analytic efforts that may help pinpoint fraud or identify overly expensive medical providers.
One example of this increased activity in the claims sector can be seen at Northbrook, Ill.-based Allstate, where the company at one point brought together 700 information technology and claims personnel to create its “Next Gen” claims system. Spokesman Raleigh Floyd said the company has spent $125 million thus far to streamline 90 legacy systems down to a single new system.
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