Filed Under:Carrier Innovations, Technology Solutions

Walking the Claims Optimization Tightrope

Compliance, Reporting, and Policyholder Satisfaction

Effectively managing claims has historically proved to be a complex task, to put it mildly. With so many steps and variations in each process, it is no wonder that insurers struggle to consistently improve claims operations. Because total cost of indemnity represents a significant portion of an insurer’s costs, reducing the expense of claims processing is imperative for any insurer. However, cost efficiencies cannot come at the expense of a policyholder’s service needs and right to receive a fair and equitable settlement for a valid loss. Given that the claims experience is a primary driver of policyholder satisfaction and loyalty, the need to deliver a high-quality experience is equally as important as cutting costs.

Insurers pursuing opportunities to transform and optimize claims functions frequently consider packaged applications. All too often this technology-driven approach ignores the business outcomes an insurer is trying to achieve and fails to consider the people, process, and integration components needed to enable holistic improvement. In addition, packaged applications rarely offer the agility needed to support claims operations and processes that undergo frequent change, forcing insurers to adapt their business to the way the systeem works. The result is isolated and broken processes beset with cumbersome manual handoffs and work-arounds that only increase costs and can lead to policyholder dissatisfaction.

With advanced BPM technology, insurers can unlock the business value of the claims process to substantially improve productivity, drive brand commitment, minimize risk and loss exposure, and improve the insurer’s competitive position. BPM offers a distinctly different approach to claims optimization as it delivers the tools insurers need to achieve an optimized claims processing environment that improves efficiency, drives policyholder satisfaction, and mitigates regulatory and financial risks.

There are six key competitive advantages that insurers can leverage with BPM to transform and optimize claims management:

By eliminating the need for custom coding and the need to maintain multiple versions of a single process, insurers gain business agility that facilitates rapid return on investment (ROI) through reduced operational costs and improved time to market. As insurers continue to carve out new market opportunities or are confronted with regulatory changes, business-focused BPM tools allow them to quickly and easily modify their claims processes and tailor them to match market drivers. Compared to a packaged application that requires extensive customization or work-arounds, the dynamic flexibility of a BPM solution offers a significant competitive advantage.

True Transformation

Featured Video

Most Recent Videos

Video Library ››

Top Story

PIA's national president was born to insure

Robert W. Hansen Jr., a fourth-generation insurance professional, reflects on what drives him to keep selling after more than 30 years in the business.

Top Story

Taiwan earthquake collapses two high-rises. Shoddy construction investigated

The Taiwanese government has ordered an investigation into a building's collapse, as images show tin cans built into the walls of the toppled complex.

More Resources

Comments

eNewsletter Sign Up

Carrier Innovations eNewsletter

Critical news on the latest tech solutions, information security, analytics and data tools and regulatory changes to help decision-makers at insurance carriers keep their business thriving – FREE. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.