Editor's Note: This article has been contributed by David Connolly, principal, Jennifer Dotts, senior manager, and Christopher Raimondo, senior manager, at Ernst & Young LLP's Financial Services Office.

Given the intense competition and profound change that is underway in the property and casualty (P&C) insurance market, many insurers are looking for ways to differentiate themselves in the minds of consumers. Claims management has been an area of strategic focus and significant investment. Top-performing insurers recognize claims management as among the most important customer-facing processes, and one in which they can make or break customer relationships. That is the fundamental reason why insurers seek to enhance their service offerings and strengthen their ties to policyholders, brokers and agents through superior responsiveness, speed and user-friendliness.

Of course, the imperatives to reduce operational costs and boost overall process efficiency are ever-present in insurance. Every dollar invested must produce tangible value—and claims transformation programs are no exception. Within claims, the focus always starts with minimizing leakage.