More investment in claims-management integration practices willbenefit the bottom line of property and casualty insurers, chiefclaim officers say in a survey from Towers Watson.

In its 7^th P&C Claim Officer Survey,Towers Watson says insurers' chief claim officers (CCOs) feel theyare benefiting from reviews and updates to their best practices,and from improvements in technology. However, the report says, moreintegration of these processes is needed to gain their fullpotential.

"A more integrated approach to claim management can helpinsurers simultaneously improve customer service and financialresults, increasing both policyholder and investor satisfaction,"says Brian Stoll, director, P&C practice for Towers Watson, ina statement. "Technology investments in this area help insurersbetter identify and respond to trends culled from data-drivenanalytics, and make it easier to implement predictive models andbest practice models and best practice enhancements that carriersare developing to improve claim performance."

Of 41 respondents to Towers Watson's survey, 56 percent say theyhave made major modifications to their claims best practices withinthe past year. Twenty percent say they have made major changeswithin the past 36 months, while 24 percent say they have not madeany changes in the past three years.

A total of 75 percent of the CCOs surveyed believe "activereview of claim best practices is a necessity and have made majorchanges within the last three years," says Towers Watson.

Large carriers were more likely to make changes, with 92 percentof CCOs in those companies saying they made changes within the last36 months, compared to 63 percent of small-carrier respondents and70 percent for mid-size respondents.

As for the types of changes favored by CCOs, 63 percent saidsystem technology enhancement improves claim-handling assignmentsand workflow processes. The report says the expectation is that"companies will more fully integrate best practices protocols intotheir automation."

The use of predictive modeling is also growing, the reportnotes. Of those responding, 63 percent are beginning "to explorethe use of predictive analytics in their claim operations."

"Predictive modeling applications are growing in claims, withfraud the initial focus…," says Stoll. "Carriers making theinvestments are increasingly recognizing benefits."