Insurers can drive down their claims costs by $36 billion ifthey embrace technology innovations allowing them to better managetheir information assets, says an industry analyst.

“The waste in this industry is shocking,” says Aite Group SeniorAnalyst, Property & Casualty Group, Stephen Applebaum.

The consulting group has released a report, “10 StartupsTransforming P&C Claims: A US $36 Billion Opportunity,” saysthat by adopting innovative claims-technology solutions, insurerswould not only stop wasting money, but improve their relationshipswith their customers and reduce their yearly double-digit retentionlosses. The report reviews 10 technology companies Applebaum saysare innovative leaders with a lot of buzz in theindustry.

“All of the companies have the potential to fundamentally changethe claims process and improve it,” he says.

For example, the report says Enservio provides a suite ofsoftware and service solutions to help property insurers correctlyprice policies, settle and pay claims, and help policyholdersreplace their insured property.

Symbility Solutions offers cloud-based technology—utilizingsmartphones or tablets—that produces “accurate, simplified propertyclaims field appraisals on mobile devices” to improve “claims workflow and outcome.”

The report recommends carriers embrace technology for thepurposes of:

• Promoting and leveraging open-market electronic partsprocurement solutions to improve auto physical damage claimsoutcomes.
• Adopting new property and contents solutions for homeowners andcommercial property and contents claims.
• Optimizing property and injury claims-settlement-processtechnology.
• Driving out fraudulent, duplicate and inflated medical injurycosts in auto and workers' compensation claims.
• Streamlining the recorded claims statement process and leveragedata.

As a whole, the industry does a poor job of making the necessarytechnological advances, especially in the area of claims, Applebaumsays. Only a few have made great strides. The report citesAllstate, Amica, Chubb, Farmers, State Farm and USAA.

Applebaum says he believes the best hope for change lies in theyounger generation of professionals—often referred to asMillennials—who grew-up with smartphones and tablets and will nottolerate a future of pen, paper and file cabinets.

Aite's report is available to subscribers andavailable for individual sale through its website.