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.
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