Imagine that you are responsible for running a claim department in a successful insurance company. One morning, coffee in hand, the head of your line of business walks into your office with a problem for your consideration: Your team represents 75 percent of the business expenses, and the CEO needs to show a larger profit this year. As a result, your team can expect twice as many new customers and the responsibility of lowering the combined ratio while keeping auditors at bay. In desperation, you turn to technology.

How does your line of business manage profitability? Anyone in this precarious position would feel overwhelmed. The overhead of running a claim department is often an assumed cost that can cut heavily into profits. After all, claims must be assessed, and the skilled people required to process ever-more-complex claims represent an expense. On top of this, even the most skilled claim assessors can make mistakes when overloaded with complex tasks and information, which can potentially lead to excessive payments that impact the bottom line.

A strong brand coupled with innovative products can only take companies so far. Managing the quality of claim assessment and the effectiveness of processors is essential to realize greater profit margins. Human-centric software solutions can help. To become more profitable, insurance companies should consider adopting some of the technologies and methodologies that have been proving themselves outside of claim departments. Three of these options are highlighted in this article.