X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Many of today’s P&C insurance carriers are still dependent on legacy systems for their core claim processing. As a result, they are burdened with manual processes, operational inefficiencies, and high costs associated with processing data multiple times and securing new customers to replace the unhappy ones. When faced with the process of IT transformation, however, these carriers often must confront several challenges before they can reap the desired benefits of faster, more accurate claim processing and better customer service.

The claim transformation journey is not the same for every carrier. The speed of decision making for major projects, the availability of funding, and project prioritization — both in terms of burning platforms and department clout — are among the typical factors that determine how long it takes to launch any major project. Regardless of the transformation timeline and the strategy required to get there, every carrier will encounter five major milestones, each of which must be recognized and responded to appropriately to maximize success. As you’ll see, subsequent decisions will build on prior actions, and the success of the legacy transformation project will depend on all of them.

Transformation is more than just replacing the legacy claim system. Because of the age of many legacy systems, over the years, carriers have often adopted business practices that were built around their claim system’s limited capabilities and increasing shortcomings. As a result, the entire claim operation must be reevaluated. Changing the system without examining directly and indirectly related business processes, the interaction with claimants, and how data is managed would be akin to driving a sports car the same way great grandpa drove his Model-T: You’ll not only have a serious crash, but you’ll also do so much faster.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

 

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.