The claim functions are the heart of a property andcasualty (P&C) insurer. Claim representatives, claim supportstaff, and claim leadership deliver on the expectations of andpromises made by the carrier by addressing a claimant's issues in atime of crisis. They also manage the substantial majority of aP&C carrier's cost. In short, the claim function is one of acarrier's main instruments to deliver its overall expense and lossmanagement strategy while retaining satisfied customers.

Increasingly, P&C insurers are marketing their claim serviceas a differentiator to attract and retain customers, and improvetheir competitive position. In fact, some carriers are transforming their claim function to add substance to themarketing message.

While the idea of transforming the claim function is attractive,it can be a lengthy and expensive undertaking. More importantly,there is a right way and a wrong way to go about it. First andforemost, insurers must align any claim transformation program withtheir business strategy. Sometimes, ambitious executives seek todrive change solely by implementing technology, for example, newinternal core claim technology and customer facing “wrappers” suchas mobile applications or web portals.