Michel Finschi, chief operating officer, insurance claims, for XL Group, recently responded to our request for a Q&A on claims technology and its role within XL Group. Finschi is also one of the keynote speakers at the 17 th annual America's Claims Event (ACE) from June 19-21 in Austin, Tex.

PC360: In what way does technology streamline the claims process at your company and in the industry as a whole?

Finschi: In 2011, we implemented XL GlobalClaim, a worldwide claims management system, to help manage our claims in more than 20 countries, for all policies, Lloyd's, and company paper. This new claims system converted our claim operation to a paperless environment and connected all legacy systems to allow for consistent data aggregation for all global claims operations. In addition, the portal provides participating customers with access to claims information via the XL Group website and through mobile devices that use Apple's iOS operating system.

Overall, it has helped us streamline our processes to boost efficiency and pooled our claims data so that both insurers, like XL, and their clients can access and use this valuable claims data in the continuous risk management process.

The advanced technology and industry leading claims software used by XL for XL GlobalClaim is based on Accenture's Claim Components, is well-known to streamline claims processes and to make a company more effective and efficient in information exchange with internal and external customers. This is a reality at XL. For the industry, we observe that technology continues to positively contribute to improved data quality and analytics, as well as to improved customer satisfaction.

PC360: Are certain technologies becoming more crucial for the claims process than others?

Finschi: XL operates as an innovation company, and supports the development and use of technology. In this sense, all technology is crucial and supports our claims strategy. We are a strong supporter of e-billing technology for legal expense management, and of all technology supportive of the claims handling process. This includes but is not limited to, technologies to scan documents, support the entire claims process (including off-shoring), and to provide access to claims data to participating customers.

PC360: How is technology changing the way adjusters perform their jobs?

Finschi: Technology is having multiple impacts to the claims function. Using paper as an example, no one truly enjoys more paperwork. The new technology of paperless systems has provided alternatives to the industry to address this problem. At XL, all claims processes have been fundamentally re-engineered, including those that relate to the input and output of our claims documentation. This gives our claim handlers more opportunity to play an integral role in our whole service offering to our clients.

Technology is also allowing increased transparency based on systems that can connect companies' entire global operations, as does XL GlobalClaim. Amongst the many advantages, this means adjuster collaboration and efficiency is significantly enhanced, particularly in claims that require cross-border collaboration. This also means an adjuster can receive specific feedback on a given claim from a colleague (who could also be a superior) located in a different office and/or time zone, and/or receive documents electronically from multiple sources. Another aspect of technology in claims is its ability to support the claim handler with specific tasks (i.e. reminders) which are designed to add quality to the work-product at key phases of the claims handling process. Finally, technology also adds quality to the information of internal and external customers with improved access to data, and improved data through streamlined processes (i.e. less free-form data entry, and more pre-defined data for overall consistency).

One of the most critical parts of implementing new technology is the effect on the associated business processes. As an example, the change to a paperless environment required redesigning certain business processes. XL Group's challenge here was to develop a process for new losses, and decide which parts of the process to support with offshore operations and/or scanning centers. Today, the re-engineered new loss process includes workflow and regional mail rooms (the latter to accommodate customers who submit paper documents). Many activities that were once performed in local offices are now performed offshore, including the registration of new claims, document management and the processing of thousands of claims transactions. XL Group estimates that 20,000 claims transactions are processed a month with a turn-around cycle time of one day or less. Its paperless features, specific customization to fit the needs of XL Group, and the re-engineered claims workflows and processes helped XL Group achieve significant cost reductions and productivity gains from the claim transaction activities. As a result, productivity onshore improved.

In the end, using technology effectively requires vision, talent, a sense of urgency, and leading software, to create success. At XL, vision has led the way to implementation of new technology, and capturing of additional data, which we are utilizing to enhance the quality of the information and, therefore, the quality of the decisions we make. The entire process leads inevitably to better outcomes in claims, improved customer service, improved resource allocation, also including enhanced selection of vendors that support the claims process.

PC360: How is the role of the adjuster changing within your company? What are some of the issues the industry needs to face concerning the quality and experience of adjusters?

Finschi: Re-engineered business processes and effective use of superior technology allow for more constructive interaction with the clients. In fact, many of our claims adjusters are part of the business development process. How we handle claims is a big differentiator for XL in our markets and our underwriters involve their claims colleagues from the start. Streamlining the administration of claims allows us to put their customer skills to work in front of our clients as they are making their insurance buying decisions.

On the quality and experience of adjusters, the insurance industry needs to attract young and talented people. Though we do not keep statistics on this point, we observe that too often people in the industry claim that they entered insurance by “accident.”

PC360: How has mobile technology changed the way everyone in the claims operation goes about performing their tasks?

Finschi: Mobile technology has opened a new avenue to the claims function to better serve customers. As an example, participating customers can access claims information via mobile devices. Internally, mobile technology also allows access to data, to claim handlers who are more often than others on business travel.

PC360: What kind of feedback do you receive concerning customer satisfaction with the claims process and how does this affect claims processes?

Finschi: We're received excellent feedback from our clients. For example, according to Securitas Direct, a key XL customer that has used the XL GlobalClaim Customer Portal, “XL has integrated in an intuitive and simple application all of the requirements of Securitas Direct in the management of claims. Being able to access information online to the activities conducted by them, and also by independent adjusters, and viewing each and every transaction, translates into time savings, which benefits both. Equally, the historical information provided by the application is of significant value in retrieving data and engaging in data analysis.”

Also, based on XL survey results from Q4 2011 to Q4 2012, the quality of claims experience with XL Group is rated as 82 percent positive and 12 percent negative (with 6 percent not specifying a result). We therefore believe that our clients and brokers are very happy with us, but there is always some room for improvement, including refinements of some of our claims processes.

PC360: How has social media affected the claims process? Do you monitor social media in terms of customer satisfaction? What steps can you take—if any—to deal with unfavorable publicity about a claim?

Finschi: We do not have statistics on whether and, if so, how social media has affected the claims process; however, our view is that social media does not affect robust claims processes directly, but would agree that social media can be used as a reasonable means (platform) to promote discussion amongst claims professionals and/or other stakeholders, all of which could lead to enhancements to claims processes. When media is or should be involved, we carefully coordinate statements by our group.

PC360: How satisfied are you with your claims administration system? What areas work best?

Finschi: We are very satisfied with the advanced technology and industry leading claims software used by XL, XL GlobalClaim. It has benefited XL Group's overall business and customer satisfaction in a variety of ways—most importantly by enabling all global claims to be processed on a single platform in a consistent manner across the insurance segment. Through its simplified business structure and processes, XL will also realize cost savings and increased efficiencies for years to come. In the end, it is more than a state-of the art claims system: It is a strategic business tool that allows XL Group to analyze everything we do, which helps the enterprise become and remain more competitive.

In the words of XL's CEO, Mike McGavick, “We have rebuilt our claims systems and built a global claims platform that is a very powerful body of information and insight and lowers the cost of claims handling. We have also developed new technology so that risk managers have a constant view of claims on a real-time basis with us. We can provide scrubbed data about how companies compare to their peers. This is a big value-added and creates super-sticky relationships between XL, our clients, brokers, and partners.”

PC360: What inroads are you making in the area of self service for claimants?

Finschi: The deployment of XL GlobalClaim was followed shortly thereafter by the implementation of the XL GlobalClaim Customer Portal, a multi-channel online system where customers can report and monitor claims. We are very satisfied with our multi-channel insurance claims customer portal, and the continued expansion to additional customers, who sign-up to take advantage of its many features.

PC360: How often do you reexamine your processes to determine their quality? Any examples of changes you have made recently?

Finschi: Through our values, aspirations, and behaviors, we continuously assess from internal and external customer feedback how to improve our technology, business processes, and ultimately the quality of the work product and services that we deliver.

Special Reports /

Streamlining the Claims Process at XL Group

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