Just how much innovation is happening in claims processing? A recent report provides some evidence that companies in certain sectors that invest in state-of-the-art claims processing practices and technologies may be reaping the benefits of demonstrable efficiencies and lower costs.
A study by Novarica surveyed 92 personal lines, commercial lines, specialty carriers, workers' compensation, and multiline insurers and developed as a result a “Claims Capability Maturity Model,” showing what property and casualty insurers are doing today in the area of claims, and what, if any, are the consequences for their loss ratios. The model examined 20 different claims functions divided into seven categories: FNOL/FROI; triage, assignment, and investigation; valuation and reserves; payments and recoveries; operations; special processes; and data.
In looking at what companies are actually doing in claims processing, the Novarica report further delineated these activities under three descriptive headings—legacy, mainstream, and leading—and attempted to correlate these to loss ratio.
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