It is true that insurers are notoriously slow when it comes to new technology adoption.
Many insurance companies are working with claims systems that are more than two decades
old. These aging systems are expensive to keep and maintain, and modifications can be slow
and unwieldy. And while claims systems have not been considered a revenue-generating
function over the years, insurers are recognizing that the customer service aspect of claims is
one of the key reasons why policyholders want to do business with the carrier.
In today's highly competitive insurance marketplace, there are three main advantages of a
new claim management system:
The quality of claims service has a significant impact on customer satisfaction and retention.
The largest expense category for insurance carriers arises from payment for claims losses.
This is why a claim department's operational efficiency remains a top priority. Insurers have
recognized the need to streamline workflow, take advantage of predictive analytics, and
automate compliance practices. Digital engagement with agents, brokers, and claimants, as
well as the ability to integrate with third-party services to manage loss costs, has become a
base expectation.
CLAIMS BUYERS GUIDE | 1
Drive Service
Excellence and
Efficiency
Effectively
Manage Loss
Cost (Expenses
and Indemnity)
Optimize
Workflow and
Employee
Claims Talent
"The Moment of Truth"
Policyholders pay premiums for years and years -- often without ever having to
make a claim. But when a claim does happen, the interaction between the
insured and the insurer represents the real "moment of truth." For personal lines
customers, a poor claims experience, coupled with the potential for increased
premiums due to a reported loss, is often a catalyst for customers to take their
business somewhere else. On the commercial side, customers expect the claims
adjuster to understand the complexity of their business, and to help provide an
optimal resolution for their loss. Key factors in commercial lines retention are
satisfaction with claim cycle times, payout outcomes, and adjuster
knowledge and expertise.
