Claims are dynamic and complex - a company must not only evaluate their management
system as a whole, but rather as a series of working parts. Claims management can be broken
down into three components: people, processes, and technology. Finding the "right" mix of
these is essential to the success of a claims management ecosystem.
Where these systems succeed on paper, the reality of claims often pushes even the strongest
systems to their limits. As global situations change, claims are changing with them. Claims
have both been increasing in volume and in severity, forcing organizations to shore up
potential weak points in their systems. Reports gathered from the past few years indicate
there's good evidence that efficient claims management is becoming even more imperative
over time as the number of natural catastrophes and unpredictable events surge.
MODERNIZING CLAIMS MANAGEMENT | 1
Trends Impacting Claims Management
According to Aite-Novarica Group, the number of insurers investing in claims management
systems has increased since the pandemic began in 2020. Digitalization, claims automation,
and improving claims adjuster efficiency are a few of the factors driving this increase in
activity. The rest of this section discusses other trends impacting the risk management and
P&C insurance industries.
For any insurance or risk management ecosystem,
having a well-performing claims management system
is mission critical.
Growing claim volume
2022 proved to be the 2nd most costly year
ever recorded for insurers, due in large part to
destructive hurricanes and tornadoes as well
as extremely cold weather and flooding
across the U.S. The year proved to particularly
painful for insurers. According to an AM Best
Report, US P&C insurers suffered a US$26.5Bn
underwriting loss, with similar losses being
reported by insurers across the globe.
