Improving the insurance claims process and upgrading or replacing claims systems were among the key focus areas for the majority of insurance claims professionals in the United States responding to a survey by Massachusetts-based Trillium Software.
Almost 93% of respondents cite insurance claims process improvement as the top initiative to lower operational costs, notes a statement from Trillium Software, an enterprise data quality software and services provider. Improving claims process was followed by staff training, software implementation and staff reorganization.
Conducted in the fourth quarter of 2012, the survey aggregated information from approximately 30 insurance claims executives, managers and adjusters across all major lines of business in the U.S.
Highlights of the survey include the following:
- 74% of insurers believe their claims systems will support their operations for less than five years;
- 55.6% of respondents cited disagreements on insurance claims decisions as a key customer issue, which can result from insurance claims process issues and less-than-optimal data utilization;
- 40.7% of claims units surveyed do not currently utilize analytics; and
- 40.7% of respondents noted new software implementation would be a high priority in order to improve the bottom line.
"Claims professionals are well-aware of the challenges they face in improving their claims processes, reducing costs, enhancing staff performance and decreasing cycle time,” Michael Chochreck, insurance solutions principal consultant at Trillium Software, notes in the company statement. “It is critical that claims professionals gain insight into the universe of data flowing through their organization, and harness this information to more effectively serve their customers and grow their business,” Chochreck says.
Trillium Software suggests use of analytics offer an opportunity to lower operational costs, improve reserve accuracy, shorten cycle time and mitigate loss dollars. Leveraging technology, improving claims processes and efficiently deploying staff can help emphasize bottom line improvements and cost mitigation, the company adds.