November 16, 2016 by Canadian Underwriter
Before setting out on claims transformation efforts, property and casualty insurers should establish clear strategic goals and success metrics, consider the ways in which the claims process is changing and understand the potential impact of emerging technologies like medical analytics and the Internet of Things (IoT), Novarica said in a new report.
Research and strategic advisory firm Novarica, Inc. released the report Best Practices for Transforming Claims Systems on Wednesday.
“Property/casualty insurers planning claims transformation efforts should start with a clear view of their strategic goals, whether it’s planning new processes to support new leadership, enhancing performance to support growth or committing to clear cost reduction,” the report read. “They should reevaluate their success metrics, and be wary of drivers like avoiding leakage, while considering future-looking benefits like enhancing retention. Diverse teams are required, including involvement from actuarial and product design.”
“While replacing any core system is a complicated task, claims system replacements have nuances and differences that can create opportunity – or risk – for carriers in implementation,” said Jim Klotz, vice president of research and consulting at Novarica, in a press release. “In order to have a successful claims transformation, whether carriers are using a third-party vendor or building a solution in-house, they need to consider the impact of complex, multi-party processes, direct communications with claimants and what their strategic goals are.”
Novarica noted in the report that claims transformation requires considering role specialization, litigation support and a wide range of external dependencies, as well as understanding the potential impact of emerging technologies like mobile, medical analytics, IoT and cognitive intelligence.
Best Practices for Transforming Claims Systems offers insurer chief information officers the following checklist of best practices to help “maintain focus on the most important elements of a successful claims transformation”: