Core claims system vendors need to differentiate themselves: Celent

Insurers are rapidly replacing legacy systems with upgraded core claims technology, and vendors should differentiate themselves by focusing on improving usability, making implementation faster and less expensive and documenting the value propositions of new technologies, a recent Celent report notes.
The 96-page report, ‘Core Claims Systems Vendors 2008,’ provides a detailed survey and assessment of core claims technology offered by more than 15 vendors.
Overall, Celent concludes, vendors’ claims systems are becoming more capable (i.e. deeper functionality, including the ability to create rules and workflow tools), more intelligent (better at reporting and analytics) and more connected (using SOA and Web services).
“While these trends are all very good news for insurers, they do make the competitive challenges facing vendors that much more daunting,” notes Celent, adding that all vendors are making significant investments into their core claims systems.
Celent suggests vendors differentiate themselves by “focusing on improving usability for new and experienced users and managers.”
In this context, Celent says, vendors should remember that “usability drives productivity” and “advanced functionality is of no value to a user who cannot navigate to it or master its use quickly.” 
Second, vendors need to make implementation of new core claims technology “faster and less expensive.” According to Celent, “insurers are increasingly selecting vendors based on how long it takes and how much it costs to deploy all lines in all geographies.”
Finally, Celent says, vendors need to document the value proposition of using one technology over another.
“Quantitative and credible case studies of how the solution lowered leakage, or improved claimant experience, or reduced cycle times will influence buyer decisions.”