In our previous blog we asked how many insurers consider claims management as a market differentiator. We wondered whether claims management could be a way to get ahead of the competition. We looked at the potential improvements in efficiency and customer experience that could be achieved in each of the five processing stages of an insurance claim:

  1. First Notification of Loss (FNOL)
  2. Validation
  3. Reserving
  4. Payment
  5. Recovery

But it isn’t just about the claims process, is it? Well, actually, we think it is. We think it’s about your claims requirements and the processes that you want in place. Are these processes fully supported by the software systems that your claims staff must use?

Most insurers will agree that all claims, regardless of the type of business, are subject to those same five basic stages. So why do so many insurers have separate claims operations for different products, invariably using different legacy systems?

What if you could use the same software to model all of your claims handling requirements? Imagine being able to use the same rule management tools for each product; imagine being able to use them to replicate your best-practice business processes across the board. Consider what this could offer – the ability to re-use expertise between different products. How much easier, for example, would it be to set up claims handling for a new product?

We understand that many insurers want to be able to change how they interact with customers. They want to move away from the traditional product-centred approach to a customer-centric approach. They believe that’s where future success lies. We agree. Further, we believe that uniform and consistent set-up, deployment, and maintenance processes across all insurance products will make this move far easier to implement.

More than that, we believe that receiving a “single customer view” from the software that you use would greatly improve any attempt at a customer-centric approach. What if you could have a truly integrated platform that not only enables and automates data management, but is also able to connect directly to other systems, both upstream and downstream, to obtain and share information and services, as appropriate? What if you could manage, model, and analyse the data across all products on one platform?

Too often, the painful reality for claim handlers has been the need to switch between multiple software systems in order to find all the relevant information on a specific claim. This should no longer be the case. While innovating their approach to claims management, insurers should be able to drive down costs and increase efficiency by replicating common processes across all products. Insurers should have the flexibility to tailor solutions for their customers where required so that they can better align business objectives with customer needs.

But, how? Where to start? Well, we believe that identifying the right technology solution is a valid first step towards optimising your approach to claims management. Even identifying how an older solution might be holding you back is a start. So… What can you claim about your claim systems?