Modern Systems Enable Proactive Claims Management
Today's claims management systems, such as RISKMASTER Accelerator along with the accompanying data analytics modules, help carriers see data in a new light, one that can highlight risk factors and circumstances that can be managed before something happens. Today's claim systems can potentially eliminate claims, not just manage them.
Like many business processes, the application of information technology to claims management has helped carriers expand their business, reduce costs and improve customer service. With those systems reaching the end of their useful life and with carriers subject to continuing cost pressures, companies have begun to look at claims as an area ripe for improvement.
Research by the Insurance Information Institute makes a good case for investment in modern claims management solutions. A recent study shows that around 70 cents of every premium dollar earned goes to claims spending. Efficient and equitable claims processing is important for another critical reason -- customer loyalty. From the first notice of loss to the time a claim is settled, a customer's experience throughout the process has a significant bearing on their decision to renew or cancel.
Any steps a carrier can take to reduce costs or improve the customer experience through the claims process will generate significant returns in a short period of time. That may be why the same study reports that more than half of companies questioned say they are planning some level of replacement in claims management systems. This paper explores some of the benefits a carrier can expect by making the leap to a modern claims processing system.