A property/casualty insurance company�s core claims system is a major determinant of whether it can settle claims quickly and fairly�thereby safeguarding its financial position and creating positive experiences for claimants. The replacement of a core claims system is a daunting prospect. The good news is that implementing a new system provides the opportunity to improve (almost) everything�the bad news is that large scale changes are difficult and bring their own set of operational and control risks.
A new Celent Report, “Renewing the Vows: Claims and IT Work Together To Implement Core Systems,” outlines the five steps in the process of replacing a core claims system: making the decision to replace the system, choosing a vendor, designing the system, implementing it, and deploying it. A critical sixth step that takes place after initial deployment: adding value through more extensive and intensive utilization of the system.
The report also profiles the experience of four insurance companies and vendors during the replacement of their core claims system: Chubb working with Accenture, CNA and Guidewire, “New Insurance Company” (a pseudonym) and Valley Oak, and MLMIC (Medical Liability Mutual Insurance Company) with Delphi Technology. Each profile examines the insurer�s motivations and drivers, the steps in the replacement process, benefits achieved, project organization and governance, toughest challenges, and best practices.
“There are six things an insurance company replacing its core claims system must get right” comments Donald Light, senior analyst in Celent�s insurance group and author of the report. “These are: building existing technology roadmaps and business drivers into the vendor selection process; balancing the timing and size of process and technology changes; making the right decisions about the legacy claims system; having key claims staff deeply engaged with the process; leveraging the vendor�s people and knowledge; and ensuring effective program and project management.”
The 26-page report contains 2 figures. A table of contents is available online.
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Celent’s service offering falls into two categories, consulting and research, each of which is dedicated to technology in the financial services industry. We help banks, brokerage firms and insurance companies use IT to enter new markets in the shortest possible timeframes. All of our services are geared towards facilitating better informed, faster decision making. For more information visit www.celent.com or contact [email protected].