NEEDHAM, MA, July 24, 2007 – Leaders in claims operations are beginning to break away from traditional processes and seek technology to assist them in managing a complex business process that has to date been extremely people intensive. Claims departments have been historically reluctant to adopt technology solutions, perceiving technology as incapable of duplicating the decisioning process of an experienced claims adjuster.
New research from TowerGroup finds that although some claims executives have driven a new vision into their operations, most claims organizations are still struggling to strike a balance between technology adoption and maintaining an intimate connection with their customers, agents, and brokers. The pursuit of competitive advantage and ever increasing consumer expectations requires service points to be frictionless and seamless.
Yet the claims process is also being impacted by the loss of expertise due to the retirement of claims adjusters from the baby boomer generation. The loss of these adjusters will increasingly threaten the claims capabilities of many carriers over the next 10 years – making the drive to more effectively leverage technology all the more urgent.
TowerGroup believes the greatest benefit of technology to P&C claims operations will be automated information support for decisioning, rather than the full automation of processes. The right technology – including incorporation of predictive analytics – will allow claims adjusters to achieve a new and superior level in the claims service experience.
Karen Pauli, a senior analyst in the TowerGroup Insurance practice, authored the report titled “Technology Direction in US P&C Insurance Claims Operations: Transforming a People Business.” The research finds that leaders in the claims business are moving toward a new set of imperatives that will provide the granular management needed in today’s complex business environment. TowerGroup identifies the following areas as key to the evolution of claims operations:
- Claimant management
- Vendor performance management
- Fraud detection and reduction
- Subrogation management
- Litigation management
- Reserves Management
- Catastrophe response
TowerGroup is the leading research and advisory services firm focused exclusively on the financial services industry. A respected source for trusted information and advice, TowerGroup brings many of the world’s leading financial institutions, technology companies, and professional services firms a deeper understanding of the business and technology issues impacting their organizations. Headquartered near Boston in Needham, Massachusetts, and with offices in North America and Europe, TowerGroup serves a global client base. Visit www.towergroup.com for more information.