March 2009 — Outsourcing has evolved to become a key component of strategy of insurance companies globally. Insurers have started viewing outsourcing more as a way to increase the value of their businesses, rather than just cost reductions and are seeking tangible results from both IT investments and improved business processes. Firms are moving toward the integration of business and technology and assessing IT’s value not only in reducing costs but also in enabling productivity and innovation. In this context it has been observed that IT delivers business value and assists in transforming business processes.
Analytics, rules engine, business process management (BPM), document management solutions and other IT tools facilitate smooth and efficient transfer as well as effective monitoring of business processes outsourced. Insurance companies can leverage these tools to outsource most of the activities performed across the entire value chain. Considering the example of Claims department which is heavily process oriented and most of its functions can be outsourced. BPM implementation in Claims Notification function can help in automating coverage verification, profiling and classifying claims for better management and online claim intimation. Usage of predictive analytics tools can help improve fraud detection and Claims handling expenses. Imaging, content management and work management solutions enhance quality and turnaround time of Claims filing and processing resulting in more customer satisfaction.
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Cognizant is a global leader with over USD $2.81 billion in revenue and over 60,000 employees is in the business of providing information technology, consulting, infrastructure and business process outsourcing services with the headquarters in Teaneck, N.J. Cognizant’s single-minded mission is to dedicate our business process and technology innovation know-how, our deep industry expertise and worldwide resources to working together with clients to make their businesses stronger. Our Insurance Practice, with over 8200 associates, is led by industry veterans possessing deep domain knowledge and awareness of the issues and obstacles facing the industry that is unique to various regions. Cognizant provides services to 14 of the top 30 Life and P&C Insurers across North America, Continental Europe and Asia Pacific and has been recognized by the analyst community as having the industry’s most mature and fully developed Insurance Practice. For more information, please visit Cognizant.com.Tags: Business Process Management (BPM), Business Process Outsourcing (BPO), Case Study, Cognizant, outsourcing