July 20, 2009 – Despite the challenging economy, US P/C insurers continue to invest in core and ancillary systems and technology solutions to improve both loss ratios and loss adjustment expenses, according to a new report from Novarica.
“Claims play a critical strategic role in the overall success of a carrier. The quality of the claims service heavily impacts the customers� view of the carrier because other than the bill, claims are typically the only contact with a carrier. And a bad claim experience is one of the top reasons for non-renewal. In today�s economic environment, where retention is a critical imperative for carriers, claims are a major source of competitive advantage for property-casualty companies,” said Karlyn Carnahan, a principal in Novarica’s insurance practice and lead author of the study, who presented some of the study’s initial research at the ACE conference last month.
“Claimant behavior is changing and carriers have to find new strategies to deal with the change,” she added. “In addition to upgrading or replacing core solutions, strategies include investments in analytics, mobile technologies, Web 2.0, and payment technologies.”
The report includes more than a dozen named examples of claims technology initiatives from firms like Nationwide, Liberty Mutual, Chubb, and Allstate, and details on emerging areas like mining unstructured data, network link analysis, prepaid cards, GIS, social networking, telematics, and other areas.
The report is available from Novarica for $1500 at http://www.novarica.com/report_claims_trends.shtml.
Novarica provides information, insights, and perspective on markets, operations, and technology to financial services and insurance executives. Novarica is a division of Novantas LLC, the leading management consultancy and information services provider for the financial services industries. www.novarica.com.