More than 30% of P&C Insurers have Claims in their Top Three IT Priorities
Novarica estimates 30-40 new claims systems were purchased by US insurers in the last year.
June 28, 2010 (NEW YORK) – With the insurance industry facing the slowest growth rate since the 1930’s, P&C carriers are looking for ways to improve operational effectiveness and to drive growth, and claims is one of the key areas they’re investing in. In fact, over 30% of carriers surveyed by IT strategy and research firm Novarica (www.novarica.com) say that claims is one of the top three projects they’re focusing on for 2010. And while Novarica estimates that 30-40 new claims systems were purchased by US insurers in the last 12 months, P&C insurers have more than 20 active solutions to choose from.
Novarica’s latest report, Novarica Market Navigator: US P/C Claims Systems 2010 (Q2), published today, is designed to help insurers rapidly understand their options and prioritize their evaluations.
“The quality of a carrier’s claims service heavily impacts the customers’ view of the carrier because other than the bill, claims are typically the only contact a customer has with a carrier. And a bad claim experience is one of the top reasons for non-renewal. In today’s competitive environment, where retention is a critical imperative for carriers, claims handling is a major source of competitive advantage for property-casualty companies,” notes Novarica principal Karlyn Carnahan, CPCU, lead author of the study.
“Claims administration systems are being replaced at an increasing pace in the insurance industry. While many carriers have already upgraded and others are in the middle of a claim replacement project, a majority of carriers are in the planning phase for a core claims system replacement.”
Until recently, there weren’t a lot of choices for modern systems. Today, carriers have a broad choice of claims solutions to meet their needs.
A robust claims management system for an insurance carrier supports automated processing and management of claims functions. Generally modern claims systems provide integrated workflow management and task or process management as well. Most come with some level of document generation and document management. User interfaces have dramatically improved with easily navigable screens and easy-to-find contextual help. Adjuster portals, wizards to open new claims, scripting, and recursive questioning all allow carriers to create very intuitive processes and deliver consistent service.
Modern systems typically are browser-based systems with service oriented architectures. Configuration tools are often available for configuring workflows, pages, forms, tasks, roles, and even integration points. Many also have business intelligence tools built in.
With these kinds of features, it’s no wonder that we’re seeing a continuing interest in replacing core claims systems. In fact, over 30% of respondents to a NITRC study in January 2010 cited claims systems as one of their top three priorities for 2010 � a 30% increase over 2009.
Novarica estimates that between 30-40 claims systems new sales were completed in the last year.
Vendor solutions profiled in the report include: Accenture, Aon eSolutions, BlueWave Technology, Brightwork, CSC Advanced Claims, CSC Exceed Claims, DAVID Corporation, Decision Research Corporation, Exigen, FINEOS, Guidewire, Innovation Group, ISCS, LexisNexis, MajescoMastek, Oracle, Paradox Technology Solutions, P&C Insurance, Ravello Solutions, SAP, StoneRiver Claims Workstation, StoneRiver PowerSuite, Tropics Software Technologies.
The report is summarized online at http://www.novarica.com/report_claims_nmn.shtml and may be purchased for $1,500 at firstname.lastname@example.org
Novarica provides information, insights, and perspective on markets, operations, and technology to financial services and insurance executives. The company delivers its service through published research, retained advisory services, and project-based consulting. Novarica’s research includes market and trend analyses, best practices research, case studies, and independent analyses of insurance software vendors. Novarica draws its knowledge from the personal experience of its principals, the ongoing information gathering initiatives of dedicated research staff, and regular communication with insurer executives through informal networks and through the Novarica Insurance Technology Research Council. www.novarica.com.