Visionary carriers see SCM 2.0 as an opportunity to improve overall customer experience and policyholder retention through superior service delivery.
Boston, May 3, 2011 � A new report from Aite Group examines the applications of supply chain management (SCM) within North American property and casualty (P&C) insurance claims operations�and specifically, auto claims. It introduces the concept of SCM 2.0, which uses the Internet to increase innovation, information sharing, and collaboration among stakeholders while driving service delivery improvements.
SCM is often seen by P&C insurance carriers as a procurement function focused on controlling cost and quality through the request for information (RFI) and request for proposal (RFP) processes and vendor contract development. It is a process fraught with complications�the market for suppliers is diverse and complex, frequently controlled by the insured�and inadequate strategic sourcing and supplier partner management on the part of the P&C carrier. These complications led to avoidable claim loss costs incurred with supply chain vendors by the carrier. But visionary carriers see SCM 2.0 as an opportunity to address leakage while improving overall customer experience and policyholder retention through superior service delivery. Best practices being implemented through SCM 2.0 allow carriers to utilize rules engine software, which automatically selects the best service provider based on metrically driven, company-developed criteria.
“Technology will continue to differentiate carriers and supply chain vendors from one another with regard to the customer experience and specifically around customer self-service capabilities,” says Stephen Applebaum, senior analyst with Aite Group and author of this report. “The ability to innovate and collaborate�between carriers and their vendor partners as well as between vendors on behalf of carriers and policyholders�with a view to continuously improving the customer experience will distinguish the more successful companies in the supply chain.”
This 23-page Impact Report contains 10 figures. Clients of Aite Group’s Property & Casualty Insurance service can download the report by clicking on the icon to the right.
About Aite Group
Aite Group is a leading independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry. It was founded by leading industry experts in Banking and Securities & Investments. Aite Group brings together a team of business strategy, technology and regulatory experts to deliver comprehensive, timely, and actionable advice to financial institutions and technology vendors. It seeks to become a true partner, advisor, and catalyst by exchanging ideas and challenging basic assumptions to ensure that our clients always stay one step ahead of the competition. http://www.aitegroup.com/
