Claims Execs Required to Do More With Less

Funding for IT projects to help insurers become more customer-centric is largely unavailable.

Insurance Networking News, October 31, 2012

Chris McMahon

Fewer than 70 percent of P&C claims executives are satisfied with their catastrophe-related data management, and while the P&C insurance industry aspires to become customer centric, the IT funding required to achieve that goal is not available, according to “North American P&C Claims Executives and Claims IT Resources: Playing Shorthanded,” a report from Aite Group.

“The disconnect between demand and available budget clearly illustrates the fiscal constraints and competing priorities that all claims executives must balance,” said Stephen Applebaum, Aite Group senior analyst and author of the report. “This conundrum is driving claims executives to focus on what they perceive to be the best opportunities in terms of return on investment and alignment with corporate strategy.”

Percentage of Insurers Satisfied with Current Capabilities

Catastrophe-related data management — 69 percent

Detection of questionable claims — 63 percent

First notice of loss — 60 percent

Integration with third-party vendors — 53 percent

Core claims systems — 53 percent

Business intelligence/analytics, — 47 percent

Casualty cost controls — 44 percent

Claims management tools and solutions — 38 percent

Staff/agent facing mobile solutions — 25 percent

Self-service claims capabilities — 21 percent

Customer facing mobile solutions — 20 percent

Online service cost-reduction functions — 19 percent

“Claims executives, expected to do more with less, are increasingly asked to reduce operating costs, achieve claims excellence, deal with ever-growing fraudulent claims, satisfy the demands of sales staff and customers, and create a growing and increasingly complex group of communication channels,” the company said.

The report was based on a survey of 19 North American P&C insurance company claims executives, and was conducted during May through August 2012. The report identifies claims executives’ perspectives and expectations and discusses challenges encountered and overcome with IT business partners, the company said.

For more information on related topics, visit the following channels:

• Claims