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P&C Claims Automation Solution - A Competitive Advantage
P&C Claims Automation Solution - A Competitive Advantage
A Competitive Advantage
THE COST OF CLAIMS PAYMENTS AND EXPENSES IS THE SINGLE, LARGEST SPEND FOR P&C INSURERS, ACCOUNTING FOR 75%-85% OF TOTAL ADMINISTRATIVE COST
Quality
Many insurers have not re-engineered their claims processes; resulting in continued process gaps, slow processes and poor customer service quality
Customer Satisfaction
The insurance industry continues to score poorly in customer satisfaction surveys. In a recent survey of companies conducted by Business Week, only two insurance companies were included in the top 25 companies identified as The Customer Service Elite by the publication. [1]
Timing
Studies have also shown that customers who receive prompt claims settlements are more likely to renew with their existing carriers. [2]
[1] Jena McGregor with Frederick F. Jesperson, Megan Tucker and Dean Foust, Customer Service Champs, Business Week, 5 March 2007 [2] The American Customer Satisfaction Index, Scores by Industry: Property & Casualty Insurance, 2006
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Claims Management Process
Initiate Claim Determin2 Investe igation Coverage
4 Other Departments
Financial Management
1. When dealing with 3rd parties Inability to measure performance or value Difficulty in selecting and implementing partnerships 2. When managing liability Failure to apply consistent processes to detect fraud and subrogation opportunities Sub-optimal claim handling procedures drive inconsistencies 3. When processing claims Inefficient staffing, processes and organization structure Wasted effort and time in claim handling Poor customer service permeates process 4. When dealing with other departments Competing incentives from department to department Poor integration between claims, underwriting, sales and agency 5. When managing financials Errors with bills and payments Unenforced policy limits & deductibles
Industry Impact
Consistent industry claims leakage of 8-12% of net premiums written Limited visibility into trends as well as issues with the accuracy of information contributes to chronic industry reserve deficiencies Loss Adjustment Expense (LAE) inefficiencies are rationalized as required for severity containment *Source: CSFB P&C Primer, Feb 2006; Claims Magazine 20070
Medical Management
Claim Resolution
Recovery
Focus on increased throughput and reduced overhead Performance based on claims throughput productivity Reduce specialization to balance loads
Contracts Management
Human Resources
Accounts Payable
Claims Management
Process & Rich Model-driven Role-based Reference SingleConfigurable platform to rapidlyConfigurable build case-based applications Content Integration Dashboards Configuration User Interface Applications Unification Capabilities Applications
Best Practices
Solutions up to 50% faster, substantially lower cost Case Management Configuration vs. coding less resources, complexity & risk Monitoring & Reporting Compliance Greater application agility , lower TCO Intelligent Capture Customer Communications Business Process Management Collaboration
The Challenge
Reduce time, effort, and costs associated with documenting claims
18 to 30 days from notification of a loss until claim data completely entered into the system
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Advisory consulting and systems integration teams delivering business value. Industry-aligned accelerator assets providing rapid time-to-value and lower total cost of ownership. A proven delivery track record delivering high value and return on investment.
National Coverage Global Clients NJ Headquarters Dual-shore Development CAGR 20+% Privately owned, 30-year history
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