As most expense dollars for insurance carriers are claims-related, claims operation efficiency remains a top priority for carriers. Customer and employee expectations are changing due to new technology and experiences with other industries, and the need for advanced capabilities in claims is increasing.
Today, many claims organizations have extended access to core claims systems to third parties via secure APIs to streamline processes, reduce paper usage, and move to a digital experience. Other advanced capabilities include innovative business practices and partnerships, machine learning and advanced analytics, data capabilities that use third-party data, digital channels, and modern core applications.
Over the last few years, Novarica has also seen carriers deploy new capabilities that integrate into the claims ecosystem including support for IoT devices like smart homes and drone. Some of the ways carriers are using these technologies include identifying leaks and flooding before they become serious and assessing damage following catastrophic events.
Digital interactions from FNOL through payment is improving transparency and cycle times for personal lines, and commercial lines customers are relying on advanced analytics. As retention is imperative for personal and commercial lines carriers, operational excellence in claims handling is a key competitive advantage.
The insurance industry is replacing claims administration systems at an accelerating rate, and these replacements are often linked to corresponding replacements of core policy, rating, and billing systems. Traditional claims systems require labor-intensive, paper-heavy processes, are becoming increasingly expensive to maintain, and require skilled developers to make modifications within embedded business rules and logic. As systems have recently modernized, carriers now have a broad range of claims solutions to choose from.
To learn more about vendors active in this area, read Novarica’s latest Market Navigator, Property/Casualty Claims Systems.
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