The core system replacement imperative continues apace at P&C insurers, with the latest research from New York-based analyst firm Novarica indicating that claims revamps are at least on par with the much-publicized policy administration projects.
Novarica's latest report, Market Navigator: US Property/Casualty Claims Solutions 2012, says that 41% of large carriers, 23% of midsize carriers and 33% of small carriers rank upgrades to claims systems among their top three projects for 2012. Carriers are selecting systems that support automated processing and management of claims functions, and provide integrated workflow management and task or process management, according to Novarica.
Claims systems selected are typically browser-based with service-oriented architectures. They also make it easy to configure workflows, pages, forms, tasks, roles, and integration points, with a focus on user experience. Many also have business intelligence tools built in.
“P/C carriers are looking for ways to drive growth and improve operations, and claims is one of the areas they are investing in,” says Karlyn Carnahan, Novarica Principal and an author of the report, in a statement. “It’s clear that claims plays a critical role in the overall success of the carrier.”