Claims transformation – E&Y report

Article Synopsis :

For years claims organizations have been cutting costs, tasked with doing more with less. Most legacy claims operating models and systems have not been sufficient to keep pace with dramatically increasing consumer expectations.

A sea of new technologies is prompting insurers to re-think their direction on claims

In the report “Claims transformation – Riding the wave to sustainable results”, E&Y highlights global industry trends and posits the case for transformation of the claims function across the insurance industry. The report identifies five  factors driving the need for broad-based change, discussing the trends and implications within each:

• Cost and pricing pressures
• Technology and data excellence
• Customer centricity
• Regulatory scrutiny
• Talent management

Per the report, insurers seeking fundamental improvements in their claims operation need to answer these critical questions:

• How do we take advantage of the wealth of claims data and technology?
• How does our claims function contribute to the overall data and analytics capabilities of the organization to improve overall  company performance?
• How do we enhance the customer experience, making the customer a more integral part of the claims process?

Nine specific activities insurers ought to be thinking about include:

• The claims target operating model and organizational design
• Claims transformation business case development
• Claims capability and maturity assessment
• Claims analytics and predictive modelling
• Claims fraud detection, investigation, and controls
• Claims customer experience
• Claims technology assessment and enablement
• Claims change management
• Claims quality and leakage assessment

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