New claims management system to significantly reduce costs and increase efficiencies for P&C carriers
Portland (Maine) - July 18th, 2002. FINEOS Corporation, the leading innovator in insurance and banking software, has just released FINEOS Claims Management for the property & casualty insurance sector. Targeted at the personal injury, auto, property and commercial claims niches, the system provides a central application to streamline the manual costs associated with claims processing, and supplements the company's current disability management solution which was launched last year.
By combining multi-channel claims intake and business process automation with case management, document management and customer relationship management (CRM) components, FINEOS Claims Management reduces the amount of time and money spent on processing claims. At the same time, it also increases customer satisfaction and the long-term potential to initiate cross-selling activities.
FINEOS Claims Management fully automates the bulk of the tedious, error prone processes associated with claims handling. From claims data capture through all stages of case management, the system co-ordinates and manages the various parties in the claims process and enables claims personnel to access consolidated customer, policy and involved-party information and documentation in real time, whether claims intake is conducted via web, mail, fax or telephone. By providing access to this data via secure internet portals, the system fulfils self-service needs and provides claimants, loss adjusters and third parties with the ability to submit claims, complete forms and monitor the progress of claims online.
Automated workflow allows end-users to automatically route and manage claimants' tasks and the flow of claim-related data, while work volumes can
be monitored, balanced and adjusted. Electronic document management eliminates photocopying, mailing, duplication and loss of files and the volumes of paper work typically associated with the claims process.
FINEOS Claims Management delivers several key benefits for property & casualty insurers. The system significantly increases efficiency and reduces the overall time needed to service a claim by automating the many time consuming, routine administrative tasks normally performed manually. When this is combined with the system's innovative concurrent claims processing feature, which enables multiple claims processing tasks to be executed simultaneously, FINEOS Claims Management can reduce overall claims administration costs by 25%. Claims leakage is also reduced through stricter triggers and processes for recoveries management. In addition, the system allows claims staff to instantly access a consolidated view of customer and claim details, improving the service experience for the claimant and enabling better management of the claims organization's supplier network.
FINEOS Claims Management is designed to address the issue of widespread inefficient claims processing across the insurance claims industry. The claims function is the single largest overhead in an insurance company, accounting for an average of 80% of total overheads. Yet, industry analysts Accenture calculate that more than 40% of the time spent in the claims handling process is associated with routine overhead functions that have little or no impact on the outcome of the claim. They believe that technology is the key factor in remedying this situation: "Technology is the key component of the total system, that will simultaneously improve the outcome of claims and reduce the amount of time consumed by low-value functions" (Accenture: Counting the cost of Claims, April 2001). With claims professionals moving over US$200 million annually, FINEOS Claims Management is perfectly positioned to help property and casualty carriers revolutionize this area of their business.
Commenting on the release, Leo Corcoran, Senior Vice President for Business Development for FINEOS North America, said: "There is clear evidence that managing claims is the most costly and time-consuming process for an insurance company. FINEOS Claims Management will automate the whole process, lessening the need for manual intervention and shortening the overall cycle time. The end result can be a reduction of overall claims administration costs and, perhaps more significantly, a freeing up of reserves."
FINEOS Claims Management is built on a scalable, component-based architecture that is easily and rapidly deployable without the need to modify or disrupt mission-critical business systems. Open and flexible, it integrates easily with back-office policy administration and accounting systems as well as with other third-party expert and estimation systems. Furthermore, the system's straight-through processing capability allows seamless real-time legacy systems updates.
The launch of FINEOS Claims Management for the P&C sector follows the release last year of the company's disability insurance solution, FINEOS Disability. This multi-channel intake and claims management system is currently being implemented at Fortis, Inc.