Insurers should take note of this business case because it is a concrete example of how implementation of a new claims systems can create changes in companies' organizations, processes, and information; it also illustrates how doing so can lead to performance improvement. Indeed, many questions related to how a claims system can improve performance have been addressed:
â¢ Processes became simpler and more consistent through the application of workflow, rules, and content management capabilities.
â¢ More accurate operating and financial information was available to managers more quickly.
â¢ Staff expense decreased as the claims system automated certain functions.
As a result, this business case shows how a European insurer enhanced quality of its services by providing efficient and helpful communications to all stakeholders, including policyholders, risk or benefit managers, and importantly, internal employees. In addition, risk management encompasses all the areas of insurance that involve evaluating and pricing risk throughout all stages of the product life cycle, including actuarial, product design, underwriting, claims adjusting, and reserving, all of which have been drastically improved at this insurer.
"Implementing new technologies without clear understanding of the strategic aspects often, if not always, leads to troubles," notes author and Insurance senior analyst Nicolas Michellod.
This report explores the decision path a European insurer went through to define a clear strategy and how the company then replaced its core claims system in order to meet its strategic objectives.