Why now is the time to invest in a new claims management system (Future-proofing Claims)
For much-needed digitalization projects like the Future at Lloyd’s and Blueprint Two to achieve their potential, insurance and reinsurance carriers must move their claims operations to advanced claims management technology like the DOCOsoft CMS.
The digitisation work currently underway at Lloyd’s and in the wider market offers (re)insurers a chance to re-imagine their roles and how they interact with the wider value chain – and adopt a claims ecosystem mind-set. It also expands the scope for applying game-changing innovations like artificial intelligence (AI), machine learning (ML) and advanced process automation.
The market’s latest – and most promising – attempt at taking a great technological leap forward comes at a time when Covid-19 has fundamentally changed the way we live and work. Outdated legacy claims systems are no longer fit for purpose in this ‘new normal’ environment. New claims technology enables multiple users and applications to connect and interact, while orchestrating data and decisions to create a value exchange.
Customisable electronic claims technology can plug multiple application programming interfaces (APIs) into carriers and third parties’ systems, processing millions of rich claims messages. This kind of technology can unlock valuable insights into a new and better future for the subscription-led market model that operates today in London. It can deliver an optimised interface for policyholders, third parties, and market participants, whilst improving communication and transparency.
The new claims technology also supports AI-powered triaging and segmentation, routing claims to the right place throughout the claim lifecycle, with straight-through processing (STP) applied to user-defined categories of non-complex claims. The vision here is a one-stop shop claims service that handles non-complex claims on behalf of the market, using best-in-breed technology, advanced analytics and centrally procured services.
Leveraging third-party technologies and data needs to be a central part of carriers’ integrated digital claims strategies. The power of an integrated all-in-one CMS offers each carrier the opportunity to provide a unique and agile value-add to handling claims. More and more carriers already have such a system, enabling them to steal a march on their peers. This trend broadens the scope for making an effective transition to a future model for claims and aligns the market with the claims vision outlined in the Future at Lloyd’s.
Many claims teams are turning to technology solutions that can plug in multiple external APIs, exchange rich claims messages, gain insights, remove duplication, automate processes and enhance performance. But outdated systems continue to hold back carriers who have not embraced the high-tech approach offered by today’s insurance technology innovators. More must follow if we are to achieve critical mass.
A modern claims management system can help with cradle-to-grave claims – all in one place, supporting customer experience and tech and data led claims decisions. A central aspect of the Future at Lloyd’s project is ensuring that the market claims service partners effectively with data and technology experts to form an innovation hub for data science and AI. This will provide improved claims insights derived from multiple data and analysis sources. It will also benefit from the larger pool of aggregated data available through Lloyd’s.
New technology can integrate with underwriting systems, document management services, sanctions and third-party systems to create a complete, customisable, lifecycle claims solution, driving efficiencies and speed of claims. It can plug in natural catastrophe models, aviation flight data, shipping fleet movements, war and terror heat maps, claims reserving analysis, cyber risk perils and a whole host of other external APIs with cross-functional utility that can help integrate an insurer’s internal and external data.
Robotic process automation can further reduce processing times, reduce costs, and support a better customer experience. Claims predictive analysis, using advanced algorithms, can determine the length of the claim lifecycle, loss development, ultimate value, and fraud.
Claims triage and proactive settlement models can predict which claims should be quickly settled and which should be handled by senior claims professionals. Meanwhile, claims leakage analysis can highlight inefficient claims processing practices, which lead to unproductive costs.
Big-ticket insurance business demands big-ticket expertise, delivered on a claims ecosystem platform that is secure, efficient and future proofed. All of that is possible right now. The time has indeed come to get serious about optimal claims operations performance and invest in the technology that makes that possible.