Hartford, Conn. - Claims effectiveness is fast becoming a differentiating competitive feature among property/casualty companies as new measurement and process controls change the way claims are quantified, according to a new study by Hartford, Conn.-based Conning Research & Consulting Inc.The study, "Property-Casualty Claims Management: Unlocking Value" is based on a survey of senior property/casualty claims executives and on statutory data analysis. It examines changes in the insurance environment, and particularly in claims, including technology, staffing, outsourcing, regulatory and catastrophe issues.
According to the study, property/casualty insurers in the United States will pay out an estimated $300 billion net in claims (including case incurred losses and loss adjustment expenses) during 2006. And, incurred losses are expected to approach $330 billion in 2007, on a calendar-year basis.
Other changes are occurring in the insurance industry. "The claims process at property/casualty insurers has been undergoing an evolutionary change that has revolutionary implications" says Clint Harris, senior analyst at Conning Research & Consulting, Inc. "Insurers that have been implementing advanced technologies to support claims adjusters are now looking to enhanced analytics to quantify claims' capabilities to both contain losses and reinforce renewal retention."
"As claims effectiveness becomes more transparent to stakeholders, claims management will have to be viewed as an even more central component of the company's overall health," says Stephan Christiansen, director of research at Conning Research. "Senior insurance executives who are able to define and assure claims effectiveness will be a step closer to unlocking the value of their claims asset."
Source: Conning Research & Consulting Inc.
