Fewer than 70 percent of P&C claims executives are satisfied with their catastrophe-related data management, and while the P&C insurance industry aspires to become customer centric, the IT funding required to achieve that goal is not available, according to “North American P&C Claims Executives and Claims IT Resources: Playing Shorthanded,” a report from Aite Group.
“The disconnect between demand and available budget clearly illustrates the fiscal constraints and competing priorities that all claims executives must balance,” said Stephen Applebaum, Aite Group senior analyst and author of the report. “This conundrum is driving claims executives to focus on what they perceive to be the best opportunities in terms of return on investment and alignment with corporate strategy.”
Percentage of Insurers Satisfied with Current Capabilities
Catastrophe-related data management — 69 percent
Detection of questionable claims — 63 percent
First notice of loss — 60 percent
Integration with third-party vendors — 53 percent
Core claims systems — 53 percent
Business intelligence/analytics, — 47 percent
Casualty cost controls — 44 percent
Claims management tools and solutions — 38 percent
Staff/agent facing mobile solutions — 25 percent
Self-service claims capabilities — 21 percent
Customer facing mobile solutions — 20 percent
Online service cost-reduction functions — 19 percent
“Claims executives, expected to do more with less, are increasingly asked to reduce operating costs, achieve claims excellence, deal with ever-growing fraudulent claims, satisfy the demands of sales staff and customers, and create a growing and increasingly complex group of communication channels,” the company said.
The report was based on a survey of 19 North American P&C insurance company claims executives, and was conducted during May through August 2012. The report identifies claims executives’ perspectives and expectations and discusses challenges encountered and overcome with IT business partners, the company said.
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