Portland, Maine - Companies across the disability insurance industry face similar challenges managing their claims processes largely due to rapid advancements in technology, according to results of a study of group and individual disability carriers' claims technology. The study--sponsored by Portland, Maine-based ClaimVantage Inc. and conducted by JHA, a disability reinsurance, consulting and research firm also located in Portland, Maine--revealved that 46% of the respondents indicated lower productivity levels and dissatisfaction with their current claims management technology.Some of the major issues identified in the study involve claims payment solutions, customized or over-engineered systems and image-enabled systems. Seventy percent of the respondents have semi-automated payment capabilities, while the remaining are fully automated on legacy systems with up to 20 years of in-house development built-in.
Nearly 80% of the respondents indicated that their systems are difficult to maintain because they are highly customized vendor systems or over-engineered legacy systems. Paperless environments are rated high on carriers' wish lists, with only 41% using image-enabled systems. Of those, only 50% are individual disability carriers.
"This report indicates that 81% of the respondents are constantly enhancing their systems to support new functionality," says Leo Corcoran, chief executive officer at ClaimVantage. "Carriers and third-party administrators need a system that delivers the tools to scale to customer and market changes quickly with minimal training and resources; this is the key to maintaining a competitive advantage."
JHA interviewed 27 claims contacts, representing 23 different disability carriers and third-party administrators. The research covered topics including the functionality of current claims management systems, whether a legacy or vendor system is in place and which product lines are managed on those systems. System training and quality controls were also assessed.
Source: PR Newswire
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