Report: No Single Best Claims Solution

Insurers continue to invest in core claims technology, specifically replacing legacy claims systems, according to statistics from Celent.

In the past two years, 22 vendors—profiled in its current claims systems report—have sold about 95 core claims systems. In the fourth quarter of 2011, roughly the same number of insurers were implementing new systems licensed from these vendors.

Vendors are active as well. According to the report, “Claims System Vendors: North American P/C Insurance 2011,” in the past 10 years, nearly every core claims solution has been migrated to a modern .NET or JEE framework—or was built from the ground up on one or the other. And all solutions have had minor or major releases within the past two years.

With all of the new technology surfacing quickly, where does an insurer start?

While there is no single best claim solution for all insurers, Celent says, there are a number of good choices for an insurer with almost any set of requirements.

“An insurer seeking a new core claims system should begin the process by looking inward,” the report states. “Every insurer has business objectives and strategies relating directly and indirectly to claims operations. It also has its own technology strategy, environment, and perhaps roadmap. Next, an insurer should seek to understand and weigh the capabilities of each vendor (as a long-term partner) and each solution (technology, functionality, customer base, service quality, cost, implementation track record, and on).”

The report, which Celent says provides a starting point for identifying the solutions that merit closer looks, profiles 22 core claims solutions. Sixteen have full profiles and are ranked in the ABCD Vendor View. Six have shorter profiles and are not ranked.

The XCelent Award winners also were named in the report:

XCelent Technology: Guidewire

XCelent Functionality: Accenture and Guidewire

XCelent Customer Base: Guidewire

XCelent Service: Accenture

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