Banks have redefined branch banking following the financial crisis in order to maintain operational efficiency and to improve overall financial performance.

Thursday 19 September 2013, Amsterdam

Globally, non-life insurance companies have been registering increasing payouts on account of claims. To deal with this situation, non-life insurers have been taking measures to make their claims management processes more efficient to reduce claim payouts and to curb claims-handling expenses.

Non-life insurers are improving claims management processes to achieve operational efficiency
The investment incomes of several non-life insurers across the world have been subdued, and, in many instances, less than before the 2008 economic slowdown. This is mainly due to under-performing stock markets which force insurers to seek alternate ways of retaining margins. Increased competition also means several non-life insurers will find it difficult to increase their premium rates, forcing them to improve their operational efficiencies in several functions to secure their bottom lines. Non-life insurers have registered a rising number of claim payouts due to the frequent occurrence of natural disasters; additionally the volume of fraudulent claims has increased. These factors have forced non-life insurers to make their claims management systems more robust.

Insurers have been deploying advanced technologies to enhance their claims management processes
Non-life insurers are employing advanced technologies to improve their claims management processes. Some of these technologies include integrated claims management systems (ICMSs), predictive analytics, claims document and content management systems, mobile solutions, straight-through processing and telematics. To gain a competitive edge, non-life insurers have been implementing ICMSs to ensure that they can keep in contact with customers through the customers preferred device. ICMSs are also being employed to gain a clearer view of claims data, which will help in identifying fraudulent activity. An increasing number of non-life insurers have also been employing predictive analytics to improve their claim management processes. Predictive analytics are used to determine specific choices at the time of claims processing and to determine the long-term business potential of customers so that they can be provided with a better claims service.

Claims document and content management systems provide clarity to adjustors on previous claims data to help them judge claims better. These systems are also being employed to provide an effective feedback loop to the underwriting function so that risks can be insured. Mobile solutions are also being employed to process claims faster by enabling the self-service option. In the case of a car accident, motor insurance customers can use their mobile devices to take a picture of the damaged vehicle and send it to the insurer so that the claim resolution process can be started.

Straight-through processing is another solution adopted to reduce the time taken to settle claims by streamlining the claims workflow processes, reducing the duplication of tasks and reducing the requirements for manual handling. Motor insurance companies have been providing telematics insurance to all premium rates, to be set according to driving behavior. It enables insurers to provide policyholders with feedback on their driving which will help them drive better, limit the incidence of accidents and reduce claims payouts.

Regulations pressurizing non-life insurers to strengthen their claims management systems
The Patient Protection and Affordable Care Act, implemented in the US, drove a number of non-life insurers to make their processes, including those related to claims, more cost-effective. Some of these measures are the establishment of health insurance exchanges where consumers can purchase insurance policies; the streamlining of electronic fund payments by insurers to the healthcare providers; and placing restrictions on the proportion of the premium amount that can be spent on administrative overheads. Furthermore, Solvency II stipulates capital provision norms for insurers to take care of their operational risks, including those related to claims. Solvency II provides insurers with incentives to reduce their capital adequacy requirements by ensuring the smooth flow of claims data and ensuring data security; by resolving claims faster to have fewer outstanding claims; and by ensuring claims data is updated to provide adequate feedback for better underwriting.

This report offers:
•  A look at a global snapshot of the key performance indicators as well as the key trends and drivers within this industry.
• An analysis of the technological trends in non-life claims including integrated claims management systems, predictive analytics, mobile solutions, telematics and more.
• An insight into the market dynamics related to economic risk.
• A breakdown of the functional and operational impact of regulations on non-life claims including the patient protection and affordable care act, Solvency II and the regulations propelling the adoption of usage-based insurance.

This will facilitate:
• The increasing of your knowledge of the factors affecting the operational efficiency within the non-life claims industry.
• Your understanding of the successes within this industry and the challenges it faces.
• A clear understanding of market opportunities and operational strategies to gain or grow your market share.
• A greater understanding of the main trends, drivers and challenges as well as implementation strategies.

Target audience
• Insurance companies.
• Suppliers to insurance companies.
• Contractor research organizations.
• Trade body, academia or other industry observers.
• Companies involved at any stage in the manufacturing, procurement and marketing process.