Competing in the modern marketplace has never been more challenging, with its “quickly rising consumer demands and urgent need to reduce processing costs.” Although some companies within the insurance industry are still trying to cope with claims process inefficiencies and data management issues, many have turned to utilizing business intelligence (BI) to revamp their claims process.
“Without claims transformation, efficiency levels and performance were simply not where they needed to be for insurers to effectively compete.”
The initial steps taken to overhaul the claims process focused on improving internal efficiency and productivity, however many companies have fallen short of the mark by failing to utilize the full potential of the data they now possess. “That’s why forward thinking organizations now look beyond the initial value propositions of increased speed, quality and efficiency in claims processing to Claims Transformation 2.0 initiatives, which are focused on harnessing the power of advanced business intelligence.”
With 60% of insurers planning to make an investment into “big data within the next two years, if not earlier,” it is imperative that companies have an idea of which BI solutions will be practical to implement and have a long-term value added. While technologies continue to evolve, companies must make difficult choices on which tools to invest in; as these decisions will represent more than just an operational change. “When embedding BI and analytics into claims-handling processes, insurers must recognize that the move to an objective, data-driven decision-making model represents a major cultural shift. For some in the claims organizations, the transition will be a fundamental change from comfortable ways of working. Struggles are likely, even for those workers who recognize that an objective, data-driven approach is superior.”
“In other words, full BI and claims transformation ROI requires some ‘rewiring’ of the organizational brain.”
“The bottom line: transforming for long-term value creation.”
Ernst & Young: Claims Transformation 2.0
