Many insurance companies claim they are planning to update their claims systems over the next three years, opening a wide range of important decisions they’ll need to make in the near term. From streamlining the claims operation to preventing insurance fraud through predictive analytics, significant investments should go hand in hand with compelling return on investment.
The stakes are high, according to Accenture, as reported by Insurance Networking News. The consulting and technology services firm found in a recent survey that property/casualty carriers plan to spend an average of $17.5 million on claims modernization, amounting to an industrywide total of more than $2 billion. The survey reports that 54 percent of respondents indicate their core claims systems are more than five years old, and 78 percent are planning to upgrade.
The property/casualty insurance industry, therefore, is at a critical point. Major changes are on the horizon, and the alternatives available vary in sophistication and effectiveness. Further, the rapid pace of innovation means that rushing into a decision too soon can result in committing just before the best product comes to market.
Today we begin a series of blog posts about claims modernization. In each, we’ll explore the implications of the industry’s potential claims system initiatives, as noted in Accenture’s survey results, and take a close look at how you can make the most effective insurance technology investment decisions in the coming months and years.