A large majority (85 percent) of claims executives at U.S. property and casualty (P&C) insurance companies see their claims systems as lacking the flexibility and modernity needed to address consumers’ evolving needs, according to an Accenture (NYSE: ACN) survey of U.S. claims executives.
“Today’s digital-savvy, mobile-enabled consumers expect seamless, real-time interaction with their service providers,” said Michael A. Costonis, a managing director in Accenture Property and Casualty Insurance Services. “For P&C insurers, that means reducing settlement times and enabling policyholders to interact with them about the progress of their claims when and where they want. A modern core claims system is essential to achieving all of these objectives.”
Also according to the survey, a large majority of executives (83 percent) believe their claims systems are not modern and flexible enough to allow them to change the systems’ behavior and business rules without intervention from the IT department.
“Codeless configuration is essential to any high performing claims system,” said Costonis. “By enabling claims handlers to more quickly and easily configure these applications, insurers can continuously improve their overall claims processes and their service to policyholders, while reducing costs.”Among the survey’s other findings:
- Half (54 percent) of those surveyed say their core claims systems are more than five years old and almost one-third (32 percent) of respondents say they rely on more than five different applications to process claims.
- More than three-quarters (78 percent) of respondents say they are on a path to upgrade their claims systems; among these respondents, almost one-third (31 percent) say the last major upgrade was made more than three years ago.
- Two-thirds (66 percent) of claims executives surveyed think their claims systems are not optimized to collect and analyze the growing volume of data available - such as insights about consumers from social media and usage data collected by means of telemetry and Global Positioning System – which would enable them to refine and improve claims management.
- More than three-quarters (78 percent) of respondents say their claims organization is not equipped to manage new forms and level of risks such as cybercrime, terrorism, increased frequency of severity of natural catastrophes.
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