It’s a new year and insurance organizations are fine-tuning their 2014 goals. What technology topics should be on your agenda this year? A 2012 survey by Towers Watson found that 63 percent of claims officers surveyed agreed that workflow processes and claims-handling assignments have improved due to advances in claims technology. Organizations continue to mine data to better manage claims and pinpoint underwriting profitability.
The need for ad hoc reporting in claims management has never been more vital. The ad-hoc reporting function differs from system to system in the claims management software industry. System users want to be able to easily build their own reports and edit existing ones with little to no training. As your business grows, ad-hoc reporting will play a key role in analyzing data.
The majority of insurance carriers still cannot run ad hoc reports without support from their information technology (IT) department. Since the claims department is not a profit center, claims may be the last stop for IT support. Waiting for customized ad-hoc reporting can cause critical and costly delays. Dashboard and graphic reports is another common report that is important to view key information in each claim. Choosing a system that allows sophisticated reporting tools can help improve your organization’s profitability and allows you to manage risk more quickly and systematically.
Many claims experts now consider predictive analytics an industry best practice. These data-mining tools can help analyze claim and settlement values, improve expense management and highlight fraud indicators. Third-party administrators, self-insureds and insurers are diving more deeply into claims data, looking for significant trends to apply early intervention techniques. Predictive analytics can play a key role in building sustainable growth.
In today’s increasingly competitive environment, the need for system upgrades has never been greater. Legacy systems older than five years are less likely to offer the sophisticated data mining features available to improve your customer service and better manage your organization’s claims. The Towers survey states that investments in claims technology will improve these areas:
- Operational effectiveness, such as workflow management and process improvement
- Internal performance benchmarking
- Vendor management, including litigation management, identification of recovery dollars and predictive analytics
Does your system provide all the tools you need to manage current claims challenges? Insurers and self-insureds that invest in improved technology are increasingly realizing the benefits, the Towers survey reported. The right claims management system will be a strong investment in brightening your bottom line.