Executive Summary
Amidst disruptive worldwide events and continual pressure to improve profitability, insurers recognize a vital need to adopt new strategies and transform claims processes. Claims costs, including processing costs and claims payments, consume nearly 80 percent of policyholder premiums, but inefficient legacy claims systems lack the means to effectively record, categorize, and analyze the wide array of data associated with claims, making it difficult to transform and improve processes. Insurers, however, find it daunting to embrace sweeping, wide-scale changes that require personnel training, system upgrades, and completely new processes. As a result, while executives universally agree on the need for claims digital transformation, the impact on the claims operations is so significant and challenging that the status quo remains locked in place.
