With the insurance industry facing the slowest growth rate since the 1930’s, P&C carriers are looking for ways to improve operational effectiveness and to drive growth, and claims is one of the key areas they’re investing in. In fact, over 30% of carriers in our latest surveys say that claims is one of the top three projects they’re focusing on for 2010. And while we estimate that 30-40 new claims systems were purchased by US insurers in the last 12 months, P&C insurers now have more than 20 active solutions to choose from.
My latest report, Novarica Market Navigator: US P/C Claims Systems 2010 (Q2), published today, is designed to help insurers rapidly understand their options and prioritize their evaluations. The report is summarized online at http://www.novarica.com/report_pcclaims2010_nmn/
The quality of a carrier’s claims service heavily impacts the customers’ view of the carrier because other than the bill, claims are typically the only contact a customer has with a carrier. And a bad claim experience is one of the top reasons for non-renewal. In today’s competitive environment, where retention is a critical imperative for carriers, claims handling is a major source of competitive advantage for property-casualty companies. Claims administration systems are being replaced at an increasing pace in the insurance industry. While many carriers have already upgraded and others are in the middle of a claim replacement project, a majority of carriers are in the planning phase for a core claims system replacement.
Vendor solutions profiled in the report include: Accenture, Aon eSolutions, BlueWave Technology, Brightwork, CSC Advanced Claims, CSC Exceed Claims, DAVID Corporation, Decision Research Corporation, Exigen, FINEOS, Guidewire, Innovation Group, ISCS, LexisNexis, MajescoMastek, Oracle, Paradox Technology Solutions, P&C Insurance, Ravello Solutions, SAP, StoneRiver Claims Workstation, StoneRiver PowerSuite, Tropics Software Technologies.