By finding opportunities for digital transformation within the claims function, insurers may reduce costs and increase performance.
The reduction in profitability due to rising claims rates is creating pressure. In 2019, gross claims payments in the U.S. alone accounted for around $1.57 trillion, 5.5% more than the gross claims payment in 2018.
However, price competition has made insurers reluctant to increase premiums. Insurers must instead look for opportunities to reduce indemnity spending by going after fraud cases, leakage, supplier costs and recovery performance.
Traditionally, claims processing requires a significant amount of manual labor, complicated workflows and incomplete and disorganized data.
The secret is to unlock the potential of the large quantities of unstructured data streaming through the claims function.
