Ménage à Many
Thursday, August 2nd, 2001 Risk Management TechnologyAs a result of mergers and acquisitions, some insurers have found themselves working with multiple claims systems. That gives these consolidated insurers a choice: continue maintaining multiple systems or somehow standardize on a single system. Either option includes costs that must be evaluated carefully. However, there is another option-alternative applications. For many insurers, this new wave of technology has proven to be less costly and easier to implement. If you continue to use disparate systems ("Option 1" in the diagram), you‘ll avoid transition costs but end up incurring in higher maintenance costs and less flexibility: Adjusters must be trained on the various systems in order to handle the claims of multiple subsidiary companies; your IT costs-and time-escalate when supporting multiple systems, especially if they run on different hardware
