QUOTE: Managing Claims Key To Insurer Profits

Since claims are the single largest expenditure for a property and casualty insurance company, investing in claims management operational improvements is one of the most effective strategies to drive profitable growth, according to a report by Deloitte.

To enhance operational excellence in claims, the report suggests:

• Technology enablement—Developing an overarching approach to how and where to invest in new capabilities can improve efficiency and increase the likelihood that the technology infrastructure effectively supports the organization's initiatives to enhance operations.In Deloitte’s experience, technology enablement, if employed with proper training to leverage new capabilities, can reduce claims adjusting expenses and increase productivity levels by as much as 20 to 25 percent. In addition to greater efficiencies, technology enablement can also allow carriers to realize better outcomes by focusing on the work that matters, with some insurers achieving up to a four- to six-point reduction in loss ratio.
• Fraud detection—Insurers that adopt advanced fraud detection tools and techniques that promptly identify claims with a high propensity for fraud can reduce losses and may gain a reputation in the industry of being hard on fraud.

Read the full report to learn more about how insurers can gain a distinct competitive advantage that drives long-term, profitable growth and increased returns.