Firstly by knowing there are technology solutions and to exploit these they must address the limitations that hold them back:-
Culture, Strategy and Skills
- There needs to be a commitment across the organisation and from bottom to top to the vision and strategy for digital transformation
- Lack of digital skills and resources- you may have to hire outsiders to transform
- What got you here today will not get you there tomorrow
Legacy systems
- 15 years old or even 25 years and more
- Unsuited to digital claims but too expensive to replace
- Needs a digital platform layer with practical API integration
- That allows fast digital deployment without having to replace core systems in short term
Technology
- Need platform solutions rather than digital tools
- Complete, addressing the whole claims value chain including suppliers not just incremental processes
- Future proof- API architecture to add best-of-breed apps
- Owned & controlled by business users rather than shackled by IT
Operational and Claims Costs
- Business cannot afford escalating platform CAPEX costs
- Require Subscription or transaction licensing for efficient cash-flow and lower licensing costs
Given a digital claims platform that overcomes these limitations insurers can tackle McKinsey's five five essential elements needed to digitize and transform property-and-casualty (P&C) claims.
- Digital Claims Prevention
- Digital FNOL
- Automated Claims Management
- Digital Loss Assessment and Repair
- Automated Settlement
Well worth looking at the detail in the McKinsey paper linked below.
Claims in the digital age: How insurers can get started With new attackers on the hunt for customers, incumbents must move quickly to integrate digital technologies into their operations. Claims should be a top priority. To capture the value of digital, claim functions must embark on a transformation to become customer-centric, digitally enabled organizations. So where to start? We offer five essential elements needed to digitize and transform property-and-casualty (P&C) claims. By examining each of these areas, P&C claim functions can start to rethink the claims customer journey and back-office processes. This approach should be synthesized into an aspirational future state that outlines the digital assets needed to achieve the ideal state (interactive).
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