<img src="https://secure.leadforensics.com/85060.png" style="display:none;">

What trends will disrupt claims management in the next 5 years?

What trends will disrupt claims managemet in the next 5 years?

‘It’s essential to stay ahead of the pack. The industry is changing, and new technology is changing our lives every day. The company that doesn’t pay attention to that or at least stay abreast of what’s happening is going to be left behind.’

Marriott International Inc.’s, Steve Perroots, Senior Director for Claims Services, is constantly challenging his team to think about ways they can better their claims management processes. Perroots’ department is an increasingly rare bird these days – the Marriott corporation continues to be self-insured – a set-up practically unheard of in an organisation of its size. Because the team continually needs to justify their value to the company, they must adhere to an exacting and exhaustive set of criteria.

A high level of scrutiny is becoming more common within the industry, no matter whether claims are being handled in house or are outsourced. As claims managers, we are continually being asked to do more with less. And in order to survive in the next decade, it’s vital to look at our practices in order to stay competitive and relevant.

So what are some of the things that have the potential to disrupt the industry?

Automation

The days of a spreadsheet-based system are numbered. As more organisations realise the value of automating  different aspects of their processes, those that are stuck on manual systems will be left behind.

Automating your processes doesn’t just allow for more time to be spent on the more strategic elements of your role; it also generates more consistent data sets that allow you to undertake better quality-analysis. What’s more, having a system that can easily compare data sets will empower you to look constantly for ways to improve your organisation’s practices, which could lower your claims instances in the first place.

How Hyatt looks to the future

The Hyatt Hotels Corporation’s adoption of Risk Management Information System (RMIS) Risk Console highlights a great example of how automation can impact on practices.

The Hyatt Corporation runs a significant operation, encompassing nearly 600 hotels worldwide. The claims team had the remit for handling over 6000 data points manually, which wasn’t only time-consuming, it was becoming difficult to keep hold of the processes, especially when the company was in a growth phase.

Given that it was difficult to keep track of the data, the team felt that decision-making, particularly around security and safety, could be improved.

Hyatt’s adoption of RiskConsole saw a lot of these processes automated. Being able to collate data in a central location increased the efficiency of workflows and saved significant costs:

  • Total incurred decreased by 16%
  • Average claim cost decreased by 9%
  • Claim count decreased by 7%
  • Lag time decreased by 6%

As Hyatt’s director of Risk Management, Jennifer Pack, states:

‘In the last 18 months, we’ve grown by leaps and bounds in our productivity and the value we’re delivering to this organization. Hyatt has an established culture of safety. Hotels have fully embraced the RiskConsole portal, because they can now proactively manage the financials related to certain types of claims.’

Technological developments in claims management

In the next few years, it is estimated that the technological developments in claims will drive significant changes in the industry, particularly in the area of customer service.

For example, we are seeing forms of artificial intelligence that are much more sophisticated at detecting fraudulent claims than their human counterparts.

The PwC article AI in Insurance: Hype or Reality outlines how this type of technology will streamline the customer experience proposition. The table below, from the article, demonstrates how the technology could refine progress:

Robo-claims adjuster

At the end point the technology may be sophisticated enough to run a lot of the processes. As the article states:

‘AI’s initial impact primarily relates to improving efficiencies and automating existing customer-facing, underwriting and claims processes. Over time, its impact will be more profound; it will identify, assess, and underwrite emerging risks and identify new revenue sources.’

These advances could have a significant impact on the way claims management teams are run, with less emphasis on the routine administrative elements of the job and more focus on the high-end elements of the job.

What do these changes mean for those in claims management?

It’s critical that those in claims management continually seek to upskill, keep up with the latest developments in the industry and make smart decisions about the technology they adopt for their organisation. Those who can be agile and adapt to the changing landscape might not just survive the next few years, but they might find themselves dealt with new and exciting opportunities.

Want to learn more about claims management trends? Then download our guide to optimising claims management processes today.

Optimising your claims management process

Sep 6, 2016

 | Originally posted on 

Subscribe by Email

No Comments Yet

Let us know what you think