Study Says Insurers Can Reduce Claims Settlement Costs Up to 15%

Percent According to a recent report entitled “Unlocking the Value in Claims,” by Accenture, a provider of management and technology consulting services and solutions, innovative technology and workforce training can help insurers reduce claim settlement costs by up to 15 percent and still comply with good market conduct and customer service practices.

The study, based on an analysis of more than 7,000 settled claims and interviews with more than 3,000 claims personnel throughout North America and Europe, concludes that new technology infrastructures are needed to enable claims handlers to work more efficiently and accurately. Accenture announced the findings at the Risk Insurance Management Society (RIMS) Conference in Atlanta, Georgia.

The study also found that claims handlers spend nearly half of their time on routine administrative tasks that have no direct bearing on settlement amounts. Accenture’s analysis of the survey results found that property/casualty insurers surveyed are more likely to help improve claims performance by adopting information systems designed to: segment claims precisely; provide updated information; encourage consistency; automate routine functions; educate claim handlers; and integrate with vendors.