A European insurer’s IT system alignment is
profiled in light of Celent’s Technology Foundations of Advantage.
In a new report, Core Claims System Replacement:
A European Health Insurance Business Case, Celent explains how a
European insurance company decided to adapt to market changes using a
top-down approach and then managed to rethink its overall strategy before
aligning IT resources.
Insurers should take note of this business case
because it is a concrete example of how implementation of a new claims
systems can create changes in companies’ organizations, processes, and
information; it also illustrates how doing so can lead to performance
improvement. Indeed, many questions related to how a claims system can
improve performance have been addressed:
- Processes became simpler and more consistent
through the application of workflow, rules, and content management
capabilities.
- More accurate operating and financial information
was available to managers more quickly.
- Staff expense decreased as the claims system
automated certain functions.
As a result, this business case shows how a European
insurer enhanced quality of its services by providing efficient and
helpful communications to all stakeholders, including policyholders, risk
or benefit managers, and importantly, internal employees. In addition,
risk management encompasses all the areas of insurance that involve
evaluating and pricing risk throughout all stages of the product life
cycle, including actuarial, product design, underwriting, claims
adjusting, and reserving, all of which have been drastically improved at
this insurer.
“Implementing new technologies without clear
understanding of the strategic aspects often, if not always, leads to
troubles,” notes author and Insurance senior analyst Nicolas
Michellod.
This report explores the decision path a European
insurer went through to define a clear strategy and how the company then
replaced its core claims system in order to meet its strategic objectives.
The 28-page report contains 17 figures and two
tables. A table of contents is available
online.
