Indemnity Spending in UK Property Insurance: Is This a Missed Opportunity?
In the current economic climate, property insurers are looking for ways to better manage indemnity spending. Point solutions may hold the answer to this problem.
Property insurance is the second largest sector in the UK general insurance market and has seen steady growth in premiums for several years. However, claims and expenses are also rising and will continue to erode the underwriting profits of insurers that do not have a tight handle on these outgoings. In a new report, Indemnity Spending in UK Property Insurance, Celent looks at some of the challenges facing the sector, and how technology can support tighter control over indemnity spending.
"Using technology, an insurer can anchor the claim at the point of FNOL, improving fairness, accuracy, speed and consistency of claims. The claim handler can make better decisions about fulfillment choices according to the insurer’s strategies," says Catherine Stagg-Macey, senior analyst with Celent's Insurance Group and author of the report. “These are precisely the types of improvements insurers need to seek in the coming years to protect their property book."
This report explores challenges facing the sector and the shortcomings of the current claims process. In addition, the report reviews two property estimation vendors and their tools available in the UK: Innovation Group (Triage and Symbility.NET) and Xactware (Xactimate and Xactanalysis). Finally, the report expands on the business benefits of leveraging this technology in the claims area of property insurers.