All organisations, large or small, privately owned or within the public sector have a need for insurance. Whatever the risk it is inevitable that at some point a claim will be made. A low number of claims can be administered relatively easily without detriment to other insurance related tasks. As the number increases this becomes more of an issue. If this is the case then a decision needs be taken as to whether to process the claims in house or outsource this work to a third party. On occassion a combination of both options is chosen.
Regardless of the approach, the key attributes of an Insurance/claims handling team are:
- The capture of accurate claims data.
- Prompt dialogue with relevant stakeholders.
- Good relationship with third parties such as loss adjusters, investigators, solicitors etc.
- Analysis of claims data.
- Risk management.
A fast turnaround from point of notification to settlement is of course of paramount importance to the claimant, however, this has to be tempered with what is important to the organisation. With these factors in mind and without the correct support in terms of technology, claims handling can become a complex, labour intensive practice to complete in-house which often leads to an organisation outsourcing some or all of the activities to external companies.
This approach is not without its problems as an organisation can lose itsflexibility, control and ownership of the data leading to inefficiencies in risk management strategies.
This whitepaper explores the various problems that an organisation faces regarding its claims handling procedures, identifying the concerns associated with outsourcing and current issues that face in-house methods. We then continue this theme discussing the merits of one potential solution: the use of a dedicated in-house software solution.