Our Recent Survey: 60% of Claims Leaders Plan to Shift Their Claims Management to the Cloud
Where does claims intel stand today, and what should we expect from insurance companies going forward? Our recent survey answers these questions and more.
If you work in the field of insurance, there’s a good chance you know about the business benefits that an intelligent claims management solution (CMS) can offer insurance companies. But how widespread is that awareness? Does the insurance world as a whole see the importance of using innovative, data-driven technologies to make claims processing more efficient and minimize claims leakage?
To quantitatively answer those questions and more, we recently commissioned a survey examining the state of claims intelligence today and insurance companies’ future plans. The survey was carried out in January and February of this year by independent research company Global Surveyz, gleaning valuable insights from 100 senior professionals at property and casualty (P&C) insurance companies.
Taken together, the study painted a picture of an insurance industry at a tipping point in its approach to claims intelligence.
For all the survey’s findings, you can download the report now.
At the Heart of the Shift: Automation and the Cloud
The report shows that insurance leaders widely expect to adopt new technologies for stronger claims intelligence in the foreseeable future.
Much of the shift that they anticipate is focused on automation. In fact, when asked about investment plans for 2022, the two areas that stood out as the top priorities for investment (by far) were both related to automation: Some 51% of respondents indicated that the automated capture of all claims-related communication is an investment priority for this year, while 47% said the same about automated claims processing with an integrated workflow.
Similarly, respondents showed significant interest in shifting to a cloud-based claims management. Although 99% of them said they currently use an on-premises claims management solution, 60% replied that they plan to switch to a cloud-based solution by 2025. Most of those—34% of all respondents—said they expect to move to a cloud-based solution before the end of 2022.
Expecting (and Budgeting for) Change
Just as the survey showed a broad eagerness to adopt innovative solutions for claims intelligence, it also revealed major increases in budgeting for these technologies. On average, respondents said their budget for claims management software this year is more than 30% higher than it was last year—$769,000 in 2022 as compared to $585,000 in 2021.
Our survey also revealed a widespread expectation that insurance companies will replace their current insurance claim management software in the foreseeable future. A whopping 82% of respondents said they expect to switch to a new system, including 23% who said they expect to make that change this year and 31% who said they expect to switch over sometime between 2023 and 2025.
Drilling down into the survey results, we can see signs of bottom-up changes, with insurance companies whose gross written premium (GWP) is less than $1 billion tending to be the most inclined to adopt innovative technologies. This finding is not particularly surprising, given that we also found that the vast majority (84%) of companies with a GWP of less than $1 billion managed their claims in-house, while the vast majority (82%) of companies with a GWP of at least $1 billion outsourced their claims management.
Taken together, the survey’s results point to a major shift toward an approach to claims management that relies on new technologies. Our findings reflect an insurance field increasingly eager to adopt intelligent solutions—a sentiment that makes sense from a business perspective. Not only can data-driven claims intelligence technology empower insurance companies to boost the efficiency of their claims management, but it can also help them minimize the expensive phenomenon of claims leakage.
Given the insurance world’s growing eagerness to adopt these innovative digital technologies, there is good reason for all of us to be just as eager to see how the next several years change the way that world approaches claims management.
Where does the insurance industry stand today as far as claims intelligence and data-driven claims management technology, and where is it headed? For all of the insights from our recent survey, download the report today.
