E-Billing: A Strategic Necessity for Group Insurers

December 11, 2002

Abstract

New York, NY, USA December 11, 2002

US group and workers compensation insurers will spend approximately US$220 million on group e-billing projects over the next four years

. Allowing customers to adjust rosters and re-calculate premiums is key right now, while EFT adoption is further off.

Insurers have been offering e-billing for several years, with strongest adoption by the large retail personal lines players. Often overlooked in discussions of e-billing and insurance, however, is the even greater current potential for e-billing to alleviate some of the pain points associated with list billing for group life/health and workers compensation insurers.

Celent痴 new report, E-Billing for Group Insurers: A Strategic Necessity, finds extremely active interest in this space, and projects that by 2006, between 80% and 95% of carriers offering these products will offer e-billing, up from approximately 40% of group accident and health insurers and 30% of group life and annuities insurers today. Celent projects that US group and workers compensation insurers will spend approximately US$220 million on group e-billing projects over the next four years.

"By presenting information to the customer online instead of on paper and giving them the abilities to sort, store, analyze, and most importantly adjust bills themselves, carriers can eliminate unnecessary work, expense, and frustration for themselves and their customers," says senior analyst

Matthew Josefowicz, lead author of the report. "Carriers who have embraced group e-billing have seen reductions in printing/mailing, reconciliation/processing, and customer service costs. But most carriers interviewed by Celent cited competitive pressure and strategic necessity to offer e-service as their primary motivators."

The report examines some of the pain points of list billing and how e-billing can relieve them. It looks at the key functionalities of group e-billing systems, strategies for driving customer adoption, and overviews of technical architectures. It also provides projections for adoption rates and technology spending by carriers, a brief review of some of the leading vendors in the space: Avolent

, CheckFree, eDocs, Whitehill Technologies, and WorldGroup Consulting. There is also a case study of an group e-billing implementation at Harvard Pilgrim Health Care. The report concludes with key points for carriers considering launching e-billing for group insurance products.

A is available online.

of Celent Communications' Life/Health Insurance and Property/Casualty Insurance research services can download the report electronically by clicking on the icon to the left.

        

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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
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Tel: +44 (0)782 448 3336

Asia (Tokyo)
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Table of Contents

 

New York, NY, USA December 11, 2002

E-Billing: A Strategic Necessity for  Group Insurers

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 5
PAIN POINTS AND ROI 6
  List Billing Pain Points 6
  E-Billing ROI 7
KEY FUNCTIONALITIES OF GROUP E-BILLING SYSTEMS 9
  Balancing Benefits to Carriers and Customers 11
TECHNOLOGY OVERVIEW 13
DRIVING CUSTOMER ADOPTION 15
  Emphasizing Customer Convenience 15
  Other Initiatives: Price Breaks? 16
ADOPTION AND TECHNOLOGY SPENDING PROJECTIONS 17
  Projected Adoption Rates 17
  Technology Spending 19
  Buy vs. Build 20
SELECTED VENDORS 21
  Solution Functionalities 22
  Technical Specifications 23
CASE STUDY 25
CONCLUSIONS 28

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