Renewing the Vows: Claims and IT Work Together To Implement Core Systems
| San Francisco, CA, USA June 1, 2005|
A property/casualty insurance company痴 core claims system is a major determinant of whether it can settle claims quickly and fairly葉hereby safeguarding its financial position and creating positive experiences for claimants. The replacement of a core claims system is a daunting prospect. The good news is that implementing a new system provides the opportunity to improve (almost) everything葉he bad news is that large scale changes are difficult and bring their own set of operational and control risks.
A new Celent Report, " ," outlines the five steps in the process of replacing a core claims system: making the decision to replace the system, choosing a vendor, designing the system, implementing it, and deploying it. A critical sixth step that takes place after initial deployment: adding value through more extensive and intensive utilization of the system.
The report also profiles the experience of four insurance companies and vendors during the replacement of their core claims system: Chubb working with Accenture, CNA and Guidewire, "New Insurance Company" (a pseudonym) and Valley Oak, and MLMIC (Medical Liability Mutual Insurance Company) with Delphi Technology. Each profile examines the insurer痴 motivations and drivers, the steps in the replacement process, benefits achieved, project organization and governance, toughest challenges, and best practices.
"There are six things an insurance company replacing its core claims system must get right" comments Donald Light, senior analyst in Celent痴 insurance group and author of the report. "These are: building existing technology roadmaps and business drivers into the vendor selection process; balancing the timing and size of process and technology changes; making the right decisions about the legacy claims system; having key claims staff deeply engaged with the process; leveraging the vendor痴 people and knowledge; and ensuring effective program and project management."
The 26-page report contains 2 figures. A table of contents is available online.
of Celent's Property/Casualty Insurance research service can download the report electronically by clicking on the icon to the left. Non-members should contact email@example.com for more information.
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].
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