Innovation is enabling Insurance Carriers to lower Claims Spend in ways that have not traditionally been available, and the impact is available to all size carriers, whether a regional mid-size, a large national, or a mega-multinational organization Expansive business networks, and ecosystem platforms effectively integrated with claims management processes are allowing for more compliant and automated processes towards contingent labor and the ability to more effectively manage strategic suppliers and negotiated terms.
Traditionally, when we’ve talked about procurement in an insurance organization, there has been separation between spend management, sourcing, and the claims processes. Advances in technology, Interoperability of systems, and expanded digital business networks can now provide a bridge, that not only can provide initial reduced cost and improved customer satisfaction, but can be leveraged as a platform for additional savings and new services.
Extreme Weather Reminder
With the recent news about extreme weather, a lot of discussion has been focused on the speed of responsiveness, and the quality of services provided to policyholders. One area of impact that a strong business network brings is the improved utilization of pre-approved and contracted non-full time employees that are leveraged by the claims organization, including adjusters, Independent Medical Examiners, Private Investigators, Court Reporting and Engineering Firms. With an increasing amount of contingent labor, this is a focus area that is key to compliance, savings and improved service.
In terms of service and repair, breadth of coverage and service offerings are critical. Some cases require spot servicing and spot buys form the network in cases of emergency and towing services as an example. Whereas after a large storm or fire, carriers are looking for the capability to manage a more aggregated, bulk buying or service bidding process on repairs or replacement of goods that can dramatically impact claims spend positively.
Connected Cars, Homes, and Lifestyles are also requiring Robust Digital Networks
Digital networks can also be beneficial in less extreme scenarios, helping to reduce loss and create additional positive touch points with our customers. Consider the rise of the connected car. With an end-to-end solution for telematics, a robust digital network of service providers and parts are required. With smart technology, you can help drivers have sensors installed, serviced and or replaced. You can alert them when their car needs service, and then offer them a selection of quality approved, in-network facilities to choose from for repair. Again, the benefit is reduced costs to both the customer and the insurance carrier, but also just as important supporting additional positive touch points helping create a customer-centric experience throughout the life of the relationship.
Future Proof Platform for Today and the Future
At SAP, we believe that a strong business network is imperative to realize cost and operational savings today. More importantly, we believe that building digital networks now can help insurers future-proof their operations for tomorrow. SAP’s the Ariba® Network is already the world’s largest, most global business-to-business marketplace with more than 3 million connected companies in 180 countries, with commerce transacted on the network on annual basis having soared to nearly $1 trillion.
We all know that insurance is evolving in this digital age. Now, with opportunities to manage spend and become more customer centric at the same time, it’s exciting to think about what lies ahead and the millions of dollars that can be impacted by leveraging these capabilities.