Abstract
The property & casualty insurance industry is facing enormous challenges as well as opportunities. Factors including globalization, product commoditization, industry consolidation, regulatory changes, innovative distribution channels, and shrinking margins have presented the insurance industry with a new reality- securing a new competitive advantage is more difficult than ever. Today’s insurers must streamline their operations and make them cost effective in an environment of overcapacity. They must recognize the breakdown of the barriers between financial sectors highlighted by deregulation. They have to differentiate their products and focus on customer satisfaction and retention, while maintaining a competitive cost structure, in order to secure market share from an increasingly demanding customer base.

For long, claims processing has been a focus area purely for achieving operational efficiency and reducing costs. However, there has been a growing realization that, claims processing is essentially the moment of truth for the insurance carriers, when the customer expects the insurer to live up to its promises. Hence, claims processing is being increasingly perceived as a tool for achieving customer satisfaction than as just a potential process for improving operational efficiency. This paper discusses the business challenges posed by the claims value chain and the necessary technology solution to meet these challenges.

Authors Umesh Kumar Rai Ram Kumar Kothandaraman

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