News
Xchanging "Claims Office of the Future"
29 Sep 2003
Xchanging, the outsourcing group today announced the launch of the "Claims Office of the Future" on Gallery 6 of the Lloyd's building. The Claims Office of the Future is a showcase for Xchanging Claims Services' methodology for Unlocking Value in Claims in the UK Non-Life Insurance Market. The approach has been derived from extensive research into world-class claims practices supported by a range of market claims practitioners. The key features of this new way of managing claims effectively for insurers are as follows:
- Electronic claim files to improve the end-to-end workflow
- Segmentation based on claim complexity
- Claims Leakage to ensure the correct claim is paid with managed costs
The Claims Office of the Future is fully e-enabled, which allows efficient workflow technology to be deployed to evaluate and settle the claims whilst allowing full on-line tracking and reporting of the claims process from first advice to final settlement.
Based on the differing levels of complexity and experience required, claims are segmented into two distinct specialist parts of the organisation known as 'Lean Service' and 'Professional Service':
- The 'Lean Service' operation is a streamlined, efficient operation focussing on dealing with low to medium complexity claims across all classes of business.
- The 'Professional Service' operation is made up of individuals with specialist industry sector knowledge and professional experience in adjusting complex claims. This allows us to minimise claims leakage costs and ensure correct and prompt payment for the insured.
John Slipper, Chief Operating Officer Ascot Underwriting Limited and the first customer of the Claims Office of the Future, said "We see the professional management of claims as a competitive advantage for Ascot. The establishment of the Claims Office of the Future is a significant first step to achieving our goal."
Claims performance is a powerful lever on insurer performance, affecting a broad expense base that includes indemnity payout and loss adjustment expenses. The scale of the expense base is very large - across the UK non-life industry it was over £30 billion in 2001.
Lloyd's Chairman, Lord Levene said, "The Claims Office of the Future is a great achievement. It is the result of a partnership and a vision that was first conceived by Lloyd's and Xchanging in November 2001. It is also the embodiment of so much that we want to achieve in the Lloyd's market - namely a modern, efficient and cost effective business process. By offering value added claims management and processing expertise the new office will radically transform the way that claims are handled, saving time and money in the process. The Claims Office of the Future represents a significant milestone in our quest to transform business processes and I would encourage all of the market to come and see the benefits that can be gained from a modern and streamlined claims process."
Clive Buesnel, Managing Director Xchanging Claims Services, said "We have a proven model for unlocking value in claims which is derived from both innovative new quality approaches as well as class-leading e-enabled technologies. This delivers a business enhancing proposition for insurers as well as more accurate and fluent claims settlement processes for end insureds."