ClaimVantage Study Reveals Dissatisfaction with Current Disability Claims Management Technology
ClaimVantage, an innovator in claims management and payment software solutions,
announced the results of a comprehensive study of group and individual
disability carriers’ claims technology. The study was sponsored by
ClaimVantage and conducted by JHA, a disability reinsurance, consulting
and research firm, in an effort to better understand industry
challenges and how technology can assist in successfully managing
claims operations. Of the respondents, nearly half — 46 percent —
indicated lower productivity levels and dissatisfaction with their
current claims management technology. ClaimVantage presented key
findings at the DI & LTC Insurers’ Forum on Sept. 7 at the Hyatt
Regency Grand Cypress hotel in Orlando, Fla. The conference was
sponsored by LIMRA International, LOMA and Milliman.
Overall, the
results of the study indicate that companies across the industry face
similar challenges managing their claims processes largely due to rapid
advancements in technology. Some of the major issues identified involve
claims payment solutions, customized or over-engineered systems and
image-enabled systems. Seventy percent of the respondents have
semi-automated payment capabilities, while the remaining are fully
automated on legacy systems with up to 20 years of in-house development
built-in. Nearly 80 percent of the respondents indicated that their
systems are difficult to maintain because they are highly customized
vendor systems or over-engineered legacy systems. Paperless
environments are rated high on carriers’ wish lists, with only 41
percent using image-enabled systems. Of those, only 50 percent are
individual disability carriers.
“This report indicates
that 81 percent of the respondents are constantly enhancing their
systems to support new functionality,” said Leo Corcoran, chief
executive officer at ClaimVantage. “Carriers and third-party
administrators need a system that delivers the tools to scale to
customer and market changes quickly with minimal training and resources
— this is the key to maintaining a competitive advantage.” JHA
interviewed 27 claims contacts, representing 23 different disability
carriers and third party administrators. The research covered
topics including the functionality of current claims management
systems, whether a legacy or vendor system is in place and which
product lines are managed on those systems. System training and quality
controls were also assessed.
JHA, a subsidiary of General Re
Life Corporation (a Berkshire Hathaway company) is a leading disability
reinsurance, consulting and research firm located in Portland, Maine.
About ClaimVantage
Founded
in Portland, Maine, ClaimVantage helps companies better manage the
complexities of claims and payment processing. The ClaimVantage suite
of products, ClaimView and ClaimPay, addresses the industry-wide need
to reduce the implementation timeline, minimize project cost overrun
and deliver best-of-breed claims software that integrates seamlessly
with existing enterprise software applications. The ClaimVantage
product suite supports the following lines of business: disability,
long-term care, life claims, AD&D, critical illness and
supplemental health products.
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