More than half of insurers to replace their claims system

More than half of insurers are planning to replace some aspect of their claims system this year, according to Celent.

The analyst has claimed that firms are looking to refresh aging systems which have become expensive to maintain and are less flexible than modern systems.

It added that, as there is often a lack of integration between claims systems and policy administration systems, it can also be difficult to aggregate data across legacy systems.

Karlyn Carnahan, research director at Celent’s insurance practice, said: “Given the strategic importance of claims, it's not a surprise that this is an area given tremendous attention by carriers and an area that is benefiting from a great deal of innovation by vendors.

“In addition to the specific economic and financial trends facing carriers, there are additional looming mega-trends such as data, location based services, gamification, social media and collaboration, object recognition, the Internet of Things, and changing customer expectations.

“These disruptive trends are transforming carriers across all functions. These trends impact the economy, society and business, and thereby define the future of insurance and its increasing pace of change. Those who can adapt to these major transformative forces have great opportunities to prosper.”

Carnahan added that, with there being so many reasons to replace claims systems, most firms are now taking actions in this area.