Claims optimization has been a steady focus for P&C insurers in an effort to improve combined ratios, but these efforts have often fallen short of achieving their anticipated benefits. In our joint perspective with Delta, part of Mercer, It's A People Business - Driving Better Performance in P&C Claims Management, we argue that these failures often stem from an overly narrow focus on claims processes and systems, with the people side of the equation frequently being an afterthought.
People ultimately drive best-in-class claims management - the judgment of individual adjusters strongly impacts outcomes for customers and the company. Leadership must focus on developing, training and retaining the best staff in order to drive real change across organizations. In It's a People Business, we put forth an approach to better claims management that integrates these important people and culture components of optimization with the more classic elements of strategy, workflow, and structure. Additionally, we pose diagnostic questions to help insurers assess the degree to which their claims functions are aligned with their overall corporate strategy.
