Midsize life and annuity issuers may be more eager to replace their claims administration systems than bigger issuers are.
Analysts from Novarica, a Boston-based research firm, have included data suggesting that possibility in a new review of the life claim administration system
For questions about claim-handling capabilities, the firm received survey responses from chief information officers (CIOs) at a small sample of carriers: 15 large insurers and 10 midsize insurers.
Novarica asked the CIOs about their level of satisfaction with their companies’ current claims administration systems.
At the large insurers, 33% of the CIOs described their claims administration systems as being “strong,” and 67% described said their systems as being “acceptable.”
At the midsize insurers, 40% of the CIOs said their claims administration systems were strong, and 40% said their claims administration systems were acceptable.
But 20% of the CIOs at the midsize insurers admitted that their companies’ claims administration systems are poor.
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