Some Life Insurers Still Hate Their Claims Admin Systems

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

(Related: Novarica Finds a Sign Annuity Issuers Still Need You)

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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