The global non-life insurance industry is experiencing shifting trends across the front office, policy administration and underwriting, and claims – the three core functions of the insurance value chain. This paper examines key emerging trends in the claims function of non-life insurance companies. The claims function is not only the major part of an insurer’s expenses, the settlement process, itself, also determines the customer experience which determines retention rates. To achieve operational excellence and enhance customer satisfaction, there is an increased focus on claims transformation. To that end, non-life insurers are looking to eliminate inefficiencies and reduce claims-related expenses.

There is a significant opportunity to leverage advanced predictive modeling techniques in the claims process. An early identification of claims with high probability of large losses and risk of fraud will allow insurers to proactively manage the settlement process. This will help reduce fraud-related costs and improve customer experience.

A sharp rise in social media offers abundant opportunity for non-life insurers to utilize the information generated on these platforms. Social media platforms may provide a significant amount of information related to claimants and incidents during fraud investigation of a claim. While a number of non-life insurers have already started manual investigation, an automated capability will allow insurers to leverage social data to its full potential.