Damages, accidents, and mishaps are part and parcel of life and occur quite often. People may accidentally cause damage to someone else’s property or find that their own property is damaged. Fortunately, most people and organizations would have their property and possessions such as house and car insured. Additionally, insurance can include life insurance and travel and third-party liability insurance as well. In the case when the loss arises due to any events, it’s up to the loss adjuster or claims manager to settle claims as quickly and efficiently as possible. Claims management software assists claims manager by automating end-to-end claims process, including planning, monitoring, and managing actions that arise due to insurance claims. The market for claims management software is increasing with the subsequent growth of the global insurance market.
The demand for claims management software is strongly driven by the robust growth of the global insurance sector and the increasing focus of insurance companies to provide a better experience to their customers during the claims management process. Moreover, cloud-based deployment is being preferred by the buyers across the world as it provides them with convenience and cost savings. Additionally, they are also demanding solutions that offer real-time tracking and analytical capabilities. Such capabilities help them reduce claims leakage and their operational costs as well.
Global supply scenario
The supply market for claims management software is relatively fragmented. The market has numerous global players who offer software packages and enterprise solutions to companies all over the world. Additionally, there are multiple regional players as well who cater to the specific needs of buyers within a geographic region. To grow and gain a competitive advantage, suppliers are continually adding new functionalities to their software and integrating advanced technologies such as AI, predictive analytics, and machine learning. Suppliers are also seeking to offer customized solutions and value-added features to their core product. One exciting trend seen in this market amongst suppliers is the fact that they are shifting their business processes to developing countries as they have greater accessibility to a skilled workforce and can also save on labor costs.
The claims management software market has witnessed a rapid rise in the adoption of AI in claims processing. AI technologies dramatically reduce the number of errors associated with manual claims processing procedures and also expedites claim processing. For instance, AI is being used in the form of chatbots to receive the first notice of loss (FNOL) from the consumers. Upon receiving the claim, the chatbot engages with the client to understand its claims and provides initial assistance. Additionally, predictive analytics is also used by companies to study the characteristics of historical claims and identify patterns that allude to fraudulent claims. This technology is also being used to generate fraud risk profiles of clients that show characteristics similar to historical fraudulent claims.
Pricing in the claims management software market
Sellers price their solutions using either consumption-based, perpetual license, or subscription-based models. Currently, subscription-based model is the widely used pricing model in this market. Buyers are willing to engage with suppliers with subscription-based payments as it involves low upfront costs, and buyers can easily switch suppliers in case their expectations are not met.
Top 5 claims management software providers
Read more about the demand and supply market landscape of the claims management software market along with procurement insights, supply market landscape, pricing models, and technological advancements in SpendEdge’s upcoming report on the global claims management software market.