The Beginning of the P&C Insurance Claim Management Process

It is hard to believe, even for insurance industry professionals, that First Notice of Loss (FNL) is the beginning of the P&C insurance claim management process.

But that is too myopic a perspective.

The beginning of the P&C insurance claim management process is the underwriting process that determines acceptance or rejection of a risk (or set of risks).

No, that still isn’t the beginning of the P&C insurance claim management process..

The beginning of the P&C insurance claim management process is the product development process to create new products or enhance existing products.

No, that still isn’t the beginning of the P&C insurance claim management process.

The beginning of the P&C insurance claim management process is the creation of the insurance carrier’s strategy to manage the changing risk landscape.

That seems reasonable to me.

The P&C insurance claims management process is not an island onto itself. It is an integral, and critical, component of an insurance carrier’s value-add to society of managing or otherwise mitigating risk (through the use of legal contracts that stipulate the terms, conditions, and restrictions defining which risks, or parts of risks, will be paid and which risks, or parts of risks, will not be paid.)

From an insurance business / operational systems viewpoint, there is only limited value in an insurance carrier having a claims management system that is not part-and-parcel of the other core administrative systems required to keep the insurance carrier operating.

I suggest that if the entire set of core administrative systems is not part of a communications and collaboration system that encompasses the entire portfolio of SoR, SoE, and SoI, the carrier is hobbled in any attempts to successfully compete.

(SoR = systems of record; SoE = systems of engagement; SoI = systems of insight)