EDS Targets Insurance Claims Management Market
EDS is launching an aggressive strategy to provide the global insurance industry with innovative, advanced claims management solutions. EDS will target the property and casualty marketplace, and feature the award-winning Claims Workstation through an alliance with Fiserv's The Freedom Group.
The new strategy is designed to impact both sides of the claims management equation by improving customer service through accurate and efficient processing.
"This is a great leverage point for information technology-driven business solutions -- the metrics are powerful on each side," said John Crysler, president of EDS' insurance industry unit. "Customer renewal rates are dramatically higher with a good claims experience. While on the business side, with 75 cents out of every premium dollar flowing through this process, there are great opportunities for gains in operational efficiency."
EDS says its strategy builds on its insurance industry experience, which spans more than 35 years, and its extensive systems and technology, business process management, electronic commerce and consulting capabilities. It also leverages EDS' administrative involvement in the flood and specialty insurance industry segment.
Aligning with The Freedom Group bolsters the strategy by teaming two companies intent on developing innovative claims solutions. Within the alliance, The Freedom Group will be primarily responsible for product design and EDS for consulting and implementation. Acquisition of The Freedom Group by Fiserv, Inc. will provide additional capabilities.
Claims a Key Touch Point
"For the insured, submission of a claim is often the only direct touch point -- a moment of truth -- with an insurance company, and thus the time when policy renewal decisions are really made," said Judy Johnson, insurance industry analyst with the Meta Group. "Given high acquisition costs for new customers, service to and retention of existing customers is becoming a critical issue for insurers, who now see efficient and accurate claims processing as a key company differentiator."
The Freedom Group's Claims Workstation will be an important part of EDS' business solutions. This novel system, selected as Top Product for 1997 by Risk & Insurance, was cited for its capability to improve customer service, reduce claims settlement costs and reduce the time required to close a claim. The full service claims management system integrates work management and imaging technologies along with a relational database, to streamline the settlement process.
"We're very excited about this alliance with EDS," said Larry Kane, president of The Freedom Group. "Together, we're able to make things happen faster. These are powerful, real-world solutions that can help insurers enhance their processing capabilities, shorten settlement times and increase productivity. The Freedom Group's software solutions are designed to deliver competitive advantage today, with the flexibility and foresight to meet the needs of tomorrow."
Integration into EDS offerings
EDS will begin using the Claims Workstation for its extensive flood and specialty insurance processing practice, one of the largest in the industry. The software's capability for allowing multiple people to work on different parts of processing a claim and its flexible architecture will provide an immediate benefit.
Additionally, EDS will begin integration of the Claims Workstation into other offerings such as its business process outsourcing (TPA) service, where increased speed, accuracy and efficiency will be an immediate service differentiator. The Claims Workstation will also work in conjunction with EDS' Decision Support Solutions (DSS) suite of products and services.