LONDON--(BUSINESS WIRE)--According to the latest procurement intelligence report from Technavio, the global claims processing services market is expected to grow at a CAGR of nearly 7% over the next five years due to the high adoption of process improvement measures by suppliers.
The research report titled ‘Global Claims Processing Services Market: Procurement Intelligence Report 2017-2021’ provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning, and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.
“The demand from workplace benefits and insurance related claims characterize the claims processing services industry. The third-party suppliers in the industry differentiate themselves from insurance providers with internal claims processing team through their expertise to reduce loss costs and the associated legal costs,” says lead Technavio procurement specialist Angad Singh for category spend intelligence. “In terms of insurance, many mandatory regulations worldwide have increased the investments in the insurance products across various sectors. The increase in customer awareness toward advantages of insurance products and claims for loss events contribute to the category growth,” added Angad.
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Cost Saving Opportunities in Claims Processing Services
The adoption of various cost optimization levers helps buyers of claims processing services realize cost savings and achieve category management and value benefits (including a reduction in procurement complexities).
Technavio procurement experts have segmented the cost saving opportunities in the claims processing services market into the following value-enhancement opportunities:
- Adoption of technology
- Supplier Competition
- Adoption of negotiation strategies
- Optimization of procurement practices
- Bundling of services
Adoption of technology saving aspects
The use of web-based claims management solutions has reduced the paper-based documentation in the industry, avoiding information loss. Such solutions have reduced the total claims processing time and visibility into the system.
Web-based online portals allow customers to raise claims request online, eliminating the need to visit the buyer or supplier's location in person. For instance, customers can upload claim request information and other details such as photographs directly in the portal.
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Optimization of procurement practices saving aspects
Buyers prefer outsourcing the claims processing services based on their level of expertise in the line of business, high dollar claims, and claims that require specialized expertise. However, buyers need to evaluate and identify whether the claims management process must be selectively or completely outsourced based on buyers' expertise, skills and volume of the workforce, and technological capabilities.
Buyers should develop a claims business plan in collaboration with suppliers to address the basic aspects of claims processing. Claims handling has multiple processes and the involvement of multiple teams throughout the entire claim lifecycle.
Bundling of services saving aspects
Provision of various value-added services by suppliers can increases buyers' negotiation opportunities. As a result, buyers should focus on evaluating the effectiveness of value-added services such as claims advocacy, loss funds management, and investments consulting provided by suppliers.
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