Optimising claims handling costs is a crucial topic in the insurance sector, as it directly affects customer relationships and operational expenses. Insurance companies face the challenge of balancing efficient claims settlement with managing expenditure, which has prompted a growing need for improvements through FinTech solutions. Automation, system integration, and centralised data management are among the key strategies insurers can adopt to streamline claims handling and reduce costs.
Comarch highlights practical ways insurers can cut claims costs by automating core operational processes.
Drawing on insights from transformation projects across Europe and internationally, it explores improvements such as integrating systems, automating claim workflows, centralising documents, allowing flexible system configuration, and tracking performance metrics. The guidance is intended as a useful reference for insurance companies planning claims settlement transformation.
There are two main approaches to reducing claims handling costs. The first focuses on improving simple, repeatable processes common in high-volume insurance lines like health or motor insurance.
Automation here enables rapid and efficient handling of large claim volumes. The second approach targets complex claims, such as in life insurance, where the process involves fewer but more intricate claims.
Automation in this context encompasses the entire claims lifecycle—from first notification (FNOL), client portal interactions, document verification, to validation against policy terms—often requiring coordination across multiple people. A smooth automated workflow can significantly enhance efficiency in these cases.
Several specific improvements can deliver meaningful cost savings, with realistic expectations of around 30% reduction depending on the insurer’s current state and resources.
Key enhancements include deploying innovative front-office systems to increase availability and transparency, automating complaint handling with auto-reporting and prioritisation, and centralising complaint and documentation management in a secure single system.
Automating payments by integrating with accounting and banking systems can enable near real-time payouts, accelerating claim settlements.
Using document management systems (DMS) reduces manual handling of paper and emails, while standardised document templates help minimise customer disputes.
User-configurable permissions and navigation widgets support better system usability and KPI monitoring. Integration of claims registration with policy, accounting, and DMS systems further cuts processing times.
Despite the potential benefits, transformation projects encounter barriers such as high implementation costs, uncertain return on investment (ROI), and organisational resistance. These challenges can be managed by adopting a phased rollout, focusing first on areas with the greatest cost-saving or efficiency potential to achieve quick wins and justify subsequent investment.
Delivering early working solutions within months accelerates ROI. Overcoming resistance requires clear communication and employee engagement. Experience shows that with the right strategy, claims automation projects are achievable and sustainable.
Ultimately, cost optimisation through claims handling transformation is about more than cutting expenses. Intelligent automation and system integration convert claims processing into a strategic advantage, enabling faster settlements, fewer errors, and enhanced transparency.
Employees become more empowered, and customers benefit from quicker, smoother service—strengthening trust and loyalty. Success demands a clear, phased strategy that balances technology with change management, helping insurers future-proof their businesses in an increasingly digital and customer-centric market.
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