Minimize insurance claims leakage with the Celonis for Claims Management Control Center

Claims leakage – the difference between the amount an insurance company should spend to settle a claim and what they actually spend – costs the insurance industry billions every year. The key causes of claims leakage? Delays in the claims process, along with errors and inefficiencies that result in unnecessary expenditure.

A prime example of claims leakage is incorrect damage assessments in automotive insurance. Vehicles are often wrongly assessed as repairable and are sent into the repair network, but then ultimately turn out to be a total loss. This results in the insurance company wasting money on things like towing, Unnecessary repairs,  and storage costs, as well as rework when the vehicle is ultimately reassessed, which all contributes to claims leakage.

But understanding what’s causing delays, errors and inefficiencies – and more importantly addressing those root causes – is difficult when insurers don’t have end-to-end visibility of the claims process. That’s the challenge we’re addressing with the Celonis for Claims Management Control Center - powered by Apolix.

The Celonis for Claims Management Control Center is part of the Celonis Platform Apps Program, which enables companies to achieve unrivaled value with domain-specific applications built by its Ecosystem partners on top of its market-leading Process Intelligence Platform. The Claims Management Control Center app provides end-to-end insurance claims process visibility, as well as actionable insights to reduce leakage by optimizing throughput time, prioritization, and process adherence.

How the Celonis for Claims Management Control Center works

The Claims Management Control Center app provides end-to-end visibility into the insurance claims process and actionable insights to reduce leakage by optimizing throughput time, prioritization, and process adherence. By deploying the app, a leading insurance company is realizing over $300K in value per month by better prioritizing credit hire referral fee opportunities.

Here are some key features of the Claims Management Control Center, that allow you to drive efficiency across your end-to-end claims management process and reduce the financial strain of claims leakage:  

1. Indemnity spend analysis: The app analyzes indemnity costs to identify spending trends and inefficiencies. Then it helps to minimize costs by highlighting areas for improvement in claim handling.

2. Process adherence monitoring: The Claims Management Control Center tracks whether claims are processed according to the established guidelines – that happy path from first notification of loss, through to closure of the claim. It identifies deviations from that ideal process that could potentially lead to delays or inefficiencies.

3. Root cause analysis for leakage: The app is ideal for investigating the root causes of financial leakage. It can identify where there are recurring issues that can be eliminated to prevent future losses. This could be as simple as retraining a claims handler in a particular part of the claims process.

4. Predictive analysis of total loss classification: The app can use historical data to forecast the likelihood of claims resulting in a total loss. This allows proactive intervention to manage high-risk claims more effectively and reduce the risk of unnecessary expenditure.

5. Increasing the completeness of information: The app analyzes change behavior in the information on the claim. This allows it to understand which information is critical for a smooth claims process or may cause downstream issues, like incorrect assessment, wrong team assignment, or extensive rework.

6. Valuation comparison: The Claims Management Control Center allows insurance companies to compare the estimated claim value against the final settlement so they can quantify claims leakage more accurately.

7. Automated claims identification: The app can automatically analyze incoming claims and identify those with the highest potential for leakage so they can be prioritized as high risk.

Is the Claims Management Control Center right for you? 

The Claims Management Control Center is the ideal app for anyone looking to improve the efficiency of the end-to-end insurance claims process and reduce indemnity leakage. It’s also useful for those that want to streamline claims-handling to increase customer satisfaction. And it’s an absolute must for those preparing for a system migration, such as a Guidewire transformation.

The app will give your teams real-time, end-to-end visibility of how the process actually runs (not just how they think it runs). It will help them identify high-risk claims and prioritize them based on leakage costs, and then automate actions to reduce spend while improving process adherence and productivity.

Celonis Platform Apps Program

Celonis provides the world’s leading Process Intelligence Platform and together with its partners is continuously growing the Process Intelligence community. To learn how our ecosystem’s best-in-class professional services and software solutions can help you tap the full potential of Celonis, visit our partner page.

Bill Detwiler

Senior Communications Strategist and Editor Celonis Blog

Bill Detwiler is Senior Communications Strategist and Editor of the Celonis blog. He is the former Editor in Chief of TechRepublic, where he hosted the Dynamic Developer podcast and Cracking Open, CNET’s popular online show. Bill is an award-winning journalist, who’s covered the tech industry for more than two decades. Prior to his career in the software industry and tech media, he was an IT professional in the social research and energy industries.