To handle the variety and enormous volumes of claims, most insurance companies have continuously been making investments into their claims management systems. As a result, the current claims management systems in most insurance companies are a mix of home-grown and COTS applications. These require continued investments to tide over the inflexibility arising out of the variety of claims, as well as scalability issues resulting from the volumes.

Offerings

NIIT Technologies has wide experience in developing and maintaining Claims Management/Payout Systems for its clients.

Business Value

Here are some of the benefits that NIIT Technologies offers its customers in the area of claims/payout management:

• Automation of manual processes
• Consolidated systems and capabilities across the organization
• Lowered support and maintenance costs, increased savings
• Elimination of the use of TPAs for the payout business

Success Stories

Consolidation of Payout System

The client had an in-house team to take care of two of its payout system installations for the Annuities Payout System. The client's existing team was unable to meet the increasingly stiff SLAs because of the changing nature of the business and increased competition due to globalization.

NIIT Technologies took over the support and maintenance of both these installations, with predefined SLAs, and thereafter, undertook the application merger initiative, whereby one of the payout applications was decommissioned and its functionality was merged into the retained payout system.

Impact: The tangible business benefits for the client are:

• Reduction in maintenance costs per annuity contract from US$ 23.56 to US$ 14.46
• Realization of annual savings of US$ 225,000 due to a reduction in IT support, elimination of payout application vendor license costs, TAG support and CDS
• Creation of a variable payout capability across the organization (prior to the merger, the variable payout facility was available only on one version of the application)
• Configuration of the retained payout application for some of the businesses that were originally maintaining manual payout processes
• Elimination of the use of TPAs for the payout business

Ownership of a Payout System

NIIT Technologies has taken on the complete ownership of payout systems (with over two million policies) for a leading insurance company. We helped the insurance company to merge the various payout systems into a single platform. We also provided solutions to convert the cheque writing system for payouts into an electronic disbursement system.

Impact: Significant savings in ongoing support and maintenance costs