Insurance firm CIS has reported savings of £30m on its claims bill after restructuring its claims management processes and systems around SAP software.
The motor and home insurer, which is owned by Co-operative Financial Services, said the savings had come from process improvements, improved anti-fraud measures and enhanced business intelligence.
CIS embarked on a claims transformation programme 18 months ago in a bid to better identify fraudulent claims and take out manual and paper-based processes.
Replacing the firm’s ageing mainframe with a new system to enable radical process change was the key challenge, with speed to market another consideration.
Jamie Allsop, programme manager for claims transformation at CIS, said SAP was chosen in part because CIS wanted maximum out-of-the-box functionality.
“At the outset, the plan was to go live in July, but by keeping customisation to a minimum we came in four months ahead of schedule to begin the roll-out in April,” said Allsop.
“Our initial plan was less than 10% customisation, but we have been able to improve on that partly because we could choose process improvements that matched SAP’s functionality.”
CIS is working with SAP and Accenture to implement the system, which has so far been rolled out to about half of its 350 motor claims staff. Everyone on the motor side should be on the system by the end of July, and by October its household claims handlers will embark a similar phased transition.
The change programme has enabled CIS to reduce the number of claims offices from 18 to seven, the company said.
“The 18 offices we once had were all generalist claims offices,” said Allsop. “Now we have a front office running SAP that performs a triage function and can process simple claims in its own right, or else pass on more complex cases. With this framework in place, we plan to eventually have the hub front-office plus just four specialist offices.”
Alongside the SAP deployment, CIS is also using document imaging software from Vignette, enabling the firm to move towards a paperless environment where all documents are scanned to be presented on the SAP workflow.
The transformation programme has seen all claims staff issued with desktop PCs – one to four was the ratio until recently – which run on Windows 2000 and link with IBM’s DB2 database.