The solution that saved one firm hundreds of millions of pounds

Content Management

by Duncan MacRae| 16 June 2014

AIG's claims expense has been reduced by new enterprise claims platform.

American multinational insurance corporation ,AIG, serving 131 countries, has been an innovator in leveraging advanced BPM technology throughout the enterprise for the last decade.

The company's management team decided that a new comprehensive approach to claims management was needed worldwide. The existing methods were not producing consistent results for the enterprise or the customer. The company diligently surveyed the market for an acceptable claims platform to support its global business vision. The search did not yield a workable solution that could meet the carrier's ambitious goals.

Towards teh end of 2013 AIG turned to Pegasystems (Pega) to deliver a single worldwide platform that would allow them to institutionalise 90 years of claims management experience.


AIG launched a major initiative to capitalise on its vision and to fully leverage the organisation's global reach. However, the management team knew that many challenges had to be overcome in order to deliver on the vast promise of a single claims management approach that spans their global operations. Pega's scalable architecture, combined with a strong governance model, provided the right platform to help this project succeed. AIG leveraged Pega's rules-based technology to create a configurable, "claims-process- core" designed to be reused across a global enterprise. This inherent flexibility has proven to be the strength of the deployment, delivering a solution that can be rapidly customised to accommodate the evolving business needs and regulatory requirements of the different regions it serves.


Business results confirm the competitive benefits of the global claims program. For instance, the UK has shown significant operational improvements in process efficiency across both Commercial lines and Motor (Auto). Claims handling cycle times have been reduced by 30% and adjusters can now expedite claims to the "right resource, right time" to deliver the optimal claim outcome. The result is an enhanced claim service experience combined with significantly improved operational performance. In fact, a 10 point reduction in combined ratio for individual lines of business has been achieved.

While these advancements are staggering, another great achievement has been a huge reduction in expenses associated with global claim leakage. Robust claims, case management automates processes designed to mitigate loss potential, delivering a 5+% reduction in indemnity expense. Furthermore, enhancements in adjudication accuracy have delivered a much higher return on investment (ROI) than originally forecast. Improved service, better and more consistent results, and reduced costs represent a triple threat that has this carrier's global competitors re-thinking their markets.

Source: Company Press Release

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