Insurance Claims processing
Claims Management - End-to-End Process
Luther Systems have developed a production-ready end-to-end claims management product for a FTSE 100 insurer (the “Client”) using its proprietary LEIA (“Luther Enterprise Infrastructure Architecture”) platform. This claims management system, powered by LEIA, delivered a 90% reduction in both processing times and validation errors in the end-to-end process.
The Client processes hundreds of thousands of supplier invoices per year related to household claims. Of these invoices, 20% are put on hold as a result of problems with existing validation processes. Issues arising include but are not limited to payment of duplicate invoices in error, invoices with values exceeding approved estimates, and invoices issued against incorrect claim or policyholders.
Managing the failure and fall-out from the failure of existing validation processes adds significant costs to the business. This process alone employs over 60 FTE and costs the business several million £s per annum. The average lifecycle of a supplier invoice from submission to settlement is 30-60 days and the Client faces fines from regulators is payment to suppliers are delayed.
Luther product: How it works
Luther Systems developed a blockchain-based technology product built on the LEIA platform. LEIA was able to not only demonstrate the functionality of blockchain-based smart contracts but also prove that the Blockchain-based product creates a better process. The product developed provided a complete end-to-end claim management and processing system.
Two key areas were measured and used as KPIs for this developed process to determine the effectiveness of the blockchain-based product. Under both KPIs, LEIA significantly improved visibility of event execution in the process and provided immediate improvements to the system on implementation. Ultimately the product delivers value for the Client’s end customers while also drastically reducing the Client’s costs.