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Evolution of Strategic Levers in Insurance Claims Management: An Industry Survey

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  • Nils Mahlow
  • Joël Wagner

Abstract

This article discusses competing strategic goals and success factors in nonlife insurers' claims management using new and ad hoc empirical data. We structure the study of the companies' aims along the three main conflicting goals: (1) the minimization of claims volume, (2) the optimization of internal claims processes, and (3) the maximization of customer satisfaction. We analyze the insurance industry perspective through a qualitative survey carried out in Germany and Switzerland. Findings on the current and expected importance of selected topics are derived. The results shall lead to managerial implications improving industry practice and serve as a starting point for further research. Our findings are relevant for academics and practitioners beyond the two markets surveyed in the study.

Suggested Citation

  • Nils Mahlow & Joël Wagner, 2016. "Evolution of Strategic Levers in Insurance Claims Management: An Industry Survey," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 19(2), pages 197-223, September.
    • Handle: RePEc:bla:rmgtin:v:19:y:2016:i:2:p:197-223
    DOI: 10.1111/rmir.12061
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    References listed on IDEAS

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    1. Nils Mahlow & Joël Wagner, 2016. "Process landscape and efficiency in non-life insurance claims management: An industry benchmark," Journal of Risk Finance, Emerald Group Publishing, vol. 17(2), pages 218-244, March.
    2. K A Smith & R J Willis & M Brooks, 2000. "An analysis of customer retention and insurance claim patterns using data mining: a case study," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 51(5), pages 532-541, May.
    3. Lang, Matthias & Wambach, Achim, 2013. "The fog of fraud – Mitigating fraud by strategic ambiguity," Games and Economic Behavior, Elsevier, vol. 81(C), pages 255-275.
    4. Fenn, Paul & Vencappa, Dev & Diacon, Stephen & Klumpes, Paul & O'Brien, Chris, 2008. "Market structure and the efficiency of European insurance companies: A stochastic frontier analysis," Journal of Banking & Finance, Elsevier, vol. 32(1), pages 86-100, January.
    5. Picard, Pierre, 1996. "Auditing claims in the insurance market with fraud: The credibility issue," Journal of Public Economics, Elsevier, vol. 63(1), pages 27-56, December.
    6. Marieke Huysentruyt & Daniel Read, 2010. "How do people value extended warranties? Evidence from two field surveys," Journal of Risk and Uncertainty, Springer, vol. 40(3), pages 197-218, June.
    7. Stijn Viaene & Guido Dedene, 2004. "Insurance Fraud: Issues and Challenges," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 29(2), pages 313-333, April.
    8. Cummins, J. David & Weiss, Mary A., 1993. "Measuring cost efficiency in the property-liability insurance industry," Journal of Banking & Finance, Elsevier, vol. 17(2-3), pages 463-481, April.
    9. Brandstetter, Andreas, 2006. "Schadenmanagement und die Akzeptanz alternativer Schadenregulierungsformen in der Kfz-Versicherung," Arbeitspapiere zum Tätigkeitsfeld Risikomanagement und Versicherung 14, WU Vienna University of Economics and Business.
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    Cited by:

    1. Liselotte Maichel-Guggemoos & Joël Wagner, 2018. "Profitability and Growth in Motor Insurance Business: Empirical Evidence from Germany," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 43(1), pages 126-157, January.

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