- Insurance exchanges are the key to maximising revenue on claims -
The insurance industry can potentially save $20 billion through the construction of online insurance exchanges, according to a new white paper published this week by KPMG Consulting. The report - 'Collaborate and Compete' - outlines the benefits available to non-life insurers from online exchanges and predicts the growth of this market over the next five years.
Chris Gentle, Head of Research at KPMG Consulting and author of the white paper commented: "Transactions on business to business online exchanges are forecast to rise from $145 billion in 1999 to over $4.5 trillion by 2004 . Meanwhile, the amount of claims settled by the EMEA insurance industry in 2000 is predicted to exceed $340 billion. Online exchanges could be used to process a large proportion of these claims. By automating the claims process in this way, it is possible to reduce overall transaction and purchasing costs, increase the speed of claims