Insurance Claim Process Reengineering

This assignment explores the concept of reengineering within the context of insurance claim processes. It delves into various methods organizations can adopt, such as Davenport's five-step approach and Hammer & Champy's six-step methodology, outlining their advantages and disadvantages. The document emphasizes the importance of process improvement for cost reduction, increased customer satisfaction, and staying ahead of competition in the insurance industry.

Running Head: ORGANISATION REENGINEERING 1
ORGANISATION REENGINEERING
Student Name
University of Affiliation

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Insurance claim process model

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Areas for the company to improve insurance claim and how beneficial it will be.
Insurance model should be upgraded to take advantage of the information technology as this will
benefit them from an increased market share through best practices enforcement process which
helps insurers reduce claim leakage and adjust loss expenses.
Claim handling department. The process of assessment should be made faster and effective, this
will bear positive impact on the customer satisfaction.
Response time for claim handling. Once a customer has submitted claim, it should take little time
possible for the claim to be handle, this will help the company stay ahead of competition due to
customer satisfaction.
Implementation of claim management system, that allows user to perform end to end claim
processes. This will help insurers realize efficiency and productivity gains.
Reasons for reengineering implementation process.
Reengineering process is the radical redesign and reorganization of an enterprise to lower costs
and increase quality (Champy and Hammer, 2014).First business reengineering may bring new
ways of customer satisfaction, employees and stakeholder’s satisfaction with an aim of bringing
about different results. Secondly To remain ahead of competition in the market, it might require
redesign of some business process. Thirdly redesigning the process creates a chance for an
organization to be able to expand to other industries hence accommodating new era of change.

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Finally taking advantage of information technology advancement and big data, reengineering can
be used as a cure for behavioral problems and systematic processes.
Explain the different methods an Organization may adopt when implementing a
reengineering process. Explain the advantages and disadvantages of each method.
Daven Port methodology
Daven port set out a five step approach for any organization to use during business process
reengineering.
 Development of process objectives and business vision. BPR is a vision business driven
activity, with some objectives to achieve such as cost reduction.
 Identification of processes to be redesigned.
 Measure and understand existing processes, with knowledge of existing system it helps to
provide a baseline for future improvement.
 Identify Information Technology levers. Information technology awareness should
influence BPR.
 Prototype building for the fresh processes, the authentic plan ought to be regarded as a
prototype.
Advantages
It saves on cost since the prototype provided can be modified before implementation.
Disadvantages
Does not create awareness on importance of BPR hence leading change resistance.
Hammer and Champy Methodolgy

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Hammer and Champy approach to an organization implementing BPR consist of six steps
 Introduction into business reengineering, an organization should have vast knowledge
about business reengineering importance.
 Identification of the business process, an organization has to identify key process that has
impact to its functioning.
 Selection of business processes, the organization has to select business process when
reengineered will place it in competitive advantage as well as bring customer satisfaction.
 Understanding selected business processes.one needs to have good knowledge of the
existing process to avoid repeating same mistake.
 Redesign of selected process. The selected processes have to go through a redesign
process so as to incorporate suggested changes.
 Implementation of redesigned process. Implementation is done hoping to achieve set
objectives.
Advantages
It provides user with knowledge on importance of reengineering process.
It highlights key processes to be reengineered.
Disadvantages
It is expensive and time consuming.
Reference

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Champy, J. and Hammer, M. (2014). Reengineering the corporation. [Place of publication not
identified]: HarperCollins e-Books.
Davenport, T.H., Jarvenpaa, S.L. and Beers, M.C., 1996. Improving knowledge work processes.
Sloan management review, 37(4), p.53.
Klein, M. and Petti, C., 2006. A handbook‐based methodology for redesigning business
processes. Knowledge and Process Management, 13(2), pp.108-119.
(2017). [online] Available at: Malhotra, Yogesh. "Business Process Redesign: An Overview,"
IEEE Engineering Management Review, vol. 26, no. 3, Fall 1998. (URL:
http://www.kmbook.com/bpr.htm) [Accessed 11 Oct. 2017].