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9/26/2014
Claims Processor Crawford Seeks Payout with Custom Software - The CIO Report - WSJ
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September 24, 2014, 5:42 PM ET
Claims Processor Crawford Seeks
Payout with Custom Software
Article
Comments
By CLINT BOULTON
Reporter
Crawford & Co.’s move to build applications in-house puts the insurance claims
processor in company with General Motors Co., General Electric Co., and Zulily
Inc., which recognize the competitive advantage of custom software development.
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The Atlanta-based firm, which provides claims management solutions to insurance
companies and self-insured entities, has built more than 30 applications to support
the business over the last 18 months. “If you’re buying something off of the shelf,
you’re like everybody else,” Brian Flynn, Crawford’s CIO, tells CIO Journal. “We feel
like [custom software] gives us a competitive advantage.”
Better tools, new demands from customers conditioned by the rise of mobile and
cloud apps and a growing recognition among firms that better software is a key
driver in differentiating themselves from competitors are behind today’s software
development programs.
For Crawford, another factor was that
commercial software for claims
processing lacked flexibility. The
company found that it could not tailor
the software for each of its insurance
clients, most of which have particular
ways with which they conduct
accounting tasks, create business
reports, or even present information to
their customers. “We don’t like to tell our
clients how they have to do business
with us,” said Mr. Flynn, adding that
flexibility is key in securing customers’
continued business.
Brian Flynn, CIO of Crawford & Co.
Companies are increasingly building
custom software because packaged
applications can’t provide the level of
control, change and differentiation their
customers require, said Bruce
http://blogs.wsj.com/cio/2014/09/24/claims-processor-crawford-seeks-payout-with-custom-software/
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9/26/2014
Claims Processor Crawford Seeks Payout with Custom Software - The CIO Report - WSJ
Robertson, a Gartner Inc. analyst. “If Crawford, or any company, wants to do things
differently from their competitors, the last thing they want to do is use the same
COTS [commercial-off-the-shelf] application that their competitors are using,” he
said.
Among Crawford’s recent efforts is the My Claims Agent app, which enables
consumers to file “affinity” claims, such as when they purchased an appliance they
learned was broken, or needed to reclaim travel fees incurred after an insured trip
was canceled, online in minutes.
Another Crawford app, Cat Connection, expedites claims processing by allowing
Crawford employees to contact, via email and social media, claims adjusters to
warn them in the event that a natural disaster is imminent. Previously, Crawford
employees would phone adjusters to tell them where to go. Such “flash coordination
has enabled us to respond to catastrophes much faster than we ever have before,”
said Mr. Flynn. Claims adjusters access Cat Connection online and as a mobile app
for iPhone, Android and BlackBerry smartphones.
Crawford builds custom apps using cloud software from Appian Corp. Mr. Flynn said
he chose Appian because it specializes in enabling businesses to quickly build
cloud and mobile apps, which Crawford identified three years ago as driving major
changes across businesses. “We always like to think that we’re leading edge,” said
Mr. Flynn, but “everyone’s shooting for us.” Crawford’s competition includes
Cunningham Lindsey Group Ltd. and Gallagher Bassett Services Inc.
In custom development, Crawford keeps notable company with GM, which has
invested in new data and innovation centers and GE, which is building analytics
software to predict maintenance schedules of machines. And Zulily began
developing software in-house after commercial software could not keep pace with
the growth of its online business. “It’s nearly impossible for a [off the shelf] solution
to keep up with our pace,” Zulily CIO Luke Friang told CIO Journal in August.
Read More About:
BRIAN FLYNN, CRAWFORD & CO., GENERAL ELECTRIC, GENERAL MOTORS, LUKE FRIANG, ZULILY
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http://blogs.wsj.com/cio/2014/09/24/claims-processor-crawford-seeks-payout-with-custom-software/
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