EDS Introduces E-Business Solutions for Insurance Industry

Strategic Insights -

EDS has launched a suite of electronic business (E-Business) solutions designed to ease the transition from paper to electronic payments for insurance companies. This shift is crucial in today's converging financial services marketplace, where ease of doing business is a significant factor in the buying decision. Traditional paper trails are inefficient and expensive, while electronic bill presentation and payment (EBP&P) can be quick and easy for customers, intermediaries, and trading partners.

Key Takeaways:

  • EDS has introduced a suite of E-Business solutions for insurance companies to ease the transition from paper to electronic payments.
  • Electronic bill presentation and payment (EBP&P) is a key component of E-Business that insurers are starting to explore for competitive advantage.
  • EDS' Integrated Payment Services (IPS) is a comprehensive package that controls the complexities and manages the movement of paper bills and payments to electronic business.
  • IPS addresses internal process and technology issues facing insurance companies and provides a means to gain competitive advantage in a market transformation.
  • Killen & Associates forecasts that bills presented and paid electronically in the insurance industry will grow from 3% to 70% in 2005.
  • EDS clients already using the first IPS offering, Billing and Receivable Services, include Nationwide and Omaha Property and Casualty Insurance.
  • Billing and Receivable Services integrates existing technology to process more than three billion transactions per year.
  • Tom Warsop, Vice President of EDS Insurance Industry Solutions Group, stated that the company's goal is to provide a plan to help insurance clients promote the evolution to electronic payments.

Statistics:

  • 3% of insurance industry bills were presented and paid electronically in the current rate (Source: Killen & Associates).
  • 70% of insurance industry bills will be presented and paid electronically in 2005 (Source: Killen & Associates).
  • 500 million bills presented and paid electronically in the insurance industry will grow to an estimated 5 billion in the next 5 years.
  • 3 billion transactions per year are processed using EDS' existing technology (Source: EDS).
  • 1,000 EDS customers use the company's remittance processing system to process transactions (Source: EDS).
  • 4,500 client relationships worldwide are held by EDS in the financial services industry (Source: EDS).
  • 35 years of experience in providing services to the global information services industry make EDS a leader (Source: EDS).

Sources:

  • Killen & Associates
  • META Group
  • EDS
  • Patricia Saporito, Vice President and Director, Insurance Information Strategies at META Group
  • Tom Warsop, Vice President of EDS Insurance Industry Solutions Group
  • Martin W. Dourney, President/COO, Omaha Property and Casualty Insurance Company
  • Beth Levine, Insurance: Electronic Business Development at EDS
  • Larry Marshall, Financial Industry Group at EDS