Business Process Reengineering can be defined as the radical re-design of a process for dramatic improvement. The focus of Business Process Reengineering is not on functions or departments but it is mainly focuses on Processes. Business Process Re-engineering can be applicable in manufacturing, retails and services. When an organization wants to change its process first step is how would organization do the process. The 2nd step is why organization would do the process and the last step is how organization can do the process in a better way.
There are many techniques and tools of Business Process Reengineering like making cross functional teams so that departments would work together in a healthy environment. Another tool of Business Process Reengineering is Benchmarking. Reengineering cannot be successful without leadership. In past there are many examples that reengineering gets fail and the reason of that failure was lack of interest from leadership. Another reason of failure of reengineering is the reaction of employees working in an organization. The biggest mistake which cause this failure is before performing reengineering the organization must give worker the confidence that they are not downsizing but they are just trying to radically redesign and improve the process.
A big misconception about Business Process Re-engineering is that people think Reengineering is downsizing but it’s not true. Reengineering is not downsizing. The focus of downsizing is on reducing the number of people working in an organization but the focus of reengineering is on reducing the number of unnecessary work step in the process which creates no value and are waste of time. This research focuses on Business Process Reengineering in Insurance Sector, so that the claiming process of insurance gets radically improved.

1.2 Problem Statement
In this study the researcher is focusing on Business Process Reengineering in Insurance sector. Today the competition among the insurance companies is very high. All the companies are trying to get ahead from each other but no company is really focusing on improving its service instead they are focusing on advertising only. When a customer needs to do claim he has to wait for a long period of time in order to get his claim. The focus of the study is on reengineering the claiming process of insurance.
1.3 Research Objectives
To propose a new model for the insurance claiming process.
To identify the current model of Insurance Claiming Process in Karachi.
1.4 Research Questions
To find out the existing practices of claiming process in Insurance Sector in Karachi?
What is the total process claiming time?
What is the efficiency of new proposed model?
What is the scope of new proposed model?
1.5 Scope of the study
Insurance companies would get benefit from this research. Insurance companies would get a new proposed model which would be better than the existing model. The existing model has many problems like the total time of the claiming process is very lengthy due to which the customer suffers. The work that should be complete within weeks takes months to complete. The new proposed model overcomes all the problems which are present in the current model. The proposed model not only decrease the total time but also increase the efficiency of the whole claiming process.
1.6 Limitations
Like every research this research also has some limitations. This study is only focusing on claims of fire which makes this study limited. The data collection is done by interviewing the top management of insurance companies but having access to the top management is not an easy task because of their schedules. The top level management was not able to give proper time and overall sample size is not very large which makes this study limited and it cannot be generalized. Time was another limitation as the researcher has to submit all the work within period of one semester; as a result the focus of this study is only on Karachi city. To get access to relevant published article was a tough job as it is mandatory to have published research articles.