As we reach the end of the calendar year, many in our industry are reviewing their key performance metrics and looking for ways to improve.
Claims management, in particular, gets a lot of attention. How well your team performs this function has a significant impact on your bottom line.
Claim management organizations typically measure and monitor traditional claims management metrics in order to benchmark themselves against peers and competitors. We also encourage our clients to think about what makes them unique and how they can differentiate themselves in their product space.
In addition, we encourage them to consider less claim-centric metrics such as their organization’s employee engagement, reasons for turnover, success of process improvement efforts, creative claim outcomes, and even success or failure of automation attempts. Although not directly tied to claim management results, these key contributing factors certainly impact claim outcomes.
Claims Management Improvements for Transformation
In the age of technology, many of our clients look to digitization to help them improve results. However, in their eagerness to see a payback from their digital transformation initiatives, too many organizations don’t take the time to review their current processes prior to applying the latest technologies. This can mean ineffective, inefficient, and error-prone processes that lead to millions of dollars down the drain every year as digital transformation efforts fail to bear fruit.
Insurance companies are understandably cautious about claims management, often erring on the side of adding extra steps to ensure the validity of the claim. Our team works with insurance carriers to identify areas that are inefficient or costly, and helps them make critical improvements to their claims management strategy to produce better results.
In a recent interview I shared insights on this topic along with Head of Underwriting and Claims for RGAX Americas, Ray DiDonna. We discuss the importance of regular process reviews as part of an ongoing effort to improve risk results, and even as a necessary step to prepare for future digital transformation.
You can read more from our interview here: 3 Ways to Transform Your Underwriting and Claims Processes.