Claims Outcome
Done right, claims transformation has the potential to reduce indemnityand expenses by up to 12%, while also improving customer satisfaction.
| Category | Optimization strategy | Range of potential benefits |
|---|---|---|
| Partner expense management | Legal management | 1-2% reduction in legal spend |
| Legal spend and demand management | 4-6% reduction in legal spend | |
| Expense management of other external vendors | 4-10% reduction in other vendor spend | |
| Indemnity loss management | Claims loss management | 1-3% of loss and/or allocated loss adjustment expense (ALAE) costs |
| Advanced analytics for fraud and recovery management | 1-2% of loss and/or ALAE costs | |
| Medical cost management | 2-4% of medical-related spend | |
| Litigation management | 5% of litigation spend and potential reduction in litigated claims | |
| Operational excellence | Human capital management | 5-10% productivity improvement |
| Content management | 5% productivity improvement | |
| Electronic invoicing and payment processing | 1-2% productivity improvement | |
| 1-2% productivity improvement | 30% reduction in payment-processing costs | |
| Revenue uplift | Customer retention | 5-15% increase in retention ratio of target customers |
Source: PwC Insurance Club EyeOpener Webcast
© Copyright 2010 Rogers Publishing Ltd. This article first appeared in the May 2010 edition of Canadian Insurance Top Broker magazine.
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