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Cost Containment Top Priority for Claims Officers: Survey | Canadian Insurance
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Cost Containment Top Priority for Claims Officers: Survey

Passive claims-handling gets in the way, P&C respondents say

American chief claim officers say their top goals are containing loss costs and delivering top-shelf customer service, according to a new survey by Towers Watson.

Eighty-nine percent of the CCOs ranked loss cost containment as either their primary or secondary claim operational goal, followed by customer service at 71 percent.

Read: Homeowner Storm Claims, Insurer Satisfaction Both Rise

Proactive claim handling is the most important driver of cost containment, according to 80 percent of respondents, while the same amount said proactive claim handling is also the primary factor in delivering superior service.

CCOs also said that proactive claim handling is key for delivering superior allocated loss adjustment expense efficiency (69 percent), though they named effective litigation management as the top consideration for ALAE.

Read: Why Insurance Companies Are Transforming Claims Management

“Claim officers recognize the success of their organization comes down to people first and foremost—and that starts with the claim-handling staff,” said Frank Ramsay, Towers Watson’s North American claim management practice lead.

The survey also identified the top barriers that claim handlers face to achieving superior outcomes. Passive claim handling topped the list at 77 percent, followed by ineffective supervision at 60 percent.

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