I hate to state the obvious, but accurate, timely and consistent reserving is the one truth that remains constant in the ever-evolving world of insurance. As a recent industry analysis pointed out, “This gap ultimately impacts claims and reserves, as carriers with outstanding cases will have to ensure they have adequate reserves to handle payouts…
In today’s landscape of escalating lawsuit costs and economic uncertainty, managing litigation severity has become a critical challenge for claims departments (see Social Inflation is up). The question is: how can we effectively address this issue without compromising efficiency or breaking the bank? Let’s explore a data-driven, technology-powered approach to litigation management that can help…
Let’s face it, implementing a new technology into existing processes and systems is no easy task. But in today’s fast-paced insurance world, it’s not just about upgrading tech—it’s about transforming your entire claims ecosystem. So, how do we ensure that this shiny new penny enhances rather than disrupts our current processes? Buckle up, folks, because…
Swiss Re’s latest report on social inflation is a must-read for claims professionals. Their sigma No 4/2024 study, “Litigation costs drive claims inflation: indexing liability loss trends,” offers a comprehensive look at this growing challenge. The findings are sobering: the U.S. liability risk pool is expanding rapidly, with commercial casualty insurance sector losses growing at…
Is your claims litigation management strategy stuck in the Jurassic era? If you’re still relying on the same old methods of stringent guidelines and micromanaging counsel hours, I hate to break it to you, but you’re piloting a prehistoric beast in a world of modern marvels. Let’s face it, folks. The approach to claims litigation…
Is your claims department losing money on unnecessary litigation? If you’re not employing robust Early Resolution Strategies (ERA), the answer is probably a resounding “yes.” But don’t worry, savvy claims leader – we’re about to turn that ship around. In my years of working with insurance companies, I’ve seen far too many claims spiral into…
There’s encouraging news in the insurance industry: claims departments are now in possession of vast amounts of data. This development is indeed promising, especially when the data is utilized to enhance operations, reduce costs, or forecast future trends. However, many firms are not yet fully leveraging the wealth of information at their disposal. The Data…
AI in claims processing: A powerful ally, not a replacement. This article explores how insurers can strategically implement AI as a decision support tool, enhancing human judgment while maintaining ethical standards. We discuss key strategies including AI-powered insights, bias mitigation, and continuous learning, showing how this balanced approach improves efficiency and fairness in claims resolution.
So what’s a good staffing ratio? Figuring out the appropriate levels to staff a claims office can be a tricky exercise. Having too many claims professionals can have a negative impact on bottom-line financials, however, having too few can also have a more costly impact improper reserves, higher settlement payments, increased loss adjustment expenses. Determining…
Good news! – claims departments are now flooded with great data.
Seems like great news doesn’t it. It is great news, or can be, if you’re using the data to help improve the operations, lower cost or predict the future. However, many firms aren’t using the data they have to provide valuable information for the operation. With the advent of more modern claim technology there has been a push to input more and more information about claims.