Collaboration is key to addressing claims concerns
Risk managers are facing a slew of new challenges, including changes in technology, economic conditions and legal and regulatory developments. The result: claims are becoming increasingly complex and costly. Mark Gilbert of Cunningham Lindsey and Helen Grimberg of BLM address the top claims concerns facing today’s risk managers.
Emerging threats understandably get most attention, but the bulk of the claims facing most businesses are still caused by traditional and tangible risks in employers’ liability, public liability, material damage and financial loss.
Managing these traditional claims in the most effective manner possible is vital to protecting a business’ bottom line and its corporate reputation. So, what are the issues that should be top of a risk manager’s ‘worry list’ when thinking about their claims management processes?
Fast not furious
Claims handling will always engage a number of parties and, inevitably, this can introduce delays in the hand-off between those involved. However, a claimant frustrated by the process is often a furious one – and with social media at their disposal, they have the channels available to vent their fury. Increasingly insurers, brokers and corporate buyers all understand the damage – financial and reputational – that inefficient claims handling can do to their business. Creating a service that has a single point of contact can really speed up the claims process – particularly in terms of early stage assessments, fraud detection and more streamlined services.
Information not just data
Streamlining the way management information (MI) is handled is a growing priority for the corporate risk manager. Every time we speak to a risk manager, they tell us how critical the MI is and that it should be accurate, reliable and transparent. As a claim moves through different parties at various stages (including third party administrators, lawyers and accident management firms) so businesses receive data from the various parties, but it is rarely joined up. Having data from a single source means that it can be seamless, delivering genuine insight and information on how claims are being handled and how they can be mitigated in future. Ensuring access to a true risk management tool, where data is available 24/7 and allows for self-service manipulation, is crucial.
Better bottom line
Improving economic conditions rarely seem to relieve the pressure on the bottom line for most businesses. The risk management function is no exception and is under pressure to reduce the claims spend and the costs of external advisers such as lawyers and adjusters. A solution that creates a single team dedicated to claims handling, legal, investigation, loss adjusting, first notification of loss, third party data capture, accident management, and litigation requirements will save time and money through improved efficiency and reduced lifecycles.
Unknown unknowns
While the causes of claims might remain relatively constant, there are always changes to the overall picture, including claims a business may not have seen before such as cyber, increased volumes in areas such as Noise Induced Hearing Loss or a shift in fraud trends. By definition, businesses only see the claims that they generate. So, access to wider information on trends from business partners who see a vast range of claims can be invaluable.
Claims handling is a constantly evolving process and there are a range of choices available to risk managers about how best to manage the many challenges of reducing costs and improving effectiveness. However, we believe that these challenges are best met by collaborative behaviour and a true end-to-end claims solution.
Mark Gilbert is client partnerships director at Cunningham Lindsey and Helen Grimberg is partner and head of the corporate sector at BLM. Cunningham Lindsey and BLM joined forces this year to launch Profecta, a unique brand under which both organisations offer joint services www.profecta.co.uk.
Mark Gilbert - Cunningham Lindsey
Helen Grimberg - BLM