other Legacy Casualty Claims (Save Time AND Money)!
Many claims practitioners feel significant pressure to settle claims more quickly, at lower cost. But that is often out of their immediate control.
Accelerated Settlement Solution practices use a wealth of technology, data and experience. This allows clients to alleviate common “headaches” – helping them manage claims in a methodical and cost effective manner.
These practices often reduce the average expected cost of the case by 10-20%, and sometimes provide a savings of 30-40% in larger cases.
When we review loss information from insurance companies, third party administrators and self-insured clients, we notice that legacy claims (those claims that are open for longer than one year, or are greater than $25,000 in reserves) are often being managed in a more “casual” manner than in the past.
We find at times that long diaries are being placed on cases with only minimal support for the reserves. Normally, an attorney and their staff are the only resources helping to close a claim. As senior enterprise risk and claim managers know, this could be an extremely expensive manner to manage a claim due to increased allocated costs and damages. Additionally, the information associated with this type of management is limited to the legal process and not the strategic settlement costs.
There are many reasons for these conditions in a risk and claim management operation.
The Results of Our Study
During the process of analyzing our proprietary and various partners’ data, we have found interesting statistics to show that an integrated Accelerated Settlement Solution approach provides significantly reduced loss costs for individual cases and programs versus a normal approach.
Additionally, we reviewed the normal time frame to resolve significant claims, and compared the results with our source data. Remarkably, the clients who employed an Accelerated Settlement Solution approach were able to eliminate 20-25% of the time associated with “open” legacy claims depending upon the type of casualty loss reviewed.
Most risk and claim managers want to be proactive in identifying and solving open claims. However, inefficiencies with vendors and lack of resources limit just how much influence they can have over the process.
The Value Equation
We have found that organizations that are employing advanced teams of people with specialty settlement solutions technology are far outpacing their peers in reducing their aggregate claims costs, and ultimately their loss and combined ratios.
Additionally, it is an advantage to employ an integrated, specialized approach to the following efforts, which we can help our clients with as well:
- Medical Lien Verification and Negotiation,
- Accelerated Future Medical Cost Projections,
- Medicare Set-Asides, MMSEA Section 111 Mandatory Data Reporting,
- Life Care Planning,
- Structured Settlements,
- Custodial Account Administration,
- Special Needs Trust Development, and
- Associated Financial Planning.
For example, if the past two years of a claimant’s medical data are analyzed and benchmarked with other “best practice or accelerated” cases, the final results tend to be similar and are significantly less costly. Also, if different firms handle the functional requirements of a final Settlement Solution the results generally appear to be “normal” as described in the graphics above. We have seen several reasons for this including redundant and disconnected analysis without technology, variations in experience applied to the review of the analysis, and a tasked-based approach to the professional service.
By using a unique and integrated approach, and an extensive results-oriented, technology-based benchmarking capability with experienced clinical teams, the final total costs of a claim are significantly reduced.
Want to Learn More?
If you are interested in learning more about Accelerated Settlement Solutions, have some questions, or are interested in ordering some analyses, simply fill out the form below, or contact us by phone. When we better understand your needs and challenges, we can discuss potential solutions tailored to you.
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