Insurers Aim To Cut Claim Handling Cost
NU Online News Service June 22, 3:34 p.m. EDT ?Cost reduction in claims-handling processes is the most important goal this year for U.S. insurers, a survey revealed.
Seventy-eight percent of those responding to a survey by the Insurance Services Office, Inc. put that as their top priority, ISO said.
The company said key areas identified by the insurers as places for savings are reducing costs (42 percent), improving claims-handling efficiency (25 percent) and reducing fraud (10 percent), with figures have been rounded down.
When asked what one thing they would improve in their claims-handling staff, 58 percent singled out increased knowledge and staff training as the most important area for improvement.
Another 25 percent identified increasing staff efficiency. ISO said the findings are the first in a series of ongoing surveys being conducted to highlight major factors affecting bodily injury claims management, so insurers can achieve best practices across their claims-handling processes.
"Reducing claims-handling costs by settling a claim fairly and equitably ?and as quickly as possible ? is in everyone's interest," said Lee Fogle, ISO's vice president of claims services.
Mr. Fogle said ISO customers tell the firm that "empowering claims handlers with more information about similar claims and injuries is one of the most important areas for combating the rising costs of personal injury claims."
ISO, based in Jersey City, N.J., provides products and services to help measure, manage and reduce risk.
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