Traditional notions of insurance are nearly extinct, and the brave new world of retained risk has given new meaning to the notion of self-insurance as commercial consumers become the majority, and often exclusive, stakeholders in the financial outcome of claim exposures. One might argue that, except in the case of a catastrophic loss, true insurance in the commercial arena no longer exists as today's consumers find themselves facing a much greater risk of loss through increased self-insured retentions and deductibles.

Consequently, it should come as no surprise that risk managers are demanding higher quality, comprehensive claim management vs. low-cost administration. The challenge facing them is where to find it and how to recognize it. A simple and effective method for identifying “best in class” claim practice does exist, though.

Impact of Market Pressures