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Key Metric for Accurate Claims Settlements

One metric--that of total quality--can fundamentally transform your claims team.

By Christopher Tidball | Updated on September 20, 2011

How do you know if your claims organization is producing a quality product? After all, there are numerous ways to identify quality, right? While no two carriers or claims processes are alike, there are often similarities. From the first notice of loss (FNOL) abandonment rate and contact timeliness to cycle time and average indemnity, there seems to be no shortage of usable metrics. But is this the optimal way to gauge performance? 

During my years as a process and quality director for a large multinational insurer, we grappled with a myriad of metrics in our quest to find the ideal formula behind quality. Much like a football team, the claims organization was measured on statistical data points that were supposed to be indicative of outcomes. Just as a lot of points should win football games, prompt contact and inspections should win the claims race. 

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