The frequency and severity of general liability claims will likely pick up in the near-term as the economy continues to expand, and over the longer-term as new technologies gain greater acceptance.
Recognizing this trend, smart buyers – partnering with their agents, brokers and insurers – are fine-tuning their risk management programs today, to better control the total cost of general liability claims tomorrow.
To guide this process, it is helpful to understand that general liability claims are becoming more polarized, with distinct trends in High Severity and High Frequency claims:
|- High Severity claims typically account for approximately three percent of a general liability policyholder's claims, but drive about 60 percent of total claim costs. These claims are becoming increasingly complex.
- High Frequency claims represent the remaining 97 percent of claims and 40 percent of claim costs. These claims have broad trends that are increasingly manageable with the right approach.
Understanding the cost drivers and best claims management practices for each of these claim types will help buyers better manage the total cost of general liability claims.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
