Creating an accurate inventory of a loss is critical to preventing claims leakage. Photo: Claimplus
A constant challenge for the insurance industry is the continual problem of overpayment of claims and expense, often referred to as "leakage", by claims staff during the handling of losses. A long, drawn-out claims process can drain operational budgets, as can adjuster inexperience, reinforcing the need for improved claims processing tools.
Claims leakage costs approximately $30 billion each year, according to consulting firm The Lab, which estimates the problem accounts for between 20 and 30 percent of all claims paid.
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