Each year, claims leakage costs insurance carriers as much as $30 billion, according to EPAM Systems, Inc., which noted leakage can account for 5%-10% of all claims paid. The International Risk Management Institute, Inc. explains claims leakage as the difference between what a claim should cost and what the carrier actually paid to settle the claim. Inefficient claims processes, errant payments, poor decision-making and fraud can all lead to claims leakage. By investing in technology, carriers can reduce claims leakage and fraud by as much as $117 billion, according to a 2022 report by Everest Group Inc. Everest's projections include P&C and life and annuity sectors. According to CCC Intelligent Solutions Inc., overpayments can be avoided in casualty claims. To this end, the above slideshow reviews three causes of leakage in casualty claims as well as three ways to reduce these unnecessary costs. Related: |
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
