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Track A: Efficiency, Integration, Modernization & Growth Grow, Compete & Succeed: How Efficient Claims Drives Business
Sponsored by:
David M. McKenna, PMP Assistant Vice President, Director of Claims Metrics & Finance Selective Insurance
Grow, Compete & Succeed: How Efficient Claims
Drives Business
Dave McKenna, PMP Vice President, Claims Metrics & Finance Selective Insurance Company of America
Selective – An Overview
• Super-regional property & casualty carrier • $1.5B 2011 net premium written
• 80% CL 18% PL 2% E&S • Great people empowered to make decisions • Deep relationships with highest caliber agents • High degree of underwriting, pricing and claims
sophistication
How Efficient Claims Drives Business
• Driven by customer service • First-class claims experience • Loss cost control through best
practices and efficiency • Focus on the verdure of your
organization
Growth (n) - development from a simpler to a more complex stage
How Efficient Claims Drives Business
• Requires preparation and pro-activity • Change management and best practice
revisions • Constant technology evaluation • Collaboration and transparency
…a more complex stage
How Efficient Claims Drives Business
• Technology selection should not be entirely based on
current state • Learn from the R&D of software company
implementations • Customers will use channels they feel comfortable
with (i.e., Claim Report, etc.)
Don’t be afraid of internal social networking tools -- they enable collaboration and transparency.
Process can and should change…
How Efficient Claims Drives Business
• Remove the word “scorecard” • Develop internal analytics and financial support groups • Establish a foundation for change by federalized project
and process management groups
…ask for feedback at all levels, internal and external
Enable analytics, establish a foundation for coaching and mentoring…
How Efficient Claims Drives Business
What it looks like….
Loss
Expense
Customer Service
and Quality
Cycle Time
Measure Monitor Results
Manage Change
with Project
Oversight
Maintain Compliance
Over Communicate
at all levels and support the
customer
How Efficient Claims Drives Business
• A Foundation of • Process • Collaboration • Communication • Change control • Technology selection / enablement
Never lose focus on the customer.
Efficient claims and business drive are built on a strong foundation
DO NOT DUPLICATE OR DISTRIBUTE. USE AND DISTRIBUTION LIMITED SOLELY TO AUTHORIZED PERSONNEL.
Copyright 2012 Selective Insurance Group, Inc.
Selective Insurance Group, Inc. is primarily a holding company for eight customer-focused property and casualty (P&C) insurance companies and
ranked as the 49th largest P&C insurance group in the United States by A.M. Best Co.
The information and materials included in this presentation are only suggested recommendations and following the suggested recommendations does not guarantee results.
Track A: Efficiency, Integration, Modernization & Growth Optimizing Claims Service, Efficiency and Loss Outcomes
Bonnie Kikkert VP - Claims Automation & Strategic Projects Selective Insurance
David Thornhill Senior Claims Manager AAA
Judy Merante Partner Inpoint, an Aon Business
Steven R. Henning MBA, CPCU, BRR, Senior Risk Specialist, Vice President Risk Management Swiss Re American Holding Corporation Sponsored by:
Panel Leader: Mark Snyder Principal Inpoint, an Aon Business
Panel Introduction
•Bonnie Kikkert Selective Insurance
•David Thornhill, Senior Claims Manager AAA
•Judy Merante, Partner Inpoint, an Aon Business •Mark Snyder, Principal Inpoint, An Aon Business
•Steven R. Henning, MBA, CPCU, BRR, Senior Risk Specialist, Vice President Risk Management Swiss Re American Holding Corporation
15
Industry focus on improving service and operational efficiency often come at the expense of increased paid loss
Customer Experience Provide a level of service that attracts new business strengthens retention and differentiates the product
Loss Containment Consistently paying fair and
accurate amount on each claim while containing related expenses
Operational Efficiency Achieving operational efficiency by streamlining the adjusting process leveraging the most cost effective
source
SERVICE
LOSS EXPENSE
Too much focus on one or two dimensions adversely impacts the others Easiest to manage Expense, hardest to manage Loss Carriers are developing new processes and systems to enable focus on all three
pillars of performance
P&C organizations traditionally lack a comprehensive approach to monitor claims performance, and continuously improve claim outcomes
With over 70% of every premium dollar flowing through claims, the ability to accurately monitor and influence the levers that impact claims performance is imperative
Claim executives today are not always equipped with the visibility and situational awareness needed to optimize claim outcomes and drive performance accountability
Traditional claim audits provide limited visibility into performance issues and have little impact on changing adjuster behaviors
Operational measures help understand claim handling efficiency and loss adjustment expense but provide little insight around paid loss, the larger driver of claims cost
As a result, overall claim quality suffers, impacting both financial results and customer service
Evidence suggests that without the proper visibility into claims quality, greater focus on service levels compromises financial performance
40
45
50
55
60
65
70
Customer Satisfaction vs. Loss Ratio High Loss Ratio, Low Satisfaction
Low Loss Ratio, High Satisfaction
Trade-off between Loss Ratio and Satisfaction
Low High
Loss
Rat
io
Customer Satisfaction
4
Key Questions for Discussion
21
• As an industry, what are our greatest challenges to ensuring consistent best practice claim handling behaviors, and efficiently delivering proper claims outcomes?
• How can we best leverage available data and Claims Quality processes to increase business knowledge, and drive sustainable measurable improvements in claim outcomes while maintaining high levels of customer satisfaction?
• Holistically, what is the best approach for aligning and balancing loss, expense, and customer service?
• What is the best way to leverage social media and technology to
improve customer satisfaction and claim outcomes