It is no secret that one of the keys to success in the insurance sector is the ability to reduce average claims cost – but that can be easier said than done, particularly when claim complexity and volumes soar. It is one thing to talk about resolving claims as efficiently and accurately as possible but another to make it a reality while juggling multiple claim situations, staffing concerns and potential fraudulent claims. Here, we explore four important aspects of a robust cost containment strategy that helps reduce average claims cost while improving outcomes for policyholders.
- Early intervention
Our commitment to early claims intervention is based on a simple fact – the faster a claim is resolved, the better it is for insurers and their customers. Delaying an intervention or, worse still, failing to intervene until forced can add needless complexities and cause policyholders to feel neglected and isolated. To avoid such needless heartache, we arm our claims team with robust system controls that ensure each claim is addressed quickly, reserved accurately and a determination is made in line with the policy wording. Experience tells us there are not many better ways to reduce claims leakage and overall costs.
- Data analytics
Few factors are changing the insurance landscape as rapidly as technological advancements, with the likes of artificial intelligence, automation and machine learning allowing insurers to streamline claims processes and make better decisions. High on this list of innovations is data analytics, which has quickly become a valuable tool for assessing performance, identifying risks and pinpointing inefficiencies. At Gallagher Bassett, we know data integrity and quality is critical to reducing average claims cost, so we are constantly investing in technologies that allow our teams to gather insights drawn from millions of claims in order to make the best decision for every situation.
- Provider networks
Provider networks play a vital role in the insurance sector, and we pride ourselves on delivering quality service and minimising costs for our partners. While many insurers have felt the frustration of relying on provider networks that too often deliver delayed care or higher out-of-pocket costs, we remove such headaches by building relationships that benefit all stakeholders in the claims process.
- Fraud detection
Fraud is a huge burden on the insurance industry, with the Insurance Council of Australia saying about 10 per cent of all general insurance claims are fraudulent and cost the sector about $2.2 billion each year. Needless to say, such numbers can have a huge impact on average claims cost, which is why Gallagher Bassett is combining organisational expertise and quality decision support tools to increase fraud detection. Along with technologies that allow us to recognise patterns that indicate a heightened risk of fraud from claimants, we train our claims staff to identify suspicious behaviour and explore further when a situation does not feel right. Combatting insurance fraud ultimately starts with ensuring your team can recognise red flags and this is where we shine.
Reducing average claims cost should be a priority for every insurer and a strategic partnership with Gallagher Bassett allows you to receive support from an industry leader in cost containment and timely claims management. Be it employing technical claims specialists or investing in technologies that provide strategic insights, we have one purpose and that is to boost your portfolio.
Contact us to learn how Gallagher Bassett can support you.
