Canadian Underwriter

Claims Outcome

July 29, 2010  

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Category Optimization strategy Range of potential benefits
Partner expense management Legal management 1-2% reduction in legal spend
Legal spend and demand management 4-6% reduction in legal spend
Expense management of other external vendors 4-10% reduction in other vendor spend
Indemnity loss management Claims loss management 1-3% of loss and/or allocated loss adjustment expense (ALAE) costs
Advanced analytics for fraud and recovery management 1-2% of loss and/or ALAE costs
Medical cost management 2-4% of medical-related spend
Litigation management 5% of litigation spend and potential reduction in litigated claims
Operational excellence Human capital management 5-10% productivity improvement
Content management 5% productivity improvement
Electronic invoicing and payment processing 1-2% productivity improvement
1-2% productivity improvement 30% reduction in payment-processing costs
Revenue uplift Customer retention 5-15% increase in retention ratio of target customers

Source: PwC Insurance Club EyeOpener Webcast

© Copyright 2010 Rogers Publishing Ltd. This article first appeared in the May 2010 edition of Canadian Insurance Top Broker magazine.

This story was originally published by Canadian Insurance Top Broker.