Claims cost reduction top goal for 2004

Insurers are putting the reduction of fraud and claims costs as their top priority for 2004, according to a survey by the U.S. Insurance Services Office (ISO).
A full 78% of insurers ranked claims as their key focus for this year, with 42% saying they want to reduce claims costs. Improving claims handling efficiency was a goal for 25%, while reducing fraud was cited by 10%.
In terms of the means to improve claims handling, 58% say increasing staff knowledge and training is the best route, while 25% want to see increased staff efficiency.
The survey is part of a project by ISO to look at best practices for claims management. “Reducing claims-handling costs by settling a claim fairly and equitably and as quickly as possible is in everyone’s interest,” says Lee Fogle, ISO vice president of claims services.