How do you measure the success of your claim administration programs and the effectiveness of your carrier/third-party administrator (TPA)? Is it cost per claim or number of claims and total severity, lag time, PPO penetration and savings, or litigation rates? Maybe it is a combination of some or of all. Measuring all of these can be good, but does it tell you what you really need to know?

Have you thought about what your carrier or TPA measures in the claim department and what they deem successful or worthy of setting goals and expectations? Are your programs aligned with your claim team and the accomplishments that set them apart in the industry?

A claim department is driven by claim inventory. They staff to it and they set performance expectations based on the number of claims they handle. They are focused on the dollars associated with the inventory. They are obsessed with the cycle time of a claim and how to diminish it. They create special teams that focus on the disposal of older claims, the handling of minor claims, and the management of complex claims.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.