Claims management - "Hurricane Ike" Cat Event
Provide claims handling operations for catastrophic losses – potential pool of 20,000 homeowner policies in Texas underwritten through a single General Agent located in Texas.
The Client’s requirements
•Comply with statutory and management reporting and claim handling requirements.
•Organise experienced, efficient, and effective claims staff to handle claims from inception to resolution.
•Maximise use of electronic claims system
•Provide high quality real time data to reduce uncertainty on reserve adequacy and claims activity.
•Reduce costs through management of strategic operations and clear measurable Standards of Performance.
•Reviewed plan for handling property claims including staff and management interviews.
•Restructured claims team
•Dedicated claims unit supplemented by clerical staff and technical staff and external specialists.
•All claims initially reviewed by supervisor for assignment to appropriate claims representative.
•Clear best practice guidance, use of diary process for file reviews and roundtable discussions with adjusters.
•Assigned all litigation to claim specialists.
•Operating hours extended to nights and weekends.
•Conducted due diligence review of independent adjusting firms’ capabilities and performance, and obtained set pricing and reporting requirements.
•Utilised a primary defense law firm to handle all cases in Texas courts with agreed fees.
•Used company website to maximise communication to policyholders reporting claims
•Developed daily reporting for management, reinsurers, and the general agent.
•Identified claims (windstorm exclusion, policy deductible or outside of policy effective dates) to ensure prompt denial.
•Created dedicated email address for receiving 1st Report Notices and Independent Adjusting reports.
•Ensured compliance with Texas licensing and claim handling requirements and conducted regular audits
•Establish actuarially acceptable initial reserves. Case reserves revised within 30 days and on receipt of new data.
•Pre-event meetings developed and implemented communication and activity phases based on approach path to Texas.
•Over 6,000 claims received (5,200 reported in the first 45 days and over $20 million in loss reserves.)
•Prompt resolution of all non-litigated claims.
•Reduced legal costs utilising ADR and Mediation.
•High policy holder and client satisfaction on claims handling procedures.Download article