Claims Management: is Outsourcing the Right Strategy for You?
One key challenge for today’s insurance industry is how to retain claims management talent, especially as losing this type of specialized asset can cost additional money related to operational downtime, hiring and re-training. A November 2011 article by Phil Gusman for Property Casualty 360, entitled ,”Industry Loses Over 7,000 Jobs from Aug. to Sept.,” illustrated some key challenges for the insurance industry.
Claims Departments in Crisis
The articled provided the following statistics and reasons for claims management employee churn:
The insurance industry lost 7,400 jobs from August to September, following a trend of declining employment during this period that goes back to 2001.
Employment at P&C insurers was down by 800 jobs. P&C insurer employment stands at 452,900. Year-over-year, P&C carrier employment is down by 11,100 jobs, or 2.4 percent.
Reinsurer employment fell by 300 from August to September to 27,500.
Agent and broker employment fell by 3,400 jobs from August to September to 638,300.
The reasons for the losses are somewhat unclear with much of the statistical data being noted as typical for this part of the year. However, it has been noted elsewhere that this type of employee turnover and job loss typically relates to job dissatisfaction or cost-cutting measures by companies that do not realize that they are actually making a mistake when cutting people in the claims department. If anything, they should be figuring out how to keep their claims talent and make their processes more efficient.
A Claims Management Solution
Interestingly enough, the one area that showed growth in employment is also the specific strategy that could help more companies increase efficiency, lower their costs, and retain their talent. As the same article noted: "From all of the subsectors measured, third-party administration was the only one to see positive August-to-September employment numbers, adding 700 jobs for a total of 128,200.”
This growth comes from more companies understanding how an outsource provider for their claims copying could provide the solution that they have been looking for while they then refocus their internal talent on the core business. This change can provide more job satisfaction than handling time-consuming rote tasks, which in turn can increase a company’s service and satisfaction levels amongst their clientele.
Published by Chris Whelan on March 8th 2012 | Management
Published by Abhishek Gupta on July 17th 2012 | Business
Published by Adryana Bygger on April 20th 2012 | Management
Published by Julia Roger on March 22nd 2012 | Business
Published by Julia Roger on March 23rd 2012 | Business
Published by Donald Granger on February 7th 2012 | Management
Published by Matthew Arthur on August 6th 2012 | Business
Published by Gnan Sunder on March 22nd 2012 | Management
Published by Glenn Farrier on March 7th 2012 | Business
Published by Pgupta on April 5th 2012 | Management
Published by Clausen on December 22nd 2011 | Management
Published by Gabi William on March 27th 2012 | Business
Published by Diego Hall on December 2nd 2011 | Business
Published by Canberra Marketing on December 4th 2011 | Management
Published by Diego Hall on December 15th 2011 | Business
Published by Mary Porter on July 6th 2012 | Business
Published by Elizabeth Cooper on May 21st 2012 | Management
Published by Will K Stewart on June 7th 2012 | Management
Published by Adam Walker on April 11th 2012 | Business
Published by Chris Whelan on March 23rd 2012 | Management