Claim Management at Work

A. Proclaim Motor Vehicle Claims Management

On July 1 2006 Proclaim was appointed the new motor vehicle claims manager for a corporate with a motor fleet of approximately 350 vehicles. The brief was to work with the client to create a new and better claim process which provided high levels of service and efficiency but also cut the cost of risk by 25%.   This could be achieved through better service, better risk management and a better claim process.  

We had several meetings and discussions with the client and their risk and fleet management departments so we could understand the current process and what the client wanted, and then develop a tailored program that met their objectives.  

We have taken a number of measures to better manage the client’s claims and improve their risk. Some of these new initiatives included:

• Creating a new telephone incident claim notification program, with revised incident forms and unique glove box accident reporting card for all fleet drivers.
• Setting up a multiple motor vehicle repairer network which would create a competitive environment in the market place where previously there was one sole repairer.
• Partnering with repairers who could offer a pick up and delivery service and a courtesy car to minimize off road time and staff stress.
• Meeting with the client’s employees across all sites providing a power-point presentation on the new processes and procedures.
• Identifying recurring hazards in areas of frequent incidents; reporting to the client and advising of methods of managing or eliminating those risks e.g. measures to reduce single vehicle accidents.
• The result - at year end the client had cut claims costs by 25%, experienced better service, had better risk management reporting and greater control over their risk.
• The Proclaim motor claims management team is staffed by a team of expert claims managers with significant experience in the management of motor claims and associated investigations, recoveries and settlements. The practices and procedures for the management of motor claims by Proclaim are set up to make the claims processes more effective and efficient encompassing the needs and requirements of the client. Proclaim’s philosophy of encouraging prompt reporting of incidents, together with our proactive management of claimants, ensures we can limit loss development.

If you want to know more about how Proclaim can reduce your annual Motor fleet claims costs by 25% or more, save you time (and your staff headaches!) please call Proclaim on 03 9660 5200 or email jbroome@proclaim.com.au

B. Liability - Shopping Centres claim management

Proclaim commenced managing claims for a large property trust in 2002. At the time, their claims were being managed by an insurer and they had little control over their risk or their exposure. The average cost of claims over $1 was over $15,000 which was in line with industry standards but outside our KPIs.

We worked with the Trust to improve risk management, incident response and the claim management culture. We also worked in tandem with them and their brokers at renewal in providing presentations to insurers on their risk program. 
  
5 years later and we have managed over 700 incidents and nearly 200 claims.

• Average cost of current & finalised claims reduced by 60% ($4,000)
• Average cost of all finalised claims $1,992 reduced by 75%
• 80% of claims settled for < $5,000
• 65% of claims settled for < $1,000
• Litigated claims < 5 %
• Lawyers instructed including Qld PIPA claims < 5%
• Investigators instructed < 5%
• Includes 2 years preceding impact of tort reform.

Their response?

“Proclaim have been working with us for approximately six years.  We originally employed Proclaim to work solely with the Trust and as that was so successful we rolled their service out to the other trusts as well.  As the trusts have grown, the number of insurance claims has continued to rise, as have premiums and deductibles.
With Proclaim's assistance we have been able to establish a sound historical database of claims and incidents that we have been able to provide to our insurers upon renewal of our policy, thus helping to minimise premium and deductible increases.  Proclaim have helped identify some "problem" areas where recurring incidents have occurred at our assets. They have provided a "hands-on" approach to managing each incident or claim, helping to reduce potential litigation taking place and minimising costs, while ensuring the way keep our customers happy.
Proclaim's services have made a significant contribution to our business from a cost saving perspective by minimising the costs associated with each incident and claim.  They always provide an excellent level of service and have superbly managed the growing number of liability claims we have experienced across our property portfolios. We would not hesitate to recommend their services.”

C. Individual Shopping Centre

We took over the claim management for this shopping centre in 2002, more than a year prior to the impact of tort reform. By integrating this Centre into Proclaim’s claim management model, we were able to work with the Centre to significantly reduce costs over a sustained period.  Contact us and we can let you know the things that Proclaim does to ensure you can get the best possible claim results.

Experience in high volume claims management

In 2005 we were asked to design and resource a compensation scheme for drivers who had lost their licenses due to faulty speed cameras. In conjunction with PWC, we built a business unit with a dedicated claims system with all reporting tools, interface to a call centre and Road Traffic data, as well as a
customized cheque issuance process. We processed over 3000 claims for compensation for extra expenses and loss of income in a six month period and ensured the client avoided litigation and bad publicity through an efficient and fair system of claim management.      

A Multinational Oil Company approached PROCLAIM in February 2000 to process 8000 individual claims within a four month period. The claims resulted from a tainted petroleum product that directly impacted two of the company’s major customers.

The value of each claim fell within our client’s insurance deductible whilst a large number of claims were clearly outside our clients processing capabilities.

Proclaim has taken a number of measures to manage the claims and provide risk management feedback to the company:

These included:

• Claim submission was centralised to one location and a clear set of coverage parameters were established.
• Met with Regional Managers of our client and its customers to reinforce the claims processing procedure.
• Our client was able to access real time reports through our web site which identified severity loss frequency locations and risk management suggestions.

• Our client has been able to make periodic payments to their customers during the progress of the claim on a bordereaux system.
• Our client has been able to track the location of the claimants through real time reports.
• Real time reports have allowed our client to implement risk management strategies to minimise future loss.
• Outsourcing the claims management process allowed the company to focus on core business activities whilst maintaining its relationship with its customers under difficult circumstances.
• The claims management process facilitated the creation of an accurate audit trial which satisfied due diligence requirements.
• Outsourcing the claims management process minimized our client’s internal costs.

D. Run - Off

In early 2000 we were retained to manage and run-off a portfolio of over 150 public liability claims for a cleaner. The run-off portfolio was reserved at over $3m with an average cost of claim of around $20,000. Most of the claims were in litigation.
Our results from our first year were as follows:

• Over 75% of the run-off portfolio was closed in the first year
• The liability estimates are now under $1m
• Payments of just over $1m were made in this period
• The average cost of open claims was reduced by 25%
• The average cost of closed claims was reduced by 40%

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