Hi, my name is Adam Stewart, Debt Collection Expert and owner of ADC Legal Litigation Lawyers.
Claims represent an insurance company’s biggest expense, with claims payouts and loss-adjustment expenses accounting for up to 80 percent of an insurance company’s revenue.
One way to reduce these expenses is through claims recovery. Specifically, recovering money from at fault parties, where the insured is not at fault. An example would be if a truck accidentally drove into a building and caused damage. The insurer will pay for the damage, however, this claims expense can be fully recovered from the at fault party, in this case, the truck driver, or his/her insurance company, if they are insured.
In fact, a good claims recoveries company will be able to recover not just the repairs to the building, but the assessing fees incurred and any loss of business interruption, if incurred.
Many of these recovery opportunities are missed in the claims process, simply through human error or a lack of systems in place to identify these recovery opportunities.
The claims recovery process is typically time-consuming and labor-intensive, involving multiple systems, and often outdated technology. The pressure to settle claims faster with greater transparency means that many insurers don’t have time to handle these claims recoveries internally. With all these challenges, insurance companies are turning to outsourced debt collection companies to handle their claims recoveries for them.
There are many benefits of giving the process over to an insurance recoveries expert. Our partner, Debt Recoveries Australia, have handled insurance claims recoveries and conducted insurance claims audits over a period of about 14 years now.
Some of the benefits to our clients, which include insurers, brokers and self-insured companies are as follows:
- Increased the chances of recovery- an insurance claims recoveries expert can help the Claims Manager by detecting all case to be recovered earlier in the process and set systems in place to capture these opportunities at a much quicker rate.
- Minimize the number of missed recovery cases by allowing an external insurance recoveries expert to audit the claims process regularly.
- Reduced investigation time-by outsourcing the claims recovery function, the claims team is has more time to concentrate on servicing the insured.
- Reduced labor costs- outsourcing this function will save on internal labor costs
- Expert help- we have the time and resources to be able to spend on the recovery process. This is all we do, day in day out, so our recovery rate is usually much higher than what can be achieved internally
If you are thinking about outsourcing some of your insurance claims recoveries or would like more information on closed claims audits or our services in general, please contact me on ADC Legal Litigation Lawyers at email@example.com, telephone number 1300 799 820, or Skype at adclegal.