In this installment of the Insurance Claims Recoveries Expert Series, let’s discuss the option of outsourcing insurance claims recoveries to a debt collection expert.
Why should an insurance company contract out this part of the claims process? What are the reasons for this, and what are the advantages?
The main advantage, of course, is that by outsourcing to a professional debt recovery agency, insurance companies can benefit from higher returns and a lower claims-to-premium ratio.
A professional agency, which also specialises in insurance claim recoveries, may have the skills and resources to do the job more efficiently and can function as an extension of your claims team.
Trained employees has received working knowledge in the Insurance Code of Practice and frequently have prior experience in the claims or broking fields.
When working with customers to resolve their insurance claims arrears, it minimise the amount of effort required by insurance clients in the debt collection process and provide a positive customer experience. In areas such as:
- Collect on Not-At-Fault claims, which occur when an insured is involved in an accident but is not considered to be at fault.
- Unpaid premiums – debt can arise when customers cancel their Direct Debit but do not cancel their policy, resulting in a premium being due.
- Closed Case Reviews- conduct a full closed case audit to look for over-looked or abandoned claim recoveries.
- Claims leakage audits on active and closed cases
- Litigation advice and legal demand letters
Another significant advantage for insurance clients is the time savings for the claims team.
The insurance company’s first priority during the claims process is to look after the insured. The priority of the claims officer must be the insured, so that once the claims recovery function is outsourced, the claims officers can focus on managing the claim without having to worry about the recovery process.
If you have any further questions, please contact our Legal-Litigation Lawyer Nikola Fratric on (03) 9999-1122 or by email nik.fratric@adclegal.com.au.