IRMI Update—Issue #184

An E-mail Newsletter for Risk and Insurance Professionals
ISSN: 1530-7948
May 21, 2008

In This Issue

Message from the Editor

Colleague,

The ultimate "product" of insurers is not insurance policies. It is the resolution of claims—either by efficiently handling and paying first party claims or defending against and, if necessary, paying liability claims. Unfortunately, the insurance industry often seems to have lost site of this simple fact and many risk professionals are telling me that the quality of claims services has been deteriorating over the past decade or more.

In particular, I hear this from claim professionals who are near or in retirement. But it is also a common observation heard from risk managers and brokers. The causes are probably many, but certainly include: inadequate compensation to attract and retain top talent, a move to automation to cut costs, and the elimination of training and education programs.

To help bring some focus to the importance of claims management, we are increasing our coverage of the claims arena in IRMI.com. Of course, we will continue Barry Zalma's claims series. Additionally, we are adding another series of articles with the help of the claim consulting team at Albert Risk Management Consultants. Their first article, written by a claims veteran, compares today's claims practices to those of 50 years ago. Read his article, "An Insurance Claims Management Retrospective."

Future articles from ARMC will provide practical advice and counsel for hiring, evaluating, and managing TPAs or working with an insurer's claims process. We will also soon offer a special "IRMI Insights" report by Sandy Rodgers that discusses many of the problems he has observed in the claims field. Stay tuned.

I'm curious if you agree with what I have been hearing. Is the overall quality of claims services below what it should be? If so, what are the causes of the problems? Are adjusters underpaid? Undertrained? How should insurers improve their claims services? What should risk managers do to ensure they receive good claims service? [See reader responses].

We sincerely hope that our new focus on claims will give you ideas for improving your organization's claims function if you are with an insurer or make smarter buying decisions if you are a risk manager or broker.

Have a great day.

Jack

Jack P. Gibson, CPCU, CRIS, ARM
President
IRMI

Risk Tip: Where Is It?

Unfortunately, we don't have a risk tip for this month because no one sent one in for us to use. Why don't you send one for the next issue? It's a great way to put yourself and your company in front of 30,000 risk professionals without paying for an ad. Risk tips are short (200 words) tips giving specific risk and insurance management advice. Of course, product promotions are not eligible—that's what the sponsor ads are for. Submit your tips.

What's New in The Risk Report

The May issue of The Risk Report by Kate Westover summarizes the TRIP analysis of captive domicile selection: taxes, regulation, infrastructure, and perception. This analysis helps both prospective and existing captive owners determine which type of domicile is most appropriate for their specific needs.

For IRMI Online subscribers

For SilverPlume Sage subscribers

New Expert Commentary

There are over 1,000 risk management and insurance articles on IRMI.com. Below you'll find summaries of some recent additions with links to the articles.

Do Your Contracts Properly Protect Your Company?

Contractual Risk Transfer from IRMI is the industry's most thorough explanation of how to allocate risks in all types of contracts. You'll save hours of drafting time with "boilerplate" insurance clauses. Use the state-by-state analyses of how the courts interpret hold harmless and indemnity clauses to bulletproof your clauses. Explains when and how to require additional insured status. Plus, many more strategies to protect your company! Subscribe to Contractual Risk Transfer today or learn more.

Do You Use an RMIS from CSC?

If so, we'd love to hear from you. We're looking for user feedback on the CSC system to include in RMIS Review, IRMI's one-stop resource for comparing RMIS attributes. In 2007, we launched RMIS Review as an online product to compare and contrast various RMIS systems. A key component of this is user feedback. Please take a couple of minutes to complete the RMIS Survey and review the RMIS you use.

The editor of RMIS Review is David Tweedy, a leading expert on these systems, and he is continuously updating the articles and analysis in the service. Please check out more information on RMIS Review and consider subscribing to keep up to date on RMIS happenings.

Please Share this Issue with Your Colleagues

If you haven't already done so, please send IRMI Update to your business associates. Thanks so much!

How To Subscribe/Cancel IRMI Update

IRMI Update is sent to subscribers by plain text e-mail twice each month. To initiate your free subscription, use the IRMI Update e-mail registration form.

Home > Free Risk & Insurance Information > IRMI Update Newsletter Archives > 2008 > IRMI Update #184