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claims leakage (CL)

Claims leakage (CL) concerns dollars lost through claims management inefficiencies that ultimately result from failures in existing processes (manual and automated).

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In other words, it's the difference between what you did spend and what you should have spent on a claim. The cause can be procedural, such as from inefficient claim processing or improper/errant payments, or from human error, such as poor decision-making, customer service, or even fraud. CL is often discovered through an audit of closed claim files.