Casualty Claims Management Discussion Updated in Risk Financing
This release of Risk Financing updates the
discussion on casualty (liability and
workers compensation) claims management.
While the best way to control losses is to avoid claims altogether, that is
an unrealistic hurdle for most insureds. Instead, insureds can adopt strategies
that promote the most favorable claims outcomes. The discussion on
"Casualty
Claims Management" addresses a number of the aspects of effective and
efficient liability and workers compensation claims management. It is based on
a discussion initially authored by Martin McGavin and Amy Pechacek. The
discussion outlines some basic concepts, provides insight and advice for
working with claims adjusters and outside defense counsel, and describes some
important components of good claims handling including the following.
For a typical insured, as few as 5 percent of its claims may account for 80
percent or more of its total losses. The vast majority of the number of claims
involve minor injuries or damage. However, when ineffectively managed, claims
from seemingly minor incidents can result in significant losses. Accordingly,
good claims management practices can have a major impact on an
organization's overall costs.