Earlier this year, our global survey of 150 insurers, The Carrier Perspective: 2024 Claims Insights, found that 62 percent of carriers in North America said managing legacy claims was posing challenges. Citing legal fees, administrative expenses, and other related costs, respondents shared that profit margins were being eroded and they were concerned about the toll legacy claims were having on business profitability, financial health, and operational efficiency.
It is crucial that carriers take the time to evaluate the performance of their portfolios. This includes analyzing recent data to identify areas that require attention, transitioning live portfolios to legacy where needed, and implementing strategies that accelerate legacy claims resolution. By doing so, carriers can then dedicate more time to live programs and drive strategic growth. Here, Chris Hampshire, VP — Carrier Practice Sales, shares four ways to optimize underperforming portfolios through partner sourcing.
1. Leverage Claims Management Technology
Carriers should conduct a comprehensive data analysis to identify potential underperforming segments within the portfolio, considering factors such as loss ratios, claims frequency, and profitability. Claims management technology that offers advanced data analytics is key to unraveling the root cause of underperforming portfolios. In doing so, carriers can identify hidden patterns, outliers, innovative claim-closure strategies, and emerging risks. By leveraging data-driven insights, carriers gain a strategic advantage in making informed decisions to know when to retain, improve, or make the decision to move their underperforming portfolio to legacy.
Integrating existing claims systems with leading technology, such as GB’s award-winning RMIS suite, Luminos, provides unmatched analytics and risk management insights that can measurably improve efficiency and closure rates on underperforming books of business. From simple menus and data modules to drill-down features at your fingertips, this platform ensures agile responses to complexities, contributing to swift resolutions and an enhanced claims management strategy.
2. Utilize Specialized Expertise at your Fingertips
Improving outcomes on underperforming portfolios introduces distinct challenges requiring specialized expertise. Collaborating with a strategic partner brings focused knowledge to the forefront, empowering carriers to successfully navigate claims of every complexity with confidence.
A strategic partner, like GB’s Legacy Practice Group, can navigate legal, financial, and regulatory requirements to help carriers optimize claims management processes, reduce inefficiencies, and implement sustainable frameworks for closing run-in files. Crucially, collaborating with experts in legacy claims allows carriers to reclaim much-needed internal resources for capital-generating opportunities. It is not only cost-effective but a great way to stay on track to achieve long-term goals.
3. Develop Strategic Pathways
One of the best ways to avoid the legacy claim conundrum is to develop and deploy strategies that prevent them from becoming operational blockers in the first place. A great first step is to implement robust claims management practices that ensure they are handled accurately and assigned the necessary resources for timely resolution. Conducting a thorough review of the existing claims portfolio will also help identify high-risk claims and assist with the development of a triage strategy that focuses on the most complex and critical.
Bringing together trusted partners and leading technology should also factor into any strategy. GB delivers the best of both worlds through its expert teams, predictive modeling, and advanced analytics technologies. Overall, these strategies can lead to wider improvements across the business, such as refining claims processes and improving outcomes.
4. Transition Live Portfolios to Legacy
Managing the transition process with partner sourcing is an indispensable strategic move for carriers seeking to optimize underperforming portfolios. A successful transition involves transparent communication, strategic decision-making, and collaboration with specialized partners. Effectively managing the unique qualities of legacy claims requires striking a balance that extends beyond conventional operational protocols. GB’s Legacy Practice Group ensures compliance with regulatory requirements, mitigates risks associated with the transition, and provides guidance on optimizing the underperforming portfolios. In addition, seamless integration is facilitated by our dedicated Implementation Team.
Our team of dedicated experts has successfully managed a diverse range of legacy claims for businesses across every industry. With more than fifty years of expertise in resolving complex claims, we not only anticipate but also understand evolving industry trends. GB introduces a flexible approach, avoiding fixed costs and adapting to the unique needs of our partners.
This strategic collaboration enables our partners and their staff to concentrate on current and future customers, leaving GB to expertly handle the needs of prior customers. To learn more about GB’s legacy claims management services and team of experts, book a free consultation.
