This leader in special-risk insurance plans sought a fast-acting remedy to its operational growing pains. It needed to reduce its claims backlog, boost service levels, lower processing costs, and create a platform for growth. The Powers Company established performance standards by position, enhanced supervisory training, and implemented management systems to track productivity, backlog and cost of claims. The results? A 30 percent decrease in cost per claim handled and 70 percent drop in claims processing time.
Our client is a self-contained division of a large insurance company. It offers high-limit-accident medical expense products to colleges, universities, K-12 schools and sponsoring organizations. These plans cover student-athletes competing in sponsored activities, games and practices. Among other functions, the business unit markets, underwrites and services policies; collects premiums; administers claims; and handles case management.
The company needed to reduce its claims backlog, boost service levels, lower processing costs, and create a platform for growth.
- High claims processing costs
- Back log of claims and related correspondence
- Lack of an effective Management Operating System
- Declining service levels
- Enhanced supervisory training via workshops & train-the-trainer programs
- Implemented front-office tools to support growth
- Improved the Management Operating System:
- Central reporting system
- Identified process bottlenecks
- Developed time & performance standards
- Implemented claims inventory tracking system
- Developed daily/weekly reports
By reshaping the behavior of their people and implementing new management controls, the contracts group sharply reduced its case backlog and turnaround times.
Decrease in inventory backlog
Reduction in cost per claim processed
Increase in productivity
Cut overtime hours
Reduction in claim review and processing time