Between the Lines, April 2012

Kris Kennet and other CLM members answer the question, “What do you consider to be the most challenging and most costly claim errors that are made due to inadequate skill development?”

April 20, 2012 Photo

“What do you consider to be the most challenging and most costly claim errors that are made due to inadequate skill development?”

 

“The failure to re-evaluate coverage as the case unfolds. There is a tendency to focus solely on liability/damages, and carriers can miss reassessing coverage defenses that may be revealed during depositions and discovery. Also, overpayment as a consequence of poor negotiation skills.”
 

-John M. Foley, Esq., Claims Manager, Markel. CLM member since 2011.


“Generally speaking, claims that age unnecessarily will cost the carrier more in both indemnity and expenses.”

-Jim Calarco, Consultant. CLM member since 2011.


“Poor file handling where there is no plan of action or set re-evaluation that takes discovery developments into consideration. Without a plan, including supervisor or counsel input, there is no way to proactively manage a case to a successful or cost-effective resolution.”
 

-John H. Shelonko, ARM, Vice President, Risk Management, Americas, Lafarge North America, Inc. CLM member since 2007.


“Casualty adjusters, particularly in workers’ comp, lack training and understanding of all things medical. To make informed decisions, they must rely on case management nurses, IME physicians, etc. Considering the ratio of MD/RN advisors
to claim inventories, you know there’s a lot falling through
the cracks.”
 

-Kris Kennet, Casualty Claims Consultant, Aon Risk Solutions. CLM member since 2012.

 

10 to 15

The annual estimated percent of net written premium leakage due to inefficient processes, such as inappropriate use of claims adjusting resources.

Source: Mitchell International/LexisNexis

 

47,700

Number of people employed in insurance claims adjusting as of January 2012, down 8.3 percent since the recession began in December 2007.

Source: Insurance Information Institute

 

$1,228

The estimated amount that U.S. organizations spent per person on employee learning and development in 2010. That figure is up from $1,081 in 2009.

Source: American Society for Training & Development

 

21%

Percentage of time managers spend developing their direct reports, an investment that is not resulting in increased effectiveness.

Source: Corporate Executive Board

 

65%

Percentage of employees who plan to or are currently seeking new career opportunities.

Source: Deloitte

 

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About The Authors
Bevrlee J. Lips

Bevrlee J. Lips was managing editor of Claims Management magazine (now CLM Magazine) from January 2012 until March 2017.  blips@claimsadvisor.com

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