The costs associated with general liability claims, when administered by third party administrators or national advisory counsel, if left unmonitored, can balloon beyond control and lead to rate and cost increases for the Client and defeat the purpose of adopting a high deductible or self-insured retention program. ICA’s Claims Management and Audit Service can assist the Client in taking command of the claims and controlling defense and administrative costs, while gaining valuable information about the nature, frequency and severity of the claims, as well as the claims management mechanism of insurance companies and third party administrators. ICA’s services are provided by highly qualified associates and consultants with expertise in the insurance and claims handling industry.
ICA’s Third Party Claims Management and Audit Service includes the following:
- Provide comprehensive overview of the third party administrator’s or national claims counsel’s procedures for management of claims and offer recommendations for improving efficiency. See ICA’s Audit Service for Third Party Administrators/National Counsel.
- Review open claims to evaluate potential means of cutting costs and streamlining expenses, including analysis of reasonableness of reserves and investigative costs; Review frequency of and necessity for periodic reporting by the third party administrator.
- Analyze whether accidents or incidents are properly investigated, files are properly documented and evidence is preserved by the third party administrator/national claims counsel.
- Analyze expediency and progression of claims management, suggesting strategies for speeding up and settling claims where feasible and in the Client’s best interests.
- Coordinate activities of the third party administrator and trial counsel to provide feedback to the Client, allowing more input and voice for the Client in the claim management strategy.
- Confirm that the data compiled by the third party administrator is properly and accurately reported to the Insurer’s underwriting department which promulgates premium rates.
- Provide services to establish, select and train personnel for a claims department within the Client’s organization, to handle claims in-house.
- Monitor proper and timely reporting of claims by the third party administrator to the Insurer to ensure proper coverage under the policy and compliance with policy conditions.
- Analyze claims to recommend appropriate levels of retention and funding mechanisms, and to pinpoint potential areas of improvement for loss control and prevention.
See our Complete List of Consulting Services.
