Individual claims and books of casualty business allowed to languish without a game plan for resolution can end up costing corporations and insurers significant dollars relating to extra indemnity and expense payments. With a proven workflow and process, the Claims Auditing Services practice has successfully worked with clients to decrease case reserves, thus lowering IBNR and significantly reducing the amount of collateral required, therefore releasing cash for investments or bottom line results.
Retained by an international property and casualty carrier to conduct a thorough review of its open files, AG determined that over 30% of the files could be closed. These findings resulted in related reserve reductions of $9,800,000. In addition, the audit identified multiple files requiring immediate attention due to unrecognized coverage or litigation issues.
Asked to review a book of property claims, with total reserves of approximately $500,000,000 for a major domestic property and casualty carrier. Due to the proactive handling and recommendations of the team, the client was able to see a reserve decrease of approximately $75,000,000.