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Claims Closure

Claims Closure
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.

Workflow and Process Includes:
  • Review, analysis and creation of a client strategy
  • Independent claim reviews by experienced auditors
  • Illustrated action plan detailing the breakdown of the claims closure strategy into four phases
  • Once approved, AG interfaces with client TPA and creates a timely tracking and reporting schedule
  • Bi-monthly meetings and monthly status reports created include statistics around claims closed and reserve takedowns

SAMPLE ENGAGEMENTS:

Review of Open Files for International Property & Casualty Carrier

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.

Reserve Decrease Identified After Thorough Review of Property Claims

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.