Streamlining The Claims Process

In light of the changes as to how personal injury claims should be handled, the widespread implications are not just to streamline the claims process as the Ministry of Justice envisages, but also to provide an incentive for insurers to make changes to systems, processes and organisational models in order to achieve high performance.

The consultation paper sets out proposals for a system that will provide fair compensation in a more efficient and cost-effective way by providing that, for example, the defendant/insurer will have a set time period in which to respond, during which the claimant/lawyer will not carry out any further work unless essential. Other recommendations are that there will be set time periods for making offers and reaching settlement, and that Success fees and “After the Event” insurance should be reduced to reflect the actual amount of work and risk involved in bringing a claim.

Some insurance organisations, like Accenture, believe that although the current proposals are a good start there are still additional areas that need to be debated. For example, there is the question as to how insurers will achieve the procedural improvements required to meet the new timeframes and whether existing claims management, workflow and management information systems deal with the new process requirements and timeframes.

These reforms were originally projected to take place in first quarter of 2008. Although that deadline has since passed, an indication of the exact changes will no doubt be revealed come the end of the year. In the meantime, insurers need to start their preparation now and so give themselves an opportunity to overtake their competition by planning for the proposed changes before to their introduction, and to use the momentum to give a boost to the claims operation on the path toward achieving high performance.

For instance, Allianz Insurance is piloting changes to its handling of personal injury claims in anticipation of reforms by the Ministry of Justice. These changes, include fast tracking of motor and casualty claims to £25,000, and rapid liability investigations to meet the claims deadlines initially set up in the MoJ’s consultation paper last year.

The firm has encouraged brokers and policyholders to help insurers reduce personal injury costs further by improving the average time to report new losses, stressing the importance for insurers to receive quick notification and to implement inquiries and measures as soon as possible after the occurrence of an accident.

Saurav is an author of several articles pertaining to No Win No Fee, Compensation Claims, Personal Injury and other legal articles.