Reducing Cost of Handling Claims Is U.S. Insurers' Single Most Important Goal for 2004

  • Seventy-eight percent identify reducing fraud, claims-handling efficiency and cost reduction as major targets for 2004
  • Fifty-eight percent cite 'increased knowledge and staff training' as key to improving claims handling

COLUMBIA, S.C., June 22, 2004 — Seventy-eight percent of U.S. insurance companies identify cost reduction in claims-handling processes as their most important goal for 2004, according to a recent poll conducted by ISO. Key areas identified by the companies surveyed are reducing costs (42 percent),improving claims-handling efficiency (25 percent) and reducing fraud (10 percent).

When asked what one thing they would improve in their claims-handling staff, 58 percent singled out increased knowledge and staff training as the most important area for improvement, and another 25 percent identified increasing staff efficiency. The findings are the first in a series of ongoing surveys conducted by ISO to highlight major factors affecting bodily injury claims management so insurers can achieve best practices across their claims-handling processes.

"Reducing claims-handling costs by settling a claim fairly and equitably —and as quickly as possible — is in everyone's interest," said Lee Fogle, ISO vice president of Claims Services. "Our customers tell us empowering claims handlers with more information about similar claims and injuries is one of the most important areas for combating the rising costs of personal injury claims. One solution, ISO Claims Outcome AdvisorTM, gives adjusters greater understanding and access to medical information and enables them to handle claims more efficiently and fairly.

"Combining claims management best practices with continuous measurements of outcomes is critical to reducing the cost of claims handling," Fogle added.

About ISO Claims Outcome AdvisorTM (COATM)
ISO Claims Outcome AdvisorTM (COATM), supplied by its wholly owned subsidiary, ISO Claims Services, Inc., is the industry's first personal injury claims management solution that manages the multiple dimensions of insurance companies' personal injury claims portfolios. COA understands the severity and recovery implications of over 18,000 medical conditions — including injuries, treatments, complications and preexisting conditions — and 14,000 occupations. COA helps claims handlers, managers and actuaries manage the unique and complex medical, legal and occupational issues presented by personal injury claims and helps ensure appropriate financial arrangements are agreed upon and implemented. Claims handlers can manage all aspects of a case from first notice of loss to return-to-work plans, rehabilitation and damages.

About ISO
ISO is a leading provider of products and services that help measure, manage and reduce risk. ISO provides data, analytics and decision-support solutions to professionals in many fields, including insurance, finance, real estate, health services, government and human resources. Professionals use ISO's databases and services to classify and evaluate a variety of risks and detect potential fraud. In the U.S. and around the world, ISO's services help customers protect people, property and financial assets.

Release: Immediate

Contacts:
Giuseppe Barone / Erica Helton
MWW Group (for ISO)
201-507-9500
gbarone@mww.com / ehelton@mww.com