Auditing & Review

Auditing & Review2019-02-22T09:55:13+00:00

Auditing & Review

Independent and accurate quantification of performance and compliance

SX3 Auditing and Reserve Reviews incorporates the following services:

  • Claims handling arrangements  – Technical and compliance auditing of TPAs, Coverholders, Solicitors, Third Party protocol arrangements, Reinsurance programs, Supply Chain
  • Compliance – Regulatory, legislatory, process adherence, SLAs & KPIs, Risk Management, GDPR
  • Leakage – Full and objective quantification of indemnity spend leakage, including leakage rate, frequency, breakdown of hard and soft leakage, weighting, and root cause analysis.
  • Lloyd’s claims suppliers – Delegated authority TPA and Coverholder audits. We are an approved auditor on AIMS.
  • Reserving Accuracy, adequacy, timeliness, compliance with (and suitability of) reserving philosophies, dormant claims, closure rules, reopened claims, IBNR
  • GDPR

We provide a wide variety of audit services, looking at process adherence, reserving, technical decision making, leakage and run off management. We give commentary on the performance, comparisons against market leading practices, feedback from handlers, managers and service providers, along with a full suite of recommendations for improvement – with quantification.

We have strong expertise in auditing reserving performance, looking at adherence to company philosophies, timing of changes, and accuracy through the lifetime of the claim. We can also look at dormant file management approaches, quantify the degree of reserve redundancy, and review closed files for the risk of reopening.

Contact:
Adrian Gilbert
+44 (0)7801 684 335
adrian.gilbert@sx3.co.uk

Examples

Reserving
An insurer asked SX3 to provide expert insight into the effectiveness of its reserving approach. Our team performed an audit of files and data reports to enable accurate quantification of the reopen rate expected from the insurer’s dormant file closure process.

Performance Review
We reviewed the motor claims operation of a Top 10 insurer, and benchmarked the performance of processes from FNOL to final settlement to identify opportunities to improve loss ratio.  We enabled the insurer to:

  • quantify savings through improved decision making at FNOL
  • introduce additional tactics for third party intervention
  • identify gaps in their approved repairer offering
  • further tactics to control processes for TPD spend
  • target opponent specific strategies to defend late reported claims and reduce litigation spend.