Performance Benchmarking
People do a better job when they know exactly what is expected of them and are given clear and supportive feedback on how they have done.
We provide measurement services to track claims handling efficiency, effectiveness and economy. These can be benchmarked against market averages or measured against your own performance to track tends as the operation improves.
Efficiency
Many claims handling units measure productivity in terms of incoming and outgoing post. Handler’s workloads are measured by numbers of cases outstanding rather than the complexity of the case and actions needed.
At SX3 we believe that any workflow / productivity measurement must capture all actions taken and co-relate total input to final outcome to be credible and trusted.
We have developed measures of throughput based on actions taken, relating activity to outcome and ensuring a consistent assessment that can be understood by handlers and managers.
Effectiveness
Our reviews rank current structure and policy against best market practice. The review report will highlight any areas where change would be beneficial, clearly identify the cost and the benefit, and make appropriate recommendations for change.
Bottom Line
Many reviews look at the cost of claims handling, which is rarely more than 5% of the total claim spend. Some reviews look at the average cost per claim. We are able to co-relate the two over time to establish the optimum cost of claims handling for the results you want.
Leakage
Handling can be audited against a service level agreement, subjective standards of handling (to assess leakage), and / or against an agreed standard in key areas.
For First Group, we developed five objective financial measures of claims handling work and results. Against these five measures, targets and benchmarks can be set, either for the individual, their team or the whole department / Company.
Each month, each handler had their own results discussed with them and a score agreed leading to an annual score that was then used for bonus purposes as well as training needs identification.
This resulted in a decrease in the average cost per claim as well as a significant increase in morale, productivity, and greater transparency in the management of the incentivisation and remuneration policy.