Three Key Measures of Casualty Performance
December 6th, 2016
Casualty claims organizations have long suffered from a lack of data and reporting. The reporting that is available is too high level and leaves more questions than answers. Most are limited to basics such as “closed:new” ratio, cycle time and average payment. But these numbers are a starting place to explaining results….not a measure with which to manage.
We have spoken with many organizations that have only their day-to-day experience to use in assessing loss cost containment. File review is good, but does not provide an effective view of opportunity.
The first step to key measures lies in reporting on the components of a loss that make up an average payment. This means useful measures of pain and suffering allowance and special damages like medical bills. This is a start to explaining the average payment on closures, but doesn’t provide insight into the quality of those closures.
In order to know if you have quality closures – ones that successfully contain your loss costs – three statistics are needed:
1. How much do you pay for pain and suffering for each week of treatment?
2. How much do you reduce submitted medical bills and other specials?
3. In what percentage of cases are you finding shared responsibility?
When these are supported by additional diagnostic measures, your measures move you into Casualty 2.0.