Claims ManagementPress Room

3 Ways Claims Handling Businesses Fail and How Implementing Claims Management Software Can Help

By September 19, 2017 No Comments
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Running an independent claims handling business can create lasting satisfaction for professionals well versed in the claims handling process, but it takes planning, preparation, and the right software tools to achieve long-term growth. Firms that haven’t laid the correct technology groundwork for their continued success may fail, no matter how dedicated their leadership and employees are.

Here are the top reasons unprepared claims handling businesses fail, and how you can avoid these mistakes at your company.

Failure 1: Unnecessarily Delaying Claims Handling

Good adjusters close 2-4 claims a day. Excellent adjusters close 5 or more claims per day. Depending on the size of your organization, your company may have the opportunity to close hundreds or thousands of claims in a busy month – and your clients expect you to maintain the same levels of efficiency whether you’re handling 5 claims or 5000.

However, if your employees aren’t running an efficient process and are instead wasting time on each claim they work with during the day, it won’t be long before your company falls behind on client files. Delays in claim processing lead to revenue loss, not only from paying staff their hourly wage to complete tasks in a longer time period, but also because your clients are likely to transfer their book of business to one of your competitors that can complete the same tasks faster than you.

Plan for Success: A study by Virtual Claims Adjuster determined that claims handlers spend an average of 1.8 hours every day doing routine paperwork. Prepared companies can cut that number in half by optimizing their handling processes with cloud-based claims management software that streamlines many administrative activities for each claim file.  

Failure 2: Allowing Your Staff to Create Their Own Workflows

It may sound like a nice idea to let your staff choose their own workflows and methods for claims handling, but letting employees manage themselves can create bottlenecks that slow down your overall company productivity.

After all, if each employee has an individualized process for handling claims, how will you be able to effectively transfer files to another file handler in the event of an unexpected employee absence?

Plan for Success: Standardized processes help you grow your company in a predictable, sustainable manner. When you know how long it takes to process a claim and you know how many claims you can reasonably close in a month, you’ll be able to run much leaner, more efficient processes. This will not only save time, but will also keep costs down while delivering consistently high quality work to your clients.  

Failure 3: Improperly Managing Your Business

Insurance file handling businesses wanting to increase their market share need to pivot at critical times in order to take advantage of emerging market opportunities. In the claims adjusting field, there’s an abundance of opportunities available. Insurance file handling businesses must constantly change and evolve, just like the entire insurance industry. As a successful business owner, you’ll need the ability to keep up with industry changes by using modern technology.

Make sure you respond appropriately to transformative market conditions when you have insight into your firm’s growth patterns. Few claims management software solutions offer business-building tools such as performance reports, system alerts, and trend monitoring, but organizations committed to success require the ability to deliver high levels of customer service by using modern technologies that can forecast, recognize, and respond to issues faster, making them the better choice over their competitors.

Plan for Success: In addition to tracking overall company trends, your business can improve profitability by incrementally increasing staff performance over time. The best claims management tools on the market today can help your firm better identify, track, measure, and manage ongoing employee efficiency so that you can help guide your workforce to better performance. Many firms offer incentives and rewards when staff members achieve set goals.

Succeed in Business When You Use Online Claims Management Software

As you evaluate your options for claims management software, make sure that the selections you consider help you plan for success by streamlining claims handling, creating the right conditions for company growth, and increasing your employee and business performance. One claims management solution that may serve your needs well is Virtual Claims Adjuster, which includes all these features and more.

For nearly two decades, Virtual Claims Adjuster has been the global leader in online claims management software, helping some of the world’s largest independent claims handling businesses succeed year after year by gaining more market share through the use of modern claims technology.

Request your free 30-minute, personally guided tour of Virtual Claims Adjuster today, followed by free demo access to the program.

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