News & Research: Client Successes

Case Study: Claims Management Assessment

ScottMadden worked with a major utility client to identify leading practices for the administration of property and casualty claims, recommend process improvements based on the findings of this research, and perform outsourcing evaluations to explore possible alternatives to internal claims administration.

• uThe company lacked the benchmark metric data needed to assess the performance of its claims administration processes and organization
• uA recent cost study identified the claims function as an area for potential cost reduction
• uManagement wished to perform outsourcing evaluation to explore potential alternatives to internal claims administration 

• uInterviewed insurance industry practitioners and vendors to identify best practices and assess the feasibility of outsourcing the company's claims administration
• uInterviewed claims managers at peer utility organizations about leading practices, key performance indicators, and benchmarks
• uGathered and analyzed client data against benchmark values discovered in interviews
• uDocumented current-state processes and proposed future-state processes based on best practices
• uDeveloped and delivered recommendations to project sponsors

• uIdentified process and organizational design improvements that would save more than $500,000 annually
• uProposed integration of redundant back-office functions located in both operating units
• uOutsourcing evaluations determined alternatives were too costly and retained in-house claims administration