Having handled Professional Liability claims from 1975- 1995, I can attest to everything being accurate in this article. In fact, we proved that if the expense to loss ratio isn’t between 80-120% to $1 (depending on line of business), the Insurer is doomed to lose money on the program. Claims personnel, again depending on the E&O/D&O Line, cannot possibly handle more than 150 claims on diary. My Academy of Insurance Webinar last week went into far more detail, and a link will soon be available to get a copy. One thing is absolutely true-, the ONLY profit center is the Claims Department. It’s easy for Marketing /Underwriting to bring in the money- the hard part is keeping it! More importantly, thinking outside the box is critical, something that is getting harder to do when there are Attorneys handling claims rather than Claims persons with legal backgrounds doing so. The major difference is one is geered towards “make me”, whereas the other is looking for a solution to close the file (without throwing money out the window).
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Having handled Professional Liability claims from 1975- 1995, I can attest to everything being accurate in this article. In fact, we proved that if the expense to loss ratio isn’t between 80-120% to $1 (depending on line of business), the Insurer is doomed to lose money on the program. Claims personnel, again depending on the E&O/D&O Line, cannot possibly handle more than 150 claims on diary. My Academy of Insurance Webinar last week went into far more detail, and a link will soon be available to get a copy. One thing is absolutely true-, the ONLY profit center is the Claims Department. It’s easy for Marketing /Underwriting to bring in the money- the hard part is keeping it! More importantly, thinking outside the box is critical, something that is getting harder to do when there are Attorneys handling claims rather than Claims persons with legal backgrounds doing so. The major difference is one is geered towards “make me”, whereas the other is looking for a solution to close the file (without throwing money out the window).
Feel free to contact me at ffisher@e-o.com