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CCarr
Canada
1200 Posts |
 Posted - 03/20/2003 : 10:42:11
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I've heard claims departments described as a lot of things over the years, but never as a "profit center"; nor can I grasp that concept.
The 'new wave' of "tools", are drawing partners, and it will be interesting to see how much momentum 'partners' can bring to this wave.
The attached link story talks of, ".... how the newest claims technologies drive strategies for property claims processing that actually turn property claims departments into profit centers ...."; this according to MS/B and GAB Robins.
It will be interesting to follow the rollout of this startegy.
More details at;
www.canadianunderwriter.ca/PR/PR_detail.asp?ID=836 |
Edited by - CCarr on 03/20/2003 10:44:13 |
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Manmut
USA
26 Posts |
Posted - 03/20/2003 : 11:08:31
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| I don't see how a claims department can be a profit center either. The most you can hope for is that subrogation and salvage will mitigate some of your losses. |
Patrick W. Laws |
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CatDaddy
USA
310 Posts |
Posted - 03/20/2003 : 11:56:19
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| The story refers to strategies for lowering the cost of adjusting claims while maintaining proper payouts on claims. The headline is eyecatching but deceiving. Carriers could never cut adjustment expenses enough to profit on any claim. A homeowner's insurer does not profit in the course of doing business. It is only after investments that a carrier has the possibility to stay out of the red and in this economy, forget about it. |
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CCarr
Canada
1200 Posts |
Posted - 03/20/2003 : 14:50:29
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Lannie, I understand and agree with all of your post, except, for the last three words.
I do not think that this is something to forget about. I am quite sure the MS/B 'spin' regarding claims departments becoming 'profit centers' will be quite different in context; than what you and I understand a 'profit center' to be.
The 'spin' continues to evolve around the 'magical' capabilities of their tools, that they want integrated into claims departments. This has been talked about in the past in other threads. Previously, their focus spin was on "control", and continuing now by adding "profit center" ideology to their marketing thrust.
They are attempting a fundamental change, to how a claims department functions, and how it is perceived and of its role, in a financial services environment.
Their level of ultimate success with their marketing and implementation of their ideology, in concert with their "control tools"; will determine the future landscape and financial reporting styles of claims departments.
Again, this is not something to forget about. |
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CatDaddy
USA
310 Posts |
Posted - 03/20/2003 : 16:18:39
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CCarr, I guess I was thinking about my 401K and what the stock market has done to it. And also the little issue of a company kinda close to my pocketbook lost 5 billion dollars in 2001 and 2.8 billion in 2002, with the poor stockmarket being the kick when they were already have a "moldie" year.
It is actually very interesting to back off and look at the industry.
"Hey, lets start a business where our entire success and stability depends on investing money into the stock market for our profit until we have to take that same money out to pay claims submitted by our policyholders. If we get alot of one and not too much of the other, we'll be rich." "Sounds like a winner to me Bevis!"
What have we got ourselves into?
CD |
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Ghostbuster
476 Posts |
Posted - 03/22/2003 : 12:11:29
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After viewing the MS&B blurb, I am struck by how we all have joined the wrong department in the insurance industry. I mean, there we were, all young, hot, and vigorous believing we were the heroes there to save the day as adjusters. And, not just any ol' adjuster, but Property Adjusters. We thought, "Gee, there will always be claims so we will always have a job". How were we to know that the truly secure jobs would be the 'teats on a boar hog' in public relations? It's the people doing the useless that write these spin blurbs that are the ones last in line to be downsized.
Is it too late to apply for a lofty position in public relations? I know how to make mix drinks and smile like an all-knowing fool while saying grandiose lies that the companies new product can make the sun rise in the west and how Canadas Hudson Bay in winter has sunny beaches.
Isn't that all it takes to be successful in public relations? |
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A Claims Department as a Profit Center?
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