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DWF 3Sixty Blog

How to Prevent Financial Leakage

Posted by Elliott Seaton on Jun 3, 2016 10:13:18 AM

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As a nation, we are slowly beginning to pull ourselves out of the worst recession we've seen since the war. We are now beginning to see slight growth in the economy, hitting an annual growth rate of 3% in 2014. 

Recovery from the 5 quater-long financial crisis has been slow, but the good news is that we're making progress. Nontheless, many organisations and individuals alike are still facing significant austerity.

Last year, it came to light that councils would face a further 6.7% in funding cuts. We have since seen many local government organisations restructure and tighten their processes in an effort to make up the deficit. 
It is increasingly important for councils to monitor their expenditure and any financial 'leakage' is simply out of the question. 

Managing the claims handling process can save a tonne of money. By regularly reviewing each step you can soon identify where you are losing unnecessary money. And then take action to save.

Take a look at your claims process

Inefficient claims processing - Every minute spent on processing a claim costs your organisation. The longer it takes for a claim to settle, the more costly it becomes. There are areas of the claims process that are long-drawn-out. 3Sixty Systems' Whitepaper: 'Local Government Challenges' concluded that the following stages fall into this category:

  • Data entry and document gathering
  • Reports, and the ability to analyse and make effective decisions
  • Admin
  • 3rd Party Solicitors

Each of these issues mean that claims aren't settled as quickly and efficiently as they could. Many local government organisations are using an outdated claims management system or simply don't use one at all. 

This means that there is often no central storage system and it can take time to source documentation such as letter templates and policy descriptions. 

Many people we speak to also state that they don't regularly review claims performance and that this is simply due to the time taken to construct reports. This in turn means that they can't make well-informed decisions or improvements.

Councils also report that 3rd Party solicitors are sometimes slow with providing documentation, slowing down the process even further. 

Getting a good system in place will save you money. Having a centralised application that can store all of your data, and thus create complicated reports in a matter of seconds will mean that you can spend more time doing the important stuff instead of waiting around for others. 

Fraud

Fraudulent claims are an obvious issue that costs Insurance teams every year. In 2014, Insurers uncovered 350 insurance frauds worth £3.6m every day. That is double the reported cost to businesses due to retail crime.  

Detecting fraud can be tricky business, but with the correct tools and processes at your disposal you really can beat the fraudster. 

Read our 15 Tactics to Beat the Fraudster to find out exactly how. 

Premiums

The final area where you could be paying more than you need to is on your insurance premiums. There are numerous tricks you can use to avoid paying over the odds for average cover. 

So much so, that we've written a full post on it. Click here to find out our '11 Insurance Hacks to Reduce Your Premiums'.

How we can help 

3Sixty Systems have developed a Claims Management System designed perfectly for Local Government and Housing Associations.  

You can find out more about EvoClaim:

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Topics: Software, insurance claims