Streamlining the Claims Process

In light of the changes as to how personal injurynew process requirements and timeframes.
claims should be handled, the widespread implicationsThese reforms were originally projected to take
are not just to streamline the claims process as theplace in first quarter of 2008. Although that deadline
Ministry of Justice envisages, but also to provide anhas since passed, an indication of the exact changes
incentive for insurers to make changes to systems,will no doubt be revealed come the end of the year.
processes and organisational models in order toIn the meantime, insurers need to start their
achieve high performance.preparation now and so give themselves an
The consultation paper sets out proposals for aopportunity to overtake their competition by planning
system that will provide fair compensation in a morefor the proposed changes before to their
efficient and cost-effective way by providing that,introduction, and to use the momentum to give a
for example, the defendant/insurer will have a setboost to the claims operation on the path toward
time period in which to respond, during which theachieving high performance.
claimant/lawyer will not carry out any further workFor instance, Allianz Insurance is piloting changes to its
unless essential. Other recommendations are thathandling of personal injury claims in anticipation of
there will be set time periods for making offers andreforms by the Ministry of Justice. These changes,
reaching settlement, and that Success fees andinclude fast tracking of motor and casualty claims to
"After the Event" insurance should be reduced to£25,000, and rapid liability investigations to
reflect the actual amount of work and risk involved inmeet the claims deadlines initially set up in the MoJ's
bringing a claim.consultation paper last year.
Some insurance organisations, like Accenture, believeThe firm has encouraged brokers and policyholders
that although the current proposals are a good startto help insurers reduce personal injury costs further
there are still additional areas that need to beby improving the average time to report new losses,
debated. For example, there is the question as tostressing the importance for insurers to receive quick
how insurers will achieve the proceduralnotification and to implement inquiries and measures
improvements required to meet the new timeframesas soon as possible after the occurrence of an
and whether existing claims management, workflowaccident.
and management information systems deal with the