Neither would I.
But if you are not updating or editing your case reserving, that’s exactly what you’re doing, flying blind.
Let me explain,
Many carriers’ current process to update reserves has been a rarely modified.
Static case reserves lead to wild swings in claims reserve numbers.
Inflated catch-all IBNR’s, and a general lack of reserving accuracy cause claims to spiral out of control.
As with most things, the devil is in the details. Reserving is no different.
While a very large company can over the course of time, average the numbers out, this approach is far from ideal.
But how do you set an accurate and case specific reserve at FNOL, plus track those changes over time?
Easy. By leveraging a multi-channel communication platform.
A reliable prediction of claim trends. And an automated cherry-picking process for those specific claims that need to escalate.
We know claims reserving is a point-in-time representation of all claims, plus IBNR.
But the lack of granularity of those reserves leaves carriers way too exposed.
It’s not about the accuracy of reserving point in time quarter to quarter.
It’s about monthly, weekly, and hourly reserves that are accurate.
Think of your bordereaux. No more adverse developments. The changes in total exposure are accurate in ‘real time’.
It is for this reason that reserving is not buried 12 screens deep in our software. It’s omni-present throughout.
As new information comes in, reserves get adjusted. As information streams in real time, so do your reserves.
Minor reserve adjustments in any direction will occur.
But these deltas allow us to track outliers. Now we’re ready to escalate claims faster and more accurately.
So if you must fly, do so in good weather and with the best instrumentation possible.
The trip will be much more enjoyable than the white-knuckle ride you’ve been on.
If you would like to know how our innovative claim process can help you make effective real time decisions, maximize control and minimize costs relating to your claims. Click here to schedule a brief chat with me!
Would love to know your take on the topic, if you’d like to chat, once again you can set up a time right here.
Founder, CEO / TelaClaims. Author, speaker and entrepreneur. David spends most of his time today developing software solutions for the Property Claims and Insurance space. Enjoys good food, fast cars, and a room full of developers, marketers, and videographers. He lives in South Florida with his wife, son and two daughters.