aligning claims and underwriting
DESCRIPTION
Key discussion points: How do Claims and Underwriting typically relate? Why align Underwriting and Claim departments at Society? What changes did Society make and how? What impact did the change have on results?TRANSCRIPT
ALIGNING CLAIMS AND UNDERWRITING – A CASE STUDY
FEBRUARY 27, 2014
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SOCIETY INSURANCE
A regional commercial P&C carrier specializing in restaurants, bars, supermarkets, convenience stores, medical clinics and artisan contractors.
Located in Fond du Lac, WI and writing in the states of Wisconsin, Indiana, Illinois and Iowa.
Founded in 1915 to meet the Workers Comp needs of threshermen Society has since grown to $150 million in written premiums and $116 million in surplus.
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SOCIETY…A CASE STUDY
Key discussion points:
How do Claims and Underwriting typically relate?
Why align Underwriting and Claim departments at Society?
What changes did Society make and how?
Impact on results
Next steps
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SOCIETY…A CASE STUDY
A brief history of claims and underwriting relationships at Society.
“Underwriting writes it and claims is the mop up service.”
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SOCIETY…A CASE STUDY
Why align?
Much to learn from each other that can improve organizational results.
What changes were implemented? How?
Four key elements to creating the shift.
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SOCIETY…A CASE STUDY
Four Key Factors to Creating Alignment between Claims and Underwriting
Relationships
Communication
Ownership
Persistence
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SOCIETY…A CASE STUDY
RelationshipsHas to be a priority to department heads.
• Set the example and reinforce the expectations
Top/down and bottom/up
CommunicationFormal
Informal
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SOCIETY…A CASE STUDY
OwnershipStructure
Strategies
Accountability
PersistenceChanging habits built up over a career
And the results?...
PAL Fires and Weather
Fires # fires Avg fire loss Weather # weather Avg weather
Incurred Incurred
2011$16,770,09
7 143 $117,273
$8,109,949
1207 $6,719
2012$17,082,10
8 153 $111,648
$3,797,008
729 $5,209
2013$10,312,08
2 117 $88,137
$4,303,400
608 $7,078
2011
2012
2013
2011 Fires 143 2012 Fires 153 2013 Fires 117
$16,770,097 $17,082,108
$10,312,082
Fire Numbers Improved-2013
2011 Weather 1207 2012 Weather 729 2013 Weather 608
$8,109,949
$3,797,008 $4,303,400
Weather leveling off?
PAL Slip and Falls
Slip and Falls # of Falls Avg Fall
WI 2011 $1,316,170 451 $2,918
IL 2011 $1,343,413 363 $3,701
IN 2011 $428,873 105 $4,085
IA 2011 $266,855 67 $3,983
All States 2011 $3,355,311 986 $3,403
WI 2012 $1,512,601 454 $3,332
IL 2012 $2,133,068 397 $5,373
IN 2012 $273,798 105 $2,608
IA 2012 $148,035 61 $2,427
All States 2012 $4,067,502 1017 $4,000
WI 2013 $1,905,480 456 $4,179
IL 2013 $1,864,500 284 $6,565
IN 2013 $345,562 110 $3,141
IA 2013 $260,134 46 $5,655
All States 2013 $4,375,676 896 $4,884
PAL Liquor Claims
2012 Liquor Claims
# of Claims
Illinois 54Indiana 8Iowa 14
TOTAL 76
2013 Liquor Claims
# of Claims
Illinois 28Indiana 6Iowa 6
TOTAL 40
2012 Liquor ClaimsNote the drop in the number of Liquor Liability claims, 76 claims in 2012 to 40 claims in 2013. Also, improvement in all 3 states.
54
8
14
28
6 6
Liquor Claims 2012 and 2013
IL IN IA
2012
2013
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QUESTIONS?
Thank you!
William Bunzel, CPCU D. Holly Lifke, CPCU, MBA, AIC, CICVP – Property Auto Liability Claims VP – Commercial Underwriting
Coverage Difference 201413 |