Download presentation
Presentation is loading. Please wait.
1
Automobile Subrogation Benchmarking
Mark Gluodenis Allstate Insurance 2775 Sanders Road, Suite C05 Northbrook, IL 60062 Chris McPadden Travelers Insurance One Tower Square, 5MS Hartford, CT 06183
2
National Association of Subrogation Professionals
2012 Automobile Subrogation Survey Sponsors Arbitration Forums, Inc. Praxis Consulting Latitude Subrogation Services Ward Group 2
4
What is a Benchmark? The process of comparing performance against baseline Internal comparison Practices of other leading companies Purpose of improving performance 4
5
Why is Benchmarking Important to your company?
Alignment Measurement Drive Performance Continuous Improvement 5
6
Metric Definition “A metric is not simply measurement.
It is a measurement taken over a period of time communicating vital information about a process or activity.” Ralph Dandrea 6
7
Internal Analysis Understanding Your Company’s Business
Three-year Data History Changes in Your Book of Business Current Subrogation Pending 7
8
External Analysis Peers -- Geographic -- Business -- Size
Market Changes Variables (i.e. CATs) 8
9
Apples v. Oranges? Reporting Criteria Specific Business Practices
-- Philosophy -- Workloads -- Organization Results -- Representative Sample -- High Performers 9 9
10
“Not everything that counts can be counted and not everything that can be counted counts.”
Albert Einstein 10
11
2012 Auto Benchmark Committee
Mark Gluodenis Allstate Don Jones Nationwide Sharon J Simonetti Mercury Insurance Group Grace Lopes Travelers Insurance Sheila Lamberson State Farm Donna O’Brien Rick Rectanus, CPCU Liberty Mutual Group Cherish Diviney NASP Richard Snyder
12
Enhancements to study…
Accelerated Timeline Survey Structure Table Of Contents Improved Glossary/Definitions Added MP and PIP Section Technology Utilization
13
Profile of Participants
Twenty-two carriers participated in the subrogation study. Individual company results and the names of participating companies have not been released in order to maintain the confidentiality of the data. A profile of the group follows: 13
14
Organizational Practices
Benchmark Categories Performance Number of Files Opened Average Time to Closure Total Dollars Received (% of Total Paid) Potential Subrogation (% of Total Paid Losses) Number Closed with $ 0 Subrogation Recovery Operating Practices Identifying Subrogation Potential Investigating Hiring Subrogation Firms -- When? -- How? Audits Training Organizational Practices Workloads Recovery Expense Centralized / Decentralized Service Level Standards Philosophy Measuring and Tracking Personnel Salary, Authority, Incentives, Experience, Workloads Expense Organization Structure 14
15
Subrogation Performance
Number of Files Opened Average Time to Closure Total Dollars Received (% of Total Paid) Potential Subrogation (% of Total Paid Losses) Number Closed with $ 0 Subrogation Recovery 15
16
Subrogation Performance Management
16
17
Operating Practices Identifying Subrogation Potential Investigating
Hiring Subrogation Firms -- When? -- How? Audits Training 17
18
Subrogation Legal 18
19
19
20
Organizational Practices
Workloads Recovery Expense Centralized / Decentralized Service Level Standards 20
21
Centralized/Decentralized
22
Philosophy Measuring and Tracking Performance Personnel
Salary, Authority, Incentives, Experience, Workloads Expense Organization Structure 22
23
Authority
24
Med Pay and Pip
25
NASP Benchmarking Surveys
Edition First Second Third Fourth Auto 2003 2005 2008 2012 Property 2004 2006 2010 2013 Work Comp 2011 2015 Healthcare 2014 25 25
26
NASP Industry Benchmarking Dashboard
Quarterly, semi-annual and/or annual update of subrogation performance, by line of business: Personal Auto Commercial Auto Homeowners Commercial Property Workers Compensation 26 26
27
NASP Industry Benchmarking Dashboard
10 Key Subrogation Performance Metrics: Average Notice of Loss to closure with recovery Average Notice of Loss to closure without recovery Notice of Loss to 1st Subrogation Credit Date Calendar Year Claims Assigned in Subrogation Calendar Year Recoveries (Ex CAT) Calendar Year Payout (Ex CAT) Calendar Year Deductibles Recovered Calendar Year ALAE Calendar Year ULAE Count of Calendar Year Claims with recovery Count of Calendar Year Claims with payout Count of Calendar Year Claims Received (overall claim notices regardless of payout) 27 27
28
NASP Industry Benchmarking Dashboard
29
Questions? 29
Similar presentations
© 2024 SlidePlayer.com. Inc.
All rights reserved.