Aon Claim Closure Services
Unchecked, legacy casualty claims can be a costly burden on an organization’s bottom line. Aon’s integrated Claim Closure Services approach is a proven strategy that helps clients accurately identify challenging legacy claims and take proactive steps to remove them from the balance sheet, and also minimize the number of less mature claims ultimately developing into a legacy situation.
The Importance of Claim Closure to TCOR
As casualty claim costs continue to rise, organizations seek strategies to manage and reduce their ultimate casualty claim loss portfolio. The reality is that many claims fail to receive proper attention due to adjuster caseloads, staff turnover, lack of technical expertise and jurisdictional constraints, among other reasons. The resulting negative impact to organizations cannot be overstated, driving up both direct and indirect costs, creating unnecessary administrative burdens, and laying the foundation for an inefficient claim management model.
An Innovative Approach to Further Impact Claims Outcomes
Despite our unparalleled success in helping clients drive down costs and close out legacy claims, Aon identified the need for a data driven, formal process to manage less mature claims, typically those aged 12 months or less. A study of $1.2B in incurred workers’ compensation values completed by Aon’s actuarial practice identified that claims not closing within the first 12 months take 53 months on average to close, and increase at a 1.19 positive correlation to claim duration.
Identifying the right claims early on can be a major challenge, but it’s also absolutely critical to maximize the number of claims that close within that initial 12-month threshold. Aon has developed a proprietary, data-driven process that utilizes specific claim closure “metrics” allowing for a more strategic approach to inventory management. By identifying and leveraging key metrics we can be more tactical, concentrating on high-probability closure opportunities at the earliest possible moment.
Two Decades of Proven Results
With more than 20+ years of experience, Aon’s dedicated claims closure practice has perfected a process of extensive audit, injury management, and technical expertise to improve process and drive better claim outcomes for our clients. Our process helps your organization minimize the open inventory of legacy claims (typically those claims older than 12 months) and reduce claim costs, allowing you to deploy operating capital more strategically rather than simply relying on an LOC to secure unpaid liabilities. In addition to these “direct” benefits, our process also can deliver a variety of “indirect” benefits to positively impact your balance sheet.
If you elect to comment or engage with our content via third-party social media websites, you authorize Aon to have access to certain social media profile information. Please click here to learn more about information that may be collected when using these tools on Aon.com