Claims closure projects arent a simple matter, but theyre well worth the effort.
By closing claims that are 20-30 years old, companies are often able to settle for less than the case reserve and save on any future incurred but not reported (IBNR) costs associated with a particular case.
Building and sustaining an initiative, however, can be tricky. Many companies only take on claims closure initiatives for a few months after claims build up and become unmanageable.