How Do You Measure Up?

 Wednesday, November 10, 2021

 CLM Magazine

Insurance carriers have invested in core systems to help streamline their internal claims-handling processes.

As a result of improvements in these internal processes, data is more readily available for analysis. As such, carriers are leveraging this data in order to develop metrics to measure the performance of their subrogation recovery programs.

Not only does the use of metrics provide a way to measure performance in key areas of the recovery process, but also it clearly communicates the primary performance areas upon which everyone will be measured.

As metrics clearly communicate what information is important to insurance carriers, service providers are re-evaluating how they deliver their particular services to insurance carriers and developing their own internal metrics to ensure that they are performing well in the areas being measured.

With the implementation of sophisticated claims-handling processes by all, the collection and analysis of data has significantly improved. However, if the data collected is inaccurate or incomplete, then the metrics developed from that data may not be an accurate reflection of performance.