Claims Management software helps to store relevant claim information, document all file activity, incorporate all reports and correspondence and maintain permanent transaction records for multiple claims and multiple clients. Claim leakage is the difference between the amount the firm has to pay and the actual amount paid by the firm. It refers to the money lost during the claim settlement because of inefficient processing, human error, outdated operational procedures and fraud. Identifying the claims leakage is difficult problem for a business and the claim management software helps in reducing the claims leakage.
The following are the features a claim management software should contain to reduce the claims leakage:
Speed and efficiency:
Additional costs such as those incurred by lawyers, contractors and other third parties can be reduced if the claim is resolved quickly. The claims software helps to solve the claim faster with its speed and accuracy.
Increased data integrity:
Sometimes costs may increase because of erroneous data or missing records. Claims software increases data integrity by cutting out inaccuracy and human error. This prevents leakage of data.
Over paying for a claim can occur as a result of the increased resources. Claims software can be helpful in dealing such claims, accommodating the additional requirements and alerting users when certain events occur.
Another source of claims leakage is the problem of overpaying for labour, contractors, agents and other suppliers. Claims management software analyzes trends over time, finding the average costs paid and display alerts, if the business is paying more than the average amount the market is paying. Workers compensation software also helps in reducing the claim leakage in compensating the workers.
Establish business rules:
Flexible claims software can help in establishing the business rules that cater to the majority of eventualities, so staff know how to proceed when a claim deviates from the common path. This reduces the amount of time and resources required to resolve the claim, thus reducing down on claims leakage.