Leveraging Subro Data For Accurate KPIs
A Better Way to Build Your Subro Strategy in 2018.
You’ve been in the meeting. A management team sits down at the start of a new year to set recovery and performance goals and primarily uses the limited data of prior year’s performance stats, not because that’s the best place to start, but because that is all that’s available. Carriers also face the same issues of limited data when trying to benchmark their performance against the rest of the industry. Just like a building with foundation issues won’t stand for long, building a strategy around incomplete data is problematic at best.
What if there was a better way?
What if you could access data that would help you not only set recovery and performance goals but would also maximize the recovery process?
Internal Key Performance Indicators:
The ability to capture data that maximizes the recovery process has been difficult, if not impossible, before now. Without that data, any KPIs rest on a shaky foundation. The KPIs must be in line with the desired outcomes. For example, the steps for a carrier related file will differ from that of an uninsured motorist file from that of the property file. Do the expectations on the number and timeliness of the follow-ups drive results or are they just a step in the process that gets marked as done? Are only dollar recoveries being measured or can the carrier focus on the liquidation percentages (ratio of recoveries compared to subrogation placements) that tracks individual performance more accurately than the recovery dollar method?
If the goal is to use internal KPIs to drive results, they must be built on the most complete data available and they must be measurable. The internal Key Performance Indicators must have a strong foundation.
External Key Performance Indicators:
If a strong foundation is the first step, protecting the structure against external factors is the next. Being aware of the data and trends of those companies you are collecting against allows you to protect the recovery effort. Think about it as installing siding on your home. It protects against those outside elements that could damage your recovery.
Does your existing claims platform allow insight into the percentage of recovery against other companies and their adjusters? For example, if the carrier had insight into the average recovery generated from another carrier and their adjuster for left turn cases, the carrier could make better decisions to accept a recovery than submitting to arbitration.
Data can also support the public good when it comes to product liability claims. There are multiple sources to research products that have issues (ie, CPSC), but not until now does a system exist with capabilities to track the products resulting recovery effort. This data allows carriers, individually or through industry initiatives, to share information with their policyholders that could protect their property, and in some instances their lives.
If the goal is to use external KPIs to hone the recovery process and better serve policyholders, they need to be based upon the best information available.
A Better Way With
Whether you’re developing internal or external KPIs, the ability to use the data to drive results can only be utilized if the data is captured in the first place. To date, that capability has not existed, but that has changed with claim systems providers adoption of SubroPro. This system provides data that makes setting recovery and performance goals and maximizing the recovery process possible in a way that it has never been before and THAT is a better way to build a strategy in 2018.
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