https://completemarkets.com/company/CompleteMarkets/Articles/content-package/IMMS-Library/TabCategory/article-post/549/Outsource-Claims-Management-Realize-Reduced-Costs/
... these pendings, since they know they'll lose their jobs when the pendings go away-which means that there's an inherent disincentive to resolving claims quickly. Thus the arising/pending ratio hovers at around 3:1 to 5:1 in most companies. This is perpetuated in large insurance organizations that still value staff size over real productivity, and continue to reward inefficiencies by default of outdated strategies and policies. Progressive, by comparison, uses a modified DRP model and maintains an arising-pending ratio of 1:1 , the best in the industry ... his Auto insurance from Midwest Insurance through the Middletown Agency, whose principal is Joe's lifelong friend. Last month, Joe was in an accident that damaged the right rear side of his new Mercedes. He called Midwest, who took the accident report and called a tow truck, which took the car to ABC Body Shop. Midwest then referred the claim to the Middletown Agency. When Joe called the agency to inquire about ABC, he was referred to Sally, who handles claims. Sally said that Middletown would never recommend ABC and ... Bob nearly lost a friend. While Joe's example may seem exaggerated, it does happen and it illustrates how flawed the system is. But there's a better way. It's called managed auto care, ' and a number of companies provide it to insurance companies and self-insured fleets. MANAGED AUTO CARE To understand managed auto care, let's examine how one company, First Priority Group (FPG), of Plainview, NY, handles its managed auto care program. For the past 16 years, First Priority Group has been providing managed auto ...