Claims leakage is the quiet erosion of profitability that shows up in combined ratios long before it shows up in boardroom conversations.
Leakage happens at every stage of the claims lifecycle: inadequate reserves, delayed subrogation, duplicate payments, over-settlement on contents claims. Each instance is small; the aggregate is substantial.
Operations leaders who tackle leakage systematically focus on three levers: consistent reserve adequacy reviews, automated duplicate detection, and structured negotiation protocols for high-frequency claim types.
Technology helps, but discipline matters more. The carriers with the lowest leakage rates tend to combine strong process documentation with regular audits -- and they measure leakage as a KPI, not an afterthought.
#ClaimsManagement #InsuranceOperations #PCInsurance #LossControl #ClaimsLeakage
Prior 