Loss runs are required for any insurance application or renewal to be approved. This review procedure is a critical element in the underwriting process. As your company grows and you have a larger number of applications and renewals, compiling loss runs can become extremely time consuming, occupying your teams time and valuable resources.
1. Loss runs are a manual process.
To get these reports, a request typically needs to be sent through an email or snail mail and has to be ordered from individual insurance carriers. Now, if a policyholder changes carriers every renewal period, this would mean that multiple reports need to be ordered from different carriers each time. The more clients you have, the more time this will consume.
2. Data from loss run reports can vary and can be presented in a number of ways.
Not all insurance carriers have the same visual format which adds to the problem. This is a prime opportunity for errors, which can be very costly. A mistake can lead to inaccurate pricing, which can expose your company to a variety of risks.
3. Requests can get lost or missed.
Since the requests are done via mail or snail mail, there is a possibility of them getting lost or missed. In this case, constant follow ups are necessary until you secure the information needed from the carrier. If this becomes a repeated issue, you continue to waste additional resources on this one task.
Insurance agencies and brokers are faced with significant challenges in tackling loss run report processing in-house. From human errors, delays in carrier responses to missing requests, it can become an extremely time-consuming task. By outsourcing the compiling loss run reports, these common issues can be mitigated. Let’s look at how outsourcing can help with your loss runs.
1. Reduced Costs in Operations
Your operational overhead will expand as the volume of loss run reports increase over time. As your business grows, you will need to hire more employees to compile and process loss run reports.
Rather than hiring staff locally at a higher cost, outsourcing provides a cost-effective solution. By having an outsourced team, you can get the same tasks performed at a fraction of the cost. Additionally, by hiring an outsourced team with experience in compiling and processing loss runs, you would be spending less time training and dealing with each request and more time focused on growing your business.
2. Fast Turnaround Time
Loss run processing can be time consuming, especially as your business grows.
The faster your business can submit loss run requests and get the reports, the more requests can be completed on any given day. Your outsourced team can have dedicated employees working on this task alone, increasing speed and efficiency.
Also, worth mentioning, as your team gets more and more experience, they can keep themselves up to date with the latest practices and procedures, increasing their speed when working with different carriers. This way, you can get your loss run reports on time and get them to an underwriter’s desk as soon as possible.
3. Scalable Teams
By default, the solution when it comes to an increase in workload is to hire additional staff. In the states this can be time consuming, interviewing, finding the right candidate, training them, and hoping they stick around.
Outsourcing enables you to scale your team quickly, without the recruiting issues. Your outsourcing provider will take care of the recruiting and hiring, and they have a pool of candidates ready to go quickly to meet your growing needs.
4. Added Quality Control
Because insurance carriers have different report formats, requirements and processes in place, the loss run reports are prone to human error. Even if reports are correctly filed, accuracy of information can still be a challenge. With inaccurate loss run reports, underwriters can make mistakes in evaluating risks and carriers will bear the costs due to the inaccurate data.
Outsourcing companies have various internal systems in place for quality spot checking and auditing procedures to make sure that a high standard of accuracy is maintained. You can be confident that all your loss run reports have been audited and the information is accurate.
Are you ready to take the stress out of loss run reporting and focus on growing your business? Contact the insurance outsourcing team at Staff Boom to get started today!