The client is one of the largest insurance brokers in the UK and had outsourced the management of non-fault claims to a range of 3rd parties.
Due to reductions in the clients policy sales, unfavorable terms with existing providers, changes in claims management regulation affecting profitability and an increasing amount of scrutiny from its regulator, the client had to review its current approach to non-fault claims management.
As part of this, the client wished to investigate the viability of insourcing certain aspects of the service.
- Credit Hire & Repair
- First Notification of Loss
- Medical Rehabilitation
- Legal Claims Management
The review spanned 3 distinct phases;
- Seeking market-leading professional advice to ensure the client had a complete understanding of all regulatory/legal constraints
- Agreeing to a target operating model based on these regulatory/legal constraints
- Forming category strategies to take the individual areas to market, or, holding pragmatic tactical negotiations with incumbents
- A multi-year partnership was agreed with the largest credit hire/credit repair provider in Europe based upon an open book and regulatory compliant commercial model.
- Tactical negotiations were conducted with the current medical rehabilitation providers to secure revenue against a backdrop of claims volumes and ratios.
- An insourcing strategy for legal services was agreed to an inter-group company whilst maintaining current revenues to those of the outgoing party.
- A claims management model which is fully LASPO compliant
- Renegotiated terms within the group to a more favourable position for the client
- Maintained claims revenue and implemented a transparent revenue model which fairly apportions revenue risk between buyer and supplier
- A greatly improved customer experience for claimants as a result of the new credit hire/repair provider