Insurance Claims Recoveries: Benefits of Outsourcing to a Debt Collection Specialist
As a debt collection expert, I would like to talk about outsourcing insurance claims recoveries to a debt collection specialist and when to do it.
Why should an insurance company outsource this part of the claims process?
Insurance companies can benefit from improved returns and smaller claims to premium ratio by outsourcing to a professional debt recovery agency that specialises in insurance claims recoveries.
A specialist agency may have the skills and resources to do the job more efficiently, such as Debt Recoveries Australia (DRA), whose staff are mostly former claims officers and have worked in the insurance industry.
A specialist insurance recoveries agency can act as an extension of your claims team. Staff have training in the Insurance Code of Practice and often have prior experience in complex claims disputes and negotiation for large loss recoveries.
At Debt Recoveries Australia, we minimise the level of effort required by our insurance clients in the debt collection process and provide a positive customer experience when working with customers to resolve their insurance claims arrears.
An insurance claims recoveries specialist agency can help in the following areas:
- Collect on un-insured third party claims – where the insured has had an accident and they are considered not to blame, but the third party is not insured. These are time-consuming cases for a claims officer.
- Unpaid premiums – debt can arise where customers that have canceled their Direct Debit but failed to cancel their policy, resulting in a premium being due.
- Disputed matters where there may be a recovery. An example would be a power surge, causing damage to white goods in the home. A specialist can investigate possible recovery against the power company.
- Claims leakage reviews on current and closed cases
- Litigation advise and legal letters of demand. An example would be a liability or quantum dispute with a third party or their insurer.
Another main benefit is timesaving for the claims team.
The insurance company’s first priority is to look after the insured during the claims process. The claims officer’s priority must be the insured, so once the claims recoveries function is outsourced, the claims officers can then concentrate on managing the claim itself, without having to worry about the recovery process.
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|About the Author
In 2002, Adam Stewart established Debt Recoveries Australia Pty Ltd, a debt collection agency specialising in the insurance claims industry.
Adam has worked in the fields of motor vehicle insurance and debt recovery for over 12 years, working with some of the largest insurance and debt recovery companies in Australia. Read more