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Role of Claim Management in Managing Risk

• How can I use my claim data to improve my business? • Can better claim management processes and administration reduce my overall cost of risk? • Do my claim management processes add value to corporate and risk management operations? • Is our third-party claim management organization providing the appropriate level of service and best practices for managing our claims?
For many organizations, claim management and administration is viewed solely as a service operation. Claim management is expected to run the claim process efficiently and keep expenses low, but little attention is given to leveraging highimpact opportunities afforded through effective data management. In fact, the data captured in the claim process, which all too often are underutilized, are rich in valuable information for those who know how to extract and analyze it. Data generated by volumes of claims can reveal insights into everything from organizational behavior and product trends, to health and safety issues and liability danger zones. For risk management decision makers, the challenge is how to extract and use this valuable information while meeting budget and efficiency benchmarks and expectations.

How Towers Watson Can Help
Sound decisions begin with accurate, relevant data. Towers Watson can review the quality of your data and help you produce relevant financial information that is useful not only in the budgeting process, but in managing and elevating performance results. We conduct a 360-degree analysis of claim handling and administration, case reserving and compliance with industry best practices. We evaluate customer service, legal support and cost management practices to ensure you have the quality of information you need to make sound financial and operational decisions.

Effective Integration Improves Performance and Creates Value
Data Integrity Examines data utilization and operational metrics to ensure a sound platform for financial, operational and other decisions Operational Diagnostics Defines the optimal organizational structure aligned with overall business strategy, industry practices and cost-effective performance Claim Management Evaluates claimhandling practices and performance to identify vulnerabilities and reveal operational and financial opportunities Inferential Analysis Leverages risk analysis and actuarial expertise; analyzes claim trends and performance to size and prioritize potential costsaving opportunities Focused Reviews Identifies key performance improvement opportunities in high-value/highvisibility areas such as litigation management, environmental claims and mass tort Value

About Towers Watson Towers Watson is a leading global professional services company that helps organizations improve performance through effective people. workers compensation. Certain areas sometimes warrant special review and attention. talent management. product liability. risk and financial management. integrated disability management and property. Focused reviews evaluate the impact of: • Underlying litigation and claim activity • Use of best practices in claim management • Competency of claim management resources For more information or to contact a Towers Watson consultant. • Data Management and Operational Metrics. suboptimal decisions or worse. mass tort. professional liability and workers compensation claims. whether an internal operation. may adversely impact current financial results or impede future performance. and risk and capital management. please visit www. We help you perform a cost/benefit analysis of self-administration versus outsourcing and other options. We help you determine the organizational structure that is right for you. Claim performance gaps. We will provide you with a professional and impartial assessment regarding what data are health care professional liability. determine root causes and recast claim outcomes. • Inferential Analysis. third-party administrator or hybrid approach. rewards. With 14. One of the most effective ways to control your exposures is to establish and maintain a high level of claim service.000 associates around the world. Our claim capabilities will help you minimize total cost — identifying the best trade-offs between loss costs and expenses — and maximize analytical power. • Claim Operations Business Diagnostics. We leverage our background in claim . risk analysis and actuarial expertise to analyze claim trends. This can result in misstated financial positions.towerswatson. These include issues associated with environmental liability. commercial auto liability. We provide insights into the financial impacts and risk exposures associated with general liability. All rights reserved. environmental liability. We will leverage our experience and expertise to design the organizational structure that best matches the skills and capabilities needed to support a best practice claim operation within your framework. Copyright © 2010 Towers Watson. • Special Issues and Focused Reviews. including reserving practices. how data are used and what metrics best describe your key drivers of claim performance. TW-NA-2010-17604 towerswatson. we offer solutions in the areas of employee benefits. That’s why it is important to consider both the quality of claim data and whether the right data are being captured and reported. and by using the wrong performance measures. Our independent review of your claim management process and execution evaluates performance and identifies areas of vulnerability. Even the best analytics can be hampered by poor or flawed data. product liability. The claim management process has a direct impact on financial performance and is reflected on all financial statements. Our claim management practices are designed to provide actionable diagnostics for performance improvement.The Towers Watson Approach We believe claim management should be addressed with the same strategic attention as any corporate function and with the same demand for value. • Claim Reconnaissance and Financial Management.