Close in on reopen rates & open the door to savings
Analytics generated by our software recently yielded some staggering statistics for one P&C insurance carrier that processes approximately 4,000 service provider invoices per month. Our client received major, unexpected insight into its vendor behaviors relating to reopen rates.
The power of actionable data
Data is great. Data with context is better. And actionable data with context is the holy grail of data analytics. And that’s exactly what our BAP data provided by uncovering that a vendor firm had a 20% reopen rate on policyholder claims. This insight alone wouldn’t necessarily convey a percentage that’s good, bad or indifferent; but when compared to another vendor—who had an 8% reopen rate while working twice the volume of claims—it told a lot about vendor behaviors.
As a result, our client met with the service provider to discuss the data and future expectations based on comparative reopen rates among its vendors. Since the meeting, the vendor's reopen/reinspection rate plummeted from 20% to 7% in just three months, leading to more than $30,000 in cost savings from reopens and reinspection alone. The service provider appreciated the insight as an opportunity to improve its practices and level of customer service to become more competitive.
Vendor Reopen and Reinspection Progress
All the implications
For the carrier, having the ability to track this data had benefits far beyond the cost savings. Considering that the reopen process is typically initiated by customers, imagine the negative customer service reputation the carrier was (unknowingly) building as 1/5 of its claims with that vendor were being reopened?
Here are more of the actionable data analytics our software can provide.
Invoice & Rejection Totals By Vendor
Additional Claim Expenses
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