£200 Million leakage problem can be reduced by accurate, up to date claims information.
Tens of millions of pounds could be saved annually by reducing claims leakage which costs the UK insurance industry over £200 million a year, according to e-insurance solution specialist, Core.

"The UK insurance industry's average for insurance leakage runs at around 5 per cent of claims annually. Reducing leakage by only one to two per cent could result in savings of tens or hundreds of thousands of pounds per insurer. For insurers, leakage is the critical difference between a poor loss ratio and a profitable account," according to Conor Callanan, Managing Director at Core.

According to Core, the answer to reducing leakage is not simply a matter of faster, more efficient claims resolution. "Poorly skilled and trained staff using ineffective, disparate systems simply compound the problem of leakage," comments Conor Callanan. "Although the longer it takes to process a claim, the greater the opportunity for leakage, speed is not the single, simple answer to this complex issue. Making poor decision quickly will contribute to malignant leakage."

The answer is reducing leakage is to make the right decision quickly based on immediate access to accurate, up-to-date and complete information. Core is tackling this costly problem by launching its new personal lines e-claims solution which is designed to automate and control the process of claims handling and processing.

Core's new e-claims solution incorporates the latest workflow and imaging technology to ensure that the right information is delivered to the right people with in the claims department at the proper time.