aligning claims and underwriting

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ALIGNING CLAIMS AND UNDERWRITING – A CASE STUDY FEBRUARY 27, 2014

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Key discussion points: How do Claims and Underwriting typically relate? Why align Underwriting and Claim departments at Society? What changes did Society make and how? What impact did the change have on results?

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Page 1: Aligning Claims and Underwriting

ALIGNING CLAIMS AND UNDERWRITING – A CASE STUDY

FEBRUARY 27, 2014

Page 2: Aligning Claims and Underwriting

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SOCIETY INSURANCE

A regional commercial P&C carrier specializing in restaurants, bars, supermarkets, convenience stores, medical clinics and artisan contractors.

Located in Fond du Lac, WI and writing in the states of Wisconsin, Indiana, Illinois and Iowa.

Founded in 1915 to meet the Workers Comp needs of threshermen Society has since grown to $150 million in written premiums and $116 million in surplus.

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SOCIETY…A CASE STUDY

Key discussion points:

How do Claims and Underwriting typically relate?

Why align Underwriting and Claim departments at Society?

What changes did Society make and how?

Impact on results

Next steps

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SOCIETY…A CASE STUDY

A brief history of claims and underwriting relationships at Society.

“Underwriting writes it and claims is the mop up service.”

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SOCIETY…A CASE STUDY

Why align?

Much to learn from each other that can improve organizational results.

What changes were implemented? How?

Four key elements to creating the shift.

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SOCIETY…A CASE STUDY

Four Key Factors to Creating Alignment between Claims and Underwriting

Relationships

Communication

Ownership

Persistence

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SOCIETY…A CASE STUDY

RelationshipsHas to be a priority to department heads.

• Set the example and reinforce the expectations

Top/down and bottom/up

CommunicationFormal

Informal

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SOCIETY…A CASE STUDY

OwnershipStructure

Strategies

Accountability

PersistenceChanging habits built up over a career

And the results?...

Page 9: Aligning Claims and Underwriting

PAL Fires and Weather

Fires # fires Avg fire loss Weather # weather Avg weather

Incurred Incurred

2011$16,770,09

7 143 $117,273

$8,109,949

1207 $6,719

2012$17,082,10

8 153 $111,648

$3,797,008

729 $5,209

2013$10,312,08

2 117 $88,137

$4,303,400

608 $7,078

2011

2012

2013

2011 Fires 143 2012 Fires 153 2013 Fires 117

$16,770,097 $17,082,108

$10,312,082

Fire Numbers Improved-2013

2011 Weather 1207 2012 Weather 729 2013 Weather 608

$8,109,949

$3,797,008 $4,303,400

Weather leveling off?

Page 10: Aligning Claims and Underwriting

PAL Slip and Falls

Slip and Falls # of Falls Avg Fall

WI 2011 $1,316,170 451 $2,918

IL 2011 $1,343,413 363 $3,701

IN 2011 $428,873 105 $4,085

IA 2011 $266,855 67 $3,983

All States 2011 $3,355,311 986 $3,403

WI 2012 $1,512,601 454 $3,332

IL 2012 $2,133,068 397 $5,373

IN 2012 $273,798 105 $2,608

IA 2012 $148,035 61 $2,427

All States 2012 $4,067,502 1017 $4,000

WI 2013 $1,905,480 456 $4,179

IL 2013 $1,864,500 284 $6,565

IN 2013 $345,562 110 $3,141

IA 2013 $260,134 46 $5,655

All States 2013 $4,375,676 896 $4,884

Page 11: Aligning Claims and Underwriting

PAL Liquor Claims

2012 Liquor Claims

# of Claims

Illinois 54Indiana 8Iowa 14

TOTAL 76

2013 Liquor Claims

# of Claims

Illinois 28Indiana 6Iowa 6

TOTAL 40

2012 Liquor ClaimsNote the drop in the number of Liquor Liability claims, 76 claims in 2012 to 40 claims in 2013. Also, improvement in all 3 states.

54

8

14

28

6 6

Liquor Claims 2012 and 2013

IL IN IA

2012

2013

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QUESTIONS?

Thank you!

William Bunzel, CPCU D. Holly Lifke, CPCU, MBA, AIC, CICVP – Property Auto Liability Claims VP – Commercial Underwriting

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Coverage Difference 201413 |