Can Claims Management Firms Really Get By Without Claims Software?
The UK claims sector is big business. Those who are profiting from it are using claims software.
There is little doubt that opportunities for growth in the claims management industry are expanding. Currently, all eyes are on the payment protection insurance (PPI) area, as a newly announced deadline for such claims means there are just two years left to resolve outstanding cases.
A previous rush of PPI claims netted claims management companies fees of around £5 billion collectively, from a total of some £26.7 billion paid out by the big banks since 2011 over the mis-selling scandal. Now, with a public advertising campaign due to be launched later this year advising people to see if they can claim for PPI, a similar amount in fees could be up for grabs.
Another area of revenue opportunity for claims management companies is packaged bank accounts. Some say it is an emerging scandal that could be even bigger than PPI, as many people are now revealing that they were unaware of all the extras on their bank accounts that they have to pay for. Others say they felt pressured into taking them when applying for loans or mortgages.
A Big Helping Hand
Indeed, the claims sector in the UK is so bright for companies dealing with claims, primarily because there are so many areas to target. Flight delay claims and mortgage mis-selling are other segments of the market that are showing real promise for developing substantial revenue streams.
As all these claims arrive at claims firms, the question many ask is whether they can deal with them manually, or computerise the entire process with specialist claims software. Clearly, assigning teams of people to work on claims is a serious undertaking, in terms of staff allocation and capital outlay. There is also the critical issue of how fast the claims are being dealt with — something management and clients urgently want to know about.
What we have found here at Logican is that as claims management firms grow and handle ever-rising caseloads, it no longer makes business sense to deal with it all by hand. It is just too cumbersome, too slow and often prone to serious mistakes that could hurt a company and drive potential clients away.
Powering Ahead with Claims Software
Take PPI claims as one example. Because of the expected enormous level of claims that will be made in the next two years, companies hoping to deal with large volumes of them in the hopes of increasing profits may quickly find themselves swamped. Additional resources — financial and human — would have to be allocated, but would threaten reduce a company’s profit, while also potentially overburdening systems such as IT and other operational areas.
With industry-standard claims software such as our LogiClaim program, only minimal staff levels are required to deal with growing numbers of claims. The entire claims process becomes highly automated — and much quicker — while the potential for error is greatly reduced.
Claims firms handling a range of claim types benefit from being able to easily set up portfolios the way they want them. Meanwhile, managers get an instant snapshot of what stage claims are at, as well as being able to make vital financial projections based on workloads.
Companies handling claims can, technically, get by without claims software. But then can they really thrive? The answer almost certainly is no — and the evidence lies with growing number of claims firms who are using claims software to deal with higher caseloads and race ahead of their rivals.
A free demo of Logican’s claims software, detailing how it works and the benefits to claims management firms, is available now. Simply fill in your details and get yours today.