In the insurance industry, loss run reports refer to the claims history of each of your insurance policies. The number of claims you have filed in the past are packaged in a report that you can then provide prospective insurers when you are shopping for new coverage or are looking to renew your existing policy.
By reviewing your loss run reports, insurance companies can evaluate the severity of each of your losses and the frequency with which they occurred. This information is critical to the underwriting process in determining your premiums and whether to extend insurance coverage to you at all.
Loss run reporting allows an insurer to review the financial impact of your claims, or their settlement costs, understand the type of claims you have filed in the past, and analyze the frequency of your prior claims.
Loss run reports are similar to credit scores in banking, where banks review your credit score to determine whether you are a good candidate for a loan or credit card, as they allow insurers to evaluate how risky your business will be to insure based on your claims history. Based on your claims history, insurers will decide whether to issue you an insurance policy and grant you coverage or deny your application as you pose too high a risk of incurring losses or damages.
There are many hurdles to overcome when it comes to loss run processing. The greatest hurdle that you need to overcome is to understand the process involved as it can be quite complicated in nature. Another hurdle in loss run processing involves getting loss run reports on time.
If an agency does not obtain their loss run reports on time, underwriters may block them out as other agencies may have gotten their loss runs for the same prospects to the underwriters before them. In this way, competing with competitors to get on-time reports is challenging. Knowing where to file the loss run reports and the accuracy of the details contained in each loss run report can also be a challenge to overcome.
So how do you overcome these challenges? To begin with, you can liaison with previous insurers to receive reports on time and never lose out on an opportunity. You can also set up a team to analyze these reports for accuracy and errors the moment you receive them and organize the data in such a way that reduces the time it takes to process them.
Moreover, you may study loss runs and prepare claims reports to submit to the underwriters long before your competitors manage to by coordinating with them. You can also avoid further complications by entering information into the company’s proprietary systems to expedite policy renewals.
We, at Insurance BackOffice Pro, have extensive experience in assisting agencies and carriers get a hold of accurate and timely loss run reports. We are highly versed in generating loss run reports on time by being in constant communication with previous insurers.
We ensure that all the reports we generate are error-free and comprehensive as they are reviewed using a multi-tiered quality checking process. We also have vast experience in seamlessly scaling your loss run reporting capabilities in the face of increased business volumes. If your business is looking to benefit from accurate loss run processing, it’s time you partner with Insurance BackOffice Pro.