Benchmarks Web

Motor Claims Cost

Analyzes the direct and indirect drivers of indemnity and claims spend to identify opportunities to reduce overall cost.

The Motor Claims Cost Benchmark is Finalta’s first insurance benchmark and provides actionable insights into the performance of your current strategic configuration and operational practices and processes. The benchmark allows you to identify areas of underperformance or confirm your advantage over competitors, set realistic operational targets, and take focused actions to make a material difference to your combined ratio.

Why it's important

Finalta studies demonstrate significant variance in the costs for comparable claims, often up to 50%. In an environment where premiums are being challenged and the frequency and severity of claims are increasing, the need to closely manage costs is crucial. The Motor Claims Cost Benchmark helps participants address critical questions such as:


Cost comparison:
  • How does our claims cost compare for insured party, third party, and bodily injury?
Organization design:
  • Do our internal processes and organizational configuration support our claims strategy?
Strategy evaluation:
  • Is our total loss strategy effective?
  • How effectively does our claims capture strategy work and does it make a material difference to overall performance?
Management of approved garage network:
  • How well are we doing at steering claims to our approved garage network and does it still make sense to do so for all claims?

What the Motor Claims Cost Benchmark provides

  • Compare performance against peers, with a detailed analysis of insured party, third party, and bodily injury claims for direct and indirect drivers of spend. Benefit from significantly improved data comparability: measures are segmented into comparable groups of claims that account for differences in risk mix and claims strategy.
  • Identify opportunities for significant improvement to sales strategy and tactical sales and set targets for improvement
  • Develop an action plan to seize the opportunities and initiate improvement programs, based on observed and proven best practices. The analysis is designed to reflect real-world claims operations and align with information that is recognizable within your operations to encourage buy-in
  • Track progress of initiatives against internal targets and against competitors

Methodology

    Our unique methodology utilizes claim and claimant level data to identify differences in performance within comparable segments, including repair costs for your insured young drivers of lower value vehicles, costs of bodily injury claims with legal representation in a particular region, and the impact that time to First Notice of Loss (FNOL) is having on your overall performance. We employ granularity to generate comparability rather than manipulating data to account for differences in risk mix and strategy. Our experienced analysts understand the trade-offs in claims strategies and can help to identify opportunities in the context of each insurer’s individual needs.

Compare material
damages costs

Segment repair costs
by vehicle value and
policyholder ag

Analyze bodily injury
at both claim and
claimant level

Assess results by age,
region, injury, and cost type