Case Study

Insurance's missing millions

How Genpact's ReFinder solution returned more than $26 million in reinsurance claims for a global insurer

  • Facebook
  • Twitter
  • Linkedin
  • Email
Explore

Who we worked with

A leading global provider of insurance solutions and services covering more than 25 industries with more than $40 billion in net written premiums

How we helped

Our data experts:

  • Mapped the data requirements
  • Ran the data through our proprietary analytical models to uncover leakage
  • Conducted root cause analysis using various proprietary and established tools and techniques
  • Refined the data mapping on a continuous basis

What the company needed

To identify missed or inadequately recovered reinsurance claims along with identifying the root causes to prevent future leakage

What the company got

  • Identified and collected more than $26 million in previously lost recoverables
  • Confirmation that its reinsurance claims processes are more than 99% accurate
  • Root cause analysis of leakages to improve mitigation strategies

Leakage in the insurance business is common. Most insurers work to eliminate it, but many accept that the occasional loss – like the mistaken approval of a courtesy car for seven days, rather than the two required – is inevitable. Trying to recover this money could mean losing a customer. But reinsurance is a different story. For starters, reinsurance is typically one of the top three assets on an insurer's balance sheet – so it's very valuable. And it's much more complex than insurance. Reinsurance contracts are often convoluted multiparty arrangements, and not every insurer has IT systems specifically designed to log, process, and send claims to its reinsurer. And even if they do, it's typically manual and prone to errors.

Challenge

Find missed reinsurance collectables in legacy data

This leading global insurer came to Genpact with a problem. It knew that its systems and processes for calculating, billing, tracking, and collecting reinsurance claim recoverables were ineffective and that it was leaving money on the table, it just didn't know how much and how to fix it.

The leakage stemmed from three key factors:

  • Multiple policy and claim systems not working in concert
  • Complex reinsurance structures
  • People dependency and significant changes in staffing

This meant the overall structure was fragmented, highly manual, and subject to high degree of error. On top of this, the client didn't have the analytics capabilities or the staffing capacity to perform the necessary reviews of data that would uncover missed or incorrect reinsurance claims.

Take a copy for yourself

Download PDF

Solution

Analytics modeling to uncover and recover reinsurance claims

ReFinder, Genpact's asset recovery solution for reinsurance claims, operates in a highly structured way. It limits the impact on client resources and leverages a powerful combination of proprietary analytics modeling and industry expertise.

First, we worked in close collaboration with the client's UK, US, and Canada entities to plan the timeline and identify the data requirements. Then we modeled the claims data versus the reinsurance structure and compared it with historical cessions. This wasn't a one-time modeling – the process is continuously fine-tuned over multiple iterations. 

Then our experts reviewed each high-probability claim and scrutinized the coverage documents before submitting the individual claim documented and researched cases to the client for review and verification. Backed by the analysis and research documentation provided by Genpact, the client was able to discuss with its reinsurers and collect the additional amounts owed.

Impact

Millions of dollars returned to the client and future leaks plugged too

Over the course of the first 16-months, we identified and collected $20 million in previously lost recoverables. Not only did we recoup leaked dollars, but we also shared root cause analysis and detailed recommendations so the client could fix faulty systems and processes to prevent future leakage. A further 12-month review led to an additional recovery of $6 million. The client is now confident that its reinsurance claims processes are 99% accurate. Going forward, the insurer and Genpact will carry out periodical ReFinder recovery reviews.

With ReFinder's combination of proprietary digital models and expert human analysis, we can mine the value of long-tail legacy data and return the cash to our clients to reinvest or boost their profits.

Visit our insurance page

Learn more