across the world
What are Loss Runs & How are These Reports Vital for Insurance Businesses?
The word “Loss Run” or “Loss Run Report” is a very common term used in the insurance sector. Insurance firms often receive requests to provide loss run reports when clients switch agents or renew their existing policy.
Insurers will ask for the loss run report, including up to 5 years of history or the offered coverage. Rarely, insurance companies provide the loss run reports every year. The reason behind this is whether your previous claim is open or your policy will be an occurrence policy.
The significance of loss run reports in the insurance industry:
What exactly do loss run reports entail?
In simple words, loss run reports are the history of the applicant’s insurance claims activity throughout the duration of the policy. Insurance companies keep a track of each claim of the clients and how effectively those claims were settled down.
Insurance agents request loss run reports from business owners to understand the risks their business has faced previously. Just like banks ask for credit card statements when clients apply for a loan, loss run reports aid agents in offering tailored policies and setting premiums based on the business’s historical risk exposure.
Why do Insurance Companies ask for a loss report, and what information does the loss run report contain?
When there is a policy renewal or the user is applying for a new policy, for sure they will be asked for loss run reports. Before underwriting policy as per the requirement of the client, it is necessary to check the claims history of the client.
The underwriting team frames the policy and sets the premium based on the claims history. Agents request loss run reports to assist the underwriters and obtain client approval for the tailored policy.
When the client wants to renew the existing policy, loss run report comes into the picture. Insurance companies track the history of claims and the effectiveness of their processing.
Now, what information is included in this loss run report? It includes the same details that the client has filled while initiating the policy such as:
- Your Name
- The dates of any losses you have claimed and the dates when you submitted your claims
- Information about the loss incident
- The date of the total amount of benefits paid to you
- The amount of reserve fund set aside for your claims account
- The status of your claim, whether it’s open or closed
Why do Insurance Companies need to Outsource their Loss run processing?
The insurance industry has various complexities and the underwriters are usually occupied with the excessive workload of policy management and claims handling. These loss run reports play a crucial role when it comes to renewal of a new policy or fresh insurance applications. If the agency or the underwriter fails to provide these losses run reports on time, it may harm the reputation of the agency or insurance company.
Instead of hiring an in-house team for loss run report processing, the best option for you is to outsource insurance loss runs a process to a reliable partner that can help you to save your time, cost and efforts and also help you in enhancing the reputation of your insurance company. Consider Cogneesol – a leading insurance BPO services provider having expert and experienced insurance professionals ready to serve you with the best. To know more about us, call at +1 646-688-2821 or email at [email protected].
Thought-leadership articles, blogs, case studies on how to optimize operations, makes processes efficient, reduce costs, be future-ready – Stay abreast with our newsletter.
Enter your email address below.
and Terms of Service apply.