Claims leakage
Controlling claims leakage is a difficult balance to strike for insurers. Learn how you can.
Detecting claims leakage and preventing it is a very complex topic that is top of mind for every insurer. This is because it is estimated that claims leakage accounts for 5% to 10% of all claims paid. In the life insurance sector, that number can be as high as 25%. In the U.S. alone, claims leakage is a problem in excess of $30 billion per annum.
In addressing claims leakage, insurers are not attempting to underpay claimants, but rather control their outlay to only the amount they are contractually obligated to pay.