Software is giving claims management firms a big step up
This article is about how software is giving claims management firms a big step up. The article was contributed by guest author Yaakov Smith.
Entrepreneurs who are running a claims management business as part of their growing empires, and those who are thinking of getting into this potentially lucrative area, have a lot to gain.
Apart from all the many existing types of financial claims that people around the UK typically make, a veritable tsunami of cases is about to descend on claims management companies.
That’s because the Financial Conduct Authority has decided to impose a deadline on payment protection insurance (PPI) claims. The deadline is just over two years from now, and there are billions of pounds at stake.
A total of £26.2 billion in monthly refunds and compensation has been paid out since January 2011 and billions more have been set aside by the banks to cover future claims.
A very big campaign reminder
PPI has been big business for claims companies. This is given that around 34 million PPI policies were sold, usually attached to mortgages, loans and credit cards. Now, those companies are preparing for a similar, if not bigger, rush of claims.
A massive advertising campaign costing £42 million is due to swing into action later this year. This campaign will be reminding people to check if they have been mis-sold PPI and, if so, to make a complaint or claim. This is expected to trigger an avalanche of possible claims that may swamp some claims firms.
It’s not all about PPI either. Other growing areas of consumer complaints and claims are flight delays and packaged bank accounts. The former is covered under EU legislation and will therefore remain in force in the UK for the next couple of years, until the Brexit process is complete.
All wrapped up in another claims scandal?
Packaged bank accounts are current accounts with various extras attached to them, that altogether generate monthly fees for banks.
The extras can be anything from mobile phone insurance to preferable rates for loans. Some say it has the potential to become another PPI scandal.
More people are now saying they were unaware of the added features, or the cost, when they signed up.
Whether claims firms are handling any of these matters or others, one thing they all want to achieve is more work for less outlay.
Simply hiring more people to handle rising numbers of claims may not just lead to vastly increased costs, but also errors.
The answer is to automate the process, which can be done with specialist claims software.
Boosted by the power of claims software
Leading claims software can easily handle different types of claims and client portfolios can be set up for each. Managers instantly know how claims are performing with instant and detailed reports. Documents needed to process claims are automatically generated.
The best claims software on the market today is designed with ease of use in mind. The software should be easy to understand and not require extensive and ongoing training. It’s also adaptable to the different requirements of claims firms, and is configurable to their needs.
Protecting valuable and sensitive data
Additionally, as security is such a critical matter for all kinds of companies handling customer information and other sensitive data, top claims management software will be fully protected. That includes who can access its various sections, such as admin and accounts, as permission profiles can be set for different staff and managerial levels.
With all the various claims activities currently playing out across the UK, the claims management sector will surely remain buoyant. Companies that are primed to handle the highest possible caseloads, while not expanding their cost base, will reap the biggest rewards. They will almost certainly be doing it with the essential power of claims software.
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Yaakov Smith is the owner and founding manager of Logican Solutions Ltd, which offers complete productivity software solutions for businesses.