DGAP-News

Enterprise Holdings Limited: Enterprise Group Set up Inhouse Claims Handling Unit - Massive Cost Savings will Drive Future Profits

DGAP-News: Enterprise Holdings Limited / Key word(s): Strategic
Company Decision/Product Launch
Enterprise Holdings Limited: Enterprise Group Set up Inhouse Claims
Handling Unit - Massive Cost Savings will Drive Future Profits

03.03.2015 / 08:00

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Enterprise Group Set up Inhouse Claims Handling Unit
Massive Cost Savings will Drive Future Profits

Enterprise Holdings Limited, a European wide insurance group focused on
niche car insurance, insourced its claims handling activities from third
parties. The new unit, Claims Consulting Solutions Limited (CCSL), was set
up in Manchester in 2014 and as of today employs over 100 specialists,
including 52 claims handlers. At the start of operations 8,700 open claim
files have been physically transferred to CCSL from the external claims
handlers. Most of the claims have been settled already which lead to a
negative cash flow, however, simultaneously increased profit by releasing
reserves as claims could be settled at lower costs.

The specialist teams handle Portal claims, fraud, credit hire and litigated
claims supported by a software that enables CCSL to monitor and manage
claims within the RTA Claims Portal. The teams intervene on hire, repair
and rehabilitation. A separate fraud team is detecting and repudiating
fraudulent and exaggerated claims.

To further increase the control of the claims handling process, CCSL plans
to start its In-house First Notification of Loss (FNOL) services on 1st
April 2015.

Andrew Flowers, CEO and founder of Enterprise Holdings: "With the new unit
now operating at full capacity we will see massive cost saving effects in
the future. During the last years only 30% of all claims have been directed
to the RTA Claims Portal. Within the last months we managed to increase
this percentage to 60%, our internal goal is a 65% portal retention rate.
That makes claims costs much more predictable and lowers settlement cost
per case significantly. Our experienced claims handlers act proactively and
combined with our emphasis on fraud prevention we see much lower indemnity
spend. The average saving per case is approximately 2,000 British Pounds,
which at 500 cases per month results in monthly savings of one million
British Pounds or 1.3 million Euros."

End of corporate news


About United Kingdom Ministry of Justice Road Traffic Accident (RTA) Claims