Getting to grips with handling different types of claims is simple with claim management software.
Some claims management firms handle a number of types of claims, while others mainly deal with just one or two, the latter positioning themselves as experts in their areas. But the economic reality is that it is not always wise to put all your financial claims eggs into one basket; one day you may be left holding the basket and little else.
Take claims for mis-sold payment protection insurance (PPI), for instance. A good number of claims firms owe a sizeable chunk of their fortune, if not all of it, to handling these claims. Many of them use claim management software to cut through high caseloads, resolve individual claims as quickly as possible and get people their money.
Since they started being made in 2011, it is estimated that claims management firms have earned around £5 billion in fees for handling PPI refunds and compensation on behalf of their clients. But with a 2019 deadline for making PPI claims now in place, those heady times will soon come to an end.
Expanding the Claims Horizon
The purpose of this blog, therefore, is to explore the various types of claims popular in the UK today and discuss the best ways of dealing with them. Clearly, no claim firm wants different set-ups for handling a growing number of different claim types when they could be streamlined into one system. That would only increase the amount of work being done while at the same time raising costs and potentially eating into profits.
It is hard to imagine that there could be any greater financial mis-selling scandal than that of PPI. To date, £28.2 billion has been paid out by the banks and other financial institutions responsible for the debacle. And with a high-profile advertising campaign advising people to make a claim before the deadline now under way, it is a certainty that a lot more is on the way. (The Financial Conduct Authority, which is running the ads, has been flooded with enquiries since the campaign began in late August.)
There are, however, indications that another financial product may equal if not surpass PPI in terms of being mis-sold to a largely unsuspecting public. This is packaged bank accounts, where typically a number of “features” or “extras” are added on, for a monthly fee. These can include anything from travel and mobile phone insurance to better rates for overdrafts and loans. As more people become aware they have a packaged account and never wanted all the add-ons but are paying for them, claims are starting to flow and more claims firms are getting involved in this sector.
Handling It All with Claim Management Software
Let us not forget claims for mis-sold mortgages. Some claims management firms might think it is not worth moving into this area, because of the relatively small amount of them. But then think of the value of mortgages and the fees that can be earned from handling a successful mis-sold mortgage claim.
Growing in number today are flight delay claims, and in recent times many hundreds of thousands of people have experienced this due to delayed or cancelled flights around Europe and even airlines going bankrupt. The key to success here is to deal with large volumes at a time. That is why it is essential to use such powerful processing tools as claim management software and not try to deal with it all by hand.
Good claim management software deals with all of these areas with ease, and is configurable to each claim firm’s needs. Here at Logican, we have developed sophisticated claim management software that allows companies to instantly set up their operations to handle PPI, packaged bank accounts, mortgage misselling and flight delay claims. Now, it’s effortless to expand into new claims areas and ensure your claims management company powers ahead.
