Question

(Regarding Risk management) What is loss control?

Answer 1

Loss control is a strategy of risk reduction that aims to reduce the probability of a loss happening and decrease the frequency of those that happen. A damage reduction system should help minimize claims, and insurance providers should mitigate risks by offering information and resources on protection and risk management.

Fighting the leakage of claims is a big way to minimize damage. Claims leakage historically means paying loss or Allocated Loss Adjustment (ALAE) expenses which either did not have to be charged or were charged beyond the sum needed. An example of soft leakage is a case in which liability has been accepted without an in-depth examination or contact with all claimants. Hard-leakage examples can be quite different. One is continuation of Permanent or Partial Impairment (PPI) following a return to work by a claimant. This will happen when a PPI needs to take compensation if they have missed a statutory deadline or filed paperwork.

Cost control strategies, plan design and program development are the concentration areas that have enabled us to positively impact the bottom line for thousands of our partners who are striving to reduce their insurance costs significantly.