Real estate client saves $176,000 and lowers Experience Mod

INSURED

A large residential property company with more than 5,800 units encompassing 46 high-rise buildings and over 153 acres.

SITUATION

The company was using a large insurance agency/broker that was lax in managing the company’s claims, resulting in a high Experience Mod of 1.65. The broker was not pro-active in managing past claims; no annual modification or claims reviews had been done since 2002. With a breakdown in communication and a sense that service was inadequate, the customer approached the CWCA to review the policy and examine the claims.

ASSESSMENT

The CWCA entered the Mod worksheets into mod analysis software to compare company loss-runs with the claims on the Experience Modification worksheet, studying different claim situations and claim changes to identify problems.

SOLUTION

The CWCA was able to document a number of errors that resulted in a revised Experience Mod from the past two years on some claims, and as far back as six years on others.

RESULT

The work by the CWCA resulted in credit revisions for four policy years. One had two claims settled, which lowered the Mod from 1.65 to 1.56, saving $73,003. Another had three claims that were adjusted, reducing the Mod from 1.78 to 1.65, saving $84,245. And, there were two claims that closed for $0, plus two clerical errors, which brought the Mod down from 1.26 to 1.23, returning $14,773. And for the remaining year, there was one claim adjusted, resulting in a lowering of the Mod from 1.33 to 1.32 and a savings of $4,602.

Overall, savings came to more than $176,000.