Retail Service Spotlight - Loss Runs

January 17 2017

What agency pain points can Patra’s loss runs service address?

“Typically, loss runs are pulled for three different reasons. The first is in preparation for a renewal. One of the account manager’s needs is to have the loss runs readily available in order to send a complete submission to their carriers, which we call marketing the business. Loss runs summarize the claims an insured has had over a period of time, per line of business, and carriers need that information to quote the policy.

“Another reason loss runs are requested is for claims review purposes. Typically, this process takes place between the agency and middle-market to large insureds. The agency reviews the status of all open claims then discusses them with the insured. In some instances, they review claims that recently closed due to efforts from the claims servicer at the agency.

“The third reason to order loss runs is in preparation for unit stat, which is specific to workers’ compensation and specific to those insureds who have experience modifications (ex-mods). Agencies pull loss runs to help project the ex-mod. If an insured has an ex-mod over 100%, their premium is increased. This enables them to determine whether there are certain claims with high reserve amounts and if they can talk to the carriers about reducing those reserves so they don’t affect the ex-mod as much.”

How does Patra help in those situations?

“Patra relieves the agency staff of having to remember and manage the pulling of loss runs. Typically, our clients send us an expiration report specifically for the first situation. When Patra receives the list, we pull loss runs for each insured and each policy that’s listed in order of expiration date. We then file the loss runs in the agency’s system for the account manager, so all the account manager has to think about is including the loss runs in their submission package to the carrier.

“It’s one less task on the account manager’s to-do list and pre-renewal timeline. For the claims team, either in preparation for a claims review or in preparation for unit stat filing, again, it’s one less task they have to think about. The loss runs are right there in their files and they can retrieve them and move on to the next step in the process.”

What issues arise from forgetting to pull loss runs on time?

“Loss runs can present a servicing issue. If the claims rep forgets to order loss runs, they’re either scrambling to get them for a claims review or they have to delay the claims review.

“For unit stat filing, if they aren’t pulled in time for a review, the rep might miss reviewing opening claims and lose an opportunity to discuss reserves associated with those open claims. As a result, they wouldn’t have done anything to help their insured’s ex-mod and save them money.

“On the account management side, an account manager could miss blocking a market in preparation for renewals. If you don’t have loss runs, you can’t submit your application to the carrier, block the market and have them put that submission under your agency’s name. In that situation, someone else can submit that risk. It comes down to providing the best service possible for your clients.”

What immediate value does the loss run service add upon implementation?

“This service is less about bringing immediate value and more about removing stress in the moment. The account managers and agencies that use Patra for loss runs have come to rely on it. The loss runs are available in the system. The only time they have to think about them is in a one-off situation where they have to get into the market sooner than when the expiration list would have come to Patra. They may submit a rush request to Patra, which may create a little bit of stress, but that’s rare. The real value is in being able to depend on Patra to run their loss runs on a regular basis.”

Are there any other benefits aside from improved service and decreased stress?

“I think documentation in the system is also extremely valuable. Just like with any other process Patra offers, we document our loss runs every step of the way. We document when we request the loss runs, the actual loss run information, and when we receive them. If an account manager forgets to put the loss runs in the system, then they have to look for them when they’re ready to email the carrier. That means they have to hunt through their email to find them, which happens more often than not. Patra is not allowed to forget to document the system.

“Additionally, Patra pulls loss runs no matter what. If an account manager is out sick and that was the day they picked to order loss runs, those loss runs aren’t ordered and that submission doesn’t get out. Patra doesn’t go out sick. It’s our guarantee that they’ll have their loss runs when they need them and they can depend on their system being accurate and the process documented.”