Success Stories- Reserve Reduction/ Saved Experience Mod
During a loss run review with a client, two claims were called into question. Claim 1 was open with a medical reserve of $17,000. Claim 2 was open with a medical reserve of $10,000 and indemnity reserve of $10,000.
After investigating Claim 1 with the insurance carrier, it was found to be in between two adjusters with no work being done to it. This claim was inactive, but remained open. Due to our research, the file was closed and the reserve was reduced to $0.
In the case of Claim 2, the claimant had returned to work and the indemnity reserve was no longer necessary. The claim was closed, the reserve was reduced to $0 and the medical reserve was reduced to $7000 after review.
Overall, $30,000 in reserve were reduced for the client. If these reserves had not been changed they were facing a 15% increase in their experience mod that would have cost them close to $10,000 extra over the following three years.