FAQ

Most systems are a disjointed collection of data fields.  Those systems store data in a layout that fails to communicate importance or relevance.  Like an electronic notebook, information is presented in the order in which it was received.  Adjuster energy is heavily invested in data input.  DCS puts focus and organization on the things that matter.  Time is not wasted aimlessly logging notes and creating follow-up directives.  Instead, the user is learning and experiencing the claim in a memorable way because information is entered and assembled at the same time.

By using the Claim Summary, claims data is logically combined in a format suitable for analysis and presentation.  The summary then becomes a dynamic document ready for review and enhancements in real-time.  When its time for a settlement conference or mediation, there’s no need to find a 2-hour uninterrupted block to read claim notes. You already know the claim.  Finally, because DCS was not derived from a carrier system, it handles business risks not typically addressed in policy-oriented insurance software.

A claims system helps an organization understand the causes and the extent of losses.  An organization’s loss experience develops over the course of years. No single year in isolation can provide an accurate estimate of future experience.  A Self-Insured organization cannot rely on the memory of risk managers, attorneys or finance staff to provide the details of losses that happened years ago.  Those individuals may not be available when it comes time to obtain a renewal quote.  A claim system can produce reports that show the optimal point where retentions by exposure should be set.  Finally, a claims system can prevent costly handling mistakes.

A claims system can provide the answers to many questions regarding past results.

Which divisions incur the most claims?
Which operations incur the most severe losses and why?
What Loss Control measures can be introduced to reduced frequency and severity?
Which service providers are performing best?

To control claim outcomes.  To reduce insurance costs. To retain its choice of counsel.  Organizations that self-insure typically understand their risks and have the financial ability to pay for losses without the need for first dollar insurance.  In addition to paying less insurance premium, self-insureds may take control of their claims or hire a third party administrator.  Self-Insureds value the closer control of how and when claims are paid.  Some organizations cannot find properly priced insurance policies for certain unique risks forcing them to self-insure.  Self-Insurance allows an organization to keep confidential or proprietary information within its borders.  This makes self-insurance attractive for organizations with valuable data and intellectual property.

The Self-Insured organization is responsible for claims handling.  A benefit to Self-Insurance is retaining the right to choose defense counsel.  For many Self-Insureds, this is an opportunity to better control the outcome of lawsuits.  Self-insureds can prevent undesirable settlements and better direct litigation strategy with regard to cost and timing.  Organizations not interested in self-administration may find it advantageous to use a third party administrator specializing in claims common to their industry.

For certain companies, having a TPA makes good sense.  For others, a TPA can be more expensive and less secure than inside handling.  First, there is the cost of transferring information to the TPA accurately and timely.  Second, there is the risk of breaches in sensitive personal information no longer under the control of the organization.  Even when data is transmitted properly and securely, handling protocols must be followed accurately.  This can be a challenge when each claim is unique and the Self-Insured organization may have a different strategy or handling preference for each claim.  The constant management and communication necessary between the organization and the TPA adds to the total cost.  For companies who desire a seamless process where full control is maintained, the Direct Claim Solution is the answer.

The key advantages are greater analytical accuracy, faster cycle time, and better control over service providers.  When claims are properly analyzed, handling costs decline rapidly.  Many participants in the claim process have little incentive to quickly resolve a claim.  Waiting for outsiders to expedite settlement is costly.  The court systems are not designed to quickly identify and resolve legal disputes.  The Direct Claim Solution puts the Self-Insured organization in the driver’s seat.  It does so by presenting claim information in a meaningful and organized format as the claim is being investigated.  That format extracts key aspects and factors involved in valuing and negotiating a claim before the bloodletting of litigation gains momentum.  For managers who need to identify trends, tendencies, cycle times, averages, and assess adjuster and vendor performance, the report query screen is your most trusted source.  Say goodbye to researching the “V-Lookup” function in Excel.  The data you need is included in your results.  We have all but eliminated the need to add new report columns.  Need to know which law firm performs best on Commercial Auto Liability defense cases in Kentucky?  Run a multi-state closed litigation report and sort by “Low to High Attorney spend”.  Compare that metric with the “Low to High Settlement Amount” on the same report.  You may find a Southern Ohio law firm that covers Northern Kentucky has the best settlement results and the lowest average spend.  All of the intelligence is in your data, you just need a system to unlock it.

Many companies hire third parties to handle claims within the Self-Insured Retention.  Hiring an outside TPA is one way to outsource claims handling.  But, the TPA’s current claim system may not provide the information necessary for proper oversight and decision-making on liability claims.  DCS can be licensed by your TPA if you want to obtain the benefits of the system’s reporting features and functions without assuming primary claim handling responsibility.  It may also be licensed to your individual staff members that want to greatly enhance the quality and speed of their work.  If you are a TPA or Commercial Defense Law Firm with Self-Insured Clients, consider an organizational license to better serve your clients.  Or, authorize your claims professionals to use DCS to unleash their potential. Their data is on our secure server.

Yes.  The system was designed to be highly flexible in many aspects. The system can easily be modified and enhanced for customization according to specific needs. DCS is versatile as to industries and business segments such as Manufacturing, Public Entity, Services, Healthcare, Hospitality, Transportation, Gaming and Retail.  If necessary, the system has ample “white space” for new screens to accommodate any unique business needs or exposure lines.

DCS was made for every organization, but not everyone will use it the same way. We have developed a value-based pricing model based on your usage.  Clients with varying needs will have attractive options that reflect the value added.  In all cases, DCS is committed to delivering the highest level of product performance, features and security to each customer we serve.

Yes.  Payment and reserve transactions can be integrated into the Accounting systems used by the organization to generate checks and feed into the organization’s General ledger. Claim reserve and recovery transactions can be uploaded to financial and accounting software such that periodic financial statements can reflect claims activity within the period. The system also provides claim reports and loss runs for use in analyzing loss trends, frequency and severity by various exposure and loss types.