Abstract for: Insurance Claim Operations
An insurers’ claim organization is constantly faced with fluctuations of incoming claims. It must need to process claims timely and fairly. It directly relates to resourcing strategy; however, there has been no quantitative analysis to assist to formulate such strategy. Resourcing actions are under the influence of feedback loops of experience erosion by new hires and productivity loss by their trainers, which in turn can further increase workload level, where voluntary terminations can take place. Yet, due to such employee loss, new hires must be made. Management interviews highlighted a stress placed on the operation by annual new graduate hiring, which is consistent with this mechanism. The model developed in this study highlighted specific thresholds of these resourcing actions and their effects where adverse operational impact can result. Presentation of the model simulation with such thresholds demonstrate has motivated the claims organization interviewed to reformulate its resourcing strategy.