Leadership in Claims

Key performance indicator (KPI)

A measurement that defines how successfully an organization is progressing toward its long-term goals.

Predictive modeling

A process in which historical data based on behaviors and events is blended with multiple variables and used to construct models of anticipated future outcomes.

SWOT analysis

A method of evaluating the internal and external environments by assessing an organization's internal strengths and weaknesses and its external opportunities and threats.

Unconscious bias (implicit bias)

A person's prejudices or stereotypes toward others that, without his or her knowledge, affect the person's views, decisions, or actions.

Emotional intelligence (EQ: Emotional Quotient)

An individual’s ability to recognize, understand, and distinguish among emotions and to use that information to manage thinking and behaviors and their effect on other people.

Career path

A plan developed by a manager and an employee that establishes a series of progressively ambitious organizational goals for that employee and the time allotted to achieve them.

Succession plan

An organization’s identification and cultivation of employees with the aptitude to fill key positions as they are vacated.

Virtual team

A group of personnel, some or all of whom are geographically dispersed, who interact primarily through use of telecommunication technology as they work toward a common goal.

Cross-functional process

A work process performed by people in separate organizations, departments, and divisions.

Stairstepping

Incremental increases in claim reserves by the claims representative without any significant change in the facts of the claim.

Loss adjustment expense (LAE)

The expense that an insurer incurs to investigate, defend, and settle claims according to the terms specified in the insurance policy.

Allocated loss adjustment expense (ALAE)

The expense an insurer incurs to investigate, defend, and settle claims that are associated with a specific claim.

Unallocated loss adjustment expense (ULAE)

Loss adjustment expense that cannot be readily associated with a specific claim.

Actuary

A person who uses mathematical methods to analyze insurance data for various purposes, such as to develop insurance rates or set claim reserves.

Incurred but not reported (IBNR) reserves

A reserve established for losses that reasonably can be assumed to have been incurred but not yet reported.