Claims Management & Cost Recovery Case Study

Sevatas were selected to manage a transit damage process for a large European manufacturer, supporting multiple brands. This related to a single territory with a network of over 600 individual dealerships and authorised repairers.

Following appointment, we set about creating and delivering a series of KPIs which would help to improve transparency and provide a number of clear benchmarks against which the day-to-day performance could be measured.

In addition to the day-to-day claims handling process, we sought to build on the strong relationships with the manufacturer’s Logistics Service Providers and develop communication directly with the production facilities (which were based in four different territories).

These improved relationships helped create a more transparent process and enabled us to better understand the factory processes and provision of support to individual brands. The improved transparency has enabled early identification and intervention on potential transit damage issues.

We also established effective relationships with the manufacturer’s insurers in order to restructure the insurance programme to provide the most appropriate level of coverage compared to premium spend.

Whilst the key indicators, for example the damage and recovery rates, for the client prior to our appointment were seen to be acceptable and stable; the focus on pro-active risk management, rather than reactive dealer claims management, enabled us to deliver an initial 50% reduction in the claims ratio in the first year compared to the starting point. This rate fell still further in the second year.

In addition, net cost has been further reduced through the delivery of focussed recovery activity.

Improvements relating to the above saved in excess of €900,000 p/a