What does Claims Leakage mean? Read on to discover the definition & meaning of the term Claims Leakage - to help you better understand the language used in insurance policies.
Dollars lost through claims management inefficiencies that ultimately result from failures in existing processes (manual and automated). In other words, it's the difference between what you did spend and what you should have spent on a claim. The cause can be procedural, such as from inefficient claim processing or improper/errant payments, or from human error, such as poor decision-making, customer service, or even fraud. CL is often discovered through an audit of closed claim files.
We hope the you have a better understanding of the meaning of Claims Leakage.