What does Root Cause Analysis mean? Read on to discover the definition & meaning of the term Root Cause Analysis - to help you better understand the language used in insurance policies.
Root Cause Analysis
An increasingly common technique used to understand the "why" of loss events in order to prevent their reoccurrence. While stopping the reoccurrence of all claim and insurance fraud may not be a realistic goal, the RCA technique will often yield clues useful in modifying the exposure or risk and possibly reduce similar loss events in the mid to long term. That is a realistic objective and one that has perfect application to fraud.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Root Cause Analysis. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: