Claims This involves a review of the claims handling criteria, primarily with regard to adherence to the delegated authority, but also encompassing reserving philosophy, use of external service providers (solicitors, adjusters etc) and technical capabilities. In addition, with the introduction of the Compensation Act 2006, to regulate claims managements companies, it is probable some elements of claims management will require to be regulated. DCS will address the issue of whether or not the claims function falls within the Regulatory requirement and if so, will review compliance with these also.


Underwriting We have undertaken a number of underwriting audits of Coverholders. In addition to addressing compliance with the terms of the Delegated Authority, our audits also consider adherence to the provisions of the applicable Rating Guide, reviewing such aspects as application of base rates, discounts/loadings, correct risk identification, wordings and endorsements. Our audits also consider the underwriting procedures in terms of the recently introduced Contract certainty requirements.


▪ Pre-Renewal Risk Assessments ▪


From our appreciation of the renewal process, we understand that insurers do not always have as much time available as they would like when considering a renewal, even in cases where the risk is likely to pay a substantial premium. In order to assist insurers in this regard, DCS undertake reviews of specific risks which involves spending time with the insured at their offices to discuss in detail, material issues such as internal procedures, claims tracking and the claims experience. We then provide insurers with a comprehensive report commenting on the risk generally and advising areas of concern, as well as those areas we consider the insured does well.


Costs


We are extremely flexible in our pricing structure and will tailor our cost to the individual clients’ requirements. Our most common pricing structure is based on a cost per claim, as this enables our clients to accurately project the likely claims costs at any time, giving more certainty when finalising budgets.


Our cost per claim is for full “cradle to grave” handling of a notification from first advice to conclusion and is triggered by the initial notification. In addition, we recognise that some accounts may be more “circumstance intensive” and also therefore have the ability to structure the individual claim cost on certain accounts.


Alternative charging methods we use are annual retainers based upon projected claim numbers (with in-built safety margins for both parties), a tiered costing appraoch based on claims life cycle landmarks or an hourly rate, which we sub-divide into 10-minute units for greater accuracy of charging. Please also note that a contract arranged on a full delegated authority basis will not attract VAT.


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