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Claims 101

Michael Balding Director of PD, MD, Cargo and

SIU

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Agenda

•  Timeliness and Method of Reporting Losses •  New Canal App—Joe LePenna •  Liability Losses—Todd Scott •  Special Investigative Unit—Ismel Perez •  Q&A

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Aim For Same Day Reporting!

•  Through April, 2017 49% of liability losses are reported on the Date of Loss. In 2014, 41% of losses were reported on the DOL.

•  62% of liability losses are reported within 3 days of the DOL and 80% within 10 days of the loss date.

•  In 2014, 26% of liability losses were reported at 10+ days. In 2017, that number is at 20%.

•  Continue to make this a focus with drivers so that the progress continues.

•  THANK YOU!!! The steady improvement we’ve seen is due to you, our partners.

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Who is Reporting Losses?

•  In 2017, 43% of losses are reported by our insureds. This is a combination of drivers, risk managers, etc. In 2014, 41% were reported by insureds.

•  25% of losses are reported by agents in 2017, compared to 22% in 2014.

•  14% of losses are reported by claimants, while another 4% are reported by claimant attorneys.

•  Losses reported quickly and directly by our insureds allow our experienced customer service reps to ask the most pertinent questions.

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Method of Report Let Technology Help You!

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Phone Email Fax Internet Mail

2013 2014 2015 2016 2017

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Introducing Our New App! Joe LaPenna, Drum Creative

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Introducing Our New App! Joe LaPenna, Drum Creative

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Information Overload

ToddSco'LiabilityTeamManager

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A Look at Liability

•  Earlier reporting allows for better investigations

•  Putting technology to use—Drive Cam, etc. •  Document Retention •  Real world case examples—Early Report Vs.

Late Report

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On-Scene Photos

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Late Report Example

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Early Report Example

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Early Report Example

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Intro to SIU: Investigator Ismel Perez

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MISSION STATEMENT

•  Canal Insurance Company recognizes the duty to establish and maintain effective procedures to protect its policyholders and customers from increased costs due to fraudulent and non-meritorious claims. Canal is committed to an aggressive prevention, detection and investigation plan to provide the highest quality service to its customers.

•  To signify the importance Canal places on a fraud control program, we have devoted the necessary resources and developed a corporate antifraud strategy coupled with a state reporting system under the control of a Special Investigation Unit Manager.

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S.I.U FUNCTIONS & PURPOSE

•  To provide fraud detection training to all personnel who have responsibilities which are integral to the company’s anti-fraud strategy.

•  To thoroughly investigate referred cases which involve suspected fraud while attempting to gather facts and find merit.

•  To establish training for SIU personnel to maintain up to date knowledge of current fraud trends in field.

•  To provide a liaison with governmental agencies, DOI, NICB, and other insurance carriers.

•  To conduct sensitive internal investigations as directed by the Company.

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WE ARE HERE FOR YOU

Accidents: •  Investigate staged/caused accidents. •  Fraudulent 3rd party claims against insureds. •  Illegal medical treatment/ attorney involvement. •  Exaggerated injuries/damages/ jump-ins. •  Pre-existing damages on vehicles. •  Coordinate with law enforcement to assist in investigations, clarify contradictions on reports (etc..).

Vehicle thefts: •  Assist in investigation/recovery of vehicle thefts. •  Follow up with detectives-assist in evidence gathering. •  Follow up with witnesses and attempt to gather surveillance footage.

Cargo thefts: •  Assist in getting information out to different agencies. •  Issuing B.O.L.O.S •  Coordinate with NICB, MWCSC, SECSC Etc.. •  Contact and interview drivers, witnesses & any other parties involved.

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Commercial vehicles are the best possible target for intentional accidents as well as inflated claims on legitimate accidents.

TRUCKS ARE A TARGET

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FIGHTING FRAUD

Consequences of fraud are: •  Customers lose their savings •  Endangers citizen’s lives (staged accidents). •  Premiums stay high and often increase. •  Higher cost of consumer goods •  Hurts honest business

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SOMETHING SUSPICIOUS? LET US KNOW

•  SIU Fraud hotline 877-561-1599 •  SIU manager Michael Balding 800.452.6911, ext.

5354 •  Investigator Ismel Perez 800.452.6911, ext. 5414 •  Investigator Princess Spencer 800.452.6911, ext.

5629

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Questions?