Keynote Panel - Six Sigma Management: Improve Claims Processes and Maximize Efficiency

Download Keynote Panel - Six Sigma Management: Improve Claims Processes and Maximize Efficiency

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<ul><li> 1. Six Sigma Management: Improve Claims Processes and Maximize Efficiency Tim Cotton Director, Claims System &amp; Vendor Management The Main Street America Group Kevin Hilyard Vice President, Property &amp; Casualty Claims Nationwide Insurance Mark J. Rose, Esq. Senior Associate Attorney Roig Lawyers </li> <li> 2. So what is Six Sigma? </li> <li> 3. Okay, but what is Six Sigma? Its all about Quality Control Multi-step process with statistical analysis to understand (and hopefully eliminate) variation. Were not making widgets, beepers, or screws, so what does parts per million mean to us? Key: Its all about variation 4 </li> <li> 4. The Insurance Company/Claims v. Manufacturing U.S. Steel, Edgar Thomson Plant </li> <li> 5. The Insurance Company/Claims v. Manufacturing Manufacture rolled steel for refrigerators, car doors, back of dishwashers, etc. Utilizes a dual-slab continuous strand caster i.e. a Play-doh extractor toy where you pour 300 tons of molten metal into the extractor and it pushes out thinner and thinner steel at around 2,700F </li> <li> 6. The Insurance Company/Claims v. Manufacturing Straightforward process if everyone wants the same steel (or product) Different customers want different types/grades of steel, even between orders Imagine changing the color of the Play-doh That mixed metal is worth far less and may even be outright waste. Its all about variation </li> <li> 7. The Insurance Company/Claims v. Manufacturing Variation exists whether the product is steel, time for claim resolution, individual claim exposure, etc. Just as with U.S. Steel, if you can reduce (or eliminate) variation, you can reduce costs and optimize revenue and good will. Quality control: a bad batch of steel for car doors for Ford is tantamount to unsatisfactorily resolved P&amp;C claim that maybe resulted in 5 years of litigation Was it a result of a mean shift or an isolated occurrence? </li> <li> 8. What is Six Sigma for claims? Six Sigma is universal, across industries: manufacturing, accounting, finance, claims, etc. The foundation for Six Sigma, 5-step process: DMAIC Design Measure Analyze Improvement Control </li> <li> 9. DMAIC Define Defining the boundaries of the project What is our starting point? What is our goal? What is the financial benefit we hope to obtain through the improvement of this process and implementation of improved processes? Keys: Garbage in, garbage out system Quantifiable metrics to evaluate successes </li> <li> 10. DMAIC Measure Identifying your input variables, often not just one thing Identifying your output variables, often not just one thing Understand the routine variability in the input/output relationship Determine how much variability in the input/output relationship is acceptable and what you will measure Identify how you w </li> </ul>

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