Journal #5, Week 2

Progressive Insurance, Management in Claims

I worked at Progressive for 7 years both in Atlanta and in Charlotte. I worked for 7 different managers and reported to 13 supervisors.

The layout of management was logical. The claim representatives reported to a supervisor in a group of 4-7. The supervisor reported to a branch manager who oversaw 15-25. Levels of claims were delegated to reps based on their experience and skill levels. Supervisors were in charge of reps based on the supervisors experience and skill. Managers oversaw more complex groups when they showed they had the knowledge and ability. There was a constant learning environment and training was continuous.

Progressive's corporate goals for claims handling are: Accuracy, Efficiency, Customer Experience, and Profit. Where I always saw a hang up in the process was the combination of accuracy and efficiency. Certainly, claims reps with higher skill sets and more experience were granted larger dollar figures of authority to issue payments. However, the reps were constantly having audits held over their heads to ensure accuracy.

When I worked as a claims rep, I found it challenging to strive for an efficient work environment that seemed to over emphasize the accuracy piece. I was told to respond timely, pay claims quickly, and look to close claims within time parameters. At the same time, I was scared to make mistakes. It was a double edged sword that I continuously faced.

I always felt that the audits should have a more holistic approach to them. When claims are reviewed, they are looked at as if they were the only claim that the rep handled at the time. If an auditor takes into consideration that the rep was working at 110% of normal, there should be some slack as to the error rate they encounter. At the same time, is a rep is being worked at 90% of normal, they should be held to a higher standard for accuracy and more scrutinized for careless or lazy mistakes.

When I supervised and managed teams, I always took this into consideration in day to day accuracy issues. If I was getting 120% productivity out of my reps, I was quick to praise them. I saw it as a sign that among 5 reps, I was getting the work of 6. Therefore, if we save $50K in salary and benefits I felt that it was OK for some careless errors to happen. However, I was always quick to point out that if we were at 80 or 90% efficiency, we were overpaying them for their work and it better be financially worth it to the group.

Just my 2 cents...