Loss adjuster says performance should not just be measured by retention rates
QuestGates has questioned the way the Ministry of Justice (MoJ) portal is run for employers’ liability and public liability claims.
The loss adjuster has queried whether retention rates should be used to judge the performance of organisations operating within the portal.
QuestGates liability services manager Clive Roberts said: “We’ve seen a number of organisations reporting favourable retention rates compared with industry averages. However, my concern is that in these early days of the portal, too much focus is being given to retention to the detriment of other measures.
“It’s a new system and the data is immature so it is too soon to determine what is an accurate average, what good really looks like and that retention should only be one factor.”
And Roberts added that assessing performance based purely on cases staying in the portal could lead to cases not being defended properly.
“We should all be wary of purely relying on retention as a measure of success. This could deflect attention from the level of claims that should be investigated/defended,” he said. “Whilst it is important to ensure that all appropriate cases are kept in the portal, if there is enough evidence to support the insured, then a case should be defended and repudiated as required, which would mean it would drop out of the portal, where, of course, there are still costs advantages.”
“If you take this to its logical conclusion, then a high retention rate could indicate that defendable cases are not necessarily being actioned appropriately,” he added.