In the face of tightening budgets, rising insurance claims costs, and increasingly complex risks, local authorities are being challenged to do more with less. The good news? With the right strategies and technologies in place, cost reduction doesn’t have to come at the expense of quality or compliance. Here are four ways public sector organisations can take a smarter, data-informed approach to managing complex long-tail insurance liabilities - such as employers’ and public liability claims - while driving down costs.
- Prioritise Early Intervention and Proactive Claims Handling
One of the most effective ways to reduce the overall cost of a claim is to act early and proactively. Prompt notification, triage, and evidence gathering can significantly limit cycle times and costs. By establishing clear reporting processes and using digital tools to log and track claims from the outset, authorities can reduce lifecycle costs and improve outcomes.
For example, enabling online claims submission with automatic ingestion of work items and alerts to internal teams and claims handlers ensures no time is lost. Claims can be assessed for fraud risk, policy coverage and liability upfront – reducing the chance of protracted investigations or litigation.
- Maximise Value from Your Insurance Programme
Many local authorities may not be making full use of the support available through their insurance arrangements. From risk management advice to expert loss adjusters and legal services, a collaborative approach with brokers, insurers, and TPAs can unlock hidden value.
Take time to review service level agreements (SLAs) and policy wording to identify underused benefits or areas where service delivery could be improved. Consider renegotiating terms to ensure you’re getting the most cost-effective and responsive support possible. Using smart technology to automate complex excess/LOI calculations in long tail claims ensuring the insurance assests are maximised and leakage is avoided.
- Collaborate for Greater Claims Efficiency
Shared service models and regional risk pools are becoming more popular – especially for smaller councils. Pooling resources and data helps to reduce duplication, drive down administration costs, and create more consistent claims-handling processes.
We’re seeing local authorities increasingly open to collaboration – not just between councils, but also with their partners and technology providers – to benchmark performance and deliver joined-up claims strategies. Smart technology solutions provide fully integrated solutions minimising unnecessary duplication and enabling smart handovers/instructions to suppliers and lawyers, ensuring real time access to claims and ensuring secure data transfer.
- Use Data Analytics to Drive Decision – Making
The future success of public sector claims management lies in the ability to harness data. With the right analytics in place, local authorities can gain powerful insights into the root causes of claims, identify recurring trends, and focus resources where they will have the greatest impact.
Data visualisation dashboards can track KPIs such as average claims cost, time to close, and frequency by type or location. This not only supports better internal reporting but also enables more strategic conversations with insurers about risk appetite, pricing, and cover.
Looking Ahead: Digital Maturity as a Cost Control Lever
As we discussed in our previous blog, adopting the right digital tools is critical to achieving sustainable cost reduction. Whether through automation, AI – enabled triage, or improved integration with supplier and insurer systems, technology is no longer a ‘nice – to – have’ – it’s a cost – control lever.
Want to learn more about how to manage claims more effectively under pressure? Let’s talk.
Pro Global will be at ALARM Risk 2025 – come and meet the team and explore how we can help your authority navigate today’s challenges and tomorrow’s risks.
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Name: Michael Mackenzie
Job title: Head of Specialist Claims
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