Self-Insured Retention Services

A carrier’s largest customers typically seek coverage through Self-Insured Retentions (SIRs). Inherently, these accounts tend to have the most complicated, sophisticated, and difficult policies to administer.

Unfortunately, most carriers handle these large-dollar, complex policies in a very rudimentary way. This creates a major liability for any insurer. A critical and costly issue can start with a single transposed or mis-entered number. Which in turn presents vulnerabilities where the:

SIR could be completely or partially missed with the insured never fulfilling their obligation,
Carrier begins making payments on the claim early, without the SIR first being satisfied,
Carrier eventually realizes retention has been met and pays legal bills – but since it is late carrier misses out on lucrative early pay discounts offered by many lawyers.

These mistakes can not only cost your company hundreds of thousands of dollars, but also damage its reputation in the market place. Paragon offers carriers an alternative way to ensure that all SIRs are billed accurately, timely, and efficiently.

Ongoing Administration

Paragon can fully administer the SIR process, performing the invoicing and recovery of claims administered by internal defense counsel while tracking claims being administered by external defense counsel. Carriers will benefit from having a centralized, controlled process with complete transparency at both a micro and macro level.

Control

Paragon can perform ongoing monitoring to identify when a carrier has made a payment prior to the SIR being fully satisfied. Once identified, Paragon will communicate with the carrier to either void the payment and/or ensure that further payments are not made.

Clean-up

Using its proprietary software, Paragon can identify claims where the retention was not satisfied. Using a combination of the carrier’s claims system and vendor fees, Paragon will identify potential SIRs missed and then present them back to the customer. Once approved, Paragon can then invoice and recover the missed SIR on behalf of the carrier.