Simple Concepts for a Complex System: Micromanaging Claims Professionals

A primary trait which ensures success for claims examiners is their ability to closely manage all aspects of their claims.  

Unfortunately, that trait can become a barrier to claims success when that examiner transitions to being a supervisor.  Every new supervisor has (wrongly) thought “I could do both my work and my subordinates' work faster than it takes me to train and supervise my employees.  In fact, if I did it myself, I would have better claims outcomes.” 

Micromanaged employees usually become frustrated, resentful, and then leave. Micromanaged employees do not learn their jobs as fast or as well as empowered employees. Micromanaged employees do not learn how to make decisions under pressure. 

I have seen micromanagement hinder clams resolutions, increase examiner turnover and increase the total cost of the claims.  

Good management empowers its employees.  Empowering examiners to make decisions and learn from both successes and mistakes is a great foundation for new examiners to quickly learn their job.  

One of the most nuanced and difficult parts of transitioning from an examiner to being an excellent supervisor, is learning how to train new examiners and oversee their work while not micromanaging. 

An indication of micromanaging is the supervisor’s failure to give their examiner sufficient reserve and settlement authority to get the job done efficiently.  An indication of systemic micromanaging is when the whole claims office has parsimonious settlement authority.

One way to avoid micromanagement is to create system guard rails (times, activities, and objective criteria) for review of the examiners’ actions and decision making.  A particular focus of the guard rails can be on the receipt of medical reports, when reserves are changed, and when claims are set for any legal activity.    

Unfortunately, some supervisors and claims managers never overcome their inclination to micromanage.  

It is a difficult issue to discern in an audit but good independent auditors can usually identify if there is a problem with micromanaging.  This is an issue which senior management should ask about from every claims auditor. 

An important part of the job of senior management in a claims operation is to identify when micromanagement is being detrimental to the organization and then stop that behavior.