UnimProvident under Fire for Roster of Rejections
Case 2 UnimProvident under Fire for Roster of Rejections
1. An insurer like UnumProvident sells policies and invest revenues until it needs the money to pay claims. Its profits come from the earnings on its investments and from charging more for policies than it pays out for claims. How should the goals of Unum's claims handlers (the people who make decisions about paying claims) support the company's profit objectives? In what ways might boosting short-term profits denying claims conflict with other company goals?
These goals should support the company's profit objectives in a clear and fair system in handling investments of people. It is not a good practice for companies to lose the loyalty of their customers, otherwise, they will be the one who will suffer. This kind of strategy would only work in short-term profits, because ultimately, their customers will lose trust and interest in them, thus decreasing their long-term profits. Like in the case of UnumProvident, there are filed cases against them for increasing or charging more for the policies. They should not deny the company's credibility just to meet one's profitable goals. 2 Suggest some performance measures for claims handlers that could help the company meet short- term and long-term goals. Could your suggestions help the company reduce its legal problems?
In response to the crisis done, i think making the policies lower its claim payments through the simple device of denying more claims. In this regard, it developed various practices and procedures that had as the specific objective the denial of more claims. They also need to sharpen its legal defense like for example, paper the file or eliminate paper from the file, in cases with bad faith/punitive liability in high exposure states. I think using this process could reduce its legal problems.
3. As described in this case, has UnumProvident behaved ethically? Explain. How can a performance management system help the
1. An insurer like UnumProvident sells policies and invest revenues until it needs the money to pay claims. Its profits come from the earnings on its investments and from charging more for policies than it pays out for claims. How should the goals of Unum's claims handlers (the people who make decisions about paying claims) support the company's profit objectives? In what ways might boosting short-term profits denying claims conflict with other company goals?
These goals should support the company's profit objectives in a clear and fair system in handling investments of people. It is not a good practice for companies to lose the loyalty of their customers, otherwise, they will be the one who will suffer. This kind of strategy would only work in short-term profits, because ultimately, their customers will lose trust and interest in them, thus decreasing their long-term profits. Like in the case of UnumProvident, there are filed cases against them for increasing or charging more for the policies. They should not deny the company's credibility just to meet one's profitable goals. 2 Suggest some performance measures for claims handlers that could help the company meet short- term and long-term goals. Could your suggestions help the company reduce its legal problems?
In response to the crisis done, i think making the policies lower its claim payments through the simple device of denying more claims. In this regard, it developed various practices and procedures that had as the specific objective the denial of more claims. They also need to sharpen its legal defense like for example, paper the file or eliminate paper from the file, in cases with bad faith/punitive liability in high exposure states. I think using this process could reduce its legal problems.
3. As described in this case, has UnumProvident behaved ethically? Explain. How can a performance management system help the