Sedgwick Claims Management Services provides claim management and related services and does not issue insurance policies, explains its website. The company serves the workers' compensation, general liability, and disability and absence insurance markets. It began in California as National Compensation Services in 1969. As of 2015, Sedgwick is headquartered in Memphis and employs nearly 12,000 people. It operates in the United States, Canada and the United Kingdom.Continue Reading
Claims management refers to the process of handling insurance claims, explains Amber Keefer for the Houston Chronicle. It encompasses tasks such as settling and paying valid claims, identifying fraud and preventing litigation. Claims management also seeks to strengthen the claims process by using automation to reduce processing time and developing programs to reduce the number of claims filed by policyholders.
Third-party administrators are companies that provide claims management and processing services to other businesses, notes Aaron Rinck for Zane Benefits. These companies often serve businesses that elect to self-insure their employees rather than purchase insurance from a separate company.
In 2010, Sedgwick was the largest third-party claims administrator for self-insured companies with approximately $808 million in gross revenue, according to Business Insurance. This was almost $740 million more than the 10th largest administrator, Cannon Cochran Management Services, which earned $68 million. Gallagher Basset Services was the second largest administrator with $402 million in revenue and UMR was third with $394 million.Learn more about Insurance