Claims leakage (CL)

{
  "id": "MLC-T-INS-000762",
  "term": "Claims leakage (CL)",
  "field": "Insurance and risk management",
  "definition": "The monetary value of claim payments that are higher than they should be due to inefficiencies, errors, or fraud in the claims handling process. Claims leakage (CL) results from factors like missed subrogation opportunities, incorrect coverage interpretations, overpayments, or unnecessary vendor expenses. Insurers measure and control leakage through audits, analytics, and process improvements, as even a small percentage can significantly affect profitability.",
  "abbreviation": "CL",
  "url": "https://mlchart.com/terminology/insurance/claims-leakage-cl/"
}