What is claims leakage?

Claims leakage is the gap between what a claim should have cost and what it actually cost, across handling, reserving, indemnity and supply chain. It is usually invisible on a board pack and only shows up when files are read closely.

If our claim frequency is stable, why would we have a leakage problem?

Because the pressure is severity, not volume. Repair, parts, labour and vehicle costs push the average cost per claim up even when the number of claims is flat. That cost lands inside the book, where leakage lives.

Is a leakage review the same as a file audit?

They overlap. A file audit reads file quality broadly. A leakage review focuses specifically on where money is being lost and what it is costing. We scope to whichever question you need answered.

Claims leakage review

A claims leakage review is an independent assessment of where your book is paying out more than it should, across handling, reserving, indemnity spend and the supply chain. Jam Risk Solutions runs leakage reviews for UK insurers and brokers who want to protect margin inside the current book rather than wait for the next pricing cycle. Because we do not place your business or sit on a panel, the review follows the money, not a supplier relationship.

Part of Claims strategy and performance.

Why it matters

Leakage is quiet. Every file that settles higher than it should is margin gone, and it rarely announces itself in a board pack. Claim severity is rising faster than frequency, driven by repair, parts, labour and vehicle costs, so the cost already sitting in the book is where the result is won or lost. Rate helps, but it does not undo the cost you are already carrying.

For the wider market picture, read What EY's 2026 motor results mean for the claims function.

What is involved

We agree a one-page scope, then review a representative sample of files and the processes around them: first offers versus final settlements, reserving discipline, fraud touchpoints, total loss and hire handling, and the supply chain terms behind the spend. We quantify what we find and rank it by what it is costing you.

If you would rather start with a broader diagnostic, look at Health Check 360.

What you walk away with

A written map of where leakage is happening and what it is costing
A prioritised, costed list of fixes, sequenced by impact
A clear view of reserving and supply chain discipline you can take to the board

Who it's for

Heads of claims and finance leaders inside insurers and brokers who want to move the combined ratio through the claims function, and acquirers testing whether a target's numbers hold up.

Common questions

Before you engage.

What is claims leakage?: Claims leakage is the gap between what a claim should have cost and what it actually cost, across handling, reserving, indemnity and supply chain. It is usually invisible on a board pack and only shows up when files are read closely.
If our claim frequency is stable, why would we have a leakage problem?: Because the pressure is severity, not volume. Repair, parts, labour and vehicle costs push the average cost per claim up even when the number of claims is flat. That cost lands inside the book, where leakage lives.
Is a leakage review the same as a file audit?: They overlap. A file audit reads file quality broadly. A leakage review focuses specifically on where money is being lost and what it is costing. We scope to whichever question you need answered.

If this is the question in front of you, start with a conversation. Jam today, not tomorrow.

Book a conversation