Well, it’s that time again and the “Hungry Vulture” is alive and well at Unum Group. Most of you probably aren’t aware that the “Hungry Vulture” logo was given by claims handlers from the old Paul Revere and Provident companies during the Unum investigations of the Multi-State Commissioners. The pseudonym stuck and Unum continues to be referred to as the “Hungry Vulture”.
We are now only about 10 weeks from end-of-the-year profit reporting. I know from experience Unum already changed gears to more aggressive claims management by identifying claims it intends to deny by that time. As a Consultant, I’m in a very good position to see the big picture of increased update reviews. However, Unum’s aggressive tactics also include covert phone calls and requests to physicians’ offices to obtain back-up support for denial.
Yesterday I received a call from someone who could barely speak English. That’s not necessarily a bad thing except what I could make from it was that he thought I was a doctor and he wanted patient notes. Eventually, he hung up on me when he couldn’t understand what I was telling him. Of late, Unum seems to have hired some pretty hard hitters when it comes to chasing down medical records. One would hope, though, that the paper-chasers would be able to communicate enough to do the job.
Let me remind you that no insurance company is concerned about you, your disability, or inability to work. It’s all about the “financial reserve” and the fact that denying claims provides immediate “hits” to profitability. In essence, insurers want your claim gone, and the associated financial reserve along with it.
In order to show profitability insurers concoct a wide range of strategies to deny legitimate claims at the insureds’ expense. This includes increased requests for IMEs, paper updates, surveillance, covert contact with physician offices, you name it, there is probably a strategy for it.
End-of-the-year reviews are the most egregious because of the need to report profitability. Bond investment agencies depend on reports of profitability to establish business bond ratings on the various markets. The incidence of investigated claims is increased significantly at year-end, and more claims are denied at the end of the year than at any other time.
For insureds, this means actively defending your claims during the period of increased investigation. A mention should be made that all other disability insurance companies do similar things but are not as egregious or aggressive as Unum. MetLife is so disorganized right now that it’s hard to comment as to what is deliberate, or just plain negligent. Lincoln is particularly awful this year.
Insureds should definitely be aware that insurance companies are now in an aggressive mode and act accordingly. If you need help, please give me a call.
