$41.2M
Panel spend YTD · 11 firms
$39.8M
Modeled panel spend · $1.4M below current run-rate
24%
Largest firm share of volume (Firm A) · concentration cap 25%
$3.1M
Expected annual saving from modeled re-tiering
Panel review
Same indemnity-to-reserve band (0.78–0.84) across the panel: lower cost is not buying worse outcomes. Volume shares are FY27 YTD litigated claims.| Firm | Volume share | Cost per closed claim | Indemnity / reserve | Cycle time | Rejection rate | Rate card | Proposed tier |
|---|---|---|---|---|---|---|---|
| Firm B | 9% | $6.1K | 0.81 | 141 d | 8% | v3 current | Grow |
| Firm G | 7% | $6.8K | 0.79 | 148 d | 6% | v3 current | Grow |
| Firm C | 11% | $7.4K | 0.80 | 163 d | 14% | v3 current | Hold |
| Firm A | 24% | $8.3K | 0.80 | 171 d | 12% | v3 current | Hold · at cap |
| Firm E | 12% | $8.7K | 0.82 | 176 d | 11% | v4 pending | Hold |
| Firm F | 8% | $9.4K | 0.78 | 182 d | 15% | v3 current | Shrink |
| Firm D | 16% | $11.8K | 0.80 | 190 d | 19% | v4 pending | Shrink · staffing covenant |
| Firms H–K (4) | 13% | $9.1K | 0.80 | 168 d | 13% | v3 current | Hold |
Model a decision; protect the deadline
Do not infer under-defending from low cost. Check indemnity ratio, reopen rate, complaint volume and leakage audit results before shrinking a firm. Tier changes are proposals until the panel owner approves them.
Panel owner sign-offPendingProcurement sign-offPendingFirms notifiedNoneNext rate-card deadlineFirm E v4 · 30 Oct
Value categories kept distinct
Re-tiering is expected cost difference (recognized at claim close); fixed-fee conversion is rate negotiation; neither is an invoice reduction.
Fixed-fee opportunity
Early-resolution motor claims (no suit filed): 1,240 units, coefficient of variation 0.19. A $2,850 fixed fee (p60) quoted to the panel converts $3.5M of hourly work; expected saving $310K at equal cycle time.
Concentration and conflicts
Firm A is at 24% of volume against a 25% cap. Routing NSW property under $50K to Firms B and G keeps every firm under cap and lifts the two best-value firms to 9% and 11%.