Case Study: National Class Action Settlement Payments

Overview

One of the nation’s largest insurance underwriters found themselves needing to fulfill payments to parties involved in a class action suit. The claimants had a significant time-period in which they could opt to accept the settlement payment. The insurer set up a separate account to fund the payments and needed an effective solution to provide the payments to claimants once they opted into the settlement.

The company reached out to a trusted partner who had implemented payment solutions for them in other areas of their organization – Parlay Data Solutions.

The team at Parlay Data Solutions began the discovery process immediately, and within a short period of time implemented a solution that met the needs of the client partner.

Challenges

Payment Business Rules

The client requested Parlay Data Solutions perform cross checks on every payment to ensure that the settlement agreement was followed to perfection. Additionally, the client requested that PDS provide reports.

Quick Turnaround

Every request for payment needed to be handled with urgency. The client had already suffered reputational harm from settling the claim against it and desired to do its absolute best to ensure claims were paid as quickly as possible to show its sincere interest in doing what was right.

Inconsistent & Unpredictable Volumes

Other than the early adopters of the settlement agreement, it was unknown what the rate of payments would be for the 2-year long settlement window.

Solution

To address these challenges, PDS quickly implemented several modules of its tech-stack to enable a payment solution that was available quickly at minimal cost and that met every client requirement in a bespoke manner.

Inputs Acceptance & Validation

An input acceptance module was utilized to provide the client an easy way to provide data inputs to PDS. Once provided, the data was analyzed and standardized for use in production systems.

Efficient Production Process

A business intelligence and report generation module was utilized to run cross checks to ensure 100% compliance with the settlement agreement. This module automatically generated and provided reports for every production run. Reports were also archived by PDS at the client’s request for future reference.

Twice Weekly Production

For the entirety of the program, PDS operated a twice weekly production schedule whether the required payment volume was a single check or over 10,000. Every run was treated exactly the same per the SOC2 security compliance requirements contracted by the client.

Results

Over the course of the 24-month contract, PDS consistently delivered exceptional results:

Efficiency: Maintained a twice weekly production schedule with a same day mailing SLA for all payments.
Accuracy: Every payment was made on time – 100%.
Ease of operation: Contracting with PDS allowed the client to know that the program was operated accurately. They did not have to pull valuable internal resources from their regular duties to comply with the settlement.
Compliance: The client was able to demonstrate the proper handling of sensitive data and compliance with the settlement agreement through the reporting provided by PDS. This facilitated a smooth closure of the program upon settlement completion.

The success of this program underscored PDS’s ability to deliver high-volume, high-accuracy solutions under strict constraints.

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