Vehicle OEM Diesel Emissions Claims and Document Processing Success Story
U.S. operations of the world’s largest automobile manufacturer engaged Walsworth Administration for two significant claims processing contracts.
The U.S. Department of Justice approved Volkswagen Group of America’s final settlement for their well- publicized diesel emissions case in late October 2016. The settlement called for more than $14 billion in fines and customer reparations involving more than 500,000 2.0-liter vehicles in the initial repair, buyback and compensation program.
As hundreds of thousands of diesel vehicle owners’ claims packages arrived, the volume quickly overwhelmed VW’s in-house administrative resources. To meet extremely punitive, court-ordered claims processing turnaround mandates, VW recognized the need for a third-party business process outsourcing partner to address this challenge.
VW selected Walsworth Administration, and the companies began working together in early November 2016 to attack the ever-growing backlog of claims.
Less than one week after contract execution, training and procedures review commenced at Walsworth’s Brookfield, Missouri, facility. Daily claims package processing volumes hit 4,000 after just 10 days of operation. By the first week of December, Walsworth Administration’s team was processing 11,000 claims per day and nearly eliminated the claims backlog by month’s end.
VW’s court-appointed settlement supervisor, Ankura Consulting, visited Walsworth’s Brookfield site to meet with its management team and conduct due diligence regarding Walsworth’s management processes as well as site and IT systems security. As a result of the visit, Ankura Consulting determined the proper technology systems, protocols and integrity measures were in place to protect consumers’ personal information and that Walsworth’s claims processing accuracy rate performed for VW was equivalent to that being achieved by VW’s in-house staff.
By February VW expanded Walsworth’s mandate to include vehicle buyback offer generation, offer document review, and outstanding loan balance verification with claimants’ lenders.
As the 2.0liter work continued, VW reached a separate $1.2 billion settlement with the U.S. Department of Justice for an additional 88,000 3.0-liter diesel vehicles for which VW was ordered to repair or provide compensation to owners.
Due to Walsworth Administration’s strong performance on the 2.0-liter contract, it was awarded the claims administration contract for the 3.0-liter initiative in April 2017.
While this engagement is ongoing, to date Walsworth Administration has processed more than 325,000 claim document packages and 200,000 buyback offers for VW while playing a key role in maintaining compliance with the court’s requirements for claims processing turnaround.
Interested in learning more about how Walsworth Administration’s team of experts can help your organization? Contact Beau Peters, Business and Partner Development at 913-219-8421.