Tracking the Effectiveness of the RPP
April 2020 Update
Now in its fourth year as an inclusive member benefit for all IAM Governing and Core Members, the IAM Receivable Protection Program (RPP) continues to grow and serve as a safeguard for IAM members. All indicators IAM tracks for the program show both greater usage by and benefit for members in 2019. This increased usage rate demonstrates better understanding by the members and how to use it to protect their companies. As the industry experiences challenges associated with the COVID-19 pandemic and consolidation, the RPP will be there to provide IAM members with a safety net.
How Much Did IAM Compensate Members This Year?
For the 2019 fiscal year, IAM will compensate 54 members $300,892.00 USD (RPP Compensation). These companies received on average $5,572.07 USD to settle the claims they made against the IAM Receivable Protection Program (RPP). Read more about the amount of value the RPP delivers back to your company for your membership in IAM.
What Was the RPP Usage Rate in 2019?Members submitted 1,028 unpaid invoices on 329 separate claims. “Claims” are defined as a set of unpaid invoices owed by one IAM member to another. In general, IAM received almost one claim every day in 2019. See the sharp increase in invoice submissions last year in the chart below: IAM has recently invested in developing a more seamless claim submission and review process through the IAM Mobility Exchange (IAMX). This will give members greater tools and allow IAM Staff to enhance the service it provides to members on the RPP. |
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Total Submitted vs. Total Approved
During 2019, IAM members reported $2,335,022.31 USD in debts to IAM in 2019. Out of that number, IAM approved $380,695.82 USD worth of unpaid invoices for compensation, which is 16% of the total submitted. This approved total was reduced to $300,892 USD to account for the program limitations that prevent the RPP Reserve Fund from paying out more than 50% of its total funds in any one year. These limitations are included to ensure that the RPP will remain a resource to protect your companies in future years.
Which Companies Triggered These Claims to Be Paid?
The RPP compensates members for unpaid invoices that were not paid by former IAM Governing or Core members who have filed for bankruptcy or ceased to exist. In 2019, the following companies met those conditions:
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How Else Does the RPP Benefit Members?
Invoices submitted to IAM may be eligible for both RPP Compensation and RPP Intervention. This article has summarized the RPP Compensation benefit but it is important to understand RPP Intervention benefit. With RPP Intervention, IAM Staff contacts the member company who owes your company money and tries to facilitate repayment. If, after three separate interventions, the debt remains outstanding, IAM will publish that company on the IAM Alleged Debtor List.
How Effective is RPP Intervention?The below chart demonstrates the effectiveness of IAM’s intervention on unpaid debts between members. Aside from 2016, IAM helps to resolve more than 50% of requests that are reported to the RPP. The key element of RPP Intervention is the potential for the delinquent company to be published to the IAM membership on the Alleged Debtor List. While IAM cannot compel member companies to repay a debt, highlighting a company as an Alleged Debtor to our worldwide network provides a powerful incentive to pay the outstanding invoice(s). |
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