CLAIMS MANAGEMENT

Keeping claims customers happy

December 4, 2009

The best way to keep general insurance policyholders happy is to handle their claims quickly and efficiently. This means using a claims system that is up to the job.

Property & Casualty insurance is one of few lines of business where the customer would in fact prefer not to take final delivery of their purchased product, as this would typically be related to a negative occurrence. The delivery of the product really only happens when something unforeseen and unwanted has taken place.

This brings a unique dimension to the customer service experience and poses a special challenge for P&C insurers: how to turn a negative experience into a positive one in the mind of the customer.

Keeping track
Research shows that Property & Casualty insurers typically face claims ratios (claims incurred/net earned premiums) of between 60 and 80 percent. For companies enjoying ratios on the lower side it may occasionally be possible to “overpay” claims to make customers happy. But for insurers at the other end of the scale there is less margin for error, and if they want to make real underwriting profits they need a claims handling process that is as efficient as possible.

At the same time insurers also need clever tools that help them to avoid repeated claims of a specific nature. This is especially important when it comes to large claims or small frequent claims of the same type. It is therefore vital that the product management, sales and underwriting organizations have access to reporting systems that allow them to track losses, and to make portfolio or process changes based on these.

Efficiency inside and out
So what exactly does an efficient claims handling process look like? And how does it work? Well, it all starts with usability, and increasingly this means providing claimants with access to an internet portal that is open 24/7. Here customers should receive clear instructions on the claims process and have access to forms that are pre-completed with their relevant personal information. After claimants submit these forms, any required handlers or inspectors should automatically be notified, and the documentation should be transferred to the claims handling system without the need for manual intervention.

At each stage of the process clear workflows should specify the time limit for handling claims, provide details on any extra documentation required, and outline which parties should be involved. Actions are recorded at every step of the way in order to ensure a full audit trail, and a clear summary view should be available at all times so claimants can track the status of their claims through the client portal. At the insurance product development level, reporting and automatic alarm tools should enable handlers to pick up on any policy deficiencies or claim patterns and feed these back to product and sales teams for future reference.

Profit Software’s claims management solution
Our leading Claims Manager software module includes comprehensive features for managing individual claims and major events, with versatile reporting tools and extensive features for the administration of claims handling personnel.

See the table below for a more detailed analysis on each stage of an efficient claims management process.