
PRIVATE CIRCULATION No: 01/2015
SUBJECT : Claims management in the Corporate space needs a tailored and clearly communicated approach
LEADING THE WAY describes everything for an individual client in terms of what happens in the event of a claim – regardless of its size or its source – so everyone knows what the process is, from the date of loss through to settlement.”
One of the challenges in catering for a corporate client’s claims needs is that they range from low-frequency major losses all the way down to high-volume small losses. This sliding scale demands varying levels of both expertise and automation, and getting the mix right is fundamental to the overall experience enjoyed by the corporate customer.
It is better to ensure that the claims operating procedures for corporate clients are clearly established and effectively managed. We talk about what the client needs from us in terms of claims handling in the event of a loss. We prefer that procedural piece before we have even got the policy up and running. It is for this reason to request that surveys are carried out and provide more information to Insurers than what is requested in the proposal form /risk Note.
It is also imperative that the client should be involved in two way discussions and acquaint themselves as to the terms and conditions and compliance requirements of the cover purchased. We have noticed that the result of these discussions have policies have been amended to meet the client’s needs and faster claim settlement as both sides were aware of their responsibilities. We must remember it is the client who knows his business better that any consultant.
The process is quick, efficient and slick I t is often said the point of claim is the only time customers interact with their insurers, but in the corporate sphere this approach is simply unworkable. Corporate clients have insurance programmes that are designed to their individual needs, and as such there needs to be clear guidance on exactly how every aspect of the programme will perform on a day-to-day basis. Programmes will vary in everything from the size of the deductibles to the use of captives and self-insurance strategies.
The underlying risk appetite of a corporate customer will also play an important role in determining the nature of its insurance programme, as will the scope of covers demanded by external stakeholders such
As trading partners and legislation. “I do not think we have two client programmes in the large corporate sector that look the same.
Discussing the process is all individually set by the client – some clients, for speed, would like to directly report to an insurer and we get involved one minute after that. “You have some that want to see everything come through us. Our standard operating procedure is to have a claims protocol that Claims management in the corporate space needs a tailored and clearly communicated approach, so how can insurers and brokers eradicate the grey areas to deliver this successfully?
It is for an individual client in terms of what happens in the event of a claim – regardless of its size or its source – so everyone knows what the process is, from the date of loss through to settlement.” One of the challenges in catering for a corporate client’s claims needs is that they range from low-frequency major losses all the way down to high-volume small losses. This sliding scale demands varying levels of both expertise and automation, and getting the mix right is fundamental to the overall experience enjoyed by the corporate customer.
It is better to have claims operating procedures for corporate clients are clearly established and effectively managed. “We have prepared a claims procedure guideline manual that would assist in claim preparation and a faster settlement. We have noticed that many clients do not maintain an updated Asset Register. Thus during a claim assessment there is a question of amounts being offered for settlement and leads to some disagreements.
The renewal team should meet with the client on regular basis and talk about changes which may have taken place to update their policies as well as what the client needs from us in terms of claims handling in the event of a loss. Then also discuss new risks and update on developments which may have taken place.
NOTES:
- Above articles are summarized for ease of comprehension
- Above articles appeared in technical Insurance trade magazines/ internet and all authors are acknowledged.
- Reader’s input would be appreciated.
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