Seeking clarity in claims

Until two years ago, an insurer’s claims team was very much behind the scenes. At one time, some jokingly argue, the only time the word ‘claim’ appeared was in the phrase ‘no-claims discount’.

Yet there is a serious point. As one risk manager articulated at this week’s Airmic conference, the biggest nightmare for risk managers is to be woken up on a Sunday morning to learn that an entire factory had burned down – and not knowing who to contact at the insurance company.

But that scenario is changing. Go to the web site of all the main insurers and their mission statements will likely outline their commitment to claims.

Insurers are increasing aware of the importance of the claims service, raising the visibility of their claims team and investing in training to better equip them for front-line duty.

Major players like Allianz now put claims staff alongside underwriters when talking to brokers and insurance buyers. The insurer carried out a client feedback survey last year which revealed that clients supported the face-to-face approach, citing direct contact with the insurer as “highly important”.

AIG invested in claims account relationship managers in recognition of the need to deliver transparent claims service to risk managers. These managers now set up calibration meetings to decide on protocols, nominated experts and service level agreements.

While feedback from risk managers at Airmic this week hinted at patchy service rendered by insurers, it seems that the general direction is for greater transparency.

Indeed, Airmic’s push for an index showing insurers’ willingness to pay claims is part of this drive. Iif the index is successfully drawn up it will not only increase transparency, but will add pressure on insurers to focus further on their claims service.