The claims area is always a focus for insurers, brokers and regulators. The latest reports from the Australian Financial Complaints Authority (AFCA) show that motor vehicle claims delays are now the most common insurance complaint from customers.
Claims professionals are often subjected to negative attention in the media but are among the most pressured and hardworking people in the insurance business – particularly during natural catastrophes.
Daniel Lukich (pictured), AAMC’s sales and strategic relationship manager, said a big reason behind his firm’s decision to sponsor the Claims Team of the Year prize at the upcoming Insurance Business Awards, is to celebrate the people in this essential part of the industry.
“I’ve always felt that working in claims is thankless and tough, especially now, as the bulk of complaints insurance companies receive are primarily about claims execution,” said Lukich.
AAMC, the motor accident management service provider, has taken on the role of Event Partner for the 2025 awards. The firm is also sponsoring a second award through its Land + Road offering, the Philanthropy & Community Service (CSR) prize.
Lukich said today’s claims issues, including delays, are usually the result of processes that are “bogged down” by regulatory requirements.
“Insurance companies have been slow to adapt their systems and infrastructure to meet today’s demands, placing significant pressure on claims teams and their staff,” he said.
Lukich said it’s important to shine a light on their efforts.
“This is an opportunity to highlight the many dedicated professionals in this sector who are doing their best, often feeling as though they have one hand tied behind their back due to outdated systems and technology,” he said. “No-one wakes up intending to create a bad claims experience for someone.”
Industry professionals in the motor claims space say that, only a few years ago, claims handlers and assessors had more direct negotiations with customers. This allowed them to resolve issues, they say, more effectively.
Today, any hint of dissatisfaction—like disagreements over the value of a written-off car - often lead to the claim being referred to the insurer’s complaints department.
“Minor disagreements are now technically classified as complaints, which means they’re handled by a separate division,” said Lukich. “The complaints department operates under different timeframes, which can delay resolution by weeks.”
For example, if a customer struggles to pay their excess, previously this would have been addressed directly. Now, said Lukich, this is flagged as financial hardship and sent to a different department, complicating and delaying the claims process.
As a result, insurers have had to allocate more resources because many claims processing systems are not designed to handle anomalies and outliers. Systems configured even 18 months ago, said Lukich, are challenged by regulatory updates, putting significant pressure on claims processing.
The AAMC sales and strategic relationship manager said his firm’s newest offering, Land + Road, was designed to solve these challenges for commercial vehicles like tractors and food vans. Traditionally, these vehicles could go through a 20-day process of lodgement, repair quotes and evidence gathering before reaching the assessing department.
“What we propose is simple,” said Lukich. “If an insurer knows they can’t handle a claim internally, they should send it to us right after first notification.”
He said this streamlined approach allows the insurer’s claims handler to focus on the technical aspects of the claim and can significantly reduce processing times.
“We believe that many vehicles with engines and wheels operate like businesses, but because they’re not bricks-and-mortar entities, they’re subjected to motor claims processes designed for passenger vehicles,” said Lukich. “These processes aren’t suitable for machinery, which requires a specialist approach.”
Lukich said his firm’s new offering goes towards addressing some of these issues.
“Additionally, we leverage technology for video collaboration, allowing a subject matter expert in Hobart, as an example, to consult with someone in remote Western Australia,” he said. “This means the right person can be engaged without needing to be on-site.”
This year’s awards are taking place at The Hilton Hotel in Sydney. Lukich said the motivation for being the Event Partner is to get behind an evening that “celebrates the achievements within a sector that has its fair share of criticism and tough days.”
“We work with claims handlers, claims teams and insurance companies and we know how tough it is at the moment with complaints, media attention, rising premiums and people frustrated with insurers,” he said. “I think it's a chance to really let off a bit of steam and have a bit of fun with our counterparts and colleagues and know we're all in there for the right reason.”
Nominations are now open for the Insurance Business Awards 2025. For more information, including how to nominate and register, please visit the awards website.
