Claims are a critical part of the effective operation of an insurance policy. After all, that’s what the policy is for – to pay out when things go wrong.
However, claims can also be one of the most frustrating and confusing aspects of the insurance industry, with a wide range of administrative and evidence requirements, many of which differ from insurer to insurer.
Assisting clients with claims can be one of the most important tasks a broker can undertake, and can cement a relationship forever. By using the following five key strategies – strategies that can be applied to any type of insurance line – brokers can proactively work with clients and insurers to ensure successful resolution.
1. Never knowingly underinsured
The first step in ensuring claims go through smoothly is to make sure clients have the right insurance, adequate levels of cover, and any appropriate policy extensions; and that these are reviewed on a regular basis.
“If clients are underinsured, that impedes underwriters’ ability to deliver an outstanding claims experience and results in difficult situations from the outset,” says Stephen Brooks, former executive general manager of claims at
Zurich.
Admittedly, that’s an easy argument to make in general terms, but the situation can be very different when brokers are confronted with a client trying to save money, and who is willing to drive down cover limits or forego cover altogether.
In these instances, it’s critical that brokers make firm recommendations as to what cover is needed, and document those recommendations. Not only can this strengthen the case for cover, but it also serves as evidence that the issue was discussed if cover is not taken up.
2. Prevention better than cure
The next step that brokers can take also comes before a claim is lodged. OAMPS broker David Clarke advises brokers to take the time to educate their clients before trouble strikes.
“Brokers should provide information on risk management and mitigation to clients before they’re in a situation where they might need to make a claim,” says Clarke. “For example, you could email advice on how to protect property ahead of storms, or advise them how to put together a disaster recovery plan.”
3. Know your insurer
The claims process may be similar across different insurers, but each has its own quirks. One of the most valuable services a broker can provide is to be a guide to the particular processes of each insurer.
Of course, in order to do this you need to be familiar with those processes. Therefore, it’s worth spending time with business development managers, claims staff, and underwriters at insurers that you use regularly to ensure you’re up to date with their requirements and any recent changes.
4. Evidence is king
Even if an insurer doesn’t ask for evidence upfront – Vero state that 20% of claims it handles are resolved without any need for documentation – forewarned is forearmed.
Brokers should ensure that all relevant evidence to support a claim is at hand and can be supplied to the insurer as required. In the case of most property or motor claims, this typically consists of things like:
• proof of ownership,
• purchase costs of insured items
• evidence of damage – such as digital photos or physical samples
• evidence of any claim-related costs
• evidence of income.
While neither insurer we spoke to provides supporting evidence checklists, Zurich’s Brooks suggests that brokers can use claim forms as a guide to the information required.
5. Proactively manage the claim
Last but not least, brokers should be on hand to provide technical guidance and advice to clients throughout the claim process.
“Brokers can add a lot of value to the claims process,” says Clarke. “We’ve got a deep understanding of our clients’ businesses, their exposure and risk appetite, so we can ensure the right level of protection. We can help make the claim process more efficient by providing advice at the point of claim, and even minimise the impact of claim events.”
“Finally, by staying on top of the claim and bringing insight into technical issues, we can ensure claims don’t stagnate and that all questions are being answered – from both client and insurer.”
THREE MUST-HAVES FOR A SUCCESSFUL CLAIM
ONE: Make sure adequate cover is in place to begin with.
TWO: Lodge the claim as soon as possible, with as much information as possible.
THREE: Provide evidence of damage with the claim – digital photos showing the original condition of an item and subsequent damage are ideal.
