Insurance Claims Management With New Software Programs
The Role of Insurance Companies in Capital Markets
The insurance industry is a vital part of financial markets. Companies promote risk mitigation by offering individuals and organizations various types of insurance products. These products fall under two basic categories: life (temporary/permanent life insurance, annuities, retirement funds, money back policies, etc.); and non-life/general (property and casualty insurance, liability insurance, third party insurance, credit insurance, health insurance, etc.).
Proceeds from insurance products are converted to long-term investments on behalf and for the benefit of stakeholders, particularly insurance policyholders. These investments can be in the form of corporate stocks, government bonds, and other financial instruments that later earn a projected profit either upon a policyholder’s death or at a specified period of time for the insured and his/her beneficiaries. Thus, aside from national and global economies, the insurance industry is essential to personal well-being as well.
Insurance Claims Management: Challenges and Good Practices of Client Service
Unlike life insurance, general assurance protects people and businesses from economic losses caused by natural disasters and human-made injuries, as well as related legal liabilities. In both cases, however, insurers are aware that it is imperative for them to satisfy policyholders with company services. With this context, some companies have developed software programs designed to assist client insurance providers in their claims management needs, such as producing timely and high-quality reports.
R. Qaiser’s “Claims Management in General Insurance – Issues & Concerns” (n.d.) specifies underwriting and claims settlement as an insurance firm’s key functions. The article notes that the latter “can be used as a marketing tool” and helps retain customers. It also states how necessary it is for insurance companies to “manage” the nitty-gritty aspects of claims processing that includes determining the “Average time being taken for the settlement of a claim and the claim settlement ratio and how it compares with other operators in the market.” Moreover, “a corporate claims management philosophy” should be adopted to inspire insurance claims personnel in serving clients efficiently, including providing them with compensatory approaches, if applicable.
In 2004, the Organization for Economic Cooperation and Development (OECD) adopted a set of guidelines for good practice for insurance claim management. The OECD Insurance Committee defined these guidelines that serve as a benchmark for insurance companies in its member countries, including the United States (US). Such measure is aimed to improve the industry’s public image, to sustain its marketability, and to reduce losses. Adequate information and assistance to policyholders, good claim filing methods, and expeditious claim settlement were among the cited standards.