5 best practice tips to get prepared for the influx of claims
Many insurers are still recovering from the multiple flood events of last season and more storms are expected. Here is what you can do to make sure your business is ready for more storms:
1. Claim lodgement
Make sure you have either a dedicated number or an online lodgement for Cat claims only. If you have a dedicated team, this process will help them to deal with the incoming volume faster and more efficiently. To simplify customer lodgement, pre-configure questions for easy completion (e.g., specific postcodes, causes of loss). Additionally, actively check for potential fraud and other risk factors that often go unnoticed during volume surges.
2. Supply chains & triage
Check agreements with your suppliers, especially emergency services. When collaborating with brokers, empower them to allocate local emergency services directly. Alternatively, expedite the triage process by automating the allocation of preferred suppliers. One thing to watch for is timelines and proactive customer communication. If suppliers can’t attend the site on time, you need to be proactive in communicating the expectations with the customers. The regulation does not provide any exceptions in service quality and timeliness for Cat events, so basic rules of 20 days updates remains. You can get a quick compliance health check report here.
3. Staff training –
Train different parts of your organisation to deal with extra claims volumes on time. Prepare multiple scenarios to determine the required number of staff from different departments. Provide them with essential training. Make sure that all “reserve” people have access to the claims system and are adequately trained on the basics of claims handling and compliance.
4. Fast track or simplified process
For simple claims. During a catastrophe event, smaller non-urgent claims are often overlooked, leading to potential customer dissatisfaction and regulatory breaches in the future. Therefore, it is crucial to consistently address these claims and streamline the process to ensure faster processing. You can listen to this insightful podcast to better understand where your business could be breaching new regulations in this area.
5. Centralised oversight
Use real time data and dashboards if possible to identify any delays in service, complaints or potential breaches and address them proactively. Old school Excel spreadsheets once a month will not do the job of effective oversight. Managing the staff and controlling high priority claims, while keeping track of regulatory compliance, is essential on a daily basis to make sure no claim gets out of control or a systemic issue is missed.