In the world of commercial insurance, brokers play a crucial role in connecting businesses with the right coverage. But what truly cements a positive relationship between a business, its broker, and the insurer? It all boils down to the insurer’s claims service. Often referred to as the “shop window” of the insurance industry, claims service is the tangible experience a policyholder has when they need to make a claim. It’s the moment of truth, the point where promises made on paper translate into real-world support during a difficult time.

For brokers, claims service is a daily touchpoint. They witness firsthand the efficiency, fairness, and overall effectiveness with which insurers handle claims. This, in turn, shapes their perception of the insurer and directly impacts their recommendations to clients.

Beyond Just Paying Claims: The Importance of Service

While the core function of an insurer is to settle valid claims, the service level surrounding that settlement is equally important. Here’s why:

• Brand Image: A smooth and efficient claims process reflects positively on the insurer’s brand. Conversely, a slow, frustrating experience can damage trust and reputation.
• Client Satisfaction: A positive claims experience fosters loyalty and encourages policy renewals. Businesses are more likely to stick with an insurer who delivers when it matters most.
• Risk Management: Efficient claims handling can identify trends and potential risk areas, allowing insurers to work with policyholders on preventative measures.

Key Components of a Stellar Claims Process

A well-oiled claims process hinges on several key components:

• Speedy Appointment of Assessors: Promptly assigning a competent assessor or loss adjuster minimises disruption and allows for a quicker assessment of the situation.
• Registration and Admission of Liability: A streamlined process for registering claims and acknowledging covered losses is crucial for a timely resolution.
• Fair and Reasonable Assessments: Accurately quantifying the indemnity payment ensures businesses receive the financial support they deserve to recover.

The Co-Insurance Factor: Communication is Key

For complex or large claims, co-insurance often plays a role. However, fast claim recoveries rely heavily on effective communication. Here’s where it gets interesting:

• Prompt Loss Notifications: The sooner the broker notifies co-insurers, the faster the claim settlement process can begin.
• Maintaining Communication: Regular updates from the lead insurer keep all parties informed and prevent delays.

Lead vs. Co-insurer: A Tale of Two Service Levels

The service experience for a policyholder can be significantly impacted by the lead insurer’s level of competency. Here’s the breakdown:

• Lead Insurer Drives the Process: The lead insurer dictates the claims process, including communication with co-insurers. This means they have a significant influence on the overall service experience for the policyholder.
• Co-Insurer’s Limited Control: Co-insurers are often reliant on the lead insurer for updates and information. This can lead to delays and frustration for the policyholder if the lead insurer’s claims service is inefficient.

PARTNER RISK: Taking the Wheel for a Smoother Ride

At PARTNER RISK, we understand the importance of proactive claims management. That’s why we prefer to be the lead insurer on policies. This allows us to:

• Drive the Claims Process: By taking the lead, we ensure a smooth and efficient claims experience for our clients. We maintain open communication with all parties involved, minimising delays and frustrations.
• PayBack Undertaking: For clients to participate in our unique PayBack program, which rewards good risk management practices with lower premiums, we need to be the lead insurer. This ensures a direct line of communication and streamlines the claims process, maximising the benefits for our clients.

Choosing an insurer based solely on price might not be the wisest decision. When it comes to claims, a smooth and efficient process is paramount. By understanding the dynamics between lead and co-insurers, and the importance of clear communication, brokers can make informed decisions for their clients. At PARTNER RISK, we prioritise exceptional claims service because we believe it’s not just about paying claims, it’s about building trust and lasting partnerships.