Best Practices for Catastrophic Claims Management

With the ever-changing effects of climate change, the amount of catastrophic events is increasing. In 2019, 860 events resulted in losses. One year later, in 2020, that number grew. Nine hundred eighty events produced costly casualties. Catastrophic events are any forces of nature that have devastating consequences. These can include avalanches, hurricanes, earthquakes, forest fires, tsunamis, and more. Catastrophic claims are financial agreements by property and casualty insurers to customers whose home or property was lost or damaged due to a disaster. 

Meeting the needs of consumers

Catastrophic events can significantly interfere with people’s lives. Policyholders file claims with their property or casualty insurers if the damage is done to the property. Property insurers hire claims administration firms and adjust firms who go out to the affected properties to assess the overall damage. Insurance companies are attempting to meet customers’ expectations while trying to keep up with the surge in claims after a disaster. Customers want quick responses, reliable communication, and payments made promptly. Unfortunately, the actual value of a claim may not necessarily match the severity. It is essential to be prepared as catastrophic claims can amount very quickly. Keep reading for the best practices used for processing these claims.

Use updated systems and tools

Property and casualty insurance firms should utilize the most up-to-date systems and tools. Creating a self-service online portal would allow customers and agents to submit claims quickly and conveniently. Additional online portal services should enable consumers to upload photos, videos, or other supporting documentation. An informative tool that could be provided is an interactive guide that assists customers in navigating the portal during the claims process from beginning to end. The online portal should also offer consumers and agents the opportunity to receive updates, via text messages or email alerts, with any new updates during the course. 

Keep policyholders and agents informed throughout the entire process

By providing the most recent updates during the claims process, customers can feel at ease during these difficult times as they can stay informed of everything. Policyholders typically contact their agents with any questions they may have during resolving claims. Keeping agents informed can educate customers on the entire process and what they should expect. It should be communicated to both customers and agents the status of the claim, the deductible amount, and the approximate date the check should be delivered. 

Delivery of payments

Policyholders and agents should be informed of all the claim details, including how it will be paid, the deductible amount (if applicable), how the payment will arrive, and the estimated date the check should be received. By providing ongoing communication with customers, property and casualty insurance firms will gain the trust and confidence of homeowners.

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Catastrophic events cause devastating effects within the affected communities. Customers rely on property and casualty insurance firms to provide excellent customer service by responding promptly, communicating, and making timely payments. Utilizing updated systems and tools, keeping open lines of communication, and delivering payments on time are the best practices for processing catastrophe claims. For additional information, please visit