Best Practices for Catastrophic Claims Management

the roof of a house that has been gutted

With the shifting effects of climate change, the number of catastrophic events is increasing. In 2019, 860 events resulted in losses. One year later, in 2020, that number grew. 980 events produced costly casualties. Catastrophic events are any forces of nature that have devastating consequences. These can include avalanches, hurricanes, earthquakes, forest fires, tsunamis, etc. Catastrophic claims are financial agreements by property and casualty insurers to customers whose home or property was lost or damaged due to a disaster. It is essential to maintain proper catastrophic claims management after such an event. 

Meeting the needs of consumers

Catastrophic events can significantly interfere with people’s lives. Policyholders file claims with their property or casualty insurers if damage is done to the property. Property insurers hire claims administration and adjust firms who go out to the affected properties and 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. A self-service online portal would allow customers and agents to submit claims quickly and conveniently. Additional online portal services would enable consumers to upload photos, videos, or other supporting documentation. An informative tool that could be provided is an interactive guide. The guide would assist 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 alerts, via text messages or email alerts, of any 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 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. The status of the claim, the deductible amount, and the approximate delivery date of the check should be communicated to both customers and agents.

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 delivery date of the check. By providing ongoing communication with customers, property and casualty insurance firms will gain the trust and confidence of homeowners.

Learn more about catastrophic claims management

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