Claims are one of the necessary evils of insurance. While the mere mention of the word can make some people cringe, the purpose of a commercial insurance claim is to help a client recover from damages or other incidents that affected their business.
And with an industry as large and far-reaching as commercial insurance – which is expected to be a $470 billion industry by 2032 – it’s not hard to see how important claims are. Businesses across the country depend on their insurance provider to offer the necessary coverages for their specific industry and to be there for them when needed.
If there’s one common pain point we hear from clients in the commercial sector, it’s that claims is an inefficient process. There’s a lot of paperwork, a lot of dialogue, and a lot of waiting. We’re constantly working with brokers to introduce more efficient claims processing, and we’re going to touch on some of those tactics below.
Where (and how) claims can go wrong
Let’s start by unpacking what clients don’t like about insurance: it’s too complex, often complicated, and spending too much time on it can take away from time spent on their business. These are problems we can solve, beginning with better education and more tailored insurance products that address specific regulations (which vary by state) and different lines of work.
Most clients want to trust their insurance broker to get them what they need and to be there when they have questions. Easy enough, right? Not quite. When clients need their insurance to protect them, i.e. when they file a claim, they prefer a seamless process that’s easy to navigate and that resolves their issue promptly.
The critical role of claims, and why making it easier is critical
Resolving a claim is, for lack of a better term, solving a problem. Once the book is closed, your clients can put it behind them and focus on their work. If the claims process takes a while to complete, a lot of factors may come into play:
- Are your clients frustrated?
- Are their questions answered?
- Do you have a timeline for a resolution?
- How can you instill confidence that the claim will be resolved?
While the process can sometimes be out of your hands, you (the broker) can put a better structure in place to make sure everyone is aligned and the process is as efficient as possible.
How to streamline the claims process for your clients
Technology is a major advantage for brokers and providers who leverage it. Filing claims, tracking them, and resolving them…it can be a painstaking process. Using trackable web forms, mobile apps and any other user-friendly tech will keep claims tight and orderly and enable you to provide real-time updates. Digitizing documents, i.e. keeping an e-paper trail for every piece of paperwork, also provides structure to claims.
Proactive claims management is essential
No one – client or broker – wants to wait around for answers and updates. A streamlined claims process also helps give the power of information back to you; you can be the one sending emails and making phone calls that inform the client. You can proactively reach out if more information is needed at some point in the process, rather than playing a game of telephone to get things back on track.
Putting a priority on communication during the claims process
Communication is key between both you and the client, and between you and the provider. If you prioritize communication, the claims process will be more efficient. This begins with filing claims and continues throughout the journey, all the way to resolution. Even if you don’t have an update, it’s helpful to make contact weekly and let clients know you’re on top of it.
A better claims process builds trust and helps retention
Digital tools, less physical paperwork, user-friendly tech, proactive communication…it all adds up. Claims can be a headache and the mere mention of the word might send chills up a client’s spine, but better claims start with empathy for the situation. Everyone knows this can be a slog, but let’s understand that and try to make things easier with small – but significant – improvements to the process along the way.
NIP Group helps brokers win business with specialized insurance and unrivaled support
NIP Group is a commercial insurance leader with more than 35 years of experience, working closely with contractors in a variety of trades to write specialized insurance policies. With an extensive repository of resources, we support brokers and their agencies with marketing materials, fact sheets and other content to win more business.
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