What is ‘claims handling’?

Claims handling refers to the comprehensive process involved in managing insurance claims, which starts when a policyholder notifies their insurer of a claim and continues through to the final settlement of that claim. This process includes several steps, such as assessing the validity of the claim, investigating the circumstances surrounding it, communicating with the policyholder, and ultimately determining how much compensation, if any, is to be paid out.

This definition encompasses various aspects, such as evaluating documentation, coordinating with third parties (like adjusters or experts), and ensuring compliance with legal and regulatory requirements throughout the process. By effectively managing this process, insurers can maintain customer satisfaction and ensure that claims are processed fairly and efficiently. Hence, the focus on managing insurance claims from notification to settlement accurately captures the essence of what claims handling entails.