More businesses are turning to captive insurance companies to have more control over their policies. This can provide many benefits to companies, but it also means that there are more insurance internal processes to understand, especially if you are not sure which captive to join. Understanding what the claims process entails and how it is managed, for instance, can help you choose between candidates with similar offerings.
One of the most important aspects of claims management is the processing of them. Claims need to be examined and investigated before they can be settled or denied. Claims processed quickly and effectively will result in lower costs and greater customer satisfaction. You can usually find this information by checking client referrals, as well as testimonials and reviews. You can even find out who the claims manager is and how experienced he or she is through the captive’s website.
Determining the validity of a claim is an important part of determining how much to pay on it or to deny it outright. A claims manager will need to balance quick claims processing with minimizing the number of fraudulent claims paid to keep costs low and stay in business for longer. Many insurance companies, commercial or captive, use data analytics to help track trends in claims filing and other tools to investigate the validity of each one without slowing the process down.
The key to avoiding insurance litigation for both companies and individuals is a thorough and accurate liability assessment of each claim which is passed on to all the parties involved. Keeping everyone in the loop with information can help show the claimant the evaluation behind the denial or offered settlement and can help you determine whether the processing procedures are working.
By looking at how claims are managed by the captives you are thinking of joining, you can be better assured that costs will be kept low, fraudulent claims will be detected and your firm can avoid litigation more effectively. You can determine this information with a little research into each captive and their claims department.