Proactive Claims Management Critical to Building Business Resilience
Snapshot:
- Due to an increase in catastrophic events and interconnected supply chains, organisations may be faced with increasing numbers of major claims.
- Ensuring a smooth transfer of risk is dependent on a claims process that has been proactively considered, built and tested.
- Utilising data and analytics to quantify potential losses and assess exposure gaps is a crucial first step.
The Asia-Pacific region has experienced a rise in the number and cost of catastrophic events over the past several years. This uptick coincides with greater asset damage. Rapid urbanisation, the construction of buildings in flood-prone areas, and higher population densities have also heightened the risk and extent of damage.
At the same time, geopolitical tensions and economic volatility can have far-reaching impacts on supply chains, affecting businesses even when direct damage to their assets is minimal. Understanding these interconnected risks is crucial for developing a risk mitigation framework that can handle the multifaceted nature of modern business disruptions.
In addition, the insurance industry is feeling the strain of the increase in complex claims leading to delays. This challenging environment underscores the need for risk managers to be proactive in managing their claims processes to ensure efficiency and resilience.
Best practice requires the engagement of experts who have a deep understanding of how to prepare robust claim submissions in accordance with the insurance policy and industry practice. There is only a limited opportunity to present a case to the insurer with any credibility, and if a claim is poorly prepared, inconsistent or not properly documented this can, at best, result in delays in settlement. At worst, it can lead to the rejection of the claim.
Developing a culture that prioritises proactive claims management can lead to more than just efficient claim outcomes; it also contributes to building the experience and expertise needed to meet the challenges of a rapidly changing risk environment.
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