A Video Explaining the Need For Professional Claims Handlers

Read the full article at https://www.linkedin.com/pulse/excellence-claims-handling-barry-zalma-esq-cfe and see the full video at https://rumble.com/vom1fm-excellence-in-claims-handling.html and at https://youtu.be/36t2XEQnd_4 and at https://zalma.com/blog plus more than 3950 posts.

In search of profit, insurers have decimated their professional claims staff. They laid off experienced personnel and replaced them with young, untrained, unprepared people. A virtual clerk replaced the old professional claims handler.

Process and computers replaced hands-on human skill and judgment. Money was saved on the expense side of the business by paying lower salaries. Within three months of firing the experienced claims people gross profit increased. The accountants were happy. The quarterly profits increased. None of the happy people were insurance professionals. None of them understood how a professional claims adjuster saves the insurer by establishing a fair amount of loss, avoiding payment for items not lost or overvalued, and by avoiding losses for which no coverage was provided by the policy.

The promises made by an insurance policy are kept by the professional claims person. Keeping a professional claims staff dedicated to excellence in claims handling is cost-effective over long periods of time. A professional and experienced adjuster will save the insurer millions by resolving disputes, paying claims owed promptly and fairly, and by so doing avoiding litigation and claims of breach of contract and breach of the covenant of good faith and fair dealing.

The professional claims person is an important part of the insurer’s defense against litigation by insureds against insurers for breach of contract and the tort of bad faith. Claims professionals resolve more claims for less money without the need for either party to involve counsel. A happy claimant satisfied with the results of his or her claim will never sue the insurer.

Prompt, effective, professional claims handling saves money for both the insured and the insurer and fulfills the promises made when the insurer sold the policy.

ZALMA OPINION

The claims department of an insurance company is the key to a successful insurance business. Every insurance policy makes promises to the insured to indemnify and or defend the insured or to pay to repair or replace real or personal property destroyed by a peril insured against. It is the claims personnel who fulfill the promises made by the insurer when the policy was sold. A claims department that provides excellence in claims handling satisfy those insured and causes those insured to tell their friends, neighbors and relatives about the quality of the insurer and thereby increase the sales and profits of the insurer. An Excellence in Claims Handling program written, produced and published by me for ClaimSchool, Inc. is available for license.

© 2021 – Barry Zalma