Viewpoint: Elevating Claims Management by Taking Collaborative Approach With Clients

Over the last 20 years, the role of the claims handler has evolved significantly, from a largely back-office function to one centred around partnership and mutual benefit. In today’s market, claims is now at the forefront of client-insurer relationships, playing a key role in driving a proactive, collaborative, and partnership-focused approach.

In May 2024, Liberty Specialty Markets worked in partnership with the UK’s risk manaagement association, AIRMIC, to conduct a Pulse Survey on Claims. The research demonstrated just how critical claims service levels are for risk managers when choosing their insurer, with it increasingly taking precedence over cost alone. This trend is evident across various industry sectors and claims arrangements, ranging from those with large deductibles and captives, to in-house claims services and third-party administrator (TPA) claims services.

Experience Over Expense

Claims are no longer just the point at which an insurers’ product is tested; they are integral to the overall client experience from the very beginning. Given that more than half of those surveyed highlighted the importance of claims service levels, it is clear that risk managers are not solely interested in making potential cost savings. Instead, they want their claims team to be actively engaged in the tender, quotation, and renewal process.

Of the respondents that said their insurer’s claims team had been involved throughout the renewal or quoting process, the overwhelming majority (98%) said they had found this useful. Ongoing dialogue between underwriters, claims teams, brokers and buyers can help prevent surprises down the line. This communication also plays a key role in policy wording and cover design, for example, essentially ensuring that all parties use the tools and experience at their disposal to protect the client’s portfolio.

Importance of Onboarding

When it comes to placing risk, there is a much larger and important role for claims teams to be involved in that process. They are increasingly in the room from the outset. As a result, the onboarding process is becoming a real point of focus.

Establishing the right relationship from the start eradicates ambiguity, setting out the terms of engagement and defining preferred working styles early on in the process. Moreover, it provides access to the added value that insurers and brokers can offer, tailoring the experience to the needs of individual companies. In effect, this approach ensures that claims handling extends beyond traditional investigation and payment, encompassing the entire policy lifecycle.

It is incumbent on claims professionals to truly understand the sectors that their clients are in, as well as being alive to the areas of concerns for each, they should be ahead of risk and regulatory trends, and able to update all stakeholders proactively.

Proactive risk mitigation and policy reviews are essential to ensure that, should a claim arise, their coverage remains relevant and effective. To this end, almost three-quarters of risk managers that were surveyed said they value risk mitigation advice, with 60% stating that loss scenarios, and trend updates (58%) from their insurers were valuable as additional insights, far beyond generic relationship management.

Leveraging Data and Insights

Claims teams possess a wealth of untapped data, learning and development capabilities, trends analysis, and loss scenarios which can add value to clients when tailored and aligned to their business needs. By analyzing historical patterns, claims teams can identify emerging trends and potential risk scenarios. Tailoring these insights to clients’ specific contexts can enhance their risk management strategies, supporting informed decision-making.

More generally, technology, particularly the use of artificial intelligence (AI) if used correctly, will free up claim handler’s time to focus on more value-add activities. Take large language models, for example: By making it possible to automate the more administrative aspects of the claims process, teams can reduce operational tasks and reduce claim handling times, which, most importantly, allows them to spend time on the customer experience.

But while clients recognize this, the survey found that, with negligence and misadvice the top cause of loss by value of claims for risk managers, almost three-quarters of respondents said they are not yet prepared to challenge claims decisions made by AI. To that end, working with insurers and brokers is vital for insureds to get more mileage from their policy and work on risk mitigation models with their providers. Based on the survey results, it is fair to say that those without these capabilities in-house may benefit most from this.

Strategic Partnerships

Strategic partnerships benefit both the insurer, broker and the insured; there are no downsides. They should be tailored to the needs of the client, facilitating the value-add across the chain, from internal functions within the insurer to leveraging relationships with external providers.

Business development (BD) should underpin the strategic partnership. Although not often discussed alongside claims, this role pulls together all the necessary components an insured might need through their relationship with an insurer, working closely alongside client executives, underwriters, third party suppliers and other key stakeholders.

As impartial members of the claims team, BD professionals focus on granular service delivery assessment. Their insights drive innovative solutions tailored to clients’ unique needs. Liberty employs client executives and claims BD representatives to help navigate large insurance firm structures, tailor service offerings around the needs of client, and work collaboratively with brokers.

The Evolution of Claims

Ultimately, claims will hold an increasingly key role in insurance placements, and the bar is constantly being raised in terms of claims performance and the value-add provided to clients.

The AIRMIC report indicates that risk managers are placing more stock in claims service, added value and relationships; providers and brokers must therefore ensure these offerings are available both before and throughout the policy period. Today, there is a clear need for a more sophisticated relationship between the insurer and buyer. We believe this can be provided through greater collaboration between the broker, client and claims teams, targeted innovation and responsive solutions.

As we look to the future, it is clear that the claims function is evolving to become a more strategic partner to clients, driving real value through innovative solutions and proactive engagement, as well as leveraging data insights to maintain a competitive advantage.

Zara Ismail is head of business development – claims (London) for Liberty Specialty Markets, part of Liberty Mutual Insurance Group. Prior to her taking the role in 2023, Ismail was head of insurance business development at the law firm, RPC. She has more than 15 years of experience in business development and client strategy in the legal and insurance sectors.