Improvement of non-motor claims processing of a non-life insurance company

• Main Author: Bato, Winifred S.
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Insurance claims; Insurance adjusters
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/5812
• Institution: De La Salle University

Settling insurance claims is just one aspect of the claims management process. The time it takes to process a claim involves several stages beginning with a person filing a claim. The stages that follow determine if a claim has merit as well as how much the insurance company will pay. Insurance customers expect a company to settle claims quickly and to their satisfaction. Because high customer satisfaction levels can give a company a competitive edge, reducing the time it takes to settle insurance claims is one way to decrease the number of customer complaints and improve service. The improvement of claims management system that speeds the process and minimizes costs offers a practical solution. Generally speaking, when settling a claim is delayed, it costs the insurance company more money. The higher claim costs reduce profitability. Customer satisfaction, customer loyalty and customer retention are important intermediate goals for financial service providers. The focal issue addressed by this action research project was the high costs that the company incurs when acquiring external adjusters. Given the company has low volume of nonmotor claims, hence its practice is to assign all non-motor claims that are highly doubtful or that needs thorough evaluation report to external adjusters especially for fire and property claims which are very technical in nature and should have complete and accurate details before claims settlement and payment. The objective of this action research is to improve non-motorcar claims processing by means of having in-house adjusters for non-motor claims department that shall handle, assess and prepare evaluation reports for technical and substantial non-motor claims including those claims suspected to be fraudulent in nature. Upon implementation of the project, the expenses in outsourcing claims adjusters decreased which helped the company's profitability.