The Role Of Insurance Companies In Capital Markets The insurance industry is an integral part of financial markets. Insurance companies offer a variety of products to help individuals and businesses reduce risk. These products can be classified into two main categories: life and general.
Insurance policyholders, as well as other stakeholders, can convert the proceeds from their products to long-term investments. These investments may be made in the form corporate stocks, government bonds and other financial instruments. The projected profit is earned either at the death of the policyholder or after a certain period for the insured and their beneficiaries. The insurance industry is vital to personal well-being, as well as national and international economies.
Insurance Claims Management: Challenges & Good Practices for Client Service
General assurance, unlike life insurance, protects individuals and businesses against economic losses due to natural disasters or human-made injury, and any legal liabilities. In both cases, however insurance companies are well aware of the importance of providing services to policyholders. In this light, many companies have created software programs to help clients insurance providers manage their claims, such as producing timely, high-quality reports.
R. Qaiser’s Claims Management in General Insurance – Issues & Concerns (n.d.), identifies underwriting as one of the key functions of an insurance company. This article notes that underwriting and claims settlement can be used to market the company and help retain customers. Insurance companies must “manage” all aspects of claims processing. This includes determining the average time it takes to settle a claim, the claim settlement ratio, and how it compares to other market operators. To inspire claims staff to serve clients efficiently and provide compensatory options if necessary, it is important to have a “corporate claims management philosophy”.
The 2004 OECD Insurance Committee adopted a set guidelines for best practice in insurance claim management. These guidelines were developed by the OECD Insurance Committee and serve as a guideline for insurance companies throughout its member countries, which includes the United States (US). This measure is intended to improve the industry’s image, marketability and reduce losses. These standards included adequate information and assistance for policyholders, prompt claim settlement, and good claim filing procedures.
New Software Programs Provide Efficient Insurance Claims Services
Many companies have developed software programs for professionals and insurance companies to help them maintain client bases and improve their claims management. Some reputable companies have developed software tools that allow for the documentation and analysis of critical financial and insurance information. They also have reliable IT (information technology) facilities that protect data and can be used with mobile communication devices like iPhone. Let’s take a look at a few of them.
* Claims Management Software programs are generally designed for insurance and risk claim departments, third-party claims administrators, risk managers, and those who are involved in legal cases. The software features an advanced search function that quickly finds the required files, information, or transaction records to support general insurance claims. Reports can be created that can then be exported to Microsoft Office applications, spreadsheets, ASCII text files, or Microsoft Office Excel.
* Software programs that track financial information are useful in construction defect litigation proceedings. Vendors, lawyers, and claim handlers can access the virtual repository, which includes payments and insurer shares.
* Software programs that provide insurance professionals with database references, activity documentation, and organized notes are some examples. These software programs also allow for instant monitoring of time-bound tasks and billing. They include work periods as well as communication with clients via phone calls, faxes and mails.