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What Does an Insurer Need to Provide a Quote or Process Your Claim?
Purchasing or Renewing Insurance
Step 1 – make sure your documents are fully completed and provided early
Many insurers need information to offer renewal terms, like a completed declaration or a signed proposal form with all the latest information.
These documents aren’t computer-processed, so an underwriter reviews each one and compares it to their updated guidelines and premium rates.
All this takes time to review, and the underwriter usually has additional queries to answer. The better you answer the questions or complete the proposal form or declaration, the quicker the underwriter can understand what is being insured and make a decision.
Step 2 – update your insurance adviser on changes during the year
Your insurance adviser usually assists in preparing the renewal forms or sending the appropriate declarations. If they know of important changes during the year, they can let the underwriter know and this will speed up the process.
Understanding Insurer Turnaround Times
Turnaround time refers to the period it takes for an insurance underwriter to process a policy quote or claims officer to check if a claim is covered and then be able to settle the claim.
It starts from the time all the information is provided to the insurance company, not just some of it. Only when the insurer’s staff has all needed information can a decision be made.
For a claim, this includes the time taken to assess the loss or damage, gather necessary quotes and make an offer to settle the claim or even a decision to deny the claim, if it’s not covered.
Types of claims
The type of claim also has an impact on the turnaround time.
Fast-track claims
Fast-track claims are low-value, straightforward claims, such as a claim lodged for a broken window.
They present minimal underwriting or technical problems and require no special attention from the claim manager. I.e. Plate Glass or car dent.
Routine claims
Routine claims require some individual attention during their management.
These claims take longer to settle than fast-track claims, and specialists such as a loss adjuster, repairer, or valuer may be involved. The claims manager will need to obtain information from each person, review the policy terms and conditions, and coordinate the claim, which will require a higher level of knowledge and expertise.
The most common routine claims include those related to property loss, third-party injury, consequential loss, employee benefits, personal injury, casualty, and liability of one kind or another, such as the loss of a ring. This type of claim will always take longer to finalise than Fast Track claims.
Non-routine claims
Non-routine claims require a high level of individual case management.
They can include claims such as a claim for a building fire, flood, hailstorm, or other widespread event in which there is a single large loss or widespread destruction, loss, or damage to buildings, plant, and stock resulting in a large, high-value loss.
These claims require detailed knowledge of the policy wording and extensive experience in handling claims, as each case will be different and must be managed by senior claims officers, assesses or investigators.
Supporting Documentation
The type of documentation required for a claim will depend on:
- the Type & Nature of the claim, and
- may include information on proof of ownership, invoices, quotes, letters of demand, professional reports, statutory declarations, witness reports, loss adjuster reports, correspondence of various kinds, and independent service provider reports.
Only one of these documents may be required, or a series of them may need to be collected.
Some of these documents may need to be completed by independent service providers. The sooner these are provided to the insurer, the sooner they can progress the claim.
Supporting documentation can include:
- affidavits
- airway bills/ bills of lading/ bills of quantities
- completed claim forms
- conditions of carriage
- contracts
- financial reports.
Understanding Insurer turnaround times and what is needed to obtain insurance or make a claim is key to having your quotation provided quickly or having your claim managed and settled.