Delayed Settlement of Claims

Delayed settlement of a claim can have a serious impact on the client

•     Cash flow strain on the claimant

•     Client dissatisfaction and potential reputational damage

•     Increased claim costs due to delays

•     Potential complaints to the insurer or regulatory bodies

Common Causes That Could Delay the Outcome of a Claim

•     Providing an incomplete or incorrect description of the claim. The date, time, and place are of utmost importance.

•     Incomplete documentation delaying the appointment of an assessor. Missing reports, invoices, and proof of ownership must be submitted.

•     Coverage disputes. It is important to understand your policy wording and exclusions. Underinsurance may lead to the application of the average clause. Large or complex claims can also be more time-consuming.

•     Insurer investigations to validate the claim and prevent fraud.

•     Third-party claims, which may involve assessors, repairers, and legal processes.

•     Administrative inefficiencies, such as backlogs or delays caused by natural disasters (e.g., severe weather conditions).

How to Reduce Delays

•     Ensure upfront accuracy and proper underwriting, with clear sums insured and an updated asset list.

•     Notify your insurer of a claim as early as possible.

•     Submit all required documentation at the start of the process to avoid delays.

•     Use a broker to assist with managing and expediting the claim process.

Final Recommendation

It is strongly recommended that you carefully review your policy documentation and ensure that all information is accurate and up to date. Pay close attention to insured amounts, conditions, and exclusions so that you fully understand your cover.

This will help prevent disappointment and delays at the claims stage.