International programmes – claims handling

As companies continue to expand globally, the swift and efficient handling of insurance claims is of huge importance. International programmes require a tailored, consistent and proactive approach to the claims process. Clear and frequent communication between client, broker and insurer at the local and global level can really make the difference, as Fritz Reuter, country claims manager for Austria at AXA XL, explains.

How are claims best handled as part of an international insurance programme?

For claims arising on an international insurance programme, there is no one-size-fits-all framework. Instead, solutions should be adapted and made appropriate to each client’s business.

Legal frameworks are different all around the world but insurers should offer a consistent approach to handling claims wherever they occur. This does not mean rigidly sticking to one process for all clients, but rather having a set of guiding principles that ensure customers receive a prompt and fair service, at all times.

Insurers should provide a claim manager who becomes the point person for the client and who familiarises herself or himself with the client’s programme and exposures. This is the person who will coordinate communication and action between all parties in the event of a claim.

The claims manager can delve deep into how the client’s business works and understand what they do. If a claim then occurs at a local entity, the claim manager can liaise with local claims handlers and the local insurer network to both ensure that the client’s needs are understood and that global standards are met. This link closes the loop between the local entity and the headquarters and helps claims to be paid efficiently.

What can buyers of international insurance programmes do to help ensure that claims run as smoothly as possible?

We would encourage clients and their brokers to make claims part of the discussion right at the very start of designing an international insurance programme. If insurers buyers and brokers can all work together, to ensure appropriate claims commitments are part of the design of the programme, then things are far more likely to run smoothly, should a claim occur.

Claims professionals interpret coverages when claims occur, so having them in on the ground floor of policy design helps in setting reasonable expectations for the client as to what their policy covers and what it does not cover.

We encourage clients to have a ‘smart network’ within their own organisations to enable local insured entities to know who to talk to at their headquarters if there is a claim. In some cases, for example, something might not be covered under the local policy that is covered by the master policy. If local entities know who to talk to and how the international programme works, then they can help to share knowledge about the master policy functions both within their own units and also within their insurer networks. This then means claims can be more swiftly and efficiently handled if they occur.

A claim can have a big impact on the day-to-day running of a local entity. If those entities feel they have backup both internally and from their insurer, then the more comfortable they will feel and the easier it will be for them to recover and get on with their business.

Communication and collaboration are key. We believe in a more meaningful relationship between insurer and client and our ambition to move from ‘payer to partner’ is a key part of our philosophy. We believe that it is not enough for an insurer to simply pay valid claims. As a partner, we should help the client not only get back on their feet after a claim but help them to move their business forward, with risk management advice and support from our risk engineers.

What can insurers do to help clients resolve claims when they do occur?

Insurers should be proactive in order to assist clients during the claims process, as this will help reduce the claims cost and the impact on clients’ business. One way of doing this is to ensure that local claims handlers and experts, such as lawyers and medical experts, are involved as quickly as possible. It’s important that the insurer brings its global expertise, backed up by local folks who understand local market practices and customs, who speak the language and understand how claims work at the local level.

It’s really important that insurers combine local forces with global guidelines and standards. Insurers can give the client local knowledge and the comfort that claims are being resolved in accordance with local rules and regulations and to a standard that is acceptable to the client at the global, headquarter level.

Insurers should offer a global claims system to clients and allow them to have access to data, which gives clients real-time updates on their exposures and on all steps in the claim lifecycle, from setup to exposure analysis to resolution strategy.

What impact is innovation likely to have on the way claims are handled and on the claims landscape more generally?

We are seeing innovation in the way claims are managed. As clients’ businesses expand globally, they are moving into territories where claims may be handled in a different way. Rather than simply doing things the way they have always been done, insurers are talking to clients about trying things differently.

As clients’ businesses evolve, the coverage they require and the claims they may face will change. Insurers are continually looking at innovation, both within their own business models, and to find new ways to address clients’ needs.

The use of artificial intelligence and sensors on cargo, for example, could change the way that certain types of claim are triggered, handled and processed. The increased use of autonomy is another great example that may improve risk management in many areas, but also lead to different types of claims – in motor for example, the liability may shift from being about the driver of the vehicle, to the software behind it.

Innovation offers exciting opportunities for insurers to improve their own processes. And it also will change the claims landscape of the future, so we need to work with clients to understand the ways in which innovation will change their business and their risk profiles.

Contributed by Fritz Reuter, country claims manager for Austria, AXA XL