By Mandaw Kanji, PCA of the IFAGE Institute
Because claims represent more than 80% of an insurance company’s commitments, they constitute the core of its operations. Their rigorous management is a major imperative for any insurance company concerned with operating in accordance with regulations.
From the occurrence of a claim to its closure, including its handling, assessment, settlement, and any recourse, all these different steps must be rigorously taken care of by the claims services. The procedures manual implemented should define their objectives, management rules, and risks involved.
For all these reasons, precautions should be taken in:
– the opening and rigorous maintenance of claims management tools, namely claim files, directories for their registration, and inventories listings;
– estimating claims from their opening using a sufficient scale;
– monitoring them through rigorous handling. In this regard, motor bodily injury claims should receive special attention through prompt handling of the injured party’s repair, resulting in cost reduction;
– strict adherence to the principle of perpetual inventory for systematic updating of claims provisions;
– accurate evaluation of claims provisions;
– prompt settlement of claims “ready to pay” to avoid late payment penalties and sanctions by the Regional Insurance Control Commission (CRCA) of the Interafrican Conference of Insurance Markets (CIMA);
– exercising, if necessary, recourse to recover payments already made;
– cautious closure of claims. This must be done meticulously to avoid premature closures that could lead to insufficient provisioning.
The methods to avoid these risks are at the heart of the claims management certification program.
Well-managed claims not only contribute to better cost control and generate a comfortable profit margin but also ensure the satisfaction of policyholders and contract beneficiaries, guaranteeing long-term solvency. It appears that a good profit margin and a healthy customer relationship are not contradictory. They are truly reconcilable.
The claims management certification offers the opportunity to delve into all these issues and ensure the strengthening of the capacities of insurance companies’ claims services executives.
About the training
Attached is the link to register: https://www.ifage.net/nouveau-certification-professionnelle-en-gestions-des-sinistres/
