Claims Processing: Some General Comments (Microinsurance in Focus No. 9)

Publication Date: Feb 2008
Published by: CGAP Working Group on Microinsurance
Document Type: Other (PDF)

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Microinsurance provider initiatives on facilitating claims process

This note argues that claims are the most important aspect of insurance since their settlement helps the insurer fulfill promises to the insured. The note makes comments and recommendations about claims processing. These include:

• Insurers should minimize operational and fraud costs to preserve affordable premiums;
• Tiered claims requirements minimize costs;
• Microinsurers can enhance their credibility by initiating the settlement process and instituting additional monetary compensation in case of delays;
• Microinsurers must maintain strong and sufficient controls to prevent fraud;
• A simplified product design will aid the claims process.