What does 'claims handling' refer to?

'Claims handling' refers specifically to the procedures for processing and resolving insurance claims. This encompasses the entire process an insurance company follows once a claim is filed by a policyholder after an event covered by their policy occurs, such as a car accident, property damage, or liability event.

Key components of claims handling include receiving the claim, investigating the details surrounding it, determining the validity of the claim, and making decisions about the compensation or benefits to be provided. Effective claims handling is crucial because it impacts customer satisfaction and trust in the insurer, reflecting their commitment to provide support when policyholders need it most.

Other options describe different aspects of the insurance business but do not capture the essence of claims handling. For instance, assessing risks for underwriting involves evaluating the risks associated with insuring individuals or businesses before providing coverage, while calculating premium rates pertains to determining how much policyholders should pay for coverage. The relationship between insurers and policyholders focuses on the broader interaction and communication between the two parties, which can include aspects like customer service but does not specifically target the claim resolution process.