Q3 Global Claims Trends


Resource Challenges

The impact of COVID-19 continues to evolve at a technical, legal and regulatory level, but one very clear challenge that the pandemic brought to the surface is that of resource constraints. Insurers, adjusters and others have been placed under a tremendous burden due to the volume of claims arising globally across multiple lines of coverage. It is a burden that cannot be met simply by expecting more of the claims process to be delivered technologically. It is a burden that requires investment in the development of technical talent.


Hard Market Conditions

Securing claims outcomes for clients is challenging during any hard market. Some insurers have taken steps to centralize authorities and decision-making rights. Co-insurance structures have become subject to multiple adjustments as different reserving and settlement philosophies are brought to bear, and related macro-challenges, including social inflation, remain prevalent.


Claims Performance Considerations

In first party lines, the role of the nominated adjuster is in many ways as important as that of the insurer(s) they represent. We continue to advise clients to reflect thoughtfully on such nominations within policies. Global presence, industry expertise, and variety of relevant services are all value-added aspects of larger firms intended to provide the client with a better claims experience.


Client Responsibility

The pandemic has taught us that change is inevitable and clients must stay apprised of the changes in their organization. Ensuring that relevant risk exposure data is current to obtain adequate coverage is crucial in the placement and claims process. To help expedite coverage decisions on a claim, loss data and supporting documentation must be accurate and accessible. Maintaining open communication ensures Aon can knowledgably advocate on a client’s behalf and strive to improve claim outcomes.