Forging relationships is key to claims success, fastTrackers told

If you wait till a catastrophe occurs to build relationships with key players in the claims process, you are too late. That was one of the key messages at a fastTrack academy session on catastrophe claims, hosted by ACE.

The seminar drew on the lessons learnt from major claims events such as the Japanese tsunami and Thai floods of 2011 and Hurricane Sandy in 2012. A large catastrophe "tests the structure of your insurance programme and how well you know the people within that structure," Andy McAvan, property claims manager at ACE said. "You must have a relationship with these people before the event, otherwise that's when things go wrong. And the longer the claim goes on, the more it costs."

Nick Chalkley, claims manager, energy UK&I at ACE agreed. “Energy losses can be extremely complex. There are many competing forces and you need to understand not only your own policy structure, but also understand the local culture. It’s a real challenge but good communication is important; you must make sure you are talking to the right people.”

Paul Handy, director of global technical services UK at Crawford gave the loss adjuster’s perspective, and said that pre-event planning is crucial. "As a loss adjuster, I need to understand your insurance structure before the event happens."  Otherwise, he said, finding out such information in the aftermath of a catastrophe – when basic infrastructure such as the internet and transport are not working – only prolongs the claims process.

Therefore a strong business continuity plan (BCP) is critical. “A BCP is vital but remember it is just a framework, not a set of rules. No catastrophe is the same so you need the flexibility to adapt it.” Testing your BCP with scenario planning is equally important as it “exposes the gaps in your plan in a non-threatening environment.”

Although the topics and catastrophes covered at the seminar were diverse, the importance of communication and relationships both pre and post event was clear throughout. Alastair Burns, banks and D&O claims manager, who talked through best practice in a D&O claims case study, perhaps summed it up best. “When there is a huge storm out there, you just can’t have too much information. Communication is key. It sounds simple but it’s actually very powerful.”

To register for future fastTrack foundation workshops, please contact georgina.wainwright@airmic.co.uk.