Communication is key to successful claims outcomes, says one family-owned construction firm with specialist insurance building services.
As natural catastrophes increase in frequency and severity, breaches of the General Insurance Code of Practice are soaring – and communication around claims is at the heart of the problem.
A code requirement to update claimants at least every 20 business days was breached more than 28,000 times by insurers in the 2022-23 financial year – making it the most broken obligation out of a total 77,886 breaches.
And a range of reports have highlighted the pain poor communication can cause claimants.
Melbourne academics who interviewed 30 policyholders taking legal advice over their claims outcomes in 2022 found extended and onerous claims processes “fail to deliver on policyholders’ expectations of protection and peace of mind”.
“For some survivors, being subject to a prolonged and ‘adversarial’ claims process can be the most distressing element of their recovery,” the Melbourne Law School academics said.
Another study, entitled Insurance Issues as Secondary Stressors Following Flooding in Rural Australia, found those exposed to floods are liable to suffer “a variety of adverse mental health outcomes” that can “sometimes be just as severe as the initial trauma”.
Maria Dalto, Business Development Manager
Maria Dalto, Business Development Manager for the Insurance Division at construction services group Paynter Dixon, says delays and errors in processing claims after major natural catastrophes can have “profound effects” on claimants.
For commercial property owners, extended delays can jeopardise livelihoods, while for domestic claimants, delays can disrupt home lives, “leading to stress and anxiety due to the displacement of everyday routines”.
A negative claims experience can cause a broker or insurer to lose the policyholder’s business, so good communication is paramount in keeping claims on track.
“When claimants are kept informed and updated on the progress of their claims, even if delays occur, they are more likely to remain patient and understanding, Ms Dalto says.
“Clear communication helps manage expectations and reduces anxiety, ensuring a smoother claims process overall.”
Businesses such as Paynter Dixon – which can lean on 110 years of experience in construction – play a crucial role in communications, especially once a job has been approved and entrusted to the builder.
While insurers and brokers may initiate the process, it’s the builder’s responsibility to maintain open and effective communication with the policyholder.
This includes addressing concerns relating to the scope of work, access, timing, quotes and approvals, while referring coverage issues back to the appropriate parties.
Central to the company’s culture is a belief that good communication “is characterised by empathy, understanding and a commitment to addressing the needs of the claimant”.
“We express our condolences for their loss and assure them that we will handle the claim process with compassion and care,” Ms Dalto says. “Our approach involves working closely with claimants, acknowledging their emotions, and ensuring they feel supported throughout the claims process.”
The company is also on the lookout for any additional client vulnerabilities.
“We have trained our project managers to treat claimants as they would want their own parents to be treated during a similar situation. This involves actively listening, paying attention to cues, asking open-ended questions, and being empathetic.
“We tailor our communication to suit the individual, using simple language if necessary, and we can offer additional support if required, such as providing information about government-run helplines for emotional support, especially during total loss claims like fires and floods when they feel helpless and like they have lost everything.”
Paynter Dixon has an escalation process to ensure any queries are addressed promptly and effectively.
“We prioritise treating policyholders with respect and ensuring that their concerns are heard,” Ms Dalto says.
“In cases where there are queries over coverage, we refer the policyholder to the loss adjusters to explain the limitations of the claim and offer additional services as required, always striving to find optimal resolution for all parties involved.”
