Navigating claims in international programs - part 3: managing claims across cultural and geographical barriers

_{We’ve been investigating claims best practice for international programs, gathering insights from across our network of partners and our own team. These include claims handlers, brokers, loss adjusters and coverage lawyers. This series of articles covers practical information and useful tips on how you can address the issues that may arise in the reporting, handling, and settlement of cross border claims. You can read the next article in the series here.}

While legal systems and regulations between countries play a central role in claims, in this article we explore how claims philosophies, technology, and the practicalities of operating across borders might impact your claims experience.

Regional differences can have significant impacts on claims handling practices on international programs, and while there is a myriad of nuances in each country, the partners we spoke to identified two key differences that will impact how claims work locally.

According to William Wilson, Head of Major Loss (Ireland) at McLarens, "Local customs and claim philosophies often differ by location. A good example might be how the German claims approach is different to that in the UK or the US.

"In the UK, and in the US, you tend to have a point of contact, which is the insurance company, and they will typically appoint a loss adjuster to represent them to report on both policy liability and all quantum, and they will liaise with the policyholder accordingly.

"Whereas in Germany, the claim is managed by a handler within the insurance company and they will appoint independent specialists for different disciplines, such as buildings and machinery. The client often has a say in who is appointed, which doesn't usually happen elsewhere. The role of the loss adjuster therefore differs and there is often a requirement that they do not comment on policy liability."

Other impacts can be seen in the speed at which claims are handled and how efficient the process is. According to Brendan Fahy, Director, Commercial Risk Solutions at Aon, speed is of the essence, "not all countries have the same sense of urgency and things can take longer depending on which country you're working in, of course sometimes this can be down to other factors on the client side too."

"Speed is important though, and if the early stages of a claim go wrong then it can be more difficult to get yourself back onto an even keel. Simple things like getting out to site quickly make a huge difference. For our clients it also puts them at ease, shows that we're on top of the loss, and that we're getting the right visibility into what's going on."

As Ian Hasson, Director Financial Risks, Europe Middle East & Africa at Sedgwick International illustrates, this is about making sure you have the right skills, resources and knowledge to handle your claim, from translations right down to the logistics of accessing often remote sites.

"Local specialists make sure that you understand the logistical challenges that are going to be involved. Planning to be at a certain location for a meeting and then thinking well, it's 100 kilometers away so if I leave a couple of hours that should be plenty of time to get there, but the remoteness of the location or the road and/or traffic conditions means you'll be two hours late. And when you arrive at the site, there is the issue of the communication with the individuals involved where English may not be the first language, or even understood by some of the key participants in the site meeting."

As part of the planning process, it's important to understand how much you will rely on local versus global specialists in the event of a claim. "While a lot of this comes down to client preference, there are certainly some key advantages of locally driven claim management," explains Cyrus Pang our Head IP & Customer Experience Claims, "language barriers will always be a big factor, but just coordinating across multiple time zones for example would slow claims down. Of course, that's why at Swiss Re Corporate Solutions we've worked so hard to create a trusted network of global partners so that we can give our clients that support in region."

Understanding culturally how things are done, is as important as understanding how a policy works. Our ONE Form policy means the policy cover is interpreted in a consistent way across the international markets in which we operate. ONE Form mirrors the language of the Master Policy in local policies and with that avoids issues around interpretation of language.

Technology is increasingly being used to help investigate and manage claims, offering a solution to many of the logistical challenges that form part of International Programs. The key is finding a balance between the rapid response and ease of technology, and value of on the ground investigations.

"That was just evolving before COVID, and it suddenly got accelerated," explains William Wilson from McLarens, "for example, we had a fire in a tobacco plant and getting there was a challenge. Before we attended, we organised a drone to fly over the building which was still burning. That meant we could immediately estimate if that building and stock therein was a total loss or not.

"We can receive short videos and the measures we have within our app capability are set up for people to share images which are reformatted to uniform manageable size in a secure media hub, which is consistent on what we can upload, download, and share with insurers."

There is clear value in claims professionals visiting the loss site as soon as possible, and particularly in the immediate hours after the loss - to collect witness statements and evidence etc. However, virtual meetings can also play a role, using the various digital platforms now available.

For Brendan Fahy from Aon, it comes down to the type of claim and what reassures the client, "virtual works, and it's what we've being living with since COVID, it does have an important role to play. The disadvantage is that you don't have that same sort of feedback, for example body language from both the client and the loss adjuster. So, it can make the claim more difficult to manage. For clients too, they definitely appreciate you coming out to the site and enables us to show that we are there to help."

For international programs, customer service goes beyond simply meeting expectations. It is about trust, relationships, and resolving concerns through transparent and constructive discussions to navigate the nuances of international business.

According to Cyrus Pang, a claims relationship manager has a significant role to play. “Typically, they will have a full understanding of the coordination and collaboration involved in servicing claims for the IP customer and oversee the global claims servicing activities and facilitate meetings as needed to provide exceptional customer service,” he explains.

"We are trying to be a true partner for the customers, and that's particularly important when it comes to handling claims within our network" explains Reto Collenberg, our Head International Programs APAC & EMEA, " To make sure that we have the same quality and commitment of the claims part or the claims people in network partners as we would have in our own offices."

"My advice to the client is make sure your insurers have strong control over their local partners, and make sure that you're comfortable, that your insurer has done the due diligence on that local front. That's both in terms of financial capacity and also technical capability," comments Jon Jones, our Property & Engineering Claims Lead.

As part of this, clear communication is also vital from the client side according to Aon's Brendan Fahy, "customers should make themselves available for regular update meetings with the loss adjusters and the insurers, and make sure that their claims submission is clear. They should clearly communicate what efforts they are making on loss mitigation, because again it comes back to the underlying reality that they know their business best."

Read more articles in this series

Part 1: Global claims for global risks
Part 2: Legal systems and jurisdictions
Part 4: Keeping your business running, financials and cash flow
Part 5: 5 tips for best practice for managing global claims

 A special thanks to some of the experts in our network who shared their insights for this piece:

William Wilson, Head of Major Loss (Ireland) at McLarens.
Brendan Fahy, Director, Commercial Risk Solutions at Aon.
Ian Hasson, Director Financial Risks, Europe Middle East & Africa at Sedgwick International.

Readers should form their own opinion on the topics described and not rely on the information provided in this article. Though collected with due care, Swiss Re does not accept any responsibility for completeness and accuracy of the information provided.