Managing Claims from Catastrophic Events

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  • Title: Managing Claims from Catastrophic Events: An Empirical Study of Claim Management Process Practice and Its Assessment
  • Author(s): Phaninee Naruetharadhol, Chavis Ketkaew
  • Publisher: Common Ground Research Networks
  • Collection: Common Ground Research Networks
  • Series: Organization Studies
  • Journal Title: Change Management: An International Journal
  • Keywords: Claims Management, Catastrophe Events, Insurance, Life-cycle Target, Net Promoter Score Target
  • Volume: 17
  • Issue: 4
  • Year: 2018
  • ISSN: 2327-798X (Print)
  • ISSN: 2327-9176 (Online)
  • DOI: https://doi.org/10.18848/2327-798X/CGP/v17i04/13-26
  • Citation: Naruetharadhol, Phaninee, and Chavis Ketkaew. 2018. "Managing Claims from Catastrophic Events: An Empirical Study of Claim Management Process Practice and Its Assessment." Change Management: An International Journal 17 (4): 13-26. doi:10.18848/2327-798X/CGP/v17i04/13-26.
  • Extent: 14 pages

Abstract

This research aimed to evaluate the performance of the claims management process of an Australian insurance firm based on three catastrophic events: the Brisbane Storm, the East Coast Storm, and the Brisbane/South East Queensland Storms and Floods. Performance was measured using three parameters: Life-cycle (LC) target, conversion rate, and Net Promoter Score (NPS) target. Once the data were analyzed, claims process inefficiencies were identified. Then, interviews were conducted with both the General Manager in charge of Repair Services and Supply Chain matters and the Head of Operations to identify the actions the company had taken with regard to the inefficiencies. The results indicated that, in terms of life-cycle days, each phase of the claims process failed to meet the target days. Secondly, the conversion rate of the company’s claims management process declined from the first to the last event by 30 percent. Thirdly, a sample of customer ratings indicated that company maintained the NPS target until the end of the first two events but failed to meet the target at the end of the third event. Information derived from data analyses and interviews was used to evaluate the company’s responses and rectify its inefficiencies. The researchers provided two sets of recommendations for improving the claims process during catastrophe (CAT) events: hiring more staff to manage claims during CAT events, and setting up specific CAT response plan/teams.