More Insurance Case Study Background
Unfortunately, the insurance business has a downside. We learn from the interviewees that there’s more to life than collecting premium revenue payments. The main costs in this industry result from claim losses. After a policy is in effect, then a claim can be made against a specific coverage and covered item. A claimant, who may be the policyholder or a new party not previously known to the insurance company, makes the claim. When the insurance company opens a new claim, a reserve is usually established. The reserve is a preliminary estimate of the insurance company’s eventual liability for the claim. As further information becomes known, this reserve can be adjusted.
Before the insurance company pays any claim, there is usually an investigative phase where the insurance company sends out an adjuster to examine the covered item and interview the claimant, policyholder, or other individuals involved. The investigative phase produces a...