Digitisation: Key to quickly establishing the facts in complex transactions

he modernisation drive in the Credit and Political Risk Insurance market has the potential to enhance the efficiency of claims management, says Sophie Sheldon, Specialist Independent Loss Adjuster – Political Risks & Trade Credit, CEO at Pinkerton Bell Ltd, in this guest blog. 

With many forecasting a rise in claims in the credit and political risk insurance (CPRI) market as a result of the global impact of the COVID-19 pandemic, escalating political violence and the step-wise withdrawal of fiscal support around the world, the efficiency of the loss adjustment process can be expected to come under increased scrutiny.

A critical part of the role of the loss adjuster is to establish the facts of often very complex matters, as accurately and efficiently as possible; essentially to perform an audit of the relationship between the parties from start to finish.

A clear chronology of documentation

We find that access to documentation and information in the very early stages of our involvement in a matter, is critical in determining the facts and chronology of events and ensures we are as well prepared as possible to meet with Insureds.

As you can imagine, with the long tenor of many CPRI transactions, coupled with the involvement of several teams within an organisation and any changes to personnel in those teams during the period, accessing the relevant documentation in a timely way can be challenging.

Furthermore, many policies now include clauses addressing claim timelines – consequently, for us, working with the Brokers to understand what information is available and how best to access the wealth of knowledge that an organisation holds, is a very important part of helping Underwriters to meet those timelines, wherever possible.

Subsequent to any claim payment, we would then look to work with Broker and Underwriters to maximise the recovery opportunity – this can become very time-critical, particularly if it is agreed with an Insured that some form of third party or alternative solution is worth considering – therefore retaining access to documentation is important not just during the claim adjustment period, but also for recoveries.

Digitisation has huge potential

There are many elements to our role, but the current modernisation, standardisation and digitisation efforts we are hearing about in the CPRI market present an opportunity to enhance the speed with which we are able to access key information and documentation.

There are always follow up exchanges and Underwriters will still require time to consider all of the facts gleaned during the loss adjustment process, but time gained in accessing information early on in the process benefits all parties.

Look to the future

Digitisation in the CPRI market presents a multitude of opportunities for all those involved – and we see the claims process as part of that. Efficient access to documentation throughout the adjustment process will always underpin our ability to accurately establish the factual matrix of a matter in a timely way, and will enhance the effectiveness of our subsequent liaison between both Underwriters and Brokers as we progress the loss adjustment.

We are looking forward to working with the market to maximise efficiencies, assisting Underwriters to focus on ensuring valid claims continue to be paid promptly and efficiently.

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