Building Trust Through Clear Communication

Tuesday, February 25th, 2025 Claims Pages Staff Elevating Client Satisfaction in Claims Resolution

Clear communication is the foundation of a positive claims experience. When policyholders understand the process, know what to expect, and receive timely updates, they are more likely to feel confident in their insurer and adjuster. On the other hand, vague explanations, unclear timelines, and poor responsiveness can lead to frustration, mistrust, and even disputes.

Insurance professionals who prioritize communication can transform claims handling from a transactional process into an opportunity to build long-term relationships. By setting expectations, using clear and concise language, and maintaining transparency, adjusters can foster trust while improving efficiency.

Understanding the Role of Communication in Claims Handling

Claims adjusters do more than assess damages and process paperwork—they serve as a bridge between the insurer and the policyholder. Many clients approach the claims process with stress, uncertainty, or frustration, often because they are unfamiliar with what to expect.

Strong communication helps in several key ways:

• Reduces misunderstandings: Clear explanations prevent policyholders from feeling misled or confused.
• Increases efficiency: When expectations are aligned from the start, there are fewer follow-ups and delays.
• Enhances trust: Transparent and honest interactions reinforce the credibility of the adjuster and the insurance provider.
• Minimizes disputes: Policyholders who understand their claim’s status and reasoning are less likely to challenge decisions.

Setting Expectations Early

Many frustrations arise when policyholders don’t know what to expect. Adjusters can prevent this by outlining the process upfront and explaining key factors such as:

• Claim Processing Timeline: Provide an estimated timeframe for each stage of the claim.
• Required Documentation: Let policyholders know what paperwork or evidence they need to submit.
• Potential Challenges: If certain claims may require additional verification or investigations, explain why.
• Communication Preferences: Ask clients how they’d like to receive updates—whether by email, phone, or an online portal.

Simple statements such as “You can expect to hear from us within three business days” or “We’ll need photos of the damage before moving forward” prevent policyholders from feeling left in the dark.

The Power of Plain Language

Insurance policies and claim documents are often filled with jargon that policyholders may not fully understand. Adjusters can bridge this gap by translating complex terms into simple, relatable language.

Compare these two explanations:

Technical: “Your claim is subject to the policy’s ACV endorsement, which means the settlement amount will be based on the depreciated value rather than replacement cost.”

Clearer Alternative: “Since your policy includes actual cash value coverage, we will calculate your payment based on what your item is worth today, taking normal wear and tear into account.”

By avoiding excessive legal or technical terminology and opting for conversational language, adjusters can ensure that policyholders fully understand their claims.

Consistency in Messaging

Miscommunication often arises when policyholders receive conflicting information. This can happen if multiple representatives handle a claim, or if verbal and written messages differ. To maintain consistency:

• Ensure that all claims team members have access to the same notes and records.
• Use standardized email templates for common responses, adjusting them for personalization.
• Summarize phone conversations in follow-up emails to reinforce key details.

Consistency prevents misunderstandings and reassures policyholders that they are receiving reliable information.

Transparency Throughout the Process

Policyholders appreciate honesty, even when the news isn’t favorable. Whether a claim is delayed due to missing documentation or a certain portion isn’t covered, explaining the reasoning behind decisions reduces frustration.

Ways to enhance transparency include:

• Providing status updates: Even if there’s no new information, letting the policyholder know their claim is still in progress prevents anxiety.
• Explaining denials: Instead of simply stating a claim is denied, offer a clear reason and reference the policy terms.
• Offering solutions: If a claim isn’t covered, suggest alternative resources or next steps the policyholder can take.

For example, instead of saying “Your claim was denied”, an adjuster could say:

“Unfortunately, your policy does not cover flood-related damage. However, I can guide you on filing an appeal if you believe there are additional factors to consider.”

Active Listening and Empathy

Claims adjusters deal with policyholders who may be stressed, frustrated, or even upset. Practicing active listening and demonstrating empathy can ease tensions and create a more positive experience.

Key techniques include:

• Letting policyholders speak without interruption: Give them time to express their concerns fully before responding.
• Repeating key points: A simple “So what I’m hearing is…” can confirm understanding and reassure the client.
• Expressing empathy: Phrases like “I understand how frustrating this must be” help policyholders feel heard and respected.

Even when a claim decision isn’t what the policyholder hoped for, the interaction can remain professional and constructive with the right approach.

Leveraging Technology for Better Communication

Digital tools make it easier than ever to keep policyholders informed. Adjusters can enhance communication by using:

• Online portals: Allow clients to track claim progress, upload documents, and review past communications.
• Automated notifications: Send updates via text or email at key claim milestones.
• Video explanations: Provide personalized video messages to clarify complex claim details.

These tools can improve response times and provide policyholders with convenient access to information.

Final Thoughts

Effective communication is one of the most valuable tools an adjuster has. By setting expectations early, using clear language, maintaining consistency, and practicing transparency, insurance professionals can build stronger relationships with policyholders while reducing disputes and delays.

Trust is earned through every interaction. When policyholders feel informed, respected, and supported throughout the claims process, they are far more likely to walk away with confidence in their insurer—no matter the outcome.