Avoiding The Pitfalls In Catastrophe Claims

Managing catastrophe reinsurance claims is a big challenge for carriers. In particular, dealing with the “hours clause” can be baffling. But taking the best strategy can make a big difference in how much reinsurance a carrier will collect.

As climate change accelerates and the weather becomes more violent, catastrophe reinsurance has become increasingly complex, making modern technology a necessity for carriers to get the most value from their premiums.

Ceded reinsurance has been one of the industry’s most technology-resistant areas, but that has begun to change over the last several years.

Tracking reinsurance claims in general is challenging; managing catastrophe claims is especially challenging.

One problem is claims leakage. This occurs when the insurer fails to file a claim with the reinsurer because no one at the company realizes that a claim should have been filed. That might seem unlikely, but it’s not an uncommon occurrence.