What Makes The Current Claims Environment So Challenging?
Monday, December 5th, 2022 PropertyA convergence of global factors will cause above-average levels of claims inflation for the foreseeable future.
Claims professionals who spoke with Canadian Underwriter said multiple market-dependent factors -- including prolonged COVID-19 lockdowns in China, political instability, labour and materials shortages, rising goods and fuel prices, and still-troubled supply chains -- have combined to create a challenging claims environment.
‘Hefty cost pressures are seen across all business lines…affecting both the consumer and claims specialists,’ Cortney Young, vice president of Contractor Connection, a division of Crawford & Co., told CU.
‘Consumers are feeling COVID fatigue and notably their patience is wearing thin. When a claim occurs, there is an expectation of a quick turnaround to be reinstated to their pre-loss conditions. However, with labour shortages, supply chain challenges and increased storm activity claims, the life cycle has increased.’
