If you were to ask a risk manager the reason they purchase insurance, the vast majority would say for protection, peace of mind and or claims handling. Thus insurance offers a service for its customers. That service is to handle and pay covered claims to which the insured becomes exposed, thereby reducing the financial liability for the insured.

In many insurance companies the claims department is not given its just recognition. The claims department is not normally viewed as a profit center, and therefore is tolerated as a necessary though unwanted expense.

Financial requests from claim department management are reduced, and the claims department is, in most cases, understaffed, with poorly paid adjusters.

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