Claim Manager(s) work in insurance-based firms and are responsible for the logging, maintenance, processing of claims. They deal with customers at the front end and manage the progress and updates on any claims filed. Let’s look at their day to day role and responsibilities.
Claims Management refers to dealing with issues related to customers or third parties wherein they bring forward a claim against your place of employ, or a service your company represents. It involves dealing with customers, investigations, litigation support, and settlements.
Claims Management is one of the most important functions in an insurance company, which goes far beyond mere claims settlement. The importance of claims management comes from several sources:
- Relationship with the customer through claims processing, claims services and compensation services
- Damage control – The fact that damage is by far the largest cost issue in a composite insurance company
- And finally, because the information and data from the claims form the basis for future product development and pricing.
The term “claims management” is sometimes also used to refer to an organizational unit in an insurance company that defines the procedures and processes of the claims departments. It also pertains to the synchronization of IT support as well as further development of claims services.
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A claims manager often deals with several different tasks and jobs related to their position. In general, a claims manager is responsible for the maintenance of claim files, reviewing these files, ensuring appropriate payments have been made.
They work with customers to follow up on any issues they may face in relation to insurance claims. They then direct relevant issues to the appropriate departments so as to reach a quick resolution. In the case of litigation regarding the insurance claims, it is the claims manager’s responsibility to discuss the matter with legal counsel and aid them in pursuing the litigation.
Responsibilities of a Claims Manager:
- Recording of the report of the claim (by phone, online, via email or by post)
- Checking coverage: is the damage insured and up to what amount?
- Requesting notices, such as an accident log, medical diagnoses in the event of accidents, bills, etc.
- If there were other parties involved: Determine who is liable for the damage.
- Determine the amount of the damage and, if necessary, involve an expert.
- Organize the removal or repatriation if the damage was suffered abroad.
- Payment of the damage amount to the insured.
- If another party caused the damage: claim the damage against the other party.
- Reporting to the customer, including management information.
- Control for insurance fraud.
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What skills does a Claims Manager require?
A claims manager has both a front-facing and internal role. They work with customers as well as with internal departments in the facilitation of claims. As such they must have both hard as well as soft skills to successfully manage the role. These include:
- Risk Management, brokerage, or claim administrator experience
- Ability to design, manage and implement claim strategies
- Familiar with carriers, brokers and large deductible programs and claim reserving
- Knowledge of general claim related accounting and financing.
- Positive front-facing customer skills
- Excellent verbal and written communication skills.
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Background and Requirements
Claims Managers generally have a Bachelor’s degree in Business Administration, Management, Finance, or IT. There is no specific specialization to become a Claims Manager and the role sees applicants from a wide variety of academic backgrounds.
In order to boost your resume and appeal to clients, you might consider commonly sought after certifications such as:
- Associate in Risk Management Certification
- Chartered Property Casualty Underwriter Certification
- Or other claims management related courses
Your starting salary is influenced by several factors such as industry type, your employer, and your level of responsibility. Your degree and education also have a significant impact on the amount of remuneration.
The starting salary for a Claims Manager is around $70,000 per year. The average salary is about $105,000 and the top salary can reach up to $130,000 per year
How much does a Claims Manager earn?
How much does a freelance Claims Manager charge?
The average freelancer hourly rate is $98. Extrapolated to an 8-hour day, the daily rate is around $784 (freelancermap price index – as of March 2020).