What does "claims handling" refer to in insurance?

"Claims handling" specifically refers to the process of assessing and resolving insurance claims. This encompasses the steps taken by the insurance company from the moment a claim is filed until it is either settled or denied. This includes investigating the claim, evaluating the details and validity of the claim, making decisions on coverage, and determining the compensation owed to the policyholder or third parties involved.

The process is critical in maintaining customer trust and ensuring that clients receive the benefits they are entitled to according to their policy. Proper claims handling is essential for the overall efficiency of an insurance company and impacts both customer satisfaction and financial performance.

The other options pertain to different aspects of the insurance business. Issuing new policies relates to underwriting and selling insurance, determining policy rates involves actuarial analysis and market research, and marketing of insurance products focuses on promoting insurance offerings to potential clients. Each of these functions serves a distinct purpose within the insurance industry, while claims handling is specifically aimed at addressing the aftermath of an insured loss.