What is the primary goal of claims management?

The primary goal of claims management is to maintain customer satisfaction and control costs. Effective claims management directly impacts the policyholder's experience during what can often be a difficult time due to loss or damage. Satisfying customers ensures their continued loyalty and can lead to positive referrals, which are beneficial for any insurance business.

Simultaneously, managing costs while handling claims is crucial for the overall financial health of an insurance company. If claims are paid out quickly and accurately, and processes are efficient, the insurer can control the expenses associated with claims, ultimately protecting their profit margins.

Other options, while relevant to the broader context of an insurance company’s operations, do not align as closely with the specific focus of claims management. Increasing policyholder investments pertains more to investment strategy rather than claims handling. Strengthening marketing strategies focuses on customer acquisition and brand perception rather than the claims process. Minimizing underwriting procedures addresses a different aspect of insurance operations, which is about risk assessment before coverage is provided rather than after a claim has occurred.