What is the process called when an insurance company assesses a claim?

The process of assessing a claim is referred to as adjusting. During this phase, the insurance company evaluates the details of the claim to determine its validity and the amount of compensation, if any, that the policyholder is entitled to receive. This involves a thorough review of the situation, which may include gathering evidence, interviewing witnesses, and consulting experts if needed.

Adjusters, who may be employed by the insurance company or operate independently, play a crucial role in this process. They are responsible for ensuring that the claim is handled fairly and according to the terms of the insurance policy. Their findings help the insurer make decisions on whether to approve the claim and how much to pay out, ensuring accurate billing practices and effective risk management for the company.

Other terms related to insurance might come into play, but they refer to different processes. For instance, claim investigation often refers to the preliminary steps taken to gather information about a claim, whereas risk assessment involves evaluating the risks associated with insuring a particular person or property, typically conducted before a policy is issued. Underwriting also pertains to the assessment of risk but focuses on determining coverage eligibility and pricing at the policy inception rather than assessing claims that arise after a loss event.