Do insurers invest in Claims Management?

Do you ever have moments of absolute clarity when looking out of a train window? Well I do and it struck me that despite all the advertising, articles, tweets and posts that in reality CLAIMS are the only “product” an insurance organisation has.  Everything that the insurance company is, its brand, its reputation and of course profitability all rely heavily on the accuracy of the claims process, the claims decision, and of course the customer’s experience.

Therefore, why do insurers insist on underfunding claims areas, making them the Cinderella of the industry?  Isn’t it time to invest to make sure the “product” is customer friendly, which in turn would more effectively manage their risk and in turn, improve profitability – seems like common sense to me.

What do you think?