Innovation Group: Building Better Claims Experiences by Avoiding Common Mistakes

Effective claims management plays a critical role in maintaining customer trust, controlling indemnity spent, and meeting increasing regulatory expectations. While motor and property claims’ each present their own technical challenges, may of the issues that drive delays, complaints, leakage, and poor customer outcomes stem from the same avoidable mistakes.

In today’s market, insurers, MGAs, and claims partners are under growing pressure to deliver faster, more transparent, and more customer-focused claims experiences without compromising technical accuracy or operational control. Recognising common pitfalls early and embedding consistent processes across the claim’s lifecycle can significantly improve outcomes for both customers and insurers alike.

One of the most common causes of downstream inefficiency is incomplete or inaccurate information captured at First Notification of Loss (FNOL). Missing details around circumstances, timelines, parties involved, or the extent of damage can quickly lead to delays in validation, investigation, and decision making.

Whether the claim relates to a vehicle collision, escape of water, storm damage or liability event, poor information capture at the outset often results in repeated customer contact,  increased handling costs, and unnecessary friction.

Structured data capture, early validation, and clear guidance for policyholders help create a smoother journey from the very beginning. Getting the basics right at FNOL not only improves operational efficiency but also helps manage customer expectations during what is often a stressful situation.

Delays in acknowledging claims or providing updates can have a significant impact of customer satisfaction. Customers want reassurance that their claim is progressing, particularly where vehicles are unusable of properties remain vulnerable to ongoing damage.

A lack of communication frequently leads to frustration, escalation, and complaints, even where the eventual claim outcome is correct. Proactive engagement and transparent updates throughout the process help reduce uncertainty and build trust.

Clear service standards around response times and regular communication remain essential components of effective claims management.

Poor evidence management continues to create avoidable challenges across the market. Photographs, statements, repair reports, invoices, digital records, and expert opinions all play an important role in supporting liability, coverage and settlement decisions.

Where evidence is incomplete, inconsistent, or poorly documented claims become more difficult to defend and more vulnerable to dispute or rework.

Establishing clear evidence requirements early in the process, alongside robust storage and audit trail procedures, helps ensure claims remain defensible, compliant, and capable of withstanding scrutiny if challenged.

Inconsistent decision making around liability or policy coverage can expose insurers and MGAs to complaints, regulatory scrutiny, and reputational damage. With policy wordings often containing nuanced conditions, exclusions, and endorsements, consistency in interpretation is valid.

Consistency is particularly important in maintaining customer confidence and demonstrating robust governance in an increasingly regulated environment.

Claims handling frequently relies on a broad network of repairers, surveyors, engineers, loss adjusters, and other specialist suppliers. Weak oversight of these relationships can result in inflated costs, extended settlement times, inconsistent quality, and customer dissatisfaction.

Poorly scoped repairs or delays in supplier engagement are common causes of friction within both motor and property claims.

Strong supplier governance, clearly defined service expectations, and regular performance monitoring against cost, quality, and customer outcomes are essential to maintaining control and driving better overall performance.

Fraud risk remains a challenge across all areas of claims handling, ranging from exaggerated losses to entirely fabricated events. Failing to identify warning signs early can lead to significant leakage, while overly aggressive fraud strategies risk damaging relationships with genuine customers.

Effective fraud management requires proportionate controls supported by data analytics, training, and clear escalation pathways. The most successful approaches balance vigilance with fairness, ensuring legitimate customers continue to receive a positive claims experience.

For many policyholders, a claim represents their most significant interaction with an insurer or MGA. The experience customers receive during that process often shapes their overall perception of the brand.

Claims typically arise during stressful or disruptive circumstances, making empathy, clarity, and reassurance just as important as technical accuracy. A purely transactional approach can leave lasting negative impressions, even where claims are settled correctly.

Providing clear  explanations, timely updates, and considerate handling throughout the customer journey can significantly improve satisfaction, retention, and trust.

Although claim types may differ, many of the underlying operational challenges remain the same. By focusing on high quality FNOL processes, strong communication, robust evidence management, consistent decision making, effective supplier oversight, and customer-focused handling, insurers and MGAs can reduce friction, improve efficiency, and deliver stronger outcomes.

At Innovation Group, we believe effective claims management is about more than simply settling claims efficiently. It is about creating resilient, customer-focused processes that combine  technical expertise, operational control, and scalable technology to deliver fair, defensible, and positive customer experiences.

Avoiding common mistakes is not only key to improving efficiency and controlling costs, but also fundamental to building trust and delivering better  claims experiences in an increasingly complex market.

Find Out More: mgaa.co.uk/members/innovation-group