Claims Management Risks and Problems

Keyword(s):  
2021 ◽  
Vol 13 (7) ◽  
pp. 3710
Author(s):  
Nijolė Batarlienė ◽  
Maksimas Meleniakas

A claim can be understood as a negative result of the performance of a contract, as it is necessary to fulfill the obligation and/or indemnify (freight damage claim, for example). Today’s claims management faces a variety of problems, such as inefficient claims postings, possible data forgery, and a very lengthy claims resolution process. All these problems can be solved by using a synthesis of innovative tools, e.g., a blockchain system, game theory, and statistical methods. Theoretical possibilities and practical examples regarding solving claims management problems were identified by analyzing various scientific sources. However, it remained unclear whether these methods could interact with each other, complicate the existing claims settlement process or not, or whether a synthesis of such measures would be viable. Therefore, a qualitative study was conducted and answers to the above questions were found. The research revealed that 75% of international Lithuanian logistics companies can apply the synthesis of these methods in claims management and solutions. Using the concordance coefficient formula, the value of W was calculated. This coefficient indicated that the opinions of the experts who participated in the study were somewhat similar. The value of the actual χ2 distribution was also calculated. The result obtained shows that the experts’ opinions were somewhat harmonized and that their compatibility was not accidental. The use of blockchain system synthesis in combination with game theory and statistical methods could help international logistics companies to reduce their costs, speed up the management process, and increase data security and reliability while ensuring structured one-stop claims management.


2019 ◽  
Vol 13 (1) ◽  
pp. 218-228
Author(s):  
Dinh Tuan Hai

Background: Claims have increasingly become inevitable in construction projects. A great amount of money, time, and merit of claims are the most critical factors that prudent companies should not overlook. Objective: The objective of the study is to survey claim practices in the Vietnamese construction industry by collecting data from both contractors and consultants. Material and Methods: This paper presents findings that the lack of awareness of the on-site people is the major problem of claims management. Moreover, the inadequacy of supporting evidence, originating from the unawareness of personnel as well as improper documentation system, is also a serious problem causing the loss of chances to recover incurred damages. Conclusion: To overcome these problems, it is recommended that the management should pay more attention to these aspects in order to have effective claim management, by which unnecessary losses could substantially be reduced and deserving compensation would be recovered.


2017 ◽  
Vol 13 (13) ◽  
pp. 358
Author(s):  
Caren B. Angima ◽  
Mirie Mwangi

The insurance sector plays an important role in service economy of any country by underwriting of risks inherent in most sectors thus providing a sense of peace to most economic entities. Performance of general insurance companies is expected to be related to various factors, including optimal underwriting and prompt and efficient claims management functions. This study investigated the effect of underwriting and claims management practices on the performance of general insurance firms in East Africa. The study employed multiple linear regression analysis using primary and secondary data collected from 82 general insurers in Kenya, Uganda and Tanzania. The findings show that there is a significant positive relationship between underwriting and claims management practices employed by the firms and non-financial performance, but the relationship with financial performance was insignificant. The implication is that a profit oriented insurance firm should embrace a claims function that is closely related with the underwriting and pricing of the firm’s portfolio for meaningful results. It is recommended that general insurance companies focus on other important factors besides underwriting and claims management order to improve overall financial performance.


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