Although I’ve written about the current chaotic state of most insurance companies, I wonder just how seriously insureds accept that information and run with it.
Have you tried to contact a claims handler recently? Or, has your insurance company sent out a second request letter alleging it didn’t get your paperwork? Well, that’s just the beginning. Sending Express Mail overnight at roughly $35 a pop doesn’t work either since most insurers have separate addresses for that. (I found this out the hard way!) Phone menus are longer than ever and waiting 24 hours for a return phone call isn’t the solution when you need immediate answers, or a benefit released. So, what’s up with all this negligent behavior?
Most claims handlers are still working remotely at home. In reality, I doubt whether insurers will ever go back to the “campus” design, particularly when it is so much cheaper eliminating fixed costs of facilities.
Second, claims handlers leave, or are fired and replaced, on a frequent basis causing claims to be reassigned to newer, and unfamiliar specialists. For example, you may have just updated your file 2 months ago, but the new claims handler only looks at the top pages of your file and makes the request again. Insureds and claimants are always victimized when insurers play musical chairs with their staff.
Company communication centers are overburdened, backlogged, and short handed. As most of you know, all paperwork is sent to, and is received by a central administration area that scans and sends documents to the desktop of claims handlers. Pages often turn up missing, and entire files disappear from view. For example, Unum’s Communication Center is in Columbia, SC and I’m told it is a disorganized mess.
This isn’t getting any better folks, when you consider the insurance industry is paper and forms heavy anyway. Hundreds of thousands of pieces of paper are processed by these communication centers, and although it’s reasonable to say that some might get lost, far too many documents have disappeared into the Ozone.
I asked an attorney some time ago whether we needed to keep sending information when an insurer alleges it never received it. His reply was, “If the insurer tells you 100 times it never received the paperwork, send it again 100 times.” OK, so once again insureds become the victims of disorganization and chaos. In the past several months on average, I’ve had to send most paperwork 3 times. I always ask for an acknowledgement, but I may or may not get it.
I try very hard on this blog not to exaggerate situations, but I suspect if you’re managing your claim on your own, you may already know exactly what I’m talking about. It’s important to stay on top of things and continue to demand receipt confirmations, which claims handlers do not like to take the time to do.
The environment of claims administration has changed for the worse and it doesn’t look like it’s going to get better anytime soon. Chasing after paperwork shouldn’t happen in a good claims process.
