I really don’t know how seriously most readers take my articles, but just today I received several email messages describing Unum’s (and other insurers’) inability to provide efficient and accurate claims management. One insured reported receiving letters containing information that doesn’t even relate to him, including having an attorney, which he doesn’t.
Folks, I try very hard not to exaggerate situations on Lindanee’s Blog, but what I DO SAY is on point, and you can usually take the information to the bank. Insurance companies are not capable of managing claims with any kind of expertise or accuracy. They are in a chaotic mess, due I’m sure to tremendous backlogs of claims.
As far as I am aware, claims handlers are still working remotely from home with limited resources and/or supervision. Reports to me include receiving late letters, discussing issues that do not relate to you, not returning calls, allegations of not receiving important paperwork, well….you get the picture.
These are not overstatements about the chaotic mess most insurers find themselves in. It’s been several years now that I’ve noticed claims handlers do NOT read your entire file, but only scan the top 10 pages or so. Whatever happened before 10 pages is generally unknown to the person actually managing the claim. Ten pages is a nothing history when it comes to a disability claim.
Insureds who contact me want to know what to do about these miscellaneous, inaccurate letters. And, the answer is to file a formal letter to be submitted to your claim file stating, “I don’t know what you’re talking about.” It’s OK to say that. I’ve often responded on behalf of my clients, “This letter reads as though it is written for another insured and does not pertain to my client.”
The answer is to call out inefficient insurers and claims handlers every time they make a mistake. Insurance companies are required by the laws in their states to have processes in place that are capable of providing accurate reviews of claims. I doubt that’s true now. It’s as though COVID destroyed any semblance of good claims management internally.
So, when you read here about the kind of bungling you may be facing with your claim, please take it seriously. Insurance companies just aren’t what they used to be in terms of internal claims management. They are all actually pretty awful. Enough said.
