Confidence and Clarity in Resolutions: Claims Process Continues to Evolve

Confidence and Clarity in Resolutions: Claims Process Continues to Evolve
August 16, 2023 7 mins

Confidence and Clarity in Resolutions: Claims Process Continues to Evolve

Confidence and Clarity in Resolutions Claims Process Continues to Evolve Hero Banner

Latest claims study finds that the claims process overwhelmingly results in positive and appropriate resolutions for Aon clients.

Key Takeaways
  1. Use of representations and warranties (R&W) and warranty and indemnity (W&I) insurance has increased significantly over the years.
  2. Tax and financial statements are the most cited breaches across North America, EMEA and the Pacific. The average amount paid per claim in 2022 was higher than the average payment on claims settled in each of the previous two years.
  3. While complex claims from previous years are driving towards resolution, the claims process continues to evolve.

The use of representations and warranties (R&W) and warranty and indemnity (W&I) insurance has increased significantly over the years. This has led to an increased focus on claims activity and, as a result, further global collaboration around claims issues and resolution.

According to the latest edition of the Transaction Solutions Global Claims Study, 2022 was characterized by several large claims settlements, resulting in significant payments by insurers. In fact, the average amount paid per claim in 2022 was higher than the average payment on claims settled in each of the previous two years.

With new claims emerging and complex claims from prior years driving toward resolution, the claims process continues to evolve. Insurer expectations that clients comply with policy obligations, specifically around consent and cooperation provisions, have become a point of emphasis. There has also been continued refinement of diligence in relation to valuation models and damage calculations to validate alleged losses.

“While clients are successfully looking to the policies to protect their investment when they have suffered a loss, the claims process requires partnership by all stakeholders to create a smooth experience,” says Stephen Davidson, Aon’s head of claims in Transaction Solutions. “We continue to see the claims process overwhelmingly result in positive and appropriate resolutions for clients.”

Gain valuable insight and stay on top of claims trends with the latest Aon Transaction Solutions Global Claims Study. Download the full report: https://aon.io/2023_TS_Global_Study 

General Disclaimer

The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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$1.1b

Total losses recognized by R&W insurers through the end of 2022.

2023 Aon Transaction Solutions Global Claims Study

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