Claims bonuses

Claims are a good thing. The insurance industry exists to pay them and the typical claims philosophy will refer to the need for all 'valid claims' to be paid promptly. In most circumstances 'valid claims' will also be those that were allowed for by the actuary when pricing a product. However, it is essential that there is close liaison between the claims and actuarial disciplines at all times and particularly during the product development phase to ensure that opportunities for dispute are kept to a minimum. The problem for insurers comes not from expected claims but from unexpected clai...