How do insurers investigate claims?

Claims investigation is the process by which insurers test the validity, cause and value of a loss before paying.

It is a legitimate and expected part of indemnity, but it is also the stage at which a claim can stall, narrow or fail, depending on how well the insured has documented and presented its position.

Investigations may involve loss adjusters, forensic accountants, experts and detailed information requests, and an unprepared organisation can find the burden of proof heavier than anticipated. For a board, the risk is that a recoverable loss is undermined by weak evidence or mishandled cooperation.

This report explains how insurers investigate claims in your chosen jurisdiction and industry, and the good-faith and cooperation duties that run in both directions.

It covers the indicators that an investigation is turning adversarial, the impact of poor preparation on recovery, and when to engage loss adjusters, forensic specialists and coverage counsel so the organisation meets the insurer's scrutiny on equal terms.