Direct intervention of a Financial Lines specialist and close connection to the beneficiaries improves the communication and avoids errors. As is generally known, the number of errors increases as the line of communication elongates. Placement, administration, and claims handling of Financial Lines on a corporate level works like this for example:
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In practice you will find simpler cases or others even more complicated in structure. Just think about the involvement of several insurers, a cross-claim, recoveries or the like. In a claim’s scenario in-house counsel or external lawyers may be involved additionally. In this process, in-house brokers can become involved in substantial risk and conflicts of interests, particularly in insured versus insured claims.
As a consequence the number of brokers’ liability claims increases. In this context, neither an individual person for instance or the insurance product id the major cause for errors. It is in fact the organization of communication. A duly assigned broker avoids mistakes and misunderstandings. Intervention of external advisors traditionally serves to improve the internal operational workflow of decision making in cases, which internal reporting lines originally did not provide for.