What does claims handling refer to in the insurance context?

Claims handling in the insurance context involves the systematic process of managing claims made by policyholders after an incident has occurred. This process includes several key activities: reporting the claim, which involves the policyholder formally notifying the insurer about the event; assessing the validity of the claim, which is the insurer's investigation of the facts surrounding the claim; and processing the claim, which includes determining the payout amount according to the policy terms and conditions.

Option C captures the essence of claims handling by encompassing all these critical stages, ensuring that policyholders' claims are evaluated fairly and efficiently according to the insurance policy. This function is vital for maintaining customer satisfaction and trust in the insurance provider, as it directly affects the policyholder's experience following a loss.

In contrast, predicting future claims pertains more to actuarial science and underwriting practices, while assessing risk prior to granting quotes deals with evaluating the potential hazards associated with a policyholder before coverage is effective. Negotiating premiums with clients is a part of the sales or underwriting process rather than the claims handling phase.