What is described as the "investigative process" in claims handling?

The investigative process in claims handling is accurately described as information-gathering to assess claim legitimacy. This phase is crucial because it involves systematically collecting relevant details about the claim, including evidence and documentation from all parties involved. Insurance companies rely on this information to determine whether a claim is valid, how much compensation is warranted, and if any fraudulent activity is suspected.

This process typically includes interviews with the claimant, gathering supporting documents, assessing physical damage (if applicable), and possibly consulting experts. The goal is to establish a clear understanding of the circumstances surrounding the claim and to ensure that the payout aligns with the terms of the insurance policy. This thorough investigation helps in maintaining fair practices within the insurance industry and protects both the insurer and the insured.