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4 Things Insurers Must Expect from the Recent U.S. Travel Interruptions

by Kyle Darling and Mark Funk 

Considering the recent flight delays, cancellations, and travel interruptions due to the Southwest Airlines meltdown and Notice to Air Missions (NOTAM) system outage, the insurance industry is expecting an increase in travel insurance-related claims.  The ripple effect of the FAA outage resulted in more than 10,000 flight delays and over 2,000 flight cancellations. Travelers with their trips interrupted are likely to seek reimbursement for the delays, missed connections, and baggage, medical, and travel costs.

What Should Insurers Expect?

Here are the four things insurers must expect from the recent nationwide travel delays:

  1. Prepare for the High Claims Demand
    National flight delays at the scale that we’ve seen in the past two weeks are unprecedented.  As the effects of the delays are realized and customers assess their losses, insurers must expect and prepare for a high influx of claims to be filed.  
  1. Timely Handling of the High Claims Influx
    With some policies have filing requirements of 72 hours or less after the loss, many claims are likely to be filed in the final hours of coverage. This can create a bottleneck in ensuring timely claims handling for the customers. 
  1. Staffing, Scripting, and Technology
    Having flexible staffing and scripting to handle a surge in claims is critical. Insurers must consider if they have the staffing and technology assistance to accommodate the high demand and process calls, claims, and payments to the customers.
  1. Save the Day for the Customers
    Proactive claims response and prompt payments of covered losses can’t replace missed family trips or anticipated vacations. However, it can create a lasting bond and show loyalty toward customers, resulting in future policy growth.  

Helping customers who have missed a family cruise they have been planning for a year navigate the claims process can be very challenging. However, insurers can deliver a better customer experience in such situations and process their claims in a timely fashion. Fortunately, the Xceedance Claims TPA has the adjusting staff to help guide your customers with their travel interruption losses. From the first notice of the loss to processing the payment, Xceedance has a flexible and experienced staff to help insurers deliver on their promises and achieve customer success. 

Kyle Darling is director, U.S. property claims and Mark Funk is AVP – quality assurance/subrogation for the Xceedance claims team

 

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