It’s CAT season. How insurance companies are also heroes behind the scenes of a natural disaster.

Natural disaster season, also known to the Insurance industry as the ‘CAT’ season, is here. A catastrophic event in the insurance industry is typically a natural or man-made disaster that is unusually severe. Defined by a predefined cost, a certain number of policyholders and the number of insurers affected by one event. The Insurance Council of Australia will deem an event to be a catastrophe in Australia.

A natural disaster also demands the attention and action of our Insurance companies to provide rapid response, support and action to support their members to safety and security in extraordinary circumstances. Their customers and members are often distressed, and it is the kind, caring, considerate and compassionate voices at the end of the line who offer that clarity and support when they most need it. A true hero in every sense of the word.

Motor claims management solutions, such as Arnie, are designed to redirect systems and processes to spread the load in times of need. Insurers are then able to expedite processes such as organising an assessment, by proactively having their repairers contact the customer to arrange an inspection. This opens the insurer to continue to manage incoming inquiries and claims lodgements without delaying the claims handling process for other customers. 

It is well and good to be able to predict claims, but there is still a need for us to react, such as natural disasters. By demonstrating empathy, care and compassion – alongside simple, smart software solutions – the general industry plays a pivotal role in the recovery of communities after a natural disaster or catastrophe.

It’s important to know that an event defined as a CAT event isn’t just the duration of the actual event. Insurance customers have up to six years to lodge a personal damages claim under their policy and still dispute the claim in court. Since 2020’s Halloween Hailstorm in Queensland 2020, 1.08 billion dollars worth of claims have been incurred in 12 months, made up of 44,000 claims. Insurers had received around 26,000 claims by the end of the first week from the day of the storm – that is less than 60% of the total number of claims lodged. Customers still have 5 years to lodge their claim as a result of 2020’s Halloween Hailstorm. 

Critically thinking about your CAT processes, both from the people and systems perspective can truly prepare you for not only the disaster but many years to come following the disaster.

You can read more about how Arnie claims management software can automate processes while maintaining quality control on our website www.arniesoftware.com.au.

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