What is the primary purpose of a claims investigation?

The primary purpose of a claims investigation is to determine the validity and value of a claim. During this process, adjusters gather and analyze evidence, such as documentation, witness statements, and expert opinions, to assess whether the claim is legitimate and how much compensation may be warranted based on the findings.

This thorough examination helps to ensure that claims are settled fairly and accurately, protecting the insurer from fraudulent claims while also ensuring that legitimate claims receive the appropriate level of support. Establishing the validity of the claim is crucial, as it influences the insurer's decision on whether to approve or deny the claim, as well as the amount that may be paid out if the claim is approved.

While other aspects like processing speed, customer service, and settlement amounts are important in the broader context of claims handling, they do not overshadow the fundamental need to first validate the claim and ascertain its value, which is at the core of the investigation process.