What does "claims adjustment" encompass?

The concept of "claims adjustment" primarily involves the evaluation and settlement of an insurance claim. This process is critical in the insurance industry, as it ensures that claims are assessed fairly and promptly. Claims adjusters investigate the details of a claim to determine the extent of the insurer's liability. They review evidence, such as policy details, incident reports, and damages, to arrive at a fair settlement amount. This function is essential for providing financial support to policyholders after losses and maintaining the integrity of the insurance process.

While reviewing policy applications, determining policy coverage limits, and negotiating premiums might be related to different aspects of insurance operations, they do not directly pertain to the claims adjustment process. Claims adjustment specifically focuses on resolving reported losses and meeting the contractual obligations established in the insurance policy.