Why is establishing a timeline for claims processing important?

Establishing a timeline for claims processing is crucial because it sets clear expectations for both the insurer and the policyholder regarding the claims handling journey. A defined timeline helps all parties understand when they can expect updates on the status of the claim, when decisions will be made, and when settlements may occur. This transparency fosters trust and satisfaction, as policyholders are informed and can plan accordingly, while adjusters can manage their workload more effectively and maintain a balanced workflow. Timely resolution leads to efficient claims handling, ultimately benefiting both the insurance company and the policyholders.