Sending regular Claim Status letters (or emails) to the parties involved in a claim is a crucial step in your claims management strategy to promote transparency and build trust in the claim process.
A Claim Status letter serves as an excellent opportunity to maintain an ongoing conversation with all parties involved in the claim, allowing for a proactive and more predictable approach.
Regulators in the US, UK and Australia agree: timely status updates aren’t just nice-to-have, they’re required to provide a positive claim experience.
In the US, the National Association of Insurance Commissioners (NAIC), in the Unfair Claims Settlement Practices Act (#900) includes "failing to acknowledge communications" as an unfair claims practice. [1]
UK guidance backs this up: the FCA Handbook ICOBS 8 (Claims handling rules) states that providing appropriate information on the claim progress is part of the fair claims handling obligations. [2] And, the Association of British Insurers (ABI) in their guide to clear communication stress the importance of simple, clear, fair and multi-channel communication to build trust and help the customer experience. [3]
In Australia, the Australian Securities & Investments Commission (ASIC) has been calling on general insurers to improve their claims handling practices and "prioritise proactive and clear communication with their customers throughout the claim’s life cycle". [4]
Claimable provides tools to streamline and improve claims communication efforts. For example, it allows you to create unlimited letters and email templates automatically populated with information from within the claim. These along with other productivity features such as task reminders, help you reduce claim processing time and enhance the overall claim experience.
In this guide you’ll learn why status updates matter, the 9 essential components of a professional letter, and get a copy-paste template you can adapt today.
Benefits of sending regular claim status communication
Regularly sending status updates regarding a claim, dispute, or refund benefits all parties involved, more specifically:
1. Increase trust and reduce negative claim experiences
Claims can be a source of stress and negativity for most parties involved, regular touch points help customers feel reassured and mitigate the negative impacts.
2. Set claim timeline expectations and increase collaboration
To answer questions that could arise in the future and reduce confusion you should offer customers a clear overview of what the next steps are and what they could expect. Providing this information in advance also prepares everyone to collaborate effectively, such as ensuring that necessary documents are submitted in a timely manner.
3. Avoid misunderstandings
A clear review of the claim status helps keep everyone informed. Adhering to a consistent schedule, such as weekly or fortnightly updates, increases the likelihood that your emails will be read and the information will be retained.
4. Reduce complaints
An informed customer is more likely to be understanding of any hiccups or delays. If customers know they can reach out to you with any questions or concerns, they will be less inclined to file formal complaints.
9 Key Elements of a Claims Status Letter/Email
1. Claim details
Include reference numbers and claim information such as the incident date or the claim reference to identify the specific case and avoid confusion.
2. Readability
Write in short, clear paragraphs and use headings, when appropriate, to enhance readability.
3. Language
Use plain English with simple vocabulary. Explain industry terms when needed to avoid misunderstanding.
4. Claim status
Always explain the claim status clearly (e.g., approved, pending, denied, in review, etc.) trying to avoid jargon.
5. Important information
Drive attention to important dates and details by using bold text or colours.
6. Organisation
Group information in bullet points and use paragraphs with explanatory titles to break down the information and make it easier to digest.
7. Next steps
Outline the next steps and provide approximate timelines to keep the other party informed and manage expectations.
8. Contact information
Provide consistent contact details in every touch point to reassure your clients.
9. Tone
Maintain a professional yet empathetic tone throughout all communications to build a strong relationship.
Example of a Generic Claims Status Letter/Email
[Claimant Name]
[Address]
[Claim Ref.]
Dear [Claimant Name],
This email is regarding your [Claim Type] reported on [Reported date] for the incident.
Your Claim Status is under investigation
This means our team is working to gather all information and details to make an assessment about your claim.
Investigation process
The investigation process will include the following steps:
- vehicle inspection
- review of police report
- witness statement collection
- traffic cameras review
- report analysis
Required from you:
- Please provide contact details for witnesses
- Please provide any photo/videos taken on the scene
- Please ensure you have submitted your receipt
What happens next:
Your vehicle remains at [Address]
A rental vehicle will be provided by [Supplier Name]. Please keep an eye on your inbox for an email from [Supplier Email Address]
I will follow up with an update in 5 days and in the meantime I remain available to answer any questions you may have.
Kind regards,
[Claim Handler]
[Claim Handler Email Address] [Claim Handler Phone Number]
Example of a Workers' Comp. Claims Status Letter/Email
Date: [MM/DD/YYYY]
Claim Ref: [Claim Ref.]
Injured Worker: [Employee Name]
Date of Injury: [Incident Date]
Employer: [Employer Name]
Dear [Claimant Name],
We are pleased to confirm that your claim has been accepted. We will pay wage-replacement and medical bills while you recover from your [Incident Type / Injury].
Temporary wage-replacement $ [rate] per week
Next Payment Date: [MM/DD/YYYY]
What happens next:
- Doctor visit – Your next appointment with Dr. [Name] is [MM/DD].
- Progress review – We will review the doctor’s report and update you no later than [MM/DD] (about 30 days from today).
- Return-to-work – If the doctor clears you for light duty, we’ll work with your employer to find a suitable job.
What we need from you:
- Send travel expense forms for mileage to doctor visits
- Let us know if your contact details change
Your rights:
If you disagree with a payment or decision, you can file a dispute with the [State Workers’ Compensation Board] within [X] days. Instructions are enclosed.
Free help is available from the state ombudsman ([phone]) or the U.S. Dept. of Labor OWCP (1-866-692-7487).
Kind regards,
[Claim Handler]
[Claim Handler Email Address] [Claim Handler Phone Number]
Claimable offers tools to quickly generate branded claim status letters and create a library of email templates to enhance your claims communication process.
You can try it by yourself with a 14-day free trial, no credit card needed!
https://content.naic.org/sites/default/files/model-law-900.pdf ↩︎
https://www.abi.org.uk/globalassets/files/subject/public/consumer-group/fairer-finance-clearer-communication.pdf ↩︎
https://asic.gov.au/about-asic/news-centre/find-a-media-release/2023-releases/23-221mr-asic-review-finds-insurers-can-and-should-improve-claims-handling/ ↩︎