What does Loss Settlement involve?

Loss Settlement specifically pertains to the process of determining the payout amount for a covered loss as defined in an insurance policy. This involves assessing the extent of the damage or loss—a critical step in the claims process—so that the insurer can calculate the compensation due to the policyholder. The goal of loss settlement is to ensure that policyholders receive fair and just compensation based on the terms of their insurance coverage.

While evaluating provider networks for injured parties, negotiating terms with policyholders, and claims processing and administration are important aspects of the overall insurance claims process, they do not directly relate to the specific function of loss settlement. Instead, loss settlement focuses solely on the financial resolution of losses sustained by the insured.