What is the purpose of a claims file?

The primary purpose of a claims file is to meticulously document all correspondence and actions taken regarding a specific insurance claim. This includes records of communication between the insurer and the policyholder, notes on inspections and investigations, and details about the claims adjuster's evaluations and decisions. A well-maintained claims file ensures that there is a complete and accurate account of the claim process. This documentation is critical for resolving disputes, providing transparency, and facilitating fair decision-making. It serves as an essential reference for analyzing the claim outcome and can be useful for future claims or audits. In contrast, organizing legal documents, tracking policyholder information, and calculating future premiums pertain to different aspects of insurance operations and do not specifically capture the comprehensive nature of a claims file's role.