What could indicate a trend in poor claims handling for an insurer?

A rising number of complaints and disputes suggests a trend in poor claims handling for an insurer because it reflects the dissatisfaction of policyholders with how their claims are processed. When customers frequently express grievances regarding delays, denials, or inadequate support during the claims process, it indicates systemic issues within the insurer's operations. The volume of complaints serves as a direct signal to the insurer about its failure to meet customer expectations, leading to potential reputational damage and loss of trust among policyholders.

In contrast, increased client satisfaction scores would indicate that customers are happy with their claims experience. Lower operational costs may imply improved efficiency but do not directly correlate with the quality of claims handling. Similarly, high retention rates of policyholders suggest that customers are satisfied enough to continue their policies, which would not typically align with poor claims handling trends. Thus, a rise in complaints and disputes is a clear and concerning indicator of possible deficiencies in the insurer's claims process.