Claims handling has traditionally been viewed as a technical discipline grounded in policy interpretation, regulatory compliance, and investigation. Claims professionals must evaluate coverage; manage documentation; coordinate with experts, attorneys, and insureds; and assess liability and damages. Beyond these technical responsibilities lies an equally important dimension of the profession: the human element.
Claims professionals routinely interact with individuals and organizations experiencing financial loss, uncertainty, and heightened emotional stress. In these circumstances, the ability to manage interpersonal dynamics can significantly influence the course of a claim. As a result, emotional intelligence has emerged as a valuable competency in modern claims handling.
Emotional intelligence refers to the ability to recognize, understand, and manage emotions in oneself and others involved in the claims process. When applied to claims handling, emotional intelligence helps professionals navigate difficult conversations, maintain professionalism under pressure, and build productive relationships with claimants, policyholders, attorneys, and other stakeholders. For claims professionals, risk managers, and defense counsel, developing emotional intelligence can contribute to improved claim outcomes, reduced disputes, and more efficient resolution processes.
The Human Dimension of Claims Handling
Claims often arise during challenging and stressful moments. A homeowner may be coping with property damage following a natural disaster. A business owner may face reputational disruption after a liability claim. An injured claimant may be navigating physical recovery and financial uncertainty after a serious motor vehicle accident.
In these situations, the claims professional frequently becomes one of the primary representatives of the insurance process. While the adjuster’s role is to objectively investigate and evaluate the claim, claimants often view the adjuster as the person responsible for guiding them through a difficult situation.
Due to this dynamic, interactions between claims professionals and claimants are rarely purely transactional. Emotions such as frustration, anxiety, anger, or confusion may influence communication. Without careful management, these emotions can escalate misunderstandings, create distrust, and potentially lead to disputes or litigation. Emotional intelligence can assist claims professionals to manage these interactions constructively, allowing them to maintain fairness and objectivity while also demonstrating professionalism and empathy.
Core Components of Emotional Intelligence in Claims
Emotional intelligence in claims handling can be understood through five key competencies: self-awareness, self-regulation, empathy, motivation, and social skills.
Self-awareness. Self-awareness involves recognizing one’s own emotional responses, assumptions, and communication patterns, while also being mindful of the emotions and potential triggers of others involved in the claim, including claimants, policyholders, and defense counsel. One helpful technique for strengthening self-awareness is identifying and labeling your own emotions, which can make it easier to recognize and manage them effectively.
Scenario: An adjuster handling a complex commercial liability claim becomes frustrated after multiple document requests to the insured go unanswered. During a phone call, the adjuster realizes her tone is becoming impatient. Recognizing this reaction, the adjuster pauses and reframes the conversation by calmly explaining why the documentation is necessary to evaluate coverage. By acknowledging the insured’s workload and offering a reasonable timeline, the adjuster maintains a productive working relationship while still obtaining the required information. Self-awareness helps professionals recognize emotional reactions before they negatively affect communication or decision-making.
Self-regulation. Self-regulation is the ability to manage one’s own emotional responses in challenging situations while also responding appropriately to and helping deescalate the emotions of others involved in a claim. To strengthen self-regulation, individuals can use simple grounding techniques, such as taking a deep breath or pausing to take a sip of water before responding. When time allows, activities that help reduce stress, such as exercise, a short workout, or attending a yoga class, can also support emotional balance and improve one’s ability to remain composed during difficult interactions.
Scenario: A claimant who was involved in bar fight and sustained severe injuries, including a skull fracture and facial scarring, becomes upset during a phone call after learning about the bar’s insurance policy, which includes an assault-and-battery policy sublimit in the amount of $25,000. The claimant raises his voice and accuses the insurer of acting unfairly. Rather than responding defensively, the adjuster remains calm and allows the claimant to fully express his concerns. After the claimant finishes speaking, the adjuster explains the relevant policy language and outlines possible next steps. By maintaining composure, the adjuster prevents the conversation from escalating and keeps the discussion focused on resolving the claim.
Empathy. Empathy involves recognizing and acknowledging the emotional impact that a loss can have on an individual. It is also important for claims professionals to acknowledge and, when appropriate, gently label the emotions expressed by others, as this can help individuals feel heard and understood. While empathy does not change coverage determinations, it can greatly improve a claimant’s experience and her willingness to engage cooperatively in the claims process. In certain circumstances, such as wrongful death claims, expressing condolences or offering an appropriate apology may also be fitting. Demonstrating empathy allows claims professionals to acknowledge the claimant’s feelings while maintaining professionalism and objectivity throughout the claims process.
Motivation. Motivation reflects a professional’s commitment to resolving claims fairly and efficiently. The adjuster’s proactive approach helps prevent delays and ensures that the claim progresses toward resolution. Motivation supports persistence and professionalism, even in demanding or long-duration claims.
Social Skills. Social skills enable claims professionals to build rapport and work effectively with a variety of stakeholders involved in a claim. At times, establishing small points of common ground, such as sharing an interest in the same sports team or having attended the same school, can help create a more comfortable and cooperative dialogue with an insured or claimant. Strong social skills ultimately allow claims professionals to encourage collaboration and maintain productive professional relationships, even within complex claims environments.
The Impact of Emotional Intelligence on Claims Outcomes
Emotional intelligence is often described as a “soft skill,” but its practical impact on claims operations can be significant. For example:
Reduced escalations and litigation. Many claim disputes arise not solely from coverage issues but from communication breakdowns. Claimants who feel ignored or disrespected may become more likely to involve attorneys or file Department of Insurance complaints. Emotionally intelligent communication can help prevent misunderstandings and reduce the likelihood of disputes escalating into litigation.
Improved cooperation. Claimants who feel respected are more likely to provide documentation and participate constructively in the claims process. This cooperation assists claims professionals complete investigations more efficiently.
Enhanced customer experience. Even when claim outcomes are unfavorable, claimants who believe they were treated fairly are often more willing to accept the decision, may be more open to a lower settlement, and are more likely to maintain confidence in the claims process.
Stronger organizational reputation. Professional and respectful claims handling can contribute to stronger relationships with policyholders and stakeholders while reinforcing an organization’s reputation for fairness.
Emotional Intelligence in an Evolving Claims Environment
The insurance industry continues to adopt technological advancements such as automation, artificial intelligence, and digital claims platforms. These tools improve efficiency and streamline many aspects of the claims process. However, technology cannot replace the human judgment and interpersonal skills required to manage complex or emotionally sensitive situations. Emotional intelligence complements technological innovation by ensuring that interactions with claimants, insureds, and legal partners remain thoughtful, professional, and solution-oriented.
Claims handling involves more than evaluating damages or interpreting policy language. It also requires guiding individuals and organizations through moments of loss while maintaining fairness, professionalism, and compliance with policy terms. Emotional intelligence provides claims professionals with the skills necessary to manage these interactions effectively. Through self-awareness, self-regulation, empathy, motivation, and strong social skills, claims professionals can reduce conflict, strengthen collaboration, and support efficient claim resolution.
For the claims community, integrating emotional intelligence into everyday claims practice offers a valuable opportunity to improve both operational outcomes and the claimant experience. As the industry continues to evolve, the ability to combine technical expertise with emotional intelligence will remain a defining characteristic of effective claims professionals.
About the Author:
Alexandra Santo is an assistant vice president, professional liability claims at Golden Bear Insurance Company. alexandra.santo@goldenbear.com