Claims management is the process of handling insurance claims from the initial report to the final resolution. It involves assessing the validity of claims, gathering necessary documentation, and determining the appropriate compensation. This process ensures that claims are processed efficiently and fairly, benefiting both the claimant and the insurance company. Effective claims management also includes communication with all parties involved, such as policyholders, insurance adjusters, and legal representatives. By streamlining this process, companies can reduce costs, improve customer satisfaction, and maintain compliance with industry regulations. Overall, it plays a crucial role in the insurance sector.