Claims processing is the procedure through which an organization, such as an insurance company, evaluates and settles claims made by policyholders. This process involves reviewing the submitted documentation, verifying the details, and determining the validity of the claim based on the terms of the policy. Once a claim is approved, the organization will issue payment or provide the necessary services to the claimant. Efficient claims processing is crucial for maintaining customer satisfaction and ensuring that claims are handled fairly and promptly, which helps build trust between the organization and its clients.