Claims & Collections Impacts

April 15, 2020

Over the past few weeks, claims volume in the United States has doubled and in Canada, we’ve seen a 25% increase. The vast majority of filed claims are due to protracted default situations. As a result, we have reallocated resources within the organization to ensure the Claims team can process claims as quickly as possible.

In addition to the increase in submitted claims volume since the start of the crisis, the collections world has seen challenges as well—with non-essential businesses temporarily shut down across most of the United States and Canada. Additionally, starting March 20, 2020, the state of Nevada has suspended all collections activities against debtors through May 15, 2020.

The United States legal system has slowed down significantly, with many Federal courts hearing only urgent cases, suspending jury trials, and prioritizing emergency cases such as those involving custody cases, restraining orders and violent crimes. State and municipal courts have nearly ground to a halt, with some limited exceptions. In Canada, most provinces are also facing a slowed legal system. These sudden changes may impact the speed at which disputed claims are ultimately resolved.

If you need help filing a claim, check out our Claim Filing Guide, review our Step-by-Step Guide or watch the online tutorial. Keep in mind we are now offering some flexibility with policy deadlines on exposures up to $500,000 through May 31, 2020, including an extra 30 days to submit a Protracted Default claim. Check out the update from Commercial Underwriting for full details.

We will keep you updated on the trends we’re seeing as the crisis continues to develop.

 

Mike Wilson
Regional Head of Claims and Collections

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