The basic relevance of any form of insurance is that it helps its clients financially in the hour of need or they compensate for an expense or loss. The whole business of the insurance industry run on a mechanism where the customers invest money periodically under the condition they will be paid as per their insurance plan when in need or when finally the term of the insurance agreement expires. The meaning underlying the common man usage of "when in need" is analogous "eligible to claim" in the professional insurance claim management terminology. The affirmation of a customer that he is eligible to get the insurance coverage amount as per the terms of the policy he has availed is referred to as an "insurance claim". Once a claim is raised by a customer, it is the duty of the insurance company to verify if the claim is genuine and release the insurance coverage amount if the customer is eligible. This whole procedure of checking the genuineness of the insurance claim and verifying the claimer's eligibility is called as insurance claim processing.

Insurance claim processing has a lot of general steps as its accepted procedure. Once an insurance claim is raised it is assigned to an adjuster. Studying the insurance claim in detail, the adjuster reviews all the claim contacts and takes the necessary statements from the witnesses involved. As a part of the review police reports are also requested in order to ensure the credibility of the insurance claim process. Once the statements of the witnesses and the police reports are collected the next step in checking if any liabilities exist. The key step of determining the degree of damage follows the step of liability check. This is done either by the adjuster himself or by a hired appraiser. The process of determining damages involves requesting estimates and writing estimates. Once this estimation is complete the adjuster issues payments to compensate the damages. This also includes the payment of rentals if necessary. In the case of insurance claims related to injuries a request for medical authorizations and bills are made and once finalized the settlement is made after negotiation.

Insurance claim management being one among the key procedures and one of the most time consuming insurance processes, is being outsourced in large margins by insurance companies so that their overall functioning gets more streamlined. Outsourcing insurance claim processing helps the insurance company to make sure that each and every claim is thoroughly reviewed and that there are no mistakes in the acknowledgment or rejection of those insurance claims.