Claims broking in an evolving landscape

Liam Costello, Senior Claims Manager at Gallagher, strongly believes in creating pathways for aspiring brokers, recognising the importance of supporting new talent even if they lack direct experience.

“Sometimes the right person isn’t the most experienced, but rather, it's someone who is passionate, eager to learn, and committed to doing the right thing,” he says.

“Sometimes, you just have to give somebody an opportunity to show you what they’re capable of."

Speaking from experience

Costello speaks from experience, having been given this opportunity when he first entered the industry.

“My journey into insurance began unexpectedly on a horrifically cold winter evening,” he recounts. “I was working in door-to-door sales when I knocked on the door of a lady who happened to be recruiting for one of Ireland’s largest insurers at the time.

"Ironically, I found myself on the receiving end of a pitch that evening. It didn’t take much convincing — the comfort of an office job, a 9-to-5, and an environment free from the constant threat of neighbourhood dogs was enough to persuade me to change careers.

Shortly thereafter, Costello began his journey in claims. Initially, he wasn’t very passionate.

“My interests at the time revolved around sports, dogs, and traditional Irish gatherings at the local watering hole," he shares. "However, at the age of 25, I felt compelled to truly start my career, which led to a fresh start in Australia."

Soon after arriving in Sydney, Costello secured a role as a claims consultant at Marsh. While acting on behalf of the insured was a significant adjustment, he loved everything about the job and knew he's found his niche.

Leadership potential

Marsh recognised Costello’s leadership potential and sponsored his stay in Australia. Costello quickly moved into a team lead position within the TPA division. Later, he took on other leadership opportunities under the Marsh banner.

“One of the highlights of my career was leading a hybrid strategic initiative that combined cyber security and claims management capabilities, which was successfully rolled out across Asia Pacific,” he says.

He then joined PSC Insurance Brokers as their Head of Claims, building a strong claims function. Just over a year later, he was offered the opportunity to work alongside industry-recognised leaders at Gallagher.

“That was too compelling to pass up,” he says. “Joining Gallagher has been the best decision of my career thus far.” he says.

Having "inherited an exceptionally strong team", Costello continued to build and strengthen the organisation's claims proposition over the past three years.

"I’m confident we have the strongest group of claims leaders and advocates representing our clients in the industry.”

Costello says Gallagher's team claims philosophy is simple yet effective: "be there when our clients need us and always ‘do the right thing".

“The most exciting and challenging aspect of my role is the same — the impact we can have on people’s lives,” Costello says.

“As leaders, we hold a position of influence where our decisions directly affect others, and I take this responsibility very seriously.”

Evolving role of claims broker

The role of the claims broker has undergone significant change since Costello first joined the industry.

Once seen primarily as a facilitator between insurer and client, the claims broker is now a strategic advocate — helping clients navigate increasingly technical, high-stakes claims processes, particularly in the face of mounting natural catastrophe events, regulatory pressures, and tightening policy wordings.

Costello says today's claims brokers are expected to possess technical expertise across multiple policy wordings, and to interpret complex coverage issues, influence decisions, identify exposures and manage risk.

“While responding to claims is inherently reactionary, proactive measures are now essential to delivering on our claims promise to clients,” he explains.

These measures include collaborating with insurer partners to develop claims protocols and agreeing on specific suppliers (such as loss adjusters and defence counsel) being engaged on claims.

Strategic claims advocacy has become a cornerstone of the role. Increased complexity, volume and scrutiny are reshaping the role of brokers.

“The claims broker role has transformed from being a ‘post-box’ service to a blend of strategist, risk manager, and advocate,” Costello says.

Multi-stakeholder claims require brokers to act as orchestrators, adding project management pressures.

During crisis periods, brokers must manage thousands of clients, with each expecting their matter to be prioritised. The shift from administrative tasks to strategic advisory work demands the automation of routine processes to focus on complex claims.

Costello notes that “firms that leverage technology, build expertise, and strengthen governance will thrive, while those who don’t, can risk becoming overwhelmed”.

He says, early engagement sets the tone for the claims process arguing that claims brokers must be involved from the outset to ensure claims are properly framed, supported with the right documentation, and aligned with policy wording.

“This proactive approach avoids delays, disputes, and misunderstandings, while demonstrating responsiveness and advocacy to clients,” he says.

“Strong insurer relationships are equally critical. Trust and collaboration between brokers and insurers are essential to delivering on our claims promise.

"While differences of opinion will arise and at times there are competing interests, our mutual efforts must focus on supporting clients during their time of need.”

First point of contact

During catastrophic events, brokers play a vital role in advising and supporting clients.

“We act as the first point of contact, helping clients navigate a traumatic experience by proactively engaging suppliers, mitigating losses, and providing reassurance.

"Lodging claims promptly, explaining policy entitlements and driving stakeholders’ collaboration are key steps in ensuring clients return to normalcy as quickly as possible,” he says.

“Retention is a key focus for any broking firm, and claims are where the rubber meets the road.”

While they don't make policy liability decisions, Costello says claims brokers are responsible for delivering a positive client experience and ensuring the right outcomes for their clients.

“To deliver on our promise to clients, we rely heavily on suppliers to treat our clients with empathy; to effectively collaborate with our team and help manage expectations,” he says.

He stresses that prioritising customer experience is essential.

“In my experience, a client’s trust can be lost if they have a poor customer experience, even in some cases, if the policy liability decision goes in their favour. It is critically important that the claims broker, insurer partners and supply chain are all mindful of this."

Costello asserts that contentious claims can often be avoided through early collaboration and managing expectations."

"A trusted supplier that recognises that they are effectively an extension of the broker from our client’s perspective, is invaluable,” he says.

When disputes arise, Costello urges brokers to thoroughly review policy documents and claim circumstances to establish grounds for coverage while also understanding the insurer’s position.

“Where necessary, brokers may draft coverage submissions, engage relationship managers, or escalate disputes, to ensure clients receive their rightful entitlements,” he says.

“If there is trust between key stakeholders on a claim, it is extremely rare that a it will manifest as contentious."

Heartbeat of the industry

For Costello, personal connections form the heartbeat of the insurance industry.

He warns that while AI and robotics offer efficiency gains, balancing digital enhancements with personalised service is crucial to delivering a positive client experience.

He is also expresses concern that “compliance and governance demands are evolving, often at the expense of service delivery”.

An example of this is the relatively recent concept of automating a client's claim updates to be received every 20 days.

Costello argues that this may seem to tick the compliance box, but if the claim is not progressing, it can lead to delays and frustrations.

"Striking a balance between meeting compliance obligations and maintaining strong service delivery is essential,” he stresses.

Costello cites the overuse of coverage counsel as another key challenge in today’s claim environment.

“The engagement of a coverage lawyer should be an exception to the rule and not a default option where a claim may be significant or complex," he says.

Too often, he observes, insurers turn to counsel to interpret their own policies, effectively allowing them to act on the insurer’s behalf. This he says "erodes the spirit of the insurer/broker partnership".

Skillset for the job

These days, modern claims professionals require an extensive array of skills and knowledge but Costello points to “lateral thinking" as one of the most important and valuable to master.

"Creative problem-solving, especially for complex claims, adds real value to clients and transforms the role from administrative to strategic,” he says.

“While it is sometimes not black and white, often the ethical approach to claims management is to find a way to pay the claim whenever possible.” 

Alongside lateral or creative thinking, and an ethical approach, Costello names “passion" as the key ingredient for making a great modern day claims broker.

“If you don't love what you do, you cannot possibly deliver an optimal outcome for a client," he says.

"While technical skills are important, a genuine passion for the role and the ability to build relationships and adapt to different personalities and situations truly sets great claims brokers apart."

Liam Costello, Senior Claims Manager at Gallagher will present on the topic “Navigating Claims: The Evolving Role of the Claims Broker”, at the forthcoming AICLA/ANZIIF Claims Convention.

Learn more about the AICLA/ANZIIF Convention