New Report Highlights The Value Of Brokers' In Claims ProcessFriday 1st February 2013
New research has revealed that insurers are becoming stricter on paying claims in the economic downturn.
In the research from the British Insurance Brokers’ Association (BIBA), 90% of insurance brokers believe that insurers are becoming stricter on paying claims, mainly because of the economic climate and fraud.
Nearly two thirds of brokers said that they have had to fight harder to get claims paid and nearly three quarters of brokers have overturned a claim rejection by an insurer in the last year.
Ian Gosden, Managing Director at Higos Insurance Services, commented on the research saying “The value of an insurance policy is only tested at the time a claim is made. An insurance broker will help ensure you purchase appropriate cover, making relevant disclosures to minimise the risk of claims being rejected. Higos has a dedicated claims department of ten staff, here to support our clients throughout the claims process, ensuring claims are settled promptly and fairly.”
Nearly 70% have secured an increased claim payment for a client, with 43% of brokers saying that the average percentage uplift on claims that they regularly negotiate on behalf of clients is between 11% and 20%.
Eric Galbraith, BIBA Chief Executive, said: “The economic climate has led to stricter policy interpretation and anti-fraud systems by insurers meaning that customers are having claims reviewed in more detail. The research demonstrates the importance of having a broker to fight your corner and represent you at claim time.”
Gosden continued “We encourage all business managers to ask their broker how they will assist in the event of a claim. Do they have dedicated claims staff? Or do they simply pass on the phone number of the insurer? At Higos we believe a broker should be there for their client, assisting throughout the claims process.”