New research has revealed that insurance brokers have to fight harder to get claims paid during the economic downturn due to the stricter policy interpretations and anti fraud-systems by insurers.
In the research from the British Insurance Brokers’ Association (BIBA), 67% of broker respondents (BIBA research received 132 broker responses between 21st July and 30th July 2010) said that they had to get tough with insurers on behalf of customers to get claims paid in the current economic climate and 93% regularly negotiate up to a 20% uplift on claims settlements. The situation has deteriorated since last year; with almost a 10% increase in brokers who said they had to fight harder for customer’s payouts.
BIBA plans to use the research in the media and with political stakeholders to demonstrate the benefits of using a broker and is encouraging brokers to use the statistics themselves to help promote the services that they provide. Eric Galbraith, BIBA Chief Executive, said: “This is strong evidence to demonstrate the value of the broker and we plan to use this in every way that we can to promote brokers to wider world.
“I also recognise that with fraud being a major issue, there is a need for insurers to validate claims. However these statistics seem to suggest a too frequent reduction in the amount offered in claims settlements.”
Respondents provided a range of examples of how they helped clients in the claims process. These included:
– Water damage to a kitchen. Claim was originally put forward as settlement at £4,500, after discussing the claim and obtaining more information, it was eventually settled at £20,000
– Flood damage claim, initial offer approximately £9,500, final payment £17,500
– A broker increased a business claim for material damage and business interruption from £170,000 to £400,000 following a fire.
Source : BIBA News Release
