Research from the British Insurance Brokers’ Association has revealed that insurance brokers have to fight harder during the recession to get insurers to pay claims.
The majority of brokers surveyed have secured increased payments for clients over the past year following an initial lower offer from insurers, and 58% of brokers said that they had to fight harder to get claims paid during the recession.
The research also revealed that brokers regularly negotiate up to a 20% increase on claims offers made by insurers.
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 brokers.
Eric Galbraith, BIBA Chief Executive, said: “This is strong evidence to demonstrate the value of the broker. I also recognise that with fraud being a major issue, particularly in the current recession, there is a need for insurers to validate claims. “
Galbraith added: “However these statistics seem to suggest a too frequent reduction in the amount offered in claims settlements. A position which could ultimately lead to more customers believing they need to inflate claims in order to respond to what they expect will be the insurer’s initial offer.”
Key findings from BIBA brokers :
- 91% have secured an increased payment for a claim, on behalf of a client following an initial lower offer from the insurer
- 58% have had to fight harder on behalf of clients to get claims paid during the recession
- 87% regularly negotiate up to a 20% uplift on claims
- 91% negotiate a claim payment uplift either often or occasionally
- 94% overturn a claim rejection occasionally or often.
