New research from the British Insurance Brokers’ Association (BIBA) has revealed that insurance brokers regularly help consumers achieve better results when pursuing a claim.
The majority of brokers surveyed have secured increased payments for clients in 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.
Eric Galbraith, BIBA Chief Executive, said: “Insurers are tightening their belts during the recession and scrutinising claims and policy wordings. This demonstrates the vital support that brokers give clients during a claim.”
Galbraith added: “Many consumers do not have the experience or knowledge to negotiate claims payments themselves. Brokers know how to evidence and support negotiations through their understanding of policy wordings, relevant case law and their relationship with the insurer.”
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.
Responding to the survey, brokers highlighted a number of examples:
- Following a house fire, the insurer offered £12,000 but after broker negotiation the claim was increased to £18,000.
- An insurer tried to reduce a fire claim settlement on the basis that not all the damage was caused by the fire. The broker disproved this and secured a settlement of £30,000. The insurer had offered £6,500.
- Following intervention, a broker achieved a payment of £20,000 for a property water damage claim which was initially rejected as a non valid claim.
- A broker increased the payment for a motor claim from £19,050 to £22,000
- On a flood damage claim the client was offered just over £12,000 but the broker negotiated a settlement of £17,377
