AIRMIC negotiates “reservation of rights” protocol
The Association of Insurance and Risk Managers (AIRMIC), which represents the insurance buyers and risk managers of leading UK companies, is questioning the current use of “reservation of rights”, whereby a policyholder receives notice that the insurer may not accept liability for a claim.
The association is aware that some insurers make routine use of “reservation of rights” when large claims are involved, regardless of whether questions are being raised about the validity of the claim.
AIRMIC now has the support of seven insurance companies (including AIG, Allianz, AXA and Zurich) and is negotiating a voluntary agreement that would allow 90 days between a claim being notified and the issue of any reservation of rights.
The agreement should be drawn up by the end of the summer and could enable more claims to be settled amicably, avoiding legal costs.
In a recent survey of its members, AIRMIC found that over the past two years 19% had experience of “reservation of rights” being used inappropriately.
Category: Allianz News, Axa Insurance News, Insurance News, Zurich News
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