Brokers make a difference on claims settlements
A clampdown on claims settlements by insurance companies is proving the worth of local brokers, according to Higos Insurance Services’ managing director, Ian Gosden.
Tougher economic conditions, an increase in claims generated by “no-win-no-fee” claims companies and a rise in insurance fraud are raising costs for insurers and according to figures from the British Insurance Brokers Association (BIBA), more claims are being disputed as stricter policy wording interpretations are applied.
The managing director suggests that this is where people who are won over by cheap prices on comparison websites can lose out.
He explains: “Going for the cheapest cover from a website may seem a sensible option at the time of purchase, but insurance is there for when things go wrong and an insurance policy is only as good as its promise to pay out when the policyholder needs to claim upon it.”
Mr Godsen adds: “Local brokers are there for the policyholder and where a dispute with the insurer occurs they can use their expert knowledge, technical understanding and expertise in negotiations to achieve a better result.”
BIBA research shows that 67% of brokers are having to fight harder to get claims paid and 93% regularly negotiate up to a 20% uplift in claim settlements.
The Association’s findings also reveal that the situation has deteriorated over the past year, with a rise of almost 10% in the number of brokers who reported fighting harder for payouts.
Category: Car Insurance News, Home Insurance News, Insurance News
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