Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 21st of May 2019
September 6, 2010

Brokers tested over claims negotiations

by Gill Montia

Story link: Brokers tested over claims negotiations

Brokers tested over claims negotiations

New research from the British Insurance Brokers’ Association (BIBA) suggests that brokers are having to fight harder to get claims paid, with the body blaming stricter policy interpretations and insurers’ anti-fraud systems for the struggle.

Sixty-seven per cent of BIBA members questioned said they had to get tough with insurers on behalf of customers, and 93% reported regularly negotiating uplifts of up to 20% on settlements.

The findings also reveal that situation has deteriorated over the past year, with a rise of almost 10% in the number of brokers who said they had to fight harder for payouts.

According to BIBA, the research demonstrates that in addition to being able to recommend the most appropriate cover, brokers can also achieve fairer settlements for their clients.

The Association’s chief executive, Eric Galbraith, comments: “Brokers know how to evidence and support negotiations through their understanding of policy wordings, relevant case law and their relationship with the insurer.”

Respondents provided a range of examples of how they had helped clients in the claims process, including:

Securing a final payment of £17,500 on a flood damage claim that had an initial offer of approximately £9,500.

Securing a £1,800 settlement on a lost laptop computer, when initially the insurer repudiated the claim entirely.

 

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