Broker aims to eliminate "sloppy" claims handling with seven-figure agreement
Claims specialist Lorega has signed a seven-figure deal with Towergate in a bid to tackle insurers' "sloppy" claims handling.
Under the deal, Lorega will provide a branded "Towergate Assist" loss adjuster to prepare and negotiate Towergate customers' claims. All costs associated with the adjuster will be embedded within policyholders' standard premiums.
Peter Cullum, executive chairman of Towergate, said: "This is about hand-holding our customers through some of the more complicated claims. The claims services provided by some insurers are frankly sloppy, particularly some of the outsourced activities."
Lorega guarantees that its adjusters will respond to any reported claim within 24 hours.
Cullum said: "Early intervention in managing claims can help control the ultimate claims cost and therefore help maintain underwriting performance."
Cullum said Towergate would pay Lorega a periodic fee based on an estimated number of claims, which will generate millions of pounds in revenue for the claims specialist.
Malcolm Harvey, managing director of Lorega, said: "With such a mainstream provider using our service, I genuinely believe that we will see a wider recognition of its direct value to the professional broker who wishes to be pro-active at claim time."
He added: "This is the first of several big deals with major UK brokers. We expect to give details of another comparable deal in the next few months."
