It is expected to result in a 10% saving on indemnity spend after the average escape of water claim rises
Pen Underwriting is overhauling its process for escape of water claims in a bid to tackle domestic property claims.
It is expected to result in a 10% saving on indemnity spend and a 15% decrease in time taken to settle.
And it is a result of a close collaboration with third party administrator – Davies Group.
Escape of water
Escape of water remains the single largest peril in domestic property claims and one of the biggest driver of premiums.
In December last year, insurers were paying out £1.8m for escape of water claims every day.
The previous year showed that the first nine months of 2017 costs had increased to £482m a 24% increase compared to the same period in 2014.
Gareth Crosbie, claims director at Pen Underwriting, added: “By working with the collaboration of Davies, we can give our cover-holders and brokers an enhanced service and our customers more control. Escape of water claims were flagged by the Association of British Insurers as a key area of focus for insurers in 2018, and we’re proud to be delivering a solution to address this challenge.”
He added that is part of the firm’s “unwavering commitment” to improving customer experience and its virtual insurer strategy.
The “re-engineered” claims process is designed to accelerate the administration of specialist service and appropriate support to its customers.
It will involve an advanced customer portal providing real-time access to claims.
It will include a team of water experts, bespoke escape of water handling process, mobile technology to speed up repair process and drive down costs.
Pen Underwriting is a multi-class, multi-territory managing general agent (MGA) that operates as a virtual insurer – meaning it can all the typical functions of an insurance company — except carry risk.
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