Home improvement website Improveline is claiming its internet-based system for dealing with property claims can save the insurance industry more than £100m a year in reduced claims costs.

Once a claim has been notified to an insurance company it is transferred to Improveline's claims handling database.

This then processes the claims on behalf of the insurer and keeps customers informed of the progress of their claim by email, internet, text messaging or telephone.

Marshall King, chief executive of Improveline, said: “We have been piloting the scheme with an insurance company and it has played a significant role in reducing its claims costs.”

King said more than 30% of calls to insurers related to the progress of claims.

He said if claims were handled by internet or email, £25 per claim could be saved or 2.5% of the total amount paid out in claims.

He added: “It's also a great solution from a customer's point of view as the whole claim is taken care of by reliable tradesmen without them having to source and manage their own contractors.”