Outsourcing of the claims function has contributed to an increase in the number of claims being fought by insurers
Insurers are becoming stricter at paying claims, according to brokers at the latest Knowledge Live event – Spotlight on claims, held in Glasgow.
When asked if insurers were getting stricter on paying claims, 87% of delegates said they agreed with the statement, with just 13% saying insurers were not getting stricter on claims (see below).
Furthermore, 64% of brokers surveyed at the event also agreed that it is becoming more difficult for genuine claimants to be paid in full when making a claim on their policy (see below).
Speaking on the panel at the event, Bruce Stevenson chief executive Edward Bruce said outsourcing of the claims process had resulted in an increase in the number of claims being fought by insurers.
“It is occupying more of our time as a senior management team looking at claims that are under threat of being repudiated or are actually repudiated and then spending time turning that around,” he said. “A fair bit of this is down to the outsourcing of insurers to service management companies who don’t understand the policy as well as they should do.”
Fellow panellist Zurich regional claims manager Vicki MacIver said that an in-house claims function meant an insurer could benefit from the knowledge of underwriters in determining whether or not a claim should be paid.
“We have our own internal claims function and we very often refer to our underwriters about warranties or endorsements and the intention that was meant when they were written,” she said.
“We do have those conversations, so I can imagine that [understanding of a policy] can only get more difficult when you add external parties or third parties into the mix.”