Chief executive Mike Srokowski has already presented the claims handling company’s solution to the CMA
Validus has called on the Competition and Markets Authority (CMA) to adopt an industry-wide solution for handling credit hire claims as part of its remedies for the private motor market.
Validus chief executive Mike Srokowski said that such a solution could help reduce claims processing times and ease frictional costs.
“The CMA has acknowledged the importance of technology in removing frictional cost from motor claims,” he said. “The reforms highlight the need for a single point of claim submission, as prompt liability resolution will become a key requirement for both insurers and CHOs [credit hire organisations]. In addition, efficient management of incoming and outgoing claim streams will be crucial in removing frictional costs for both sides.”
Srokowski said Validus has already presented its claims portal Verify to the CMA as a solution for the industry.
The portal allows insurers and CHOs to determine liability for a claim and confirm the indemnified insurer for the motor claim.
“The overriding issue is understanding quickly what the situation is with regard to liability,” Srokowski told Insurance Times. “Insurers will need to [accept or deny liability] within three days [to benefit from the lower credit hire rate], which is a tall order.
“We have 32 clients and I don’t think there is one of them that will give us a decision within 10 days, so getting it down to three will be tough.”
Verify has so far handled 22,000 claims and is expected to handle 14,000 a month once existing clients have migrated across to the new platform.