Insurance brokers are having to work harder with insurance companies to force them to pay out claims during the economic downturn.
Insurers are applying stricter policy interpretations and anti fraud systems to limit their claims pay outs during the financial downturn, according to ne research from the British Insurance Brokers Association (BIBA). As a result, insurance brokers are battling harder with insurance companies to make them pay out fair claims on their clients’ behalf.
Around 67 per cent of brokers taking part in the research said that they had to be exacting with insurers in the current economic climate. This is a 10 per cent increase on the findings last year and shows that insurance companies are trying harder to avoid paying out even valid claims.
Eric Galbraith, BIBA Chief Executive, explains: “This is strong evidence to demonstrate the value of the broker and we plan to use this in every way that we can to promote brokers to the wider world. I also recognise that with fraud being a major issue, there is a need for insurers to validate claims. However these statistics seem to suggest a too frequent reduction in the amount offered in claims settlements.”