BIBA survey highlights the importance of a good broker

The recent economic crisis has had a huge effect on many industries, but the financial and insurance sectors have possibly been hit the hardest.

The latest consequence of the recession on the insurance industry, in particular, has been highlighted by a recent survey by the British Insurance Brokers Association (BIBA). It reveals that insurance companies are now much stricter when it comes to interpreting professional insurance policies and employing anti-fraud measures, meaning it is more difficult than ever for brokers to ensure that claims are paid.

Brokers are rising to the challenge, with some now offering specialist enhanced claims services where loss adjusters are employed on the customer’s behalf. The BIBA survey found that:

• 67 per cent of brokers surveyed had to employ tougher strategies to ensure customer claims were settled
• 93 per cent admitted negotiating up to 20 per cent uplifts on settlements on a regular basis

These results clearly demonstrate how the role of the insurance broker has increased in importance in the wake of the recession, as customers are in need of an expert to negotiate insurers’ demands and fight for a fair settlement on their behalf.

The CEO of BIBA, Eric Galbrait, seemed to share this opinion when he commented on the results of the survey. He said:

“Many consumers do not have the experience or knowledge to negotiate claims payments themselves. Brokers know how to evidence and support negotiations through their understanding of policy wordings, relevant case law and their relationship with the insurer.”

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