Brokers Fighting Harder In Downturn To Get Fairer Claims Payments From Insurers

New research has revealed that insurance brokers have to fight harder to get claims paid during the economic downturn due to the stricter policy interpretations and anti-fraud systems by insurers.

In the research from the British Insurance Brokers’ Association (BIBA), 67% of broker respondents said that they had to get tough with insurers on behalf of customers to get claims paid in the current economic climate and 93% regularly negotiate up to a 20% uplift on claims settlements.

The situation has deteriorated since last year; with almost a 10% increase in brokers who said they had to fight harder for customer’s payouts.

Eric Galbraith, BIBA Chief Executive, said: “Insurers are tightening their belts with stricter interpretations of policy wordings. This demonstrates the importance of having a broker to fight your corner during a claim.”

The research demonstrated that brokers, who are best placed to offer the most appropriate cover, can also achieve fairer claims payments for consumers. This is achieved through their expert knowledge, technical understanding and expertise in negotiations with insurers, something that is very difficult for individuals to do on their own.

Galbraith added: “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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