According to a recent report issued by the Financial Ombudsman Service, insurance disputes have rapidly increased in the last financial year; returning to the highs seen in 2011-12 when several natural disasters struck the country.
General Insurance Lead Ombudsman John Price said that this increase is a result of a combination of factors including a lack of resourcing on the part of insurers which has lead to an increase in the out-sourcing of complaints handling. Social media also appeared to be raising awareness about complaints processes, which is likely to increase the number people coming forward, he added. Furthermore, the FOS introduced shorter timeframes for resolving disputes and insurers were struggling to meet those deadlines.
With this rise in claim disputes, it’s clear that claims are a contentious issue for insurers and consumers alike. As such, the importance of using an insurance broker has become clearer than ever. Using an insurance broker should make you less likely to have a dispute. Additionally, with an insurance broker acting on your behalf, for many clients it also makes the entire claims process a lot less of a headache. Here are just some of the ways that your insurance broker can be of assistance for your business in the face of a claim:
- Sourcing the Right Cover: According to the Financial Ombudsman Service, disputes most often arise as a result of failure to obtain the appropriate insurance coverage. With the advice of an insurance broker, you are more likely to be comprehensively covered. This means that in the event you do have to make a claim, issues are less likely to arise.
- Dealing with the Claim: After a disaster has impacted your business, your list of things to do is never-ending. Your insurance broker can deal with the claim on your behalf, and communicate with the insurer to ensure it is dealt with as efficiently and effectively as possible. Insurance brokers often have pre-existing relationships with insurers, which means they know how to get the best outcome and resolve any issues that may arise.
- Reducing Likelihood of Future Claim: Your insurance broker will regularly review your business and your insurance policy to ensure you have the most appropriate cover in place going forward. They will provide a risk assessment of your business to determine any areas where you could minimise risk and reduce your likelihood of a claim.
As your insurance broker, we’re here for you and ready to help whether you have a claim or not. Don’t hesitate to get in touch for further information or risk management advice.
Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.
The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.