Brokers are fighting for fairer insurance payouts, says BIBA

In the research from the British Insurance Brokers’ Association, 90% of insurance brokers believe that insurers are becoming stricter on paying claims, mainly because of the economic climate and fraud.  

Nearly two thirds of brokers said that they have had to fight harder to get claims paid and nearly three quarters of brokers have overturned a claim rejection by an insurer in the last year.

Nearly 70% have secured an increased claim payment for a client, with 43% of brokers saying that the average percentage uplift on claims that they regularly negotiate on behalf of clients is between 11% and 20%.   

Eric Galbraith, BIBA Chief Executive, said:

“The economic climate has led to stricter policy interpretation and anti-fraud systems by insurers meaning that customers are having claims reviewed in more detail.  The research demonstrates the importance of having a broker to fight your corner and represent you at claim time.”

Graeme Trudgill, BIBA’s Head of Corporate Affairs, added:

“You only find out the value of your policy at claim time. Brokers not only support you in a claim but can help ensure that you purchase appropriate cover and make relevant disclosures to minimise the risk of claims being rejected.”

In the research, brokers highlighted examples of a claim worth £35,000 for a stolen car which was initially rejected but where the brokers’ knowledge and involvement ensured the claim was paid in full, and a commercial theft of stock claim where the claim payment increased by 40% following the broker’s involvement.