Insurance claims process: initial results of industry review

April 25, 2014 7:49 am

We wrote back in June about the review by the Financial Conduct Authority (FCA) over the way customers are treated when they make an insurance claim. The initial findings have now been released and show several areas of concern.

The key areas highlighted are how inbound claims calls are recorded and used; communications with clients while a claim is being progressed; management of the supply chain in household insurance claims; handling of claims with long chains of delegation; and clarity of product documentation.

Attempts to cut costs

The key thing, according to an article in Post magazine, is that ‘for a long time insurers have tried to reduce costs massively on the claims side’. This is particularly when it comes to ‘repairers or people who replace property’. The other area of particular concern is the rise in the number of inexperienced claims staff ‘who don’t seem to have much training’.

We come up against these issues all the time – in particular the attempts to cut corners when reinstating a property. Indeed, these are key reasons why clients come to us: they become increasingly frustrated with the way their claims are being handled and the way their insurers are progressing the restoration of their homes.

One of our key roles is to ensure that our clients have a qualified and experienced chartered surveyor working with specialist contractors who together will restore their damaged homes in the right way. This is what they are entitled to under the terms of their insurance policy.

We look forward to watching the FCA’s review progress further.