Edward Murray in Insurance Today has raised concerns about insurers’ inadequate response to problematic claims, highlighting a potential disregard for customers. However, the presence of a broker, such as Samson Insurance Services, acting as an intermediary between the policyholder and the insurer, can significantly enhance the likelihood of fair treatment for the policyholder.
Consumer watchdog Which? has conducted extensive research across motor, home, and travel insurance markets, revealing troubling trends. The study focused on policyholders who had filed claims within the past two years and found that insurers, in a substantial number of cases, failed to provide adequate explanations for rejected, partially accepted, or disputed claims. This is particularly concerning in light of the new Consumer Duty regulations, which aim to establish higher standards of transparency and fairness in the insurance industry.
The research uncovered that 14% of motor claims, 22% of home claims, and a staggering 38% of travel claims were rejected, partially accepted, or disputed. More alarmingly, the majority of claimants, 77% in the motor market, 56% in home insurance, and 43% in travel insurance, reported not receiving a clear reason from their insurer for the rejection, partial acceptance, or dispute of their claims.
Sam Richardson, Deputy Editor of Which? Money, emphasized the challenge faced by claimants who lack a comprehensive understanding of the reasons behind claim denials. Without this crucial information, pursuing a claim with the Ombudsman becomes an uphill battle, as claimants struggle to provide evidence of the disagreement between them and their insurer.
Richardson urged insurers to improve their communication with claimants, insisting that clarity on claim rejections is paramount. In light of the Consumer Duty regulations, he called on the Financial Conduct Authority (FCA) to take decisive action against firms falling below the expected standards.
The role of brokers in this scenario becomes pivotal. Brokers should act as advocates for policyholders, ensuring that claims are thoroughly assessed and facilitating transparent communication between the insurer and the insured. With brokers like Samson Insurance Services, policyholders have a valuable ally in navigating the complexities of the claims process, helping them secure fair treatment and ensuring that insurers meet the upcoming Consumer Duty standards.
As the insurance landscape evolves, the role of brokers becomes increasingly vital in safeguarding the interests of policyholders and fostering a culture of accountability within the industry.
