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.
