"Better with a Broker"
28 January 2010
New research from the British Insurance Brokers' Association (BIBA) has revealed that insurance brokers regularly help consumers achieve better results when pursuing a claim.
The majority of brokers surveyed have secured increased payments for clients in the past year, following an initial lower offer from insurers, and 58% of brokers said that they had to fight harder to get claims paid during the recession.
The research also revealed that brokers regularly negotiate up to a 20% increase on claims offers made by insurers.
Eric Galbraith, BIBA Chief Executive, said: "Insurers are tightening their belts during the recession and scrutinising claims and policy wordings. This demonstrates the vital support that brokers give clients during a claim. "
Galbraith added: "Many consumers do not have the experience or knowledge to negotiate claims payments themselves. Brokers know how to evidence and support negotiations through their understanding of policy wordings, relevant case law and their relationship with the insurer. "
Key findings from BIBA brokers
- 91% have secured an increased payment for a claim, on behalf of a client following an initial lower offer from the insurer
- 58% have had to fight harder on behalf of clients to get claims paid during the recession
- 87% regularly negotiate up to a 20% uplift on claims
- 91% negotiate a claim payment uplift either often or occasionally
- 94% overturn a claim rejection occasionally or often.
Responding to the survey, brokers highlighted a number of examples:
- Following a house fire, the insurer offered £12,000 but after broker negotiation the claim was increased to £18,000.
- An insurer tried to reduce a fire claim settlement on the basis that not all the damage was caused by the fire. The broker disproved this and secured a settlement of £30,000. The insurer had offered £6,500.
- Following intervention, a broker achieved a payment of £20,000 for a property water damage claim which was initially rejected as a non valid claim.
- A broker increased the payment for a motor claim from £19,050 to £22,000
- On a flood damage claim the client was offered just over £12,000 but the broker negotiated a settlement of £17,377
"CRASH FOR CASH" SCAM
2 December 2009
The recent four and a half year prison sentence for a Bolton man involved is a so called "crash for cash" scam has highlighted a growing problem that drivers need to be aware of.
The targeting of innocent motorists by fraudsters is a significant and growing risk to public safety and the Insurance Fraud Bureau is working closely with regional police forces to expose and crush the criminal networks involved. Typically, in "crash for cash" scams, the fraudsters drive to busy roundabouts, road junctions, or slip-roads, and then perform unexpected and unnecessary emergency stops designed to cause innocent members of the public to crash into them.
Claims are made to the innocent motorist’s insurer, often including several accounts of fictitious injuries from members of the criminal gang. For each successful scam, the criminals can net up to £30,000 and the Insurance Fraud Bureau has evidence to show that the proceeds from this type of fraud are used to fund other forms of serious and organised criminal activity. Fraudulent insurance claims meanwhile add , on average, £44 to the annual costs individual policyholders face each year.
There are things that motorists can do to protect themselves from this type of scam and the Insurance Fraud Bureau offers the following advice:
- If you feel that somebody is following you or driving erratically in front of you, particularly as you approach a roundabout, give the vehicle as wide a berth as possible
- In the event that you are involved in an accident and are suspicious of the circumstances:
- Record as much detail as possible at the scene e.g. full names, addresses and dates of birth of the claimants.
- Remember to make a note of the number of people in any other vehicle involved.
- If possible use a disposable camera or mobile phone to take photographs of the car, drivers, passengers and accident situation from every angle. However, be vigilant and do not put your own personal safety at risk.
- Get full names and addresses of any witnesses at the scene of the accident, if at all possible.
- Make sure you tell us or your insurer and highlight your concerns. If you have specific information on who might be involved call the Insurance Fraud Bureau confidential helpline, free of charge, on 0800 328 2550 or report it online at www.insurancefraudbureau.org/report
Health and safety offences act
10 July 2009
The Health and Safety Offences Act 2008 came into force on Friday, 16th January 2009. This new Act increased penalties and provides courts with greater sentencing powers for those who break health and safety law. The effect of the Act is to:
- raise the maximum fine which may be imposed in the lower courts to £20,000 for most health and safety offences;
- make impisonment an option for more health and safety offences in both the lower and higher courts;
- make certain offences, which are currently triable only in the lower courts, triable in either the lower or higher courts.
To see what Continuum can do to help you comply with Health and Safety regulations go to our Risk Management page. Also ask your Account Manager about Directors and Officers Liability Insurance and how it could help you in the event that you are prosecuted in a personal capacity.
NEW HOME
22nd September 2008
Continuum Insurance Brokers have moved to a new home: Unit 2, The Chase, Hertford. Commenting on the move, Continuum boss Bernard Murphy said: “We’ve been in business for over 40 years now, so the move to our smart new home is another step in our ongoing success story. The weeks running up to it were a very busy time as we juggled the logistics of an office move whilst maintaining the levels of customer service on which we’ve always prided ourselves.
"Our customers can rest assured that, along with all the files and customer records we now have safely stored at The Chase, we’ve also brought along another business essential – Continuum’s personal service, attention to detail and, of course, friendly down-to-earth approach to insurance."
