The Financial Conduct Authority’s latest General Insurance Value Measures Data published earlier this month makes for interesting reading, particularly around claims acceptance rates, complaints and product value.
At first glance, lower acceptance rates within household insurance for example can appear concerning, particularly when compared with products such as motor and travel insurance. However, the figures need to be viewed in the context of what these products are actually designed to do. Household insurance is designed to protect against sudden, unforeseen and insured events, not the gradual deterioration of a property or the cost of routine maintenance. Equally determining the cause of structural movement, escape of water, storm damage or subsidence usually requires technical investigation. The potential for increased subsidence activity through an exceptionally dry summer for example becomes a significant challenge for insurers and whilst understandably frustrating for homeowners, these situations often fall outside the scope of standard insurance cover. On the contrary, motor and travel insurance often demonstrate higher claims acceptance rates because the nature of the insured events is very different. A road traffic accident or cancelled holiday is generally a clearly identifiable event that either falls within the policy wording or it doesn’t.
For most policyholders, making a claim is the only time they truly experience the product they have purchased and whilst claims acceptance rates and pricing are important measures, we believe the true value of an insurance policy is often judged at the point of claim. It’s not simply about whether a claim is accepted but how efficiently, fairly and professionally it is managed. Clear communication, technical expertise, supporting vulnerable customers, assisted AI and practical solutions all play a significant role in helping customers recover following a loss.
Chris Hall, Group Executive Chairman of QuestGates said, “Perhaps one of the biggest opportunities for the industry is to improve customer understanding of what insurance covers and what is doesn’t. When expectations are aligned from the outset, claims outcomes are often better understood. Customer education and clear policy explanations at the point of sale both have an important role to play in improving the perceived image of our sector.”
The role of the Loss Adjuster
From a loss adjusting perspective, our role is not to simply determine whether a claim is covered. We are there to investigate the circumstances of the loss, explain the policy in a fair and transparent manner, communicate clearly with policyholders and help them understand the reasons behind decisions. Even where a claim falls outside the terms of cover, customers deserve clear communication throughout the process.
The QuestGates group is now deliberately structured around four core business units of loss adjusting, claims management, building consultancy and legally enhanced services. This reflects both the breadth of our expertise and our ongoing commitment to delivering integrated claims solutions that meet the changing needs of clients.
Greg Laker, Chief Executive of QuestGates said, “As claims become increasingly complex, we are continually looking at improving the entire claims journey, the customer experience, speed of claim settlement and the range of enhanced services we provide to our insurer clients.”
A market shaped by skills shortages and repair cost pressures
Only last week, Insurance Post published an article examining how skills shortages, material constraints and rising demand are forcing insurers and loss adjusters to rethink how they manage complex, specialist property repairs.
Chris Carlton, Director of Building Consultancy at QuestGates said, “The UK construction workforce is almost 400,000 smaller than in 2008, and over one third of skilled workers are expected to retire within the next 10 years, which is creating a present and future shortage of specialist trades. With the home improvement and repair sector forecast to grow by almost 40% in the next decade, the UK will need circa 1.3 million new skilled workers to meet demand. This means that insurers and loss adjusters are operating in an already stretched market where skilled trades are scarce, specialist materials tend to have long lead-in times and so claims durations are being impacted and lengthening.”
Our Building Consultancy service continues to evolve to meet the changing needs of our clients and their customers, with recent senior management recruitment into our team helping support our partner suppliers adapt, develop and thrive in an ever-changing market.
Of course paying valid claims quickly and fairly is fundamental but value also comes from expert advice, risk management, technical investigations, fraud prevention and helping policyholders recover quickly when something unexpected happens.
QuestGates is the UK’s largest owner-managed loss adjusting and claims solutions group