New research from the British Insurance Brokers’ Association (BIBA) has revealed that insurance brokers have to fight harder during the recession to get insurers to pay claims.

The majority of brokers surveyed have secured increased payments for clients over 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.

BIBA plans to use the research in the media and with political stakeholders to demonstrate the benefits of using a broker and is encouraging brokers to use the statistics themselves to help promote brokers.

Eric Galbraith, BIBA Chief Executive, said: “This is strong evidence to demonstrate the value of the broker.  I also recognise that with fraud being a major issue, particularly in the current recession, there is a need for insurers to validate claims. “

Galbraith added: “However these statistics seem to suggest a too frequent reduction in the amount offered in claims settlements.  A position which could ultimately lead to more customers believing they need to inflate claims in order to respond to what they expect will be the insurer’s initial offer.”

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.

-ends-

Notes to editors

1. For further information please contact :

BIBA press office:
Leighann Burtrand, Communications Manager
020 7397 0223
burtrandl@biba.org.uk

2. About British Insurance Brokers' Association

The British Insurance Brokers’ Association (BIBA) is the UK’s leading general insurance organisation representing the interests of insurance brokers, intermediaries and their customers.

BIBA membership includes 1700 regulated firms. Insurance brokers and intermediaries distribute nearly two-thirds of all UK general insurance. In 2007, insurance brokers and intermediaries generated £1.5 billion of invisible earnings and they introduce £22 billion of premium income into London’s insurance market each year.

BIBA is the voice of the industry, advising members, the regulators, the Government, consumer bodies and other stakeholders on key insurance issues.  BIBA provides unique schemes and facilities, technical advice, guidance on regulation and business support and is helping to raise, and maintain, industry standards. BIBA works closely with the Chartered Insurance Institute to provide training to those working in the industry and actively participates in helping the industry and its customers deal with some of the major issues of the day.

BIBA members provide professional advice to businesses and consumers, playing a key role in identification, measurement, management, control and transfer of risk.  They negotiate appropriate insurance protection tailored to individual needs and operate to a very high standard of customer service with the aim of ensuring peace of mind, security, financial protection and the professional advice required.

To find your nearest BIBA broker visit the ‘Find A Broker' section of the BIBA website, www.biba.org.uk or call BIBA’s consumer helpline on 0870 950 1790