AIRMIC CALLS FOR MORE DATA ON INSURER WILLINGNESS TO PAY
The insurance industry’s record on paying claims is a cause of continuing concern to commercial buyers, AIRMIC Technical Director Paul Hopkin told a conference at Lloyd’s today. He said there was a need for more data to address anecdotal evidence, based on his members’ own experiences, of wide variations in performance.
“The ratings agencies provide plenty of information about insurers’ financial ability to pay, but there’s no reliable data as to their willingness to do so in a fair and prompt manner.” Hopkin told delegates to the AMCOMP Conference on 9 March. “Yet many risk managers would put this as their top priority.”
He identified four areas where buyers need to be convinced:
“Do firms have enough skilled staff and the IT systems to deliver a fast and efficient service? Is information about claims, documentation and policy wordings accurate and accessible? Are there established procedures to support unbiased and fair responses? Are decisions taken rapidly and then correctly implemented?
“Our members’ sometimes get a superb service when they make claims, but this is by no means the norm.”
AIRMIC is at the early stages of investigating ways to create a willingness to pay index, Hopkin told delegates. “We have gone into this exercise without any preconceptions, and we’re certainly not gunning for any particular firm,” he said. “Our aim is to give buyers objective data about the willingness to pay with a view to encouraging higher standards overall.”
For further information contact Mark Baylis, Complete Communications, +44 (0) 23 8034 9719, markbaylis@aol.com
Note to editors: Picture of Paul Hopkin attached.
AIRMIC represents risk managers and insurance buyers. It has nearly 1,000 members, including 75% of FTSE 100 companies. They spend in aggregate more than £5 billion on insurance annually.