Biba goes on the offensive

Biba and the ABI have drawn the battle lines for a war of words, as the broker body accuses insurers of recalcitrance over paying valid claims.

In a statement, Biba announced that 89% of brokers believe insurers are becoming stricter on paying claims.

The research, a sentiment survey that received 206 responses from brokers, shows that most respondents put this down to the economic climate and fraud.   

Biba’s serious allegation, backed up by anecdotal evidence from embattled brokers, drives a wedge between the industry bodies that is likely to be a barrier to reasonable discourse over perceived problems of any sort.

Unsurprisingly, insurers have reacted angrily to accusations that devalue their business, and the ABI has rejected the research, saying: “We do not accept any suggestion that it is getting more difficult for genuine claimants to be paid and we have seen no evidence pointing to this.”

As the prevailing economic conditions squeeze brokers and insurers, the image of the industry in the minds of consumers is crucial to the survival of smaller brokers.

These brokers depend on Biba to uphold their concerns and support them in the industry, yet the hasty instigation of public slanging matches does little to put brokers in a better position than they already find themselves.

In Biba’s statement, chief executive Eric Galbraith said the economic climate had led to stricter policy interpretation and anti-fraud systems on the part of insurers, meaning customers were having claims reviewed in more detail.

The ABI were unapologetic: “The industry makes no apology for its determination to tackle fraud, which is in the interest of honest customers to ensure they do not end up bearing the costs of the dishonest through higher premiums. Insurers will look to properly investigate suspected cases of fraud, but not at the expense of genuine claimants.”

In an environment where power lies heavily with insurers, Biba’s approach to bringing brokers’ concerns to the fore needs to be one that is respected by those it is trying to influence, not an attack that provokes swatting away.