Brokers rank mid-market insurers poorly for claims

Brokers think the majority of mid-market insurers offer a poor claims service, according to the 2014 Gracechurch Mid Market Claims Report.

Of the 16 insurers ranked in the report, six received a net-negative ranking from 180 commercial broker claims specialists.

This means that they were more frequently ranked as ‘poor’ for claims service than they were ‘excellent’.

Only five insurers - Chubb, Hiscox, AIG, Amlin and AXA - earned a net-positive ranking, with the remaining insurers ranking net-neutral.

Gracechurch chief executive Ben Bolton said a common area of concern for brokers was the contact insurers had with the broker claims teams.

The most frequently mentioned areas for improvement were poor communication, cases being passed through numerous handlers and low quality outsourcing operations.

One broker said of their claims experience: “They’re an offshore operation. If they didn’t have that it would be so much easier. It is very difficult to get anything off offshore people, even the simplest things.”

Bolton also said that the mid-market claims experience often compared poorly to the London Market service.

“The London Market has a much higher level of service, which is what you might expect because it is more face-to-face. [The mid-market] is more about efficiencies and the process,” he said.

Of the net-positive insurers, Bolton said: “Chubb and Hiscox lead the mid-market in terms of claims satisfaction overall, and across business lines, performing well on criteria such as communications, commerciality, relationships and speed of service. Both players are cited as having knowledgeable and personable claims teams who are committed to settling claims in a fair and speedy manner.”