Don't make a drama out of a crisis

I was unfortunate enough to be involved a small accident earlier this year. I was dropping my daughter at school and was parked in the car ark when someone reversed into me, nothing too serious and neither party was injured.

The third party happened to be one of the teachers who exclaimed that she had neglected to check her mirrors before reversing and was most surprised to make contact with a solid object when coming to an abrupt halt.

We exchanged details and I was able to identify a witness at the scene who agreed to provide a statement and limped in to work to report the incident. The damage, whilst not extensive did render my vehicle un-roadworthy and I made the necessary arrangements for a replacement car and contacted the recommended repairer as instructed.

A day or two after the incident I received a phone call at home one evening, the caller explained that he was just calling on the “off-chance” to ask if I’d been involved in any incident that may give rise to a claim or injury, this despite my home number being ex-directory for at least ten years. When pushed as to who had instructed him to call he hung-up!

All went very smoothly with the repairs and I was back in my own vehicle within 14 days, all be it slightly out of pocket with regard to the excess.

Whilst this was a relatively straight forward incident it still took the third party insurer over four months to admit liability, this despite being in receipt of my own accident report form and sketch as well as an independent witness statement. The third party insurer had simply accepted the word of their driver and not bothered to obtain any further information or descriptions.

I acknowledge that there are some unscrupulous accident management companies out there who are inflating claims costs, however I do think it a bit hypocritical that insurers are crying foul when they too are gaining financial reward from exactly the same thing. I know for a fact that my insurer didn’t call me at home to ask if I’d been involved in a claim and was I injured, so my details must have been obtained from the third party insurer!

We outsource our claims management, not for financial reward, (discussions with my broker colleagues revealed that I am well down the list of earnings), but because I want my staff to concentrate on the business of selling insurance. I am also very conscious that in dealing with my clients’ claims they are representing Ashbourne Insurance and that the service they receive must reflect our standards.

We recently completed a survey of clients who had been involved in an incident and insurer records indicated late reporting, the vast majority of these clients refused to acknowledge that they had either been involved in an incident or that there was any damage sustained to either party. It occurs to me that the fear amongst innocent parties, where no damage is sustained, is such that they will not report claims because they are considered guilty until proven innocent.

Our industry needs to do a better job in educating the public about the claim process, this includes; insurers, brokers & accident management companies. New initiatives can help, some insurers are already waiving the excess for early reporting, and this incentive is well received by clients.

I’m sure that collectively we could think up a whole load of recommendations, however it is the driver involved that must buy into the whole concept for it to have any impact on the bottom line.

I’ve thought of one myself; if insurers are so convinced that the accident management companies are to blame, pay us all 20% commission on motor business and insist we all use your own claim services. After all it is insurers that have squeezed commissions forcing brokers to look at other revenue streams!

Peter Smits is managing director of The Ashbourne Insurance Group.