Just one in 10 risk managers trust London Market

Only one in 10 risk managers have a high level of trust in London Market insurers, according to a study by Gracechurch Consulting.

And claims go wrong because of communication breakdowns, inappropriate legal intervention and lack of understanding of a client’s business.

Additionally, an insurer’s claims proposition has a strong influence on the choice of insurer for the risk manager.

The study went on to say trust would be improved if insurers worked with their clients to understand their business better and appreciate how claims may arise.

Transparency, better communication and less involvement of lawyers on large claims as the seemingly ‘automatic’ default position, would also help in breaking down any mistrust.

The UK risk and insurance report also found that an insurer’s claims proposition has a strong influence on the choice of insurer.

But better communication, efficiency and working in partnership lead to great claims service.

According to the UK risk and insurance report, insurers get it right when there is a full integration with business teams, better communication and a personal and fast service.

The findings are based on a survey conducted among risk managers in the UK in September 2013.

Sixty-one percent of risk managers evaluate insurance companies’ claims service on a formal basis, through discussions with colleagues and market contacts, broker benchmarking and regular meetings.

So far 25 UK risk and insurance managers have taken part.

The survey is ongoing.