Brokers raise concerns over accident management companies

Strains persist between brokers and accident management companies in the UK commercial motor insurance sector.

That was according to Direct Commercial, which said its findings showed there was a ”pressing need for greater openness and accountability”.

The firm’s Broker Barometer revealed that 88% of commercial motor brokers were unhappy with the lack of transparency over fee structures within accident management companies.

And four-fifths (82%) felt that accident management companies contribute to claims farming.

The research, which was published yesterday (17 July 2024), saw 127 UK brokers in the commercial motor market be surveyed.

Joe Hantson, deputy chief executive of Direct Commercial, said: “Our findings highlight a pressing need for greater openness and accountability to restore trust and improve the efficiency of the claims process.”

GTA

These figures come despite the implementation of the ABI General Terms of Agreement in 1999.

This saw brokers established agreements with accident management companies to ensure service for not-at-fault clients and receive referral fees.

However, just 19% of brokers felt that accident management companies contribute to the smooth running of the claims process.

“When you add accident management companies into the claims process, we do see this have an impact on direct reporting, which can in turn contribute to higher overall incurred costs and less efficient claims handling,” Hantson said.

“We always encourage direct claims reporting to our team by drivers from the roadside, as timely intervention ensures quicker resolutions and keeps incurred costs down.”