Direct Commercial Limited urges brokers to prioritise early reporting amidst soaring commercial motor claims costs

Direct Commercial Limited (DCL) is urging brokers to promote early and on-the-spot reporting, given the prevailing increase in commercial motor claims costs.

Figures published by the managing general agent (MGA) yesterday (5 December 2023) showed that 78% of brokers indicated that they had observed a surge in complex losses within the commercial motor market.

Meanwhile, 91% of commercial motor brokers reported witnessing a surge in claims costs in the last quarter.

The data also highlighted that 66% of brokers expressed a “growing need” for comprehensive guidance from all carriers to expedite claims reporting and mitigate costs.

DCL obtained the figures via its broker barometer, which surveyed 123 UK brokers operating in the commercial motor market.

Data from the survey also showed that most brokers felt that good relationships were key to helping overcome challenges within the sector.

For example, brokers felt it was either business critical (14%) or very important (46%) for their firm to have effective relationships between brokers, their insurers and MGAs and client policyholders to ensure good management and mitigate claims costs.

Carl Cripps, claims director at DCL, commented: “The results from the Direct Commercial Broker Barometer highlight a new, pressing need for brokers’ support when it comes to working together to minimise the escalating claims costs many are witnessing.”

Report

In light of the Barometer findings, DCL has also published a guidance paper entitled ‘Don’t Delay, Report Today!’.

The document, released yesterday (5 December 2023) and distributed to brokers, noted the importance of prompt first notification of loss (FNOL) reporting, preferably from the roadside.

DCL explained that FNOL reporting could lead to savings of up to 75% on credit hire claim costs through effective third party intervention.

“It is also evident that the capacity for [brokers] to access guidance on claims from insurers has somewhat waned across the wider market, so we hope to help reinvigorate that,” added Cripps