Deals aim to keep repair costs down in subrogated motor claims
RSA has signed a bilateral claims cost agreement with rival insurer Ageas, its sixth such arrangement.
The bilateral agreements are designed to reduce repair costs for subrogated motor claims.
In such cases, the not-at-fault driver’s insurer arranges repairs on behalf of its client, but the at-fault driver’s insurer foots the bill.
The deals are a response to accusations that not-at fault insurers ramp up motor repair costs in these cases, knowing a rival will end up paying.
RSA’s UK and western Europe claims director David Pitt said: ““We are pleased to be working with Ageas to help control accident claims and remove unnecessary costs in the system. This is our sixth bilateral in nearly a year and we’re encouraging other insurers to speak with us about doing more.”
Ageas claims director Rob Smale added: “Following ongoing discussions with RSA, this bilateral agreement allows Ageas to remove unnecessary costs in the interest of our customers.”
Other insurers that have signed bilateral agreements with RSA include LV=, Co-op and Groupama. It signed its fifth agreement, with NFU Mutual, in March.
RSA started striking bilateral deals with rivals following a court victory last June. The High Court overturned a previous judgement that claimed RSA had “fabricated” add-on costs when it arranged repairs that would ultimately be paid for by another insurer.
RSA’s opponents in the case, Allianz and Covéa, have won the right to appeal the ruling. The appeal is set to be heard in the autumn.
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