Modern Insurance Magazine Issue 61

ASSOCIATIONS ASSEMBLE
Alastair Blundell
Title: Head of General Insurance
Association: British Insurance Brokers’
Association (BIBA)
Insurance and the
Cost-of-Living Crisis
As the cost-of-living crisis continues
to bite, the financial resilience of both
individuals and businesses will continue
to fall under intense pressure. As a result,
appropriate insurance has never been more
important.
That’s easy to say, but in reality, insurance is just
another expense. When juggling a host of increased
bills, some customers will inevitably decide to drop
their cover. Surveys undertaken by BIBA and Premium
Credit support this increased risk, with over 40% of
all claims now estimated to exhibit some degree of
underinsurance.
An insurance broker is a customer’s best ally right
now. They will assess insurance needs, advise on what
protection is needed, and then shop around to secure
appropriate cover at the best price. Some customers
might feel confident enough to accept a bigger excess,
and a broker can advise as to how this might trade-off
in the form of a lower premium. Essentially, brokers can
work with customers to demonstrate how they are a
better than average risk – one that insurers may want
to compete for! Brokers can also advise customers
and check that the sums insured are based on recent
valuations, so claims are paid in full and the curse of
average is avoided.
Brokers also have a role to play in supporting those
most vulnerable to financial shock. We saw a great
example from a member that provides inexpensive
contents insurance for the tenants of registered social
landlords. For as little as 50p per week, important
insurance protection can be secured, with no excess
required. BIBA is also proud to be a signatory of the
Age Agreement on insurance, helping older people
to access suitable motor and travel insurance. We are
close to signposting our one millionth enquiry through
our ‘Find Insurance’
service, a real testament
to how insurance helps
some of society’s most
vulnerable.
Mike Keating
Title: CEO
Association: Managing General Agents’
Association (MGAA)
Industry-wide
action needed on
claims processes
The insurance industry has made huge
strides in its ability to adopt new
technology and processes over the last
decade. Even the most well-established
global insurers are looking at ways to shift
away from legacy systems, streamlining
their operations through the use of AI and
other emerging data management tools.
MGAs have (and will continue to be) at the forefront
of this innovation - using their specialist expertise and
natural agility to come up with new ideas around how
the industry can work more efficiently to improve
customer experience.
That said, despite the wider market’s growing focus on
improving the way it does business, it’s clear that there
is still a lot of work to be done when it comes to the
handling and processing of claims.
Clyde & Co’s recent MGA Report highlighted that over
half (59%) of MGAs believe the claims management
process with carriers requires improvement. Key areas
include faster communication (69%), clearer processes
- particularly where TPAs are involved (35%) - and
automation of, or authority to, settle lower value
claims (58%). These views are echoed by the carriers
themselves, with 80% believing that the claims process
with their MGA requires improvement.
There needs to be an industry-wide effort to improve
the way we handle claims. This involves everyone in the
value chain - MGAs themselves, carriers, brokers and
TPAs.
As an association, we recognise the need for action on
this issue, and so we are making it a real focus for our
activity in the coming months. Following the success
of last year’s inaugural event, we have partnered with
I Love Claims (ILC) once again to hold the second
MGA Claims Conference in London on Thursday,
28th September. This will
specifically focus on claims
across the MGA space,
covering motor, home,
commercial, and niche
product lines.
MODERN INSURANCE | 33