It appears that insurance brokers and accident management companies would benefit from a little couple’s therapy – with some notable strains persisting despite their two-decade long relationship.
That’s according to the latest broker barometer released by Direct Commercial Limited. The company polled 127 UK brokers about whether or not accident management companies are contributing to a smoother claims process in the commercial motor space – and the answer would appear to be a resounding “no” with only 19% answering positively.
The company pointed to a number of reasons as to why problems may exist between accident management firms and brokers. In particular it highlighted the introduction of the ABI general terms of agreement back in 1999 – with brokers establishing agreements with the firms to ensure a prompt response for not-at-fault clients and to pick up referral fees. However, it suggested there has been dissatisfaction among 88% of brokers over how the fees of these companies are both derived and paid.
“Our broker barometer findings highlight a pressing need for greater openness and accountability to restore trust and improve the efficiency of the claims process,” said Joe Hantson of Direct Commercial Limited. “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.
“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.”
In addition it was noted that four-fifths of brokers believe that accident management companies play a contributory role in claims farming.
But what do you think of the performance of accident management companies? We’d love to hear from you – just leave a comment below.
