A recent survey conducted by Prestige Underwriting has revealed that 70% of brokers in the non-standard insurance market are seeing an increase in claims costs. This trend highlights the growing pressure on brokers with regard to managing rising expenses within the sector.
Of the brokers surveyed, 31% reported that the rise in claims costs was higher than anticipated, while the remaining 69% indicated that the increases were in line with their expectations.
The home non-standard market was identified as the area with the highest levels of claims inflation, with 35% of brokers pointing to this sector. On the other hand, the non-standard commercial market saw lower levels of cost increases, with only 17% of brokers noting significant rises in claims costs.
The motor market also emerged as a significant concern, with 62% of brokers reporting that policyholders experienced delays in getting their vehicles repaired and back on the road after making a claim. This highlights a challenge in maintaining efficient claims processes in this sector.
Tim Baxter (pictured above), head of broker development and partnerships at Prestige Underwriting, commented on the situation, stating that the rising claims costs in the home insurance market and delays in vehicle repairs are affecting both brokers and policyholders.
He emphasised the importance of insurers focusing on streamlining claims processes and improving transparency around the factors contributing to repair delays, which could help enhance the experience for both brokers and their clients.
Prestige Underwriting highlighted that its survey underscores the need for continued focus on addressing the rising costs and improving efficiency within the non-standard market, particularly in motor and home insurance.
In July, the firm announced its support for the government's plan to legislate measures aimed at reducing fire risks associated with electric power-assisted bicycles (EPACs) and lithium-ion batteries.
A recent King's Speech included a commitment to introduce the Product Safety and Metrology Bill, which seeks to address the fire risks linked to e-bikes and lithium-ion batteries. This legislation aims to clarify legal responsibilities for suppliers, including online marketplaces, and to enhance compliance and enforcement measures.
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