Brokers slammed for error-strewn insurance policies
Botched insurance policies could cost clients a lot of money if
they make a claim.
A recent survey of accuracy and efficiency in the commercial
insurance sector has found an increasing error rate.
The Sixth Annual Insurance Standards survey by The Insurance
Manager, based in Throwley, near Faversham, is regarded as a
valuable measure of broker performance.
A review of documents from a wide range of brokers revealed an
increasing number of mistakes. They range from typing errors to
significant errors that, if not corrected, could result in a claim
being rejected. This year’s survey found an error rate of 38%, up
from 24% last year.
The Insurance Manager’s managing director Danny Cooper said the
mistakes showed many brokers and their staff were "not up to
Chartered brokers were no better than those without that
status, he said. They needed to get their act together and
check documents carefully before they were issued. They should not
expect a busy businessman to read every line of a complex
Standards had slipped, he said. "The key factors contributing to
this are, in our opinion, a lack of knowledge and training,
dependency on inadequate computer systems and overstretched
resources," he said. "There are absolutely millions of policies
being sent out by insurance companies incorrectly. The brokers have
looked at them, supposedly checked them but still sent them out
"Those errors range from something very simple like getting an
address wrong, or it could be more technical and worrying because
if there is a condition on a policy, or an exclusion or a warranty
- if you are required to do something and you don’t know you’re
required to do it - it could make the policy void. The brokers are
not doing their job and we’re ending up as their quality
It was time for the industry to "grab it by the scruff of the
neck and do something about it."
He was considering naming and shaming the worst offenders, but
before doing that he hoped to publish a table of brokers with the
most improved performance.
The government has made £5.5m of interest-free loans available to small firms, which MP Greg Clark calls "a great boost for business in west Kent".
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