Brokers fail to promote service for which risk managers will pay extra

Risk managers are willing to pay extra for policies if the claims service is of high quality, but feel brokers are not providing enough information, according to a recent survey.

At the London Market Claims 2014 conference held today, research and strategic consultancy provider Gracechurch Consulting revealed headline findings of a survey of risk managers in respect of claims.

Key findings include:

·         more than half (53%) of risk managers think their brokers should do more to promote claims service;

·         about 60% said they would pay more for a better claims service; and

·         the majority (93%) felt that London is only quite (but not ‘very’) committed to excellent service.

Gracechurch chief executive Ben Bolton said: “According to our research, the gradual improvement in claims service has flattened off in 2014. There is also a significant variation in the service delivered by individual insurers. Some offer fantastic service consistently, but others offer only adequate or average service.

“The length and complexity of the value chain in insurance is again revealed as being a barrier to making change and to demonstrating where value lies. The risk managers know and trust their brokers but most say they are a lot less familiar with their insurers (and therefore trust them less). “They want to know more about the claims service of their insurer, but don’t think they are getting that from their broker.

“Some of the answers inevitably lie in better applied technology, often seen by many in this market as a significant opportunity. However, the evidence shows that technology can decimate or deskill industries, so the risk arises that people in this segment, including third-party providers, will become less productive, less valued and it will be difficult for businesses to grow and compete.

“So, our challenge is to listen to what clients are saying now and consider how to create greater value. The better strategy is to attract talented creative people and to focus on where claims could add value to the customer. Currently, the evidence shows that there is scope for improvement for the London Market, but that there is a substantial opportunity if it can be seized.”