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You can find the current article at its original source at http://www.guardian.co.uk/money/2013/jan/18/insurance-brokers-warn-policy-payout-battles
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| Version 4 | Version 5 |
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| Insurance brokers warn of policy payout battles | Insurance brokers warn of policy payout battles |
| (25 days later) | |
| Insurance companies are increasingly refusing to pay out money to policyholders for motor, household and health claims, brokers have claimed. | Insurance companies are increasingly refusing to pay out money to policyholders for motor, household and health claims, brokers have claimed. |
| The British Insurance Brokers' Association (Biba) said 90% of members it questioned believed insurers had become more strict on paying claims, largely because of the economic climate and fraud. | The British Insurance Brokers' Association (Biba) said 90% of members it questioned believed insurers had become more strict on paying claims, largely because of the economic climate and fraud. |
| Almost two-thirds of brokers said they have had to fight harder to get claims paid, and nearly three-quarters have successfully appealed against a claim rejection by an insurer in the past year. | Almost two-thirds of brokers said they have had to fight harder to get claims paid, and nearly three-quarters have successfully appealed against a claim rejection by an insurer in the past year. |
| The assertion is backed up by findings from the Financial Ombudsman Service (FOS), which deals with claim disputes which cannot be resolved by the insurer and its customer. | The assertion is backed up by findings from the Financial Ombudsman Service (FOS), which deals with claim disputes which cannot be resolved by the insurer and its customer. |
| In the past year the ombudsman has seen a 12% increase in complaints about insurers, the majority of which are about disagreements over claims. | In the past year the ombudsman has seen a 12% increase in complaints about insurers, the majority of which are about disagreements over claims. |
| "We are finding that insurance disputes are being harder fought on both sides," a spokesman for the FOS said. "One way insurance companies are controlling costs is by fighting insurance claims harder." | "We are finding that insurance disputes are being harder fought on both sides," a spokesman for the FOS said. "One way insurance companies are controlling costs is by fighting insurance claims harder." |
| In the financial year to March 2012, the FOS saw a 26% increase in complaints relating to motor insurance from the previous year, a 31% increase in buildings insurance complaints, a 23% rise in disputes about contents insurance, and a 55% increase in complaints involving critical illness insurance. | In the financial year to March 2012, the FOS saw a 26% increase in complaints relating to motor insurance from the previous year, a 31% increase in buildings insurance complaints, a 23% rise in disputes about contents insurance, and a 55% increase in complaints involving critical illness insurance. |
| In its report the ombudsman said: "It is disappointing when insurers continue to pursue cases to the final stage – requesting final decisions from an ombudsman – in areas where our approach is well known and clearly set out." | In its report the ombudsman said: "It is disappointing when insurers continue to pursue cases to the final stage – requesting final decisions from an ombudsman – in areas where our approach is well known and clearly set out." |
| In the case of motor claims it said: "Insurers can still be too quick to assume thefts are not genuine. | In the case of motor claims it said: "Insurers can still be too quick to assume thefts are not genuine. |
| "We have also had concerns in some cases about the way in which the insurer has investigated issues around 'non-disclosure' by the consumer. This has included disputes where the insurer had not properly considered whether the questions they asked the customer – or the questions on a comparison site – were sufficiently clear." | "We have also had concerns in some cases about the way in which the insurer has investigated issues around 'non-disclosure' by the consumer. This has included disputes where the insurer had not properly considered whether the questions they asked the customer – or the questions on a comparison site – were sufficiently clear." |
| Biba cited the case of an insurer that wrongly rejected the claim of an armed forces family posted overseas. While abroad the family put their belongings into storage; when they returned the belongings had been damaged, so they took steps to claim from the insurance policy of the storage company. | Biba cited the case of an insurer that wrongly rejected the claim of an armed forces family posted overseas. While abroad the family put their belongings into storage; when they returned the belongings had been damaged, so they took steps to claim from the insurance policy of the storage company. |
| "The claim was unsuccessful due to policy wording interpretation from the insurers, and the family was offered £4,000 – although their belongings were worth significantly more," a Biba spokesman said. "An insurance broker became involved and helped the family navigate the policy wording and evidence that their claim was valid, resulting in it being settled for £12,000." | "The claim was unsuccessful due to policy wording interpretation from the insurers, and the family was offered £4,000 – although their belongings were worth significantly more," a Biba spokesman said. "An insurance broker became involved and helped the family navigate the policy wording and evidence that their claim was valid, resulting in it being settled for £12,000." |
| The Association of British Insurers said it rejected Biba's research claims. Nick Starling, director of general insurance, said: "We do not accept any suggestion that it is getting more difficult for genuine claimants to be paid and we have seen no evidence pointing to this. | The Association of British Insurers said it rejected Biba's research claims. Nick Starling, director of general insurance, said: "We do not accept any suggestion that it is getting more difficult for genuine claimants to be paid and we have seen no evidence pointing to this. |
| "The priority of insurers is to pay all genuine claims as quickly and efficiently as possible." | "The priority of insurers is to pay all genuine claims as quickly and efficiently as possible." |
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