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04 Aug, 2020|

Motor Claims: What Next in a Covid World?

We are no fortune tellers but we do have over 30 years’ experience in the shenanigans of the commercial motor market. In terms of motor claims, there will be much that is entirely foreseeable, even in a Covid world where road use is already returning to pre-lockdown levels.

We wrote in late March about the need for motor insurers to be as flexible as possible around return premiums, laid up vehicles and affordable rating. Largely we are delighted that that has been the case, at least so far.

What Types of Motor Claims Can We Expect to See?

Away from risk management and pricing what is concerning is the perception that we are entering a world where fraudulent acts will become more prevalent. The insurance industry has done more to counter motor claims fraud but as claims volumes start to rise again, whether they are real or fake, we are likely to see more opportunistic fraud.

Expect to see:

  • An uplift in vehicle fires and thefts
  • Individual staged accidents
  • Organised crime rings looking to exploit insurers’ weaknesses
  • Exaggerated vehicle repair costs and time taken to repair
  • Fraudulent personal injury claims
  • Increased fake motor insurance – “ghost broking”

If our predictions come true you can expect insurers to be significantly less flexible in terms of risk selection. The cost of insurance will inevitably increase too.

Anthony Jones are doing what we can to help our customers understand the importance of Road Risks. Talking to our motor customers about the importance of early notification of a claim and being aware of dishonesty as soon as possible is right up there, as is the importance of telematics and cameras.

Eight Tips on How to Improve Your Motor Claims Process

Here are some tips on improving the quality and speed of motor claims reporting following an incident:

Clarify – the process for reporting between all interested parties. This includes drivers, accident management providers, transport managers, lease companies and ourselves as brokers. This will mean everyone understands their role and responsibility.

Simplify – The more steps involved in the claims reporting process, the higher the likelihood of a compliance issue. ‘One Call’ solutions are the most effective.

Communicate – a comprehensive claims management procedure to your drivers. This should cover all types of incident with clear and practical steps that are suited to the business and the structure of your organisation.

Promote – an ‘open’ culture in relation to the reporting of incidents for all drivers. If it’s a ‘sin’ for drivers to have an incident, they will be dissuaded from notifying claims and admitting liability when they’re at fault.

Educate – drivers to understand the need to capture key data following an incident and provide it straightaway.

Equip – drivers to provide key information with supporting evidence from the outset. The earlier evidence is provided the more opportunity there is to defend effectively or to recover losses.

Affirm – the ‘need for speed’ when reporting claims. The earlier an incident is reported, the more effectively the resulting costs can be managed.

Use – the management information available to investigate whether drivers are adhering to guidelines and identify possible areas for improvement.