2 Articles caught my eye today

There were two articles that I looked at today with mixed feelings.

The first suggested that 50% of claimants were ‘dodgy’ and inflated their claim. Having handled claims for over 45 years, yes there are some people that do exaggerate claims but 50%. I really do not think so.

It is my experience that people go in conservatively so that the claim goes through quickly and with as little fuss as possible. This goes for men, women, professional or blue collar.

The trouble is with so many insurers now is that everyone is dodgy until proven innocent which could in fact be exasberating the whole issue.

On the otherside of the coin, 25% of the people surveyed when I did my doctoral thesis, stated that they believed that insurers and their loss adjusters slowed down the claim payment so that they could offer a lower settlement.

In an industry that is supposed to be based on Utmost Good Faith all of this is really quite distressing.

The second aritcle confirmed my worst fear and that is that more and more small business owners are going direct.

Insurance is so complex despite the commodiasation of insurance products but this constant focus on price over protection is going to really hurt brokers and the industry as a whole, not to mention Insureds, communities and our ecnonomy.

All of us in the insurance industry need to provide genuine advice to the customer on risk management and proper insurance protection.

I feel like a bit of broken record on this one but perhaps suveys showing the move away from brokers may prompt more to focus on the advice model.

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