What a week – I share two insureds’ (both from within the insurance industry) experience with claims.

Every day I spend an inordinate amount of time addressing claims that are off the rails. Here are just two emails that I received today. Neither seeking my help but just wanting someone to share their frustration on.

I appreciate that you cannot turn an oil tanker around quickly, but if we are going to really consider the Insured’s customer experience we have to start doing the right thing.

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Hi Allan

As an FYI I wanted you to know that I am having difficulties with an [insurers name withheld] contents claim, this is my first ever.

In summary we experienced water damage in November last year and lodged a claim after being able to identify what was strata and what was personal contents. I have provided XXXX with all supporting information (original invoices for damaged items, quotes for replacement from the same source and other insurers reports) last December and have tried several times to contact them but very long telephone queues.

I confirm that XXXX sent out an assessor and I have paid my excess.  

When I called XXXX 10 days ago I was informed that the file had been closed with no reason provided. I was given the option of waiting on hold for the availability of the right team and was advised about long queues. I declined this and asked to be put through to their Complaints dept however I was told that they did not know anything about this resource. When I called the website published complaints number it did not have a Complaints option in the IVR sequence. I have lodged a complaint online (initial promise in their correspondence is that they will be back to me in 24 hours – no contact yet). The XXXX website states it take up to 15 days to respond. I have very little confidence in this process.

My intention is to go to AFCA once the 15 days is up (next week). I know it is not 45 days since my complaint lodgment. I want to see how the process works from a practical sense and how easy it is to get a determination for  non-financial loss.

I know the process and I understand how to negotiate an outcome however I am concerned at how difficult it would be for a non insurance person to just put up with the bad behaviour.

I am more than happy to share what happens if you want a case study for publishing.   

Ash [Surname and email provided]

Ash by the way is head of compliance for a large underwriting agency. How can any insurer collect the excess, then not pay anything and close the file without at least refunding the excess?Secondly, having identified a genuine problem you just tell the customer that there is a long queue without trying to find a reasonable way of helping. Finally, where is the loss adjuster in all of this?

The second one is:

Morning Allan,

Hope I find you well and thought I would pass on the good job Peter O’Brien and the LMI legal team are doing for us and our clients.

I also thought you might be amused at how [name withheld] appear to be acting in rather Bad Faith to carpark damage to my Audi.

I went to the panel beater on 24/1 as directed by the insurer and as you can see have paid the excess. The panel beater has not yet had approval (which is in breach of the Code of Conduct) I rang to complain and was told “Oh I think you need to send it to another panel beater”.  Hmm! Most amusing seeing I have done what was asked of me.

I now find that this Panel beater [name withheld] has over 66% of their reviews with 1 star and that this entity is owned by the insurer.

I believe this must be in Breach of the Corporations Act in that it is third line forcing its Insureds to a sub standard panel beater for the single purpose of saving money for the insurer rather than properly indemnifying the insured for the damaged.

It is clear from the actions of the staff of the insurer, unwittingly are caught in a corporate greed climate of providing a less than satisfactory product to the insured.

There are sever penalties for Breaching the Corporations Act and I am surprised that the insurer in all its forms is getting away with this.

No wonder our industry is tarnished with a bad name.

Kind regards 

Richard [Surname and email provided]

 

In this case, Richard is the National Technical Services Manager at a large insurance brokerage. In both cases these are senior general insurance people that work for companies that pride themselves on their claims service. I of course will be there should they need me.

All of us need to consider the claims service of the provider that we choose or recommend to our customers. While both these people are quite capable of getting their claim resolved, it is a lot more work than they expected. What all three of us are worried about is mum and dad, every day Australians who have no idea how insurance is supposed to work and go away from the experience hating insurance and telling all their friends as these two have done with me.

Remember to use  LMI ClaimsComparison.com, along with LMI PolicyComparison.com  as part of your decision making process.