Despite the availability of accident management services in the UK market for over two decades, the Direct Commercial Limited (DCL) Broker Barometer reveals persistent strains in the relationship between brokers and accident management companies in the commercial motor insurance sector.
Broker dissatisfaction and transparency issues
The DCL Broker Barometer highlights that only 19% of brokers believe accident management companies facilitate a smooth claims process for commercial motor clients.
Furthermore, 88% of commercial motor brokers express dissatisfaction with the lack of transparency in how accident management companies derive and pay their fees. This dissatisfaction points to a need for clearer financial practices and more open communication between the two parties.
Concerns over claims farming
A significant concern among brokers is the perception that accident management companies contribute to claims farming. The DCL Barometer indicates that 82% of commercial motor brokers hold this belief, reflecting a distrust that affects the overall efficiency and integrity of the claims process.
Historical context and current challenges
Following the implementation of the ABI General Terms of Agreement (GTA) in 1999, many brokers established agreements with accident management companies to ensure prompt service for not-at-fault clients and to receive essential referral fees. However, the ongoing dissatisfaction suggests these agreements may need significant revisions or improvements.
Calls for greater openness and accountability
Joe Hantson of Direct Commercial Limited emphasises the necessity for improved transparency and accountability to restore trust and efficiency in the claims process. He states, “Our Broker Barometer findings highlight a pressing need for greater openness and accountability to restore trust and improve the efficiency of the claims process. We always encourage direct claims reporting to our team by drivers from the roadside, as timely intervention ensures quicker resolutions and keeps incurred costs down.”
Hantson further elaborates on the impact of involving accident management companies: “When you add accident management companies into the claims process, we do see this have an impact on direct reporting which can in turn contribute to higher overall incurred costs and less efficient claims handling.”
