Brokers raise alarm over rising claims costs in non-standard insurance sectors

A recent survey by Prestige Underwriting reveals growing concern

According to the survey, a significant 70% of brokers have reported a rise in claims costs, with nearly a third indicating that these increases have surpassed their expectations.

The survey, conducted by Prestige Underwriting, took a close look at various sectors within the non-standard insurance space. Findings highlighted the home insurance market as the most affected by claims inflation. Over a third of brokers identified home non-standard insurance as experiencing the highest surge in claims costs. In contrast, the commercial non-standard sector appears to have been spared from major increases, with only 17% of brokers reporting substantial rises in this area.

In addition to rising costs, the motor market has presented brokers with further challenges. A considerable 62% of brokers noted that their policyholders are facing delays in getting vehicles back on the road after a claim is made. This issue is proving particularly frustrating for both brokers and policyholders, further complicating the claims process.

Tim Baxter (pictured), head of broker development and partnerships at Prestige Underwriting, addressed these concerns, emphasising the need for improved efficiency and transparency in the sector. He stated, “Rising home insurance claims costs and delays in vehicle repairs are impacting both brokers and policyholders. At Prestige Underwriting, we are committed to supporting brokers and policyholders in navigating these challenges.”

Baxter further stressed the importance of insurers streamlining their claims processes and improving communication to help both brokers and their clients better understand the reasons behind repair delays. “By fostering transparency and keeping brokers and policyholders informed, we can work together to improve the overall experience and efficiency in the non-standard market,” he added.

Image of Tim Baxter provided by Prestige Underwriting / Skythorn Ltd

Josie Miller Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.miller@barkerbrooks.co.uk