Jason Peto, insurance fraud expert, 360Globalnet, takes issue with a new industry report.
“The ABI report stating that insurers paid out 99% of claims made in 2013/2014 might be a vain attempt to assure customers that insurers are trustworthy but, given the industry’s continued attempts to cope with the surge in fraudulent claims, I think it flies in the face of the efforts that everyone is making to reduce pay outs for fraudulent and exaggerated claims.
We’re awash with commentary and statistics showing the surge in fraudulent claims, especially at the end of last year so, sadly, hailing a 99% pay out rate as a ‘success’ undermines all the efforts being made to tackle fraud – of which there are many – and acts almost like a confession that the industry is soft on fraud. Surely, a report that details how much a policyholder is being saved (in the cost of a premium or less tangible ways, like time for a claim to be settled, or fraud identification rates) is a far better way to communicate to customers that the industry has the customer’s interests at heart. Even if this means a pay-out rate that is far lower than 99%!”
Car insurers pay out on 99pc of claims, the industry today claimed as it published such figures for the first time in an attempt to "improve improve customer trust".