BIBA 2023 Allianz UK Blog: Why brokers play a crucial role in claims

Authored by Graham Gibson (pictured), Chief Claims Officer, Allianz UK

The insurance world will soon be gathering in Manchester to discuss how we are all rising to the challenge and it would be an understatement to say this is one of the most difficult periods in recent times. For claims people like me, the BIBA conference is a great opportunity to highlight the crucial role that brokers play in the claims process. Their cooperation with insurers makes a huge difference to our mutual customers, especially in the middle of a cost-of-living crisis, with inflation at levels not seen for decades.

It all starts with policy purchase. Brokers’ role at this stage is very well known: they use their expertise to guide customers through the various insurance options, ensuring that they get the cover that matches their needs. But that initial choice has far-reaching consequences at point of claim. It is not just about finding the right policy for a business’s risk profile. It is about ensuring that particular business has the adequate level of protection should a claim arise and what matters to the customer has been fully understood and embedded in the product.

Business owners have a lot to think of at the moment. Inflation might be slowing down but prices are not going down. Entrepreneurs are juggling between various cost pressures, with insurance only one of many. While they might be tempted to cut corners, it has never been so vital for their business to protect themselves from financial loss.

Brokers play a vital role in ensuring that customers get the right level of cover. They should pay particular attention to the indemnity period, as current supply chain issues may elongate repairs and business interruption periods. They should also double check sums insured, as inflation is increasing building values and repair costs in a way that we have rarely seen. Because of these multiple effects, inflation is escalating the underinsurance risk. Insurers and brokers have been working closely together to raise awareness of this risk and to help businesses calculate their indemnity period and sums insured correctly. Insurers have been writing BIBA guides, organising webinars and sharing tools with brokers, who ultimately have been the ones guiding customers and liaising with them.

One of the ways that brokers can help with claims is by encouraging early notification. The earlier a customer reports a loss, the quicker the claims team can understand what matters to the customer and what needs to be done to provide the right help and solution. Brokers can also assist by gathering information, including documents and pictures, allowing insurers to assess the damage and validate the claim. Timely information is key to making the claims process smooth and efficient.

Customers and brokers can use the digital assets that insurers have been rolling out to notify claims and check their progress. From apps to online portals, this technology keeps information flowing 24/7 and is much valued by people who like to self-serve. To handle claims more efficiently, insurers have been digitising and automating parts of the process but they need to strike a balance between technology and the human touch. My Allianz colleagues and I were delighted to receive the Gracechurch marque based on brokers’ assessment of our claims service, particularly as they said we had struck the right balance between the digital element and the human dimension. We don’t forget that our broker partners contribute very much to the personal service our mutual customers receive.

By building strong customer relations and customer service, brokers also shape customer trust, which we can leverage for sustainable claims. For instance, brokers can educate customers about green spare parts for motor repairs or climate-friendly methods of property repairs. These solutions are not only good for the planet, they can help fix cars or restore buildings more quickly. Through their technical expertise and the customer trust they build, brokers can really support the wider adoption of these environmental methods of repair.

Ultimately, brokers play a huge role in customer satisfaction. They are often the first point of contact for customers when they experience a loss, and their expertise and guidance can make a significant difference in how smoothly the claims process goes. They can assist businesses to weather the storm of the cost-of-living crisis, as well as supporting sustainable claims solutions to preserve the climate.

Biography:

Graham Gibson is chief claims officer and a member of the Allianz Commercial executive committee. He is responsible for claims customer service delivery and technical integrity, as well as procurement and workspace services, complaints and fraud, and Allianz Engineering Inspection Services.

Graham represents Allianz in a number of market initiatives. Currently, he is the chairman of Thatcham and a director of the Insurance Fraud Bureau (IFB).