We often assist clients with claims litigation cases and with clients who must suddenly deal with an influx of unanticipated claims.
The critical challenges for insurers are balancing cost control against the need to pay legitimate claims and keep clients satisfied. Claims are in flux and currently experiencing the biggest shake-up of the last decade. Customer expectations have altered, with customers and the general public pushing for more sustainable, real-time solutions.
Key trends we have identified in claims are as follows:
Technology
Technology plays a part not only in claims process transformation but also in loss prevention. We expect technological change projects to continue to dominate both short and long-term claim projects.
Risk Prevention
Insurers are looking more holistically at risk and how to work with policyholders to prevent claims. Technology and data help drive the risk prevention agenda.
Sustainability
Sustainability in claims continues to be a key driver. Motor appears to be leading the way with increased engagement from manufacturers, suppliers, and customers.
Data enrichment
The market as a whole is data-driven. Data drives claims management and fraud detection. Availability of data and data transfer speed allows for better and quicker decision making, which shapes the claims function.
Supply Chain Disruption
The last year has seen an unprecedented amount of disruption in the UK supply chain. As well as creating an unexpected influx in the claims market, supply chain challenges continue to affect the speed and cost of claims directly.
We can assist at many stages in the claim cycle. Below we highlight different claim solutions we provide:
Prior to loss
| Claims Management
| Advisory services
| Reporting and analytics
|
Explore our insurance services
Case study |
We recently worked on a review regarding the settlement of claims made under the ATOL protection scheme resulting from the collapse of a British, Global Travel group. At the time of engagement, the claims process was in its infancy stage, and Mazars shared some best practice processes and lessons learned from other such projects to assist with developing the claims system. The project was time-sensitive, being subject to both public and governmental scrutiny. Mazars were engaged in assuring the processes and controls to compensate future customer bookings and out-of-pocket expenses made due to the collapse. The project included reviewing two claims management companies (CMCs) appointed to process claims. Mazars also provided insight and participated in the presentation of losses to insurers. The review was more recently extended to cover the review of the claims handling arrangement regarding claims settled and paid by the CMC’s specifically looking at the timeliness and accuracy of the claims handling and the effectiveness of fraud detection. This involved reviewing a representative sample of claims within agreed criteria. |
To discuss any of the above services with a member of our Insurance team, please contact us today
The UK is experiencing a cost-of-living crisis due to a prolonged period of high inflation. The CPI (Consumer Price Index) rose by 6.7% in the 12 months to September 2023, down from a peak of 11.1% in October 2022. Prices have been increasing due to many factors including knock-on impacts of the Covid-19 pandemic, the Russia-Ukraine conflict and, more recently, a rise in the cost of services and wages.
In July 2023, the Financial Conduct Authority (FCA) made changes to its handbook [1] to embed guidance on good outcomes for customers experiencing financial difficulties. This sits in ICOBS 2.7 and, whilst claims handling is not specifically mentioned, it is relevant to how you support your customers at the point of claim.
The New Consumer Duty requires firms to support their customers throughout the entire lifecycle of a product, including the claims handling process. Claims handling is a key part of the consumer experience and firms should ensure that customers are treated fairly throughout the claims process.
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In a constantly changing and dynamic world, our Actuaries can support you to ensure you are up to date and informed with the latest industry developments, and provide a full range of actuarial services delivered in line with the quality that you expect.
We combine claims, financial, actuarial and IT expertise to provide clients with a multi-faceted approach to mitigate the risks and challenges posed by long tail claims such as asbestos, pollution, and health hazard (APH) claims. Our work has been used by actuarial, claims, legal, finance, and risk management groups. Based on our years of experience, we provide its clients with practical advice for...
On 15 September 2020 the High Court handed down its eagerly awaited judgement in the FCA’s business interruption (“BI”) test case.
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