Service Levels of Insurers – The Reality Customers Face

Poor insurer service levels have become a common issue across the industry. One of the most frequent scenarios clients experience is when something breaks — such as a security alarm — and the insurer simply fails to respond. It sounds trivial until you realise that this instantly places your cover at risk.

When an Alarm System Fails – You’re Already in Breach

A typical example is a contractor accidentally damaging a cable during works, disabling your alarm system. The assumption is that it can be repaired quickly. But installation regulations often change, and replacement work cannot be completed without upgraded parts. Until that happens, the alarm is out of use.

Most commercial insurance policies contain a condition hidden in the small print:

“The alarm system must be operational whenever the premises are unattended.”

The moment the alarm is off, you are technically in breach and no longer covered for theft.

The Communication Breakdown With Insurers

Most clients responsibly notify their insurer immediately. This should trigger a temporary relaxation of terms or a pragmatic solution.

Instead, what increasingly happens is silence:

• No phone response

• Voicemails ignored

• Emails unanswered

• Portals with one-way messaging only

Without written confirmation from the insurer, the client is left technically uninsured — through no fault of their own.

What You Can Do: Establishing a Paper Trail

In practice, the most effective approach is to put the insurer on notice in writing:

“In the absence of your response, we will assume full cover applies and you are maintaining all sections of cover until the alarm is replaced and operational.”

What is remarkable is that this type of message suddenly elicits a response within hours — after days or weeks of silence. It highlights that the capability to respond exists, but is simply not exercised until risk is pushed back to the insurer in writing.

Why Brokers Are Still Essential

This is one of the key reasons brokers continue to be indispensable. Insurers increasingly push customers toward self-service portals to remove human contact — and reduce accountability. Brokers step in where standard service channels fail and ensure cover is maintained.

If regulators believed service standards were working, they would not be experiencing the current volume of Financial Ombudsman claims that stem from poor insurer responsiveness.

Are Regulators Doing Enough?

Regulators tend to get involved only once service failures escalate into refused claims and escalations to the Ombudsman. By this stage, customers are already financially damaged — despite paying premiums in good faith.

The Ombudsman should not function as a safety net for insurers who provide substandard service. The broader issue of weak communication should be addressed before it becomes a claims dispute.

Final Thoughts

Service levels in the insurance sector are declining, and customers are left exposed simply because insurers fail to engage. Until regulators treat poor service as a barrier to fair cover, brokers remain the most reliable interface between clients and insurers — ensuring policyholders don’t pay for cover they are silently denied.

Top Tips

When insurers fail to communicate, protect yourself by notifying them in writing, assuming full cover continues in the absence of a reply, preserving evidence, and escalating through a broker if necessary.

Wrap Up

Ultimately, poor insurer service levels leave clients exposed unless they create a written record that places responsibility back on the insurer, something brokers remain essential in achieving.

If you’re frustrated by slow responses or unclear communication from your insurer, our experienced brokers can step in to ensure your cover stays in place and your claims are handled efficiently. Contact us today to protect your business and get the support you deserve.