When looking for insurance services, how do you know that the policies you choose offer fair value? An experienced insurance broker can help you understand the terms and conditions of your policy, so that you can ensure that you get the coverage that meets your needs at a price that is reasonable.
Regulator measures value
The Financial Conduct Authority have recently released their fair value measures report. What this is designed to do is to give the public an inkling of which insurers pay claims and which don’t.
At the moment this is just on personal insurance, so things like home insurance and car insurance, and the results are out there. It’s astonishing to understand that some insurance companies pay just over half of the claims they receive. So that’s a huge number of people that have paid their insurance and are not going to get the benefit of it.
Are they buying the wrong policies?
Some people, mainly insurance companies, say they bought the wrong policy. But the fact is the insurance company can stop them from buying the wrong policy. They can make it more difficult for people to buy the wrong policy. They can change their systems, they can change their processes so that people don’t buy the wrong policy.
They could do that. But they’re not going to do that overnight because they make a huge amount of money when people buy the wrong policy.
Imagine, collecting 50%, half of the people that they take on, they’re never going to pay anything out to.
There are other reasons why this happens. Insurers use claims managers and software and loss adjusters, who think it’s their job to decline claims and make terrible decisions on a huge number of occasions. So there are many reasons behind it, but the problem is, even though the FCA have published this report it’s not going to end any time soon, insurance companies are really slow to learn their lessons and improve things.
What should they buy?
So, if you want good advice about what you should be buying and what policies are not going to be any good for you, then we’re good people to speak to. Other brokers are good, but of course we’d like you to contact us.
But do please contact a broker, get good advice before you part with your hard earned money.
Wrap Up
Insurers are aware they have to do more, yet they are historically reactive so it will take time. Check out our Vlog here.
Top Tip
Go here and check what percentage of claims your home insurer pays. Do it today, before it’s too late. You will kick yourself if you don’t. I hate to write it, you hate to read it, yet the small print must be understood or the purchase is unlikely to offer fair value to the buyer.
