Opinion: Tips to get your clients’ claims across the line quickly

- Malcolm Harvey, the founder and executive director of Qlaims
- 22 Feb 2023
- Indicative reading time: 4 minutes

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Getting claims paid is not as straightforward as it once was, according to Malcolm Harvey, founder and executive director of Qlaims. Here, he explains a few hacks that might at least help speed up settlements.

Sorry if any of this article is like “teaching my grandparents etc…” and I do appreciate that a lot of brokers are on the front line of claims everyday.

But having worked in the world of property insurance claims for more than 35 years, I’ve seen most types of claims against most types of insurers. So if you don’t already, do try some, or all, the ideas mentioned here because they work for us, and should be applicable to you too.

Looking back, it’s been a very long time since property claims were straightforward, with the insurer, broker and claim advocates working collaboratively to get the insured’s claim paid quickly.

Radio silence from carriers and their representatives when trying to settle a client’s claim is becoming the norm. The unpaid hours a broker can spend in chasing a settlement is becoming ridiculous.

A lack of loss adjusters

So what are the reasons for why this is happening now?

First, while the number of claims is increasing, the chartered loss adjuster population is diminishing. There are currently around 970 operating in the UK, with the number due to halve in the coming years. Getting feet and eyes on ground will only get harder.

While the number of claims is increasing, the chartered loss adjuster population is diminishing. There are currently around 970 operating in the UK, with the number due to halve in the coming years.

Second, call me jaundiced, but I get the impression that a number of Insurers’ claim departments, post Covid-19 pandemic, are either working from home or ‘flexible working’.

Most significantly, claim staff no longer put direct dials or mobile numbers on their email signatures. They can quite easily go into radio silence, or adopt an ‘Omerta’ vow of silence. Perhaps after much urging, they may have reluctantly answered an email or call, but then fail to take the promised action.

So, here are some hacks we use to help, which might help you to speed up your client’s claim settlements.

Package the claim as quickly as possible

This is completely within your control. Do not wait for the carriers’ adjusters to attend, or for liability to be agreed, this alone can slow the claim down by several weeks. Instead, I recommend you do this:

Video and photographic evidence is ideal to show damage on day one, and prove the loss especially if this is time/date stamped and, even better, if a geolocation is provided.
Take the initiative and get emergency contractors for drying, electrical safety checks and scaffolding as soon as possible after the first notification of loss. Some emergency works may be required even before liability is accepted. Make sure that family and home, or employees and business assets, are safe and secure.
As their broker, if you feel that the loss might require the attendance of forensics to determine causation, ensure your client keeps the relevant parts of property isolated and secure.
Get your clients to start a preliminary list of items lost or damaged. Provide them with a preformatted spreadsheet showing columns for description of item/age/replacement costs, and a column for hyperlinks direct to the supplier.
Submit at least two estimates for building reinstatement works. We like to submit three whenever possible. This is particularly relevant after nationwide storm, flood, or surge events when contractors start quoting silly prices as customer demand will exceed supplier capacity.
Provide estimates for larger or more expensive contents items and reports confirming that the originals were damaged beyond repair.
Where possible, provide proof of prior ownership of expensive items, for example family photographs showing the items being worn, or in the case of artworks, furniture etc. in the background of a photograph. Corporate brochures and website pages will often show offices and factory floor layouts pre-loss. For smaller items, a hyperlink to a supplier/Amazon etc. will suffice.
If insurers still require a claim form, make sure that the claimant has fully completed one. A ‘jobsworth’ somewhere can hold up the settlement – yes, really, I’ve seen it happen.

Truncating the claim

Once the claim is in, and with insurers or their adjusters, the next question is: what can I do to truncate the claim? I would offer the following pointers:

It’s a complete waste of time to call unless of course you have a nominated adjuster/adjusting firm that might just return your call. Send an email stating a reasonable timeframe in which you expect a response. If you manage to engage verbally, ensure that you note the caller’s name, time, date and take good notes.
On the reminder email, we often state that one final email will be sent prior to escalation. State, and put in writing: “Your lack of response is not treating your customer fairly”. Or even better: “Your lack of response is not in line with Financial Conduct Authority’s rules and expectations”.
Remind insurers of the FCA’s new consumer duty, which requires firms to act to deliver good outcomes for retail customers, which of course extends to SMEs.
Dependent on the amount of the claim outstanding, escalate either to an officer of the adjusting company or the insurer’s claims director.
Think carefully before invoking the Insurer’s formal complaint procedure, as this results in an additional process that may not help the speed of the claim.
On severely delayed claims, request that interest should be paid on the amount outstanding. We’d normally request 2.5% above the Bank of England base rate for the length of time the claim remains unpaid.

Taking this all on board, we recently escalated a severely delayed settlement to an managing general agent’s CEO and asked him to intervene, suggesting that our client be paid interest on the outstanding balance: the 6% rate of interest sought being commensurate with a commercial loan from our client to the insurer.

True to his word, the CEO intervened and arranged for the claim to paid within 24 hours, and agreed the interest payment for our client.

It can be done.

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