Penny Hallam’s Post

When I was dealing with insurance complaints the position about the amount to pay for total loss motor vehicle claims was clear. Insurers knew they had to pay the amount it would cost the policyholder to go and buy a replacement - that’s market value and is (in most cases) the level of cover people have bought and paid for when they insure the vehicle. It was always annoying that I would see examples of insurers undervaluing and making initial offers below market value. At the risk of sounding suspicious - it often felt to me that this was a deliberate ploy to get the policyholder (often desperate for the money because they needed to buy a replacement car for work or family activity) to accept the low offer. Most policyholders (especially the vulnerable) cannot afford to wait for the money and feel forced to accept the only offer on the table. Reading this report makes me really angry. This isn’t difficult. It’s really clear and has been for many years. So why is it still happening? Motor insurers, hang your heads in shame. #motorquantum #motorinsurance #fcareport

We’ve carried out a review assessing how some motor insurers are valuing written-off or stolen vehicles. Firms should consider our findings and reflect on their own practices. #FinancialServices #MotorInsurance #Insurance

Seems that the Motor Sector are having a few problems; firstly GAP Insurance, then issues with Commission deals on Car Finance and now the turn of the Car Insurers - still not getting it right after 18 years of FSA / FCA regulations....

Very interesting to see another example of the FCA getting under the bonnet with Consumer Duty on the topic of motor insurance. Bad pun very much intended. Increasing transparency in valuations for claims to ensure consumers don't miss out should be a clear focus area for insurers.

In March 2024, the Financial Conduct Authority (FCA) released a publication titled ‘Findings of a Multi-firm Review into Insurers’ Valuation of Vehicles’. Since 2020, the FCA has been investigating how general insurers handle claims from policyholders. This recent review specifically looked into firms’ processes for valuing vehicles that have been stolen or written off. Our recent article discusses the implications of the FCA’s review and the processes underpinning it. We explore key points from Consumer Duty to the need for a thorough data-led approach from the perspective of individual customers. To read the full article, click here: https://bit.ly/3VE62Il #FCA #Insurance #ConsumerDuty

Just read an insightful article on PropertyCasualty360 about AM Best's negative position on U.S. personal lines insurance extending into 2024. The outlook is driven by various factors, including rising loss cost severity and increased losses from secondary perils. As the personal lines insurance segment faces challenges, it's crucial for insurers to adapt and find innovative solutions to maintain profitability and provide quality coverage to policyholders. Stay informed about the latest trends and developments in the insurance industry to make informed decisions and navigate the evolving landscape. #InsuranceIndustry #IndustryTrend #educatetoempower #privateclient #riskmanagement

This is the second major speech in the last few weeks from senior FCA Executives with a major focus on Consumer Duty. And after the “Dear CEO” warning letter from the FCA in February, firms should be under no illusion that ‘ticking a few boxes’ is the route to Consumer Duty and Fair Value compliance. Read our full article on the subject here ( https://lnkd.in/eh_v7PZN ) and find out how the VisRisk solution provides a solution that is aligned to the regulator’s expectations here. ( https://lnkd.in/eZvhYvBT )   In his speech, Nikhil Rathi says “…firms which deliver the outcomes in the Consumer Duty well should have a competitive edge.”. But the implication is clear. Firms that do not will – (and have, GAP Insurers being a well-publicised example) – see regulatory action taken.   Article link: https://lnkd.in/epc6JsuF If you would like to know more about the Consumer Duty, Fair Value or VisRisk please speak with Claire King or Kenneth Underhill. #ConsumerDuty #Insurance #advisoryservices

Do you feel the new Consumer Duty now makes arranging/promoting property rebuild valuations to your clients more vital to you? Earlier this year, we asked 468 insurance brokers about the Consumer Duty, which aims to deliver good customer outcomes. Most told us they were either ‘confident’ or ‘very confident’ that they understood the new rules, while 6% told us they weren’t confident at all. 33% were unsure. Read our full article https://lnkd.in/eyuzwF-u #insurance #property #underinsurance #consumerduty #fca #brokers #rebuildcost #compliance

Do you feel the new Consumer Duty now makes arranging/promoting property rebuild valuations to your clients more vital to you? Read our full article 👇

Not the best news to hear. This means clients will continue to need professional advice on how to mitigate losses as well as cost effective ways to manage the overall insurance spend. We can help.