Gallagher warns of claims disruption as market hardens
The hardening insurance market is causing disruption to claims processes, according to Gallagher’s latest quarterly market report.
“Navigating the claims maze always has associated challenges, and these are exacerbated by the hardening market,” the broker says.
It warns that insurers often look to cut claims costs when their bottom lines are hurting, and this can include offshoring claims teams.
The report says clients often turn to smaller insurers during a hardening market to make premium savings, but these companies are less equipped to handle large and complex claims. It also stresses the added importance of using a trusted broker during such times.
“The harder market places an onus on Australian mid-market and corporate entities to ensure their broker has the size, expertise, capacity and national reach to effectively manage the claims process on their behalf,” Gallagher says.