The Association of British Insurers (ABI) has recently published some interesting statistics relating to claims on motor insurance policies. Specifically, it has revealed that the average amount paid out last year for each motor insurance claim was the largest amount since records started to be kept for this sort of cover.
The figure was £2,936. Apparently, a couple of reasons why this sort of cover hit a record was down to the fact that the cost of repairing a motor vehicle has gone up as well as the amount paid out to meet claims when a car is stolen has risen which happens all too often.
Last year, a staggering £8.1 billion was paid out by insurers to meet all motor insurance claims. This was a similar figure to 2016. It would be potentially good news if the amount of such claims fell in 2018 and beyond as this is one of the many factors that affect how much insurance companies charge for their car insurance. Perhaps if the amount paid out for claims was to fall, we may see a reduction in the cost of our motor insurance policies.
Another interesting statistic is that the average amount paid out for a claim in respect of personal injury was £10,816 in quarter four of 2017. This is a large sum and is also a factor that dictates how much a motor insurance provider charges new and existing customers who renew their cover. Again, it would be lovely if we were to see the average amount paid out for a personal injury claim to drop as this is another factor that may impact on the amount motor insurance providers charge for their cover.
Apparently, the number of claims submitted for personal injury dropped slightly in 2017 when compared with 2016. Of the claims submitted, there were 320,000 that insurers agreed to pay out for.
Of course, policyholders would prefer not to have to be faced with having to claim on their car insurance policies but when they do it is important that they are confident that the insurance company the cover is arranged with will pay out in the event of a claim as quickly and effortlessly as possible. So, if you are looking for quality motor insurance that is not only competitively priced but also where the insurance company is well known for the number of claims that they agree to meet, then why not get in touch with us on 02380 268 351 and a member of our team will gladly do all that he or she can to assist.
If you want to arrange the likes of home (buildings and contents) insurance either for the first time or are considering moving your cover from your existing insurance company to a new provider there may be several factors that will have a bearing on which insurer you take out the cover with. For most people, the number one consideration is how much they will have to pay in premiums to the insurance company to protect their home and contents in the event of things like fire, flood, accidental damage and theft.
That may sound fine but the reason why you require such cover is to give you peace of mind so that if your home was burned to the ground, your Rolex stolen or your skiing equipment damaged in transit you could claim and the insurer would cover the vast majority of your claim to rebuild your property and/or replace or repair the damaged items. So, surely another factor that you should consider when deciding which insurer to arrange the cover with is the percentage of claims that it ends up paying out for.
In that respect, you may be interested to read that, on the 1st March 2018, the Financial Conduct Authority (FCA) published the “General Insurance value measures data – year ending 31 August 2017”. This document includes data from 36 insurance companies (UK and EEA firms) about claims acceptance rates, average claim pay-outs and claims frequencies. The publication can be viewed on the FCA’s website via the following link: –
If you take a look at the Claims Acceptance Rate column in the section relating to Home Insurance you will see that there is a wide variance in the percentage of claims insurers agree to pay out for.
At the top end of the scale the following insurers accepted 97.5% to 100% of claims: –
• Chubb European Group Limited
• Hiscox Insurance Company Limited
• Hiscox Syndicates Limited
• Acromas Insurance Company Limited
• Liberty Insurance Limited
• Royal and Sun Alliance Insurance PLC
• The Salvation Army General Insurance Company Limited
You will note that both Chubb and Hiscox are in the top scale of 97.5% to 100% when it comes to meeting claims. We are pleased to say that, here at AIB Insurance, they are two of the companies that feature highly on our panel of insurers when it comes to arranging buildings and contents insurance for our high net worth clients.
On the 25th January 2017, the first publication of the General Insurance value measures data – year ending 31 August 2016 was produced. On that day, James Bridge, Assistant Director, Head of Conduct Regulation, Association of British Insurers, said: “Every day home insurers pay out over £8 million in claims to customers, and are committed to doing all they can to ensure that insurance delivers when the worst happens. The FCA data shows that the vast majority of claims are paid out.”
When AIB Insurance recommends an insurance company to a client, we take several things into consideration such as price, claims experience and the quality of the customer service. So, if you are looking for home insurance or, indeed, any other insurance cover why not give us a call on 02380 268 351 to discuss your requirements with an experienced, friendly member of our team who will arrange to provide you with a competitive quotation. We look forward to being of assistance to you.
We are pleased to inform you, our valued customers, that we have added Chubb Insurance to our bespoke panel of insurance companies. It has built an enviable reputation for the products and services it provides.
Chubb has been established for many years and is part of the biggest property and casualty insurer in the world. Here in the UK, the business focuses on a number of insurances including motor, home, accident and health, travel, aviation, the biogas and solar industry, commercial insurance, cyber risk, the construction industry, the marine industry and liability cover.
The company has been involved in providing motor insurance to high net worth individuals for over 20 years and household insurance to such customers for over 40 years.
In a very short period of time we have built up an excellent working relationship with Chubb. It prides itself on its quality of service right throughout the process of arranging tailor-made cover but also the company responds rapidly in the event of a claim being made by one of its policyholders providing unrivalled support during what is often a traumatic period.
In fact, in respect of household insurance, since 2000, Chubb has won the Insurance Times Industry Awards for Best Personal Insurer on no less than 8 occasions. It was the winner of the Insurance Times Broker Survey for Best Claims Service on 6 occasions since 2006. Furthermore, Chubb won the Best High –Net Worth Insurer award at the 2015 Private Asset Management Awards. In respect of motor insurance, Chubb has been the winner of the Insurance Times UK Broker Survey for the quality of its claims service and cover since 2014.
You can find out more about the products it provides by visiting the www2.chubb.com/uk-en website but below we have provided extracts from Chubb’s Home and Contents Insurance, Jewellery and Fine Art and Motor Insurance brochures highlighting some of the features and benefits of both products.
“ Chubb Masterpiece Home and Contents Insurance
What does it cover?
• All of your homes, UK and abroad are covered on the same policy as your main residence.
• With our agreed value approach for valuables and cars, the result is accuracy and a speedy claims payment.
• Following a Chubb appraisal, we will agree on the buildings and contents sum insured, including automatic cover for gardens and outbuildings.
• For most homes, we guarantee that, whatever the cost, we will rebuild your home exactly as it was. In effect, giving you unlimited cover.
• We let you choose the craftsmen for any repairs and refurbishments.
• We also agree the contents sum insured. Then, for most homes, if this sum is insufficient to replace the contents, we will automatically increase it by up to 25% without charging you more.
5 key benefits of Masterpiece
1) Your choice of contractor
We encourage you to choose your own contractors and craftsmen to repair your property following a claim.
2) Unique home and contents appraisal service
We don’t make underinsurance your problem. Our in-house experts will help establish the value of your property and contents to ensure you have the right amount of cover.
3) No restrictive conditions or warranties
We won’t limit your cover or restrict your lifestyle with onerous clauses. We rely on your natural concern to care for your possessions
4) We settle on a ‘new for old’ basis
When replacing your contents, Chubb pays you what it costs to replace the item today up to the value agreed on your policy
5) All homes on one policy
Whether you own a country house and a city apartment or an extensive worldwide property portfolio, you can enjoy exceptional cover under the same policy as your main residence.”
Within the Chubb Masterpiece Home and Contents Insurance policy it is possible to insure Jewellery and Fine Art and below we highlight what is covered: –
“ Jewellery and Fine Art
• You have automatic worldwide cover for ‘all risks’ with almost no restrictive conditions. Our policy includes accidental loss or damage and you’re covered when travelling – eliminating the need for separate personal effects cover.
• If your jewellery is lost, stolen or damaged beyond repair, our ‘agreed value’ for specified items gives certainty about the financial consequences in the event of a claim. We’ll pay you the full sum insured (not a depreciated ‘market value’) with no deduction for excess. There’s also a lower premium rate for specified jewellery.
• If you lose or damage part of a ‘pair’ or ‘set’, we’ll offer to take the remaining parts and we’ll pay you the full agreed value of the entire set.
• If your jewellery loses value after damage we’ll compensate you for any loss in its agreed value due to the claim.
• Under our Signature policy, if you buy a new piece, we’ll cover new purchases immediately for 90 days, 60 days under our Initial and Masterpiece policies. After the 60 or 90 day period, we must be instructed to add the items to the policy to avoid underinsurance.
• No valuations are necessary for jewellery under £50,000 and we can insure collectables separately.
• Similar generous terms apply to art, antiques, guns, wine, instruments, handbag collections and other collectibles.
Chubb’s Masterpiece Motor Insurance
What does it cover?
If your car is written-off or stolen:
• With our ‘agreed value’ approach, we’ll pay you the full sum insured with no excess, not a depreciated ‘market value’.
• If the car is under 15 years old and its replacement cost exceeds your agreed value, we will pay more than the sum insured to help you buy a like-for-like replacement.
• If the car is over 15 years old, subject to a limit of £100,000, we will pay 25% more than the sum insured to repair your cherished vehicle and get it back on the road.
• All courtesy cars are immediately dispatched after fire, theft or accident. We provide up to £4,000 for you to rent a car of a similar specification to your own, in the unlikely event that the courtesy car is unsatisfactory to you.
• We’ll replace your sound system for the full cost, with our unlimited audio/stereo cover.
As well as for driving your own cars, you’ll be comprehensively insured for:
• Driving any car you don’t own (applies to all named drivers).
• Lending your car to anyone not living with you.
• Business trips (except hiring your car for a fee).
• Driving in Europe at any time. Insurers will often limit this to 30 days.
If you break down:
• You’ll have Europe-wide breakdown cover for you and your family, including HomeStart.
In addition to this, you can also expect:
• Solicitor’s fees when pursuing a claim for personal injury or uninsured losses of up to £100,000.
• Child seat replacement after an accident, even if there’s no visible sign of damage.
• No premium increase or loss counted against you when the loss isn’t your fault, for instance due to vandalism or if your car is hit when parked.
The key benefits of Masterpiece
1) Diminution In Value cover Diminution In Value (DIV) is a pioneering new cover that pays the policyholder the difference between their car’s market value before and after a repair, as well as the repair costs. The cover applies to cars over 15 years old and will be paid out if the car has been valued or purchased at least 24 months before the loss.
2) We pay the agreed insured value
Most insurers settle total loss and theft claims based on the market value of a vehicle at the time of loss. Chubb provides “agreed value” cover, so the value of your car is locked in for the entire policy term. If you need to make a claim to replace your vehicle, you’ll receive 100% of the value we agreed whether it’s Day 1 or Day 365 of the policy.
3) Automatic comprehensive cover on borrowed vehicles
Insurers often only provide third party cover when you borrow another vehicle. With Chubb, you and other named drivers enjoy fully comprehensive cover on any vehicle you rent or borrow. And anyone driving your insured car is fully covered.
4) You choose the most suitable repairer
Most insurers stipulate where your vehicle should be repaired. Chubb allows you to select the most suitable garage, dealer, upholsterer or coachbuilder, or we can help you select one from our approved repairer network and we’ll guarantee the use of original manufacturer’s parts. “
Here at AIB Insurance, we look forward to a long and successful working relationship with Chubb Insurance that will no doubt be of great benefit to many of our high net worth customers. So, if you wish to discuss any of the above insurances and require a quotation, why not give us a call.
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The Association of British Insurers (ABI) has recently published some interesting statistics relating to claims on motor insurance policies. Specifically, it has revealed that the average amount paid out last year for each motor insurance claim was the largest amount since records started to be kept for this sort of cover.
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