Beyond Belief in Insurance

On the Morning After The Fire

“On the morning after the fire, neither you nor I, your insurers, the loss adjuster, the fire officer, the health & safety executive, your bankers, suppliers customers and staff – no one, in fact – will give a toss about how much you paid for your insurance.

They’ll all be looking for bits of paper, taking statements and asking questions – but not about your premium.

Many businesses think ‘the premium’ is all that matters, but on the morning after the fire, nothing matters less – it’s supremely irrelevant.

43% of all businesses suffering a disaster never recover* – that’s almost half.

Under the crust of statistics, in my experience, are the stories of businesses killed off, not by the fire – but by their own insurance company.

In 30 Years, I’ve seen some real disasters up close. Lives and livelihoods ruined, all so easily avoidable – the future, lost, for an insignificant ‘saving’, or simply not understanding that the detail of insurance is really, really important. Read More on the Morning After The Fire

I can Go Right Out This Door

Over the last 30 years, we’ve seen our clientele’s developing need for professionalism; expertise and personal attention grow ever greater. Running a business gets more complex, risky, regulated and litigious by the day.

Yet, the insurance industry’s attempts to sell a ‘One size fits all’ cheap product rather than a bespoke service has often resulted in lousy outcomes, delivered by shed-loads of teenagers with a touch tone telephone system somewhere near Dorking or Bangalore. Read I can Go Right Out This Door

Sleeping With The Enemy

(1) Insurers dispute 50% of large claims made by businesses

Research by the respected insurance market analyst, Mactavish and reported in The Financial Times* shows that Insurers dispute almost half of claims made by businesses.

The article stated that nine out of every 20 claims described as “large” or “strategically significant” by the company making the claim have been contested by insurers since 2008.

(2) Main Reasons for not stumping up

Among the most frequent reasons for claims being denied were:

  • Supposed breaches in conditions attached to the policies
  • Inadequate information disclosure

(3) Years of delay, worry & expense

The data also shows that insurers typically take three years to reach settlements, due to arbitration proceedings with gagging clauses.

We think we’re covered, but we’re sleeping with the enemy.

Read More on Sleeping With The Enemy

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