The insurance industry is failing its customer base by taking a hard-nosed attitude to paying out on claims, according to a ground-breaking study of insurance disputes.
The number of legal actions companies have brought against insurers to get compensation has surged by nearly 280% in the last years as the industry takes a tough approach to avoid paying claims.
“Insurers don’t just react to a hard market by hiking rates, they also clamp down on claims. In today’s prolonged hard market, insurers don’t care about market share, they care about protecting their balance sheets. This is why premiums go up and insurers start to look for ways to reject claims.”