The current economic climate has brought about challenges that the insurance industry is struggling to overcome. In this article, we highlight some of the experiences faced by our business and customers, shedding light on the issues that have become increasingly prevalent in recent times.
Delays in Body-shop Repairs
Body-shop repairs following motor accidents are subject to long delays, ranging from weeks to months. The lack of available parts, not just in the UK but across Europe, seems to be the main reason for this. As a result, body-shop repairers have to manage their work-flow, causing delays even in minor repairs.
Delayed Settlement of Property Claims
We are also experiencing delays in the settlement of property claims. The main cause of this seems to be a lack of available adjusters/surveyors on the ground. Although catastrophic events like storm Eunice can cause back-logs, these delays are ongoing. This suggests a lack of personnel to make site visits and provide estimates.
Temporary Repairs and Cash-in-Lieu Settlements
Most insurers will agree to minor temporary repairs to ensure that the property is made safe or water-tight. Many insurers have also adopted a wider approach to "cash-in-lieu" settlements to help ease the back-log, particularly for lower value claims. However, customers need to be prepared to be patient as delays are still common.
Drop in Service Levels
Although improving, we are still experiencing a drop in service levels from our insurer partners. Initially, we attributed this to a lack of communication from staff working remotely. However, we have been informed that workloads have more than doubled as a result of the closure of offshore call centers due to the global pandemic.
Recruitment Challenges
One of the biggest and most surprising issues we have experienced this year is the lack of available new recruits. While almost every industry is struggling to recruit quality staff, we did not expect the insurance industry to be so affected. We assumed that there would be a wave of applications from people wanting to return to an office environment at the end of the pandemic. However, the industry is not seeing as many new applicants as expected. Employing trainees and apprentices may cause us more work initially, but we hope to see long-term benefits.
Conclusion
In conclusion, the insurance industry is facing challenges in various areas. From delays in repairs and settlements to drop in service levels and recruitment challenges, insurers are trying to adapt to the new normal. While there are no easy solutions, being prepared to be patient and finding new ways to recruit and train staff may provide some relief in the long run.