Pen Underwriting enhances Escape of Water claims process in partnership with Davies
Pen Underwriting has undertaken a comprehensive overhaul of its process for escape of water claims, in a bid to tackle the industry’s most costly area of domestic property claims. The new process is a result of close collaboration with third party administrator Davies and is expected to result in a 10% saving on indemnity spend and a 15% reduction in the time taken to settle escape of water claims.
Escape of water remains the single largest peril spend in domestic property claims and costs across the industry are rising. In December 2018, the Association of British Insurers stated that insurers are paying out £1.8 million for it every day[1]. In 2017, data from the ABI revealed that within the first nine months of 2017, costs had risen to £483m – a 24% increase compared to the same period in 2014. While the industry continues to advocate and deliver better preventative education for customers, Pen recognised innovative claims handling strategies would be required to bring claims spend under closer control. Figures from the ABI indicated the average escape of water claim has risen to £2,638, which coupled with the inconvenience and damage that immediately ensues, is a difficult burden for customers to bear[2].
Pen’s re-engineered claims process is designed to expedite administration of specialist service to customers, ensuring they receive the appropriate support sooner, by:
- A team of dedicated escape of water experts
- Bespoke escape of water handling process
- Use of mobile technology to accelerate repair process and reduce costs
- Advanced customer portal providing real time access to their claim
Gareth Crosbie, Claims Director for Pen Underwriting, commented: “This innovation is reflective of Pen’s unwavering commitment to improving customer experience and delivering on its virtual insurer strategy. By working with the collaboration of Davies, we can give our coverholders and brokers an enhanced service and our customers more control. Escape of water claims were flagged by the Association of British Insurers as a key area of focus for insurers in 2018, and we’re proud to be delivering a solution to address this challenge.”
ENDs
For further press information, please contact:
Kharis Brooks, External Communications, Pen Underwriting
+44 (0) 20 7204 6189
Haggie Partners
Chanice Smith
+44 (0) 20 7562 4444
Notes to Editors:-
Pen Underwriting
Pen Underwriting is a multi-class, multi-territory managing general agent (MGA) that operates as a virtual insurer, meaning it can fulfil all the typical functions of an insurance company — from sales, distribution, pricing and product innovation through to claims, analytics and governance — except carry risk.
Pen Underwriting has four divisions — Commercial, Specialty, International & Financial Lines and Volume — offering a wide and growing range of specialisms from e-Solutions and delegated authorities for volume business through to specialty products with individual underwriting for hard-to-find placements. With a national branch presence across 15 locations, more than 350 insurance professionals and generating more than £500m GWP, Pen Underwriting represents one of the largest underwriting agencies in the UK.
For more information see www.penunderwriting.co.uk
[1] Association of British Insurers: https://www.abi.org.uk/news/news-articles/2018/12/is-water-damage-covered-by-insurance/
2 Association of British Insurers: https://www.abi.org.uk/news/news-articles/2017/11/water-pressure–tackling-the-rising-costs-of-escape-of-water-claims-must-be-a-key-priority-for-the-industry-says-the-abis-james-dalton/
[1] Association of British Insurers: https://www.abi.org.uk/news/news-articles/2018/12/is-water-damage-covered-by-insurance/
[2] Association of British Insurers: https://www.abi.org.uk/news/news-articles/2017/11/water-pressure–tackling-the-rising-costs-of-escape-of-water-claims-must-be-a-key-priority-for-the-industry-says-the-abis-james-dalton/