Small and medium-sized businesses have revealed their disappointment with the way the insurance profession handled claims relating to Covid-19.
The CII’s Public Trust Index surveyed 1,000 consumers and 1,000 small and medium-sized enterprises (SMEs) in May and September.
Throughout 2019, 82% of SMEs were satisfied with the service they had received from their insurer, but this figure has fallen to 79% for businesses polled post-lockdown.
Satisfaction levels for SMEs with business interruption insurance, which was the subject of a Financial Conduct Authority test case, was less than for other products with only seven out of 10 content with their cover.
The survey asked SME bosses if their business had been affected by Covid-19, with organisations that were significantly impacted by measures to slow the spread of the virus emerging as the least happy about their insurer’s performance relative to their expectations.
The CII has identified actions that insurers can take to ensure satisfaction with the profession improves:
- Speed up claims handling: Policyholder feedback highlights the importance of insurers not waiting for the legal position to be clarified before paying claims or reaching a settlement where the claim has some merit.
- Show care and compassion: SME bosses revealed they want to feel they are dealing with compassionate human beings when they submit a claim.
- Establish an ongoing relationship: SMEs that have seen a change in circumstances, and that have perhaps made a claim, wanted to know if that claim would affect their future premiums.