Medicals Direct has claimed there is a lack of investment in the Claims function within the UK protection industry.
The medical and risk functions outsourcer said 34% believe that lack of investment in claims systems is the biggest problem that claims managers face, while 55% of claims departments believe there is increased pressure to cut costs.
Medicals Direct spoke to over twenty players in the protection market, asking about the way that claims are currently handled in the UK market focusing on the views of senior management about how claims are processed.
There also appears to be a deterioration in relations with the Financial Ombudsman. 33% of those surveyed believe that the industry relationship with the FOS is worsening. One respondent believes the industry is being "stonewalled to the extreme" by the FOS.
Mike Benton, CEO of Medicals Direct, commented: "One respondent referred to it as "the Cinderella department" and this encapsulates a lot of the issues that claims managers have. It is a vital department, but one that is possibly not given the prominence it should by some senior managements. After all, the claims department is where the promises that all insurers make, become reality."
As in last year's survey, 75% of people have reservations about using GPRs and believe that tele-underwriting produces better disclosure of medical information. In addition, 40% believe that there is most scope for innovation in the overall service proposition, which, said Benton: "underlines the need to rethink the claims process more radically."
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