| Journal: TWUK | Section: |
| Title: | Issue Date: 29/05/00 |
| Author: | Page Number: 29 |
| Copyright: Other |
Insurers move to settleclaims in resort
INSURERS could start to settle claims while clients are still on holiday to reduce management costs, according to Claims International key account manager Lynda Calloway speaking at the conference.“I’m sure people would be happier to have a lost camera replaced while still on their trip rather than having to claim for it on their return home and this would reduce the paper work involved,” she said.
Calloway said paperless claims, where clients can phone through with a claim once they return home, rather than having to fill in a form, are already used by some companies.
“Some underwriters want to go completely paperless but other do not want to lose control,” she added. “The process possibly suits cancellation claims best as these are easily supported by tour operators.”
Calloway warned while phone claims cut costs, insurers are likely to pay out more by settling small claims without question. Underwriters already pay out up to £50m a year in false claims, according to Association of British Insurers’ estimates. Calloway said there is a database, called the Travel Claims Early Warning System, which is designed to spot possible fraudulent claims by comparing those from different insurers but so far only four underwriters subscribe, which is not enough for it to work.