UK underwriting agency Pen Underwriting has partnered with Davies Group, a management, consulting and digital solutions provider, to overhaul its process for dealing with escape of water claims.
By working with Davies, Pen Underwriting expects to save 10% on its indemnity spend and reduce the time taken to settle escape of water claims by 15%.
Escape of water remains the single largest peril spend in domestic property claims and costs across the industry are continuing to rise, with the Association of British Insurers (ABI) recently estimating that insured losses rose by 24% between 2014 and 2017.
It added that insurers pay roughly £1.8 million for escape of water claims every day, with the average claim costing roughly £2,638.
Pen’s new partnership will ensure that it can expedite the administration of these claims by providing customers with a team of dedicated escape of water experts and a personalised claims handling process.
The company will also employ the use of mobile technology to accelerate the repair process and reduce costs, while offering customers real time access to their claim via a portal.
“This innovation is reflective of Pen’s unwavering commitment to improving customer experience and delivering on its virtual insurer strategy,” said Gareth Crosbie, Claims Director for Pen Underwriting.
“By working with the collaboration of Davies, we can give our coverholders and brokers an enhanced service and our customers more control,” he continued.
“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.”
Pen Underwriting is a managing general agent (MGA) that operates as a virtual insurer, meaning it can fulfil all the typical functions of an insurance company without carrying risk.
