Swift action can lead to significant financial savings as broker urges operators to sidestep burdensome ‘300% club’
In light of claims inflation and economic challenges posed by the COVID-19 pandemic and geopolitical tensions, fleet insurance broker McCarron Coates has underscored the financial repercussions of delayed claims reporting for UK coach operators.
Data from leading insurers reveals a 396% increase in claim costs for those reported between 25-30 days post-incident, as opposed to immediate reporting. These figures are compounded by a 17.4% claims inflation recorded in 2022 – the highest in five years.
Concurrently, the broker highlights that average motor claim costs have risen from £4,502 in 2019 to £6,280 in 2022. Global challenges such as labour shortages, escalating energy prices, and raw material scarcities exacerbated by the Ukraine conflict, are putting pressure on fleet management expenses.
Steve Stockley, McCarron Coates’ Claims Manager, says: “Persistent energy price hikes and disruptions in supply chains due to geopolitical strife have compounded operational costs. Particularly, electric vehicle maintenance can be more expensive compared to traditional ICE vehicles, emphasising the urgency for fleet managers to optimise claim expenses.”
Emphasising the immediacy of cost implications post-collision, Ian McCarron, Director of McCarron Coates, adds: “The moment an insurer loses control of the claim to a third party, it begins accruing significant costs. The promptness of reporting the claim can directly influence the renewal premium.”
However, the insurance sector hasn’t been free from its own challenges. Customers facing prolonged wait times at insurer call centres, especially during the pandemic and subsequent work-from-home settings, further delayed claims reporting. Addressing this, McCarron Coates has launched an in-house claims team and a mobile app for its clients, bypassing traditional call centres.
The app facilitates quick information capture directly from the incident site, incorporating voice-to-text capabilities, photo collection, precise GPS locations, and a step-by-step in-situ claim submission process. For those less tech-savvy or facing language barriers, QR codes inside client vehicles have been installed to expedite the claims process.
Mr McCarron adds: “With our dedicated claims team and advanced technology, we offer clients a significant advantage in managing their claim promptly. It’s pivotal, especially during this period of soaring claims inflation, to act swiftly. Late reporting could result in unforeseen costs during insurance renewals.”
According to experts, reporting on the day of the incident can lead to an average premium savings of 18%. However, this average drops to about 30% when reporting through traditional call centres.
