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Support in U.K. for willingness-to-pay index: AIRMIC

Posted On: Jun. 6, 2007 12:00 AM CST

LONDON¬óMost U.K. risk mangers support the creation of a willingness-to-pay index to assess insurers' readiness to pay valid claims, according to a survey.

The Association of Insurance and Risk Managers is creating the index that will measure insurers' procedures, resources, accuracy, impartiality, speed and evaluation in paying claims.

AIRMIC said that a survey of its membership showed that 69% backed the idea of an index, 12% were against the plan, and 19% were not sure.

AIRMIC's incoming interim chief executive, Alan Fleming, said at the association's annual conference in London Wednesday, that as well as looking at insurers' willingness to pay claims, the willingness of reinsurers to pay claims should also be up for debate.

A snapshot survey of AIRMIC's members also revealed that 79% of risk managers believe that insurer performance is good or excellent in respect of cost of cover and deductible levels, and 77% said carrier performance was good or excellent with regard to coverage offered.

The survey also showed that 38% of risk managers believe the willingness of their broker to disclose its remuneration was "excellent," while 36% described their brokers' willingness to disclose remuneration as "good."

But 6% of risk managers surveyed described their brokers' willingness to disclose their remuneration as "poor." That, said Colin Campbell, AIRMIC's incoming chairman, demonstrates that broker transparency is still an issue.