Directline claims payment rises amid wrangles
Thursday, January 2, 2020 14:32
Directline Assurance posted an improved claims settlement record in the three months to September despite management wrangles that have threated the underwriter’s operations.
The quarterly report by Insurance Regulatory Authority (IRA) shows the claims settlement ratio of the insurer was 8.6 percent in the review period compared to seven percent a year earlier.
This is the best the insurer, which mostly covers public service vehicles, private and commercial motor vehicles has achieved in four years.
The ratio indicates how many claims a company has settled against the number of claims received. It can be a guide for customers looking to buy an insurance policy since it shows the reputation of an insurer in compensating the insured within reasonable time.
Directline opened the quarter with 13,952 outstanding claims -the highest in the industry- and received an additional 1,353 during the period.
It managed to settle 1,353 claims, closing with 14,300 outstanding claims. In the first and second quarter, it had settled 1,092 and 1,098 claims respectively.
Directline’s settlement ratio was, however, below the industry’s average of 10 percent that was achieved by the 37 general insurers.
IRA data showed that the claims payment ratio for general liability claims increased from the 8.2 percent in second quarter.