Editor's letter - June 2015

I doubt there are many brokers who haven’t heard, or indeed haven’t used, the phrase that SME business is “the bread and butter” of the sector.

Brokers pride themselves on providing the advice that can keep a client in business should disaster strike. So, brokers, while taking into consideration the hygiene factor of price, should undoubtedly deliver leadership in making sure that SMEs are best protected. All of this stands or falls though on whether the industry’s claims service delivers.

Which is why the findings of the review by the FCA into the claims service for SMEs are particularly worrying. The watchdog hit out at the poor claims experience from a service that is not consistently working in the interests of many businesses. It criticised “numerous examples” of poor practice, delays in visits and flagged dissatisfaction among SMEs about a lack of clarity around claims (all this and more is analysed on page six).

Another issue raised was underinsurance. When a claim occurs it is often a point of debate as to where brokers fit into the chain. That argument is for another day. But brokers need to take that leadership role I mentioned earlier. Making sure clients are at least aware of underinsurance really is within your gift. And, I believe, that in conversation with your insurer and loss adjusting partners you absolutely need to bring pressure to bear for the good of not only your clients but of the wider industry.

The only upside to the whole situation is that all parties have promised to work harder and do better. But it feels disappointing that it has even come to this. It should not take a regulator to point out failings on behalf of any group of clients, irrespective of whether they are the bread and butter ones or not.