There has been a 280% jump in UK insurance buyers taking their insurers to court to get claims paid during the last few years, as a rising number of carriers take a “hard-nosed “attitude” to payments in the hard market, according to Mactavish.
The analysis showed that lack of coverage and non-compliance with conditions were the top two reasons insurers disputed claims. But Mactavish said there is a “worrying trend” of insurers taking a “kitchen-sink any-defence” approach to rejecting claims.
“Multiple reasons for rejecting claims, or drastically reducing the level of payout, were offered simultaneously. It was not uncommon for many of those reasons to fade away as the case approached judicial scrutiny, perhaps indicating they were not reasonable objections in the first place”.
