OREANDA-NEWS. January 25, 2016. Aviva, the UK’s largest insurer, and Ageas have secured an agreement which will reduce the cost of handling third party motor claims between the two insurers.

The agreement is the first insurer-led arrangement following the 2014 Competition and Markets Authority’s ruling on motor claims which effectively left insurers to find better ways of working in order to reduce the cost of non-fault claims.

At the heart of the agreement is a subrogation portal provided by Validus-IVC that is already reducing the number of touches between the two insurers when subrogating the cost of a non-fault claim. The portal matches claims, views on liability and requests for payment without the need for letters or phone calls. Not only does this allow handlers to look after the customer’s car and better address their concerns, it also ensures that both sides know much earlier that they are both dealing with the same claim, which speeds up the claim’s resolution.

In addition, both insurers have entered into a (bi-lateral) agreement that will keep the cost of subrogated claims as low as possible, as it prevents insurers from charging one another unnecessary costs which only serve to increase insurance premiums.

Andrew Morrish, Claims Operations Director, Aviva, said, “We are proud to work with Ageas on this new initiative which has the potential to revolutionise the way insurers handle third party claims. The Portal we have developed with Ageas removes the need for the hundreds of thousands of calls and letters sent between insurers to recover money. The banks have a clearing system for exactly this reason. We think this is an obvious use of technology.

“We want to work with all insurers to establish this solution as standard for the motor insurance market. We believe the portal can play a key role in improving insurer efficiency, enabling portal users to settle third party non-fault claims much quicker and it shows how insurers can build trust in the market.”

Rob Smale, Claims Director at Ageas, said, “We believe this is a key milestone for the entire insurance industry. We are always looking for new ways to make the claims process more efficient and reduce unnecessary costs, which results in a quicker and smoother process for the customer. The Portal we have developed with Aviva is a perfect example how we, as insurers, can and should use technology to improve the customer journey further and build trust in the industry.

“We are proud to be a part of this project and we will continue to innovate and develop new ways to revolutionise the motor insurance industry for the benefit of our customers.”

The problem faced by motor insurers is that the ‘at fault’ insurer has no control over the costs incurred during the claim, but is responsible for paying those costs, including replacement vehicle and repair charges. The result is that non-fault claims attract extra costs that line the pockets of third parties, without providing any tangible value to the customer.

Ends

Enquiries:

If you are a journalist and would like further information, please contact:

Erik Nelson | Aviva Press Office | 01603 682264 | erik.nelson@aviva.com

Lucy Pope | Ageas UK Press Office | 01202 254445 | lucy.pope@ageas.co.uk

Notes to editors:

About Aviva:

  • Aviva provides life insurance, general insurance, health insurance and asset management to 34* million customers, across 16 markets worldwide
  • In the UK we are the leading insurer serving one in every four households and have strong businesses in selected markets in Europe, Asia and Canada. Our shares are listed on the London Stock Exchange and we are a member of the FTSE100 index.
  • Aviva’s asset management business, Aviva Investors, provides asset management services to both Aviva and external clients, and currently manages over ?245 billion in assets.
  • Aviva helps people save for the future and manage the risks of everyday life; we paid out ?24.6 billion in benefits and claims in 2014.
  • By serving our customers well, we are building a business which is strong and sustainable, which our people are proud to work for, and which makes a positive contribution to society.
  • The Aviva media centre at http://www.aviva.com/media/ includes company information, images, and a news release archive.
  • For an introduction to what we do and how we do it, please click here http://www.aviva.com/about-us/aviva/
  • For broadcast-standard video, please visit http://www.aviva.com/media/b-roll-library/
  • Follow us on twitter: www.twitter.com/avivaplc/

* Before the deduction of overlapping customers

About Ageas:

Ageas UK is a leading provider of award-winning insurance solutions in the United Kingdom. It distributes Personal and Commercial products underwritten by Ageas Insurance Limited through brokers, intermediaries, affinity partners, the internet and through its own wholly or part-owned companies trading as Ageas Retail, which also distributes products of other providers. Ageas Retail’s brands include Castle Cover, Kwik Fit Insurance Services and RIAS. Ageas UK also holds a 50.1% share in Tesco Underwriting, providing home and motor insurance to Tesco Bank customers.

Insuring around eight million customers and working with a range of partners, Ageas UK is recognised for delivering consistent and high-quality customer experiences. It employs around 5,500 people with offices based across the UK.

Ageas is an international insurance group with a heritage spanning 190 years. Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business activities in Europe and Asia, which together make up the largest share of the global insurance market. These are grouped around four segments: Belgium, United Kingdom, Continental Europe and Asia and served through a combination of wholly owned subsidiaries and partnerships with strong financial institutions and key distributors around the world. Ageas operates successful partnerships in Belgium, the UK, Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India, Thailand, the Philippines and Vietnam and has subsidiaries in France, Portugal, Hong Kong and the UK. Ageas is the market leader in Belgium for individual life and employee benefits, as well as a leading Non-Life player through AG Insurance. In the UK, Ageas occupies the number 3 position in cars insured and has a strong presence in the over 50’s market. Ageas employs more than 13,000 people in the consolidated entities and over 30,000 in the non-consolidated partnerships, and has reported annual inflows close to EUR 26 billion in 2014.