A new claims comparison website that measures insurers’ claims performance has been launched this morning with the naming of its first four winners.

The site, www.claimscomparison.com.au, has been set up by diversified loss management and risk assessment consultants LMI Group. Initially focusing on four categories, it will expand its overview of other insurance classes in the future.

The winners of LMI’s inaugural Excellence in Claims Service Awards are:

• Home and Contents – Chubb Insurance
• Small Business/Farm – Allianz
• Private Motor – Ansvar
• Private Travel – Cover-More.

However, details of the performance of every insurer operating in each class is available on the ClaimsComparison website.

LMI founder and MD Allan Manning says access to the website is free, and it will be expanded in the future to the many global markets where LMI’s services are used.

He says ClaimsComparison uses his company’s unique and highly regarded intellectual property to “weight” insurers’ claims performance using a range of criteria.

The factors which are “weighted” according to their relative importance include the hours claims representatives are available; the chance of a dispute going to the Financial Ombudsmen Service (FOS) per 100,000 policies; various measurements of the insurer’s record in FOS disputes; choice of repairer (in private motor); an insurer’s willingness to allow the claimant to appoint a claims preparer where the policy provides coverage but requires the insurer’s permission; and a combination of industry feedback and LMI Claim Services Division experience.

Professor Manning says he intends to expand the rating criteria to include public feedback once a representative sample is achieved and/or as additional reliable industry data becomes publicly available.

Results of LMI’s measurements of insurers’ claims performances will be published quarterly in collaboration with insuranceNEWS.com.au, with the awards for the highest-rated companies being made annually.

Professor Manning says he hopes the awards will be used by brokers and the public to assist them in selecting an insurer.

“We hope that by making the ratings freely available it will drive positive change in customer service for the good of the insuring public,” he told insuranceNEWS.com.au.

The presentation of an annual award is “one way to acknowledge and congratulate the claims departments that are doing the right thing for their clients and brand insurance”.

While he had some initial concerns over how insurers might regard the ClaimsComparison concept, Professor Manning says he has been reassured by claims managers and other senior management who contacted him following an article about the site in insuranceNEWS.com.au on August 12.

“They were seeking information on how their organisation rates and what they need to improve moving forward,” he said.

“I have also visited some insurers whose claims rating surprised me, and rather than being aggressive or defensive they demonstrated a genuine desire to understand why the rating was the way it was, agreed that the process was fair and looked at how to implement strategies to improve.

“This has given me great heart that the vast majority of the industry does want to look after their customers and provide first class service when it really matters – at the time of a claim.”

Professor Manning says the promotion of the new service by insuranceNEWS.com.au “significantly increases the importance the industry will place on the award. This in itself will drive the improvement that we both seek.”

To see the ClaimsComparison website, click here.