Insurance firms told to review flood-related claims policies

Thursday 24 October 2013 12.33
The Central Bank undertook the review due to the recent increase in flood-related claims
The Central Bank undertook the review due to the recent increase in flood-related claims

Insurance companies have been told to review their policies relating to water damage claims following an inspection by the Central Bank.

The authority undertook an inspection into ten of the country’s largest non-life insurers following an increase in the number of flood-related claims in recent years.

It found that there was often weak oversight over third party companies in cases where loss adjusting was outsourced.

It also found instances where policy documentation lacked transparency, while customer awareness of the terms and conditions that applied was often low.

The inspection, which involved the review of 188 claims, also found that there was often “weak oversight and controls over outsourced claims handling”.

The Central Bank also found isolated cases of potentially unfair settlements, while it found issues around some types of building insurance policies sold to apartment owners.

Following the inspection the authority said it was writing to insurers to draw their attentions to its findings and to the need for compliance with the relevant code of conduct.

It said it would also follow up directly with the insurers that were inspected to address specific issues identified during the process.