MSE improvement suggestion and buyer beware post - Home insurance

Thecaptainando

I love MSE, first at foremost, so this is posted to help improve.
I recently took out a home insurance policy using the MSE quotation page.  I went for a more expensive all singing policy with a company with a 4.5* review rating.  
Month later one of my roof tiles falls through my conservatory glass roof.  I feel confident as I have taken out a solid policy with a highly rated insurer backed by AXA.
However, the fun has now well and truly begun, as this co. outsources all its claims to another co.  Review rating 1* and truly hopeless and I am preparing for a fight I really don't need and really don't want.
The point of this post is two fold as I thought I was pretty savvy with this stuff.

1 - if you are buying home insurance check the rating of the insurer and THEN check the rating if they outsource to a claims handler - this is probably more important than the rating for the insurer, as this is when you need a solid dependable co.

2 - MSE, is it possible to add a tab on your insurance quotation pages that flags where insurers outsource their claims, and the rating of that outsourced co.? That would help inform a lot of people.
If I had know the claims handlers were so shocking, I'd never have taken out that policy.
Hope this helps others.

MSE_Laura_F

Thank you for this, @Thecaptainando. Was it this page you started on? And did you click through to one of the comparison sites from there?

MSE Laura F

DullGreyGuy

Thecaptainando said:

1 - if you are buying home insurance check the rating of the insurer and THEN check the rating if they outsource to a claims handler - this is probably more important than the rating for the insurer, as this is when you need a solid dependable co.

2 - MSE, is it possible to add a tab on your insurance quotation pages that flags where insurers outsource their claims, and the rating of that outsourced co.? That would help inform a lot of people.
If I had know the claims handlers were so shocking, I'd never have taken out that policy.
Hope this helps others.

This isnt going to be possible to do because outsourcing isnt typically fixed plus what do you count as "outsourcing"? 

Let's say you buy from Broker A who sells you a policy from MGA B which is using capacity from Insurers C, D and E.  If A, B or C do the claims handling are you considering that outsourcing as D and E aren't being involved but are providing the funds along with C?

How about if D deals with claims if you buy directly from them, outsources to B for policies from the MGA and to a TPA F for policies sold via brokers?

How about C who deals with claims in house other than if there is a claims surge and it outsources just the excess to F? Or if C just outsources claims for electrical items or thefts but deals with all other claims in house?

For most broker quotes MSE wouldnt even know who the insurer is to know who they may possibly be outsourcing to. Keeping track of who's doing what deal with whom would be impossible for an outsider... even the classic outsources (TPAs) struggle to know who's using who and when to try and win the business.


For the majority, when they give a broker a 4.5 score they are considering the total experience and dont differentiate between the insurer and the insurer recommended repairer etc. You also have to consider people give bad reviews because they dont like the outcome of their claim even if it's fair. Take a claim where tiles come off a roof and damage their car when there was no storm etc. In most cases you'd expect the home insurer to not cover the slipped tiles as its not as a result of an insured peril and likely a maintenance issue and they wont cover damage to a motor vehicle but tell the insured to go to their Car insurer. Seen many 1 and 2 star ratings for declined claims like this when its the correct outcome for the terms of the policy.

Thecaptainando

Hi grey guy it is possible when, like in this case the insurer has a dedicated outsourced claims handler. 

They don’t mix and match, this company process all their claims through this third party. 

So when that is the case I’d rather be made aware. 

I get what you’re saying but generally reviews will even out. This lot have nothing but negative reviews. And I can see why. 

DullGreyGuy

Thecaptainando said:

Hi grey guy it is possible when, like in this case the insurer has a dedicated outsourced claims handler. 

They don’t mix and match, this company process all their claims through this third party. 

So when that is the case I’d rather be made aware. 

I get what you’re saying but generally reviews will even out. This lot have nothing but negative reviews. And I can see why. 

It'd be on a best guess basis only and very hard to keep up to date.

Axa, who were your actual insurers, certainly dont just outsource claims. As you haven't named names its hard to know if you've bought from a broker or MGA with delegated claims authority or potentially a broker than placed the business with an MGA. 

MGA's change their carriers often and in most cases if the MGA or broker want to outsource from themselves they need the carriers permission for that particular outsourcer. So lets assume you bought from Broker X which has DCA, they may well use TPA Y 90% of the time but if the underwriter is Aviva then they can't use Y as Aviva haven't approved them. 

Many delegated authorities are renewed on 1/1 each year and carriers do change fairly frequently so suddenly next year X drops/droped by Axa and replaced by Aviva then any claims under an Aviva backed policy can't goto Y but the prior year Axa cases still continue with them. 

TPAs who have a vested interested in knowing who uses who  struggle to keep up and so what hope has a comparison website?

Thecaptainando

Interesting insight, thank you.
Company is Policy Expert, and claim company is Trinity.

DullGreyGuy

Trinity Claims and Policy Expert are both (ultimately) owned by Qmetric, so is it really outsourcing? 

Thecaptainando

MSE_Laura_F said:

Thank you for this, @Thecaptainando. Was it this page you started on? And did you click through to one of the comparison sites from there?

MSE Laura F

Hi Laura, yes it was I just think it would be really useful to have a view or rating on how claims are handled by co's that get so many stars just because people's renewals are well handled.  Just offers a bit more insight.  And yes people are going to moan about rejected claims but it's all useful info.  Most people can see through the spurious reviews to get a balanced view.  Thanks Paul