ALLIANZ LAUNCHES NEW INITIATIVE TO TACKLE UNDERINSURANCE FOR SMEs

Allianz Insurance plc has introduced a new data initiative which aims to reduce the number of SMEs which are uninsured.

Using internal and external data, Allianz is able to identify where existing SME customers potentially have an insufficient level of insurance cover. From July, Allianz will be proactively contacting brokers to warn them that their SME customers may be underinsured.

Allianz’s QuoteSME platform allows brokers to easily amend their client’s details, including sum insured or alternatively, brokers can discuss changes with Allianz’s dedicated small business team.

This move follows Allianz’s announcement in January that it would no longer apply the traditional market solution of Average to SME claims, which means that those who find themselves underinsured will have their claim met to the full sum insured level.

David Martin, director of SME markets said:

“Following the FCA’s Thematic Review which revealed 40% of SMEs could be underinsured, we responded proactively and implemented a new way of dealing with underinsured SME claims.

“The feedback we have received since we announced the removal of average has been overwhelmingly positive but we believe there is still more which can be done by the insurance industry.This is the second phase in ensuring the right customer outcomes for the SME sector.”

He added: “It is really important that SMEs have a sufficient sum insured level. Brokers play a key role by highlighting to clients areas where they may have underestimated the value of their business. We hope that by proactively using our internal data to help identify these clients, we can work together with brokers to further tackle the issue of underinsurance in the SME market.”

ENDS