Most consumers say bending the truth is OK for home insurance
Of insureds who recently filed a claim, nine in 10 feel that home insurance companies work to avoid paying claims “at least some of the time.”
When it comes to fibbing to find lower home insurance rates when using price-comparison websites, two in three U.K. consumers say the practice is acceptable, according to a recent survey from LexisNexis Risks Solutions.
Further, around half of the survey respondents who had recently filed a home insurance claim were more likely to consider exaggerating or adjusting a future claim in order to get a higher payout. Those that have recently filed claims and saw a premium increase also are more likely to think it is OK to manipulate information on insurance forms.
As segments of the population continue to feel financial stress from the pandemic, the temptation to commit fraud ramps up, according to Neill Slane, LexisNexis Risk Solution senior manager, claims, U.K. & Ireland. This could be not declaring a past claim for a cheaper quote or exaggerating accidental damage or weather-related claim.
“Fundamentally, home insurance providers need a much more granular understanding of past claims to help inform every part of the customer journey to improve pricing, underwriting and claims processing, as well as reduce fraud risks,” Slane said in a release.
Driving some of this behavior, perhaps, is the fact that nine in 10 consumers that have recently filed a claim feel that home insurance companies work to avoid paying claims “at least some of the time,” LexisNexis reported.
“Home insurance is a highly competitive line of business with very little movement in premiums over the past seven years,” Slane said. “Insurance providers need to differentiate themselves in pricing and claims, as well as tackle the common misconception identified in our research that they actively try to avoid paying out claims at least some of the time.”
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