AMS pre-inspection reduces glass claims costs
With the cost of motor claims increasing exponentially, pure motor profits for South African insurers are marginal or often non-existent. However one company, AMS, has made excellent inroads, with stunning results on reversing this trend.
A clear area of concern for insurers is the motor glass element of their claims. Of some 20 000 mobile pre-inspections, performed by AMS over the last few months, more than half, some 53%, had damaged windscreens. Historically and still even to this day, some insurance companies send their clients, at huge inconvenience to these same clients, to a national motor glass chain for this pre-inspection. By doing this the insurer, in most cases, also unwittingly creates a glass claim for their efforts, driving these claims to previously unknown highs. However, times are changing.
Motor insurers are beginning to look at managing these risks up front as opposed to just managing the payment of claims. A manager within one of South Africa’s larger motor insurers comments, “The mobile pre-inspection, at underwriting or inception of the policy, is critical for us to better manage these risks. By using AMS, a completely independent company, we have been able to limit our glass claims to far more acceptable levels. For the first quarter of this year alone we have shaved back 23% of these types of claims, a result we are very happy with”.
Bernd Veening CEO of AMS elaborates, “Because we are completely independent, offering a full mobile inspection nationally, insurers who have taken the initiative by managing these risks up front are seeing excellent results. Our core business of motor insurance pre-inspection has two clear objectives. We ensure that the physical insurable risk is in fact a good one, and second, we do that in the least invasive way possible, by doing it fully mobile anywhere in SA. This is very important.
People, essentially you and me, just do not have the time, or money with the petrol prices, anymore to be driving around looking for a nominated place to have an inspection that our insurance companies need for their risk management. These costs are also becoming very prohibitive in a declining market for insurers. That is why our full mobile service is so popular. Insurers are beginning to listen to their clients by offering a far more convenient value added option in this area. On the glass or windscreen element in particular we have been able to turn the claims trend around immediately.”
The glass element is but just one area of significance. AMS do a full inspection of the risk which entails key areas of recording the actual VIN number, any pre-existing damages, verifying drivers licence details along with other areas, but even more importantly, actually welcomes the client to the new prospective insurance company. Where have you ever heard or seen that before? With short term insurance being so price competitive insurers have to focus far more on the obvious aspect of risk management at the underwriting stage by way of offering value added alternatives, as opposed to just assuming their clients will continue to be happy going along with the current inconvenience.
AMS are the largest independent mobile inspection and surveying company in South Africa. With 12 years of hard earned credibility and their being fully independent, they are certainly perceived as one of the very real value added alternative to motor risk management at policy inception.
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