Aviva and Ageas are the first companies to reach an insurer-led agreement to reduce the cost of handling third party motor claims following the 2014 Competition and Markets Authority motor insurance ruling.
The CMA’s ruling on motor claims left insurers to find better ways of working to reduce the cost of non-fault claims.
The Aviva and Ageas agreement is based around a subrogation portal provided by Validus-IVC. The portal will reduce the number of “touches” between the two insurers when subrogating the cost of a non-fault claim.
The portal matches claims, views on liability and requests for payment without the need for letters or phone calls between the insurers.
The two insurers have also entered into a bilateral agreement to keep the cost of subrogated claims as low as possible by stopping insurers from charging each other unnecessary costs to increase premiums.
Andrew Morrish, Aviva claims operations director, said: “We are proud to work with Ageas on this new initiative that has the potential to revolutionise the way insurers handle third party claims.”
Morrish said Aviva wants to work with other insurers to make its solution standard for the motor insurance market.
“We believe the portal can play a key role in improving insurer efficiency, enabling portal users to settle third party non-fault claims much quicker and it shows how insurers can build trust in the market,” he said.
Rob Smale, Ageas claims director, added: “We believe this is a key milestone for the entire insurance industry. We are always looking for new ways to make the claims process more efficient and reduce unnecessary costs that results in a quicker and smoother process for the customer.”