As the COVID-19 pandemic takes hold, brokers are coming under increasing pressure. They are facing an ever-rising tide of queries, notifications and claims from policyholders regarding coverage of their losses arising from the current crisis. Despite pressure to respond quickly (and positively) to coverage questions, brokers cannot provide simple, standardised answers – the coverage issues at play may be complex and even seemingly minor changes in wording between policies can render the scope of their COVID-19 coverage incomparable.
Brokers are also being forced to make practical changes to their businesses now that they are working from home. One example is the electronic placement of policies. Whilst this approach is favoured by many who cite benefits such as increased record keeping, it has its disadvantages such as it is unclear when the policy is considered formed.
There are also claims handling challenges. The large volume of claims being received means it is more important than ever for brokers to have robust systems and controls in place.
If there is any issue you would like to discuss then please do not hesitate to contact your usual CMS contact.