Video: How the economy influences insurance claims
BLM partners Jennette Newman and Julian Smart explain how macroeconomic trends can be analysed to predict insurance claims.
Insurance law firm BLM had commissioned some research into macroeconomic trends because they have an impact on risks and influence the types and levels of claims insurers will need to handle and pay out.
After establishing the correlation between the economy and claims, partner Jennette Newman points to concerning trends on the horizon.
Her colleague Julian Smart notes that ground rent charges could lead to significant numbers of claims against solicitors’ professional indemnity policies. He also warns that Personal Contract Plans for cars may have been mis-sold and could become as big a problem as payment protection insurance.
As financial services, including insurers, increasingly use robo-advice, Smart emphasises the liability issues it entails and advises on the precautions that should be taken. Newman reflects that technology runs through all risk areas and will therefore be the focus of further research by BLM.
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