INSURANCE MARKET

Members of the insurance industry have been interviewed to ascertain the issues [x] .  The main conclusion drawn from interviews with claims managers highlights the lack of the ability to make comparisons.

 

The individual loss adjuster uses the de-fragmented market data sets to under write their information when it is requested.

 

The insurance industry makes use of technology to process a huge number of claims it will be responsible to the FSA [81] and currently has a number of self-governing bodies [xi] . This combination of requirements has brought rapid changes in the last 5-10 years. The take up of technology and initiative concepts has assisted the market in reducing cost. Outside the second portable goods market major successes include ‘Tracker [82] ’ and the use of price comparison information systems. This has reduced the skill levels [83] required and driven down cost. The loss adjuster [84] has been replaced by document management systems. This use of technology has assisted in removing a high amount Insurance fraud and the cost of replacement. In the main insurers and their claims departments would like to see these services available within the portable second hand goods market. Policy underwriting has also changed to facilitate these advances with the introduction of new for old and replacement clauses supplemented by consumer demands.

Loss Adjusters

The consumers’ view of the loss adjuster’s primary role relates to the amount of settlement. The task of processing the unrecorded objects often lacks [85] an amount of detail about the object [86] in lower value claims. [xii] The client will often assume that their object was similar to that shown on a recent television programme and without regard imply its condition was perhaps higher than in reality. These two obstacles in the main are perceptions of the loser and often there is no documentary or photographic evidence to prove otherwise. This issues fall outside the current desktop processing of brown and white goods that further increases the cost of handling an art, antiques related claim. Insurance companies have reacted to the volume of claims that are resolved by replacement. For instance some jewellery is replaced by newly made antique styled jewellery [xiii] . Rolex offer a replacement service for watches genuinely stolen. [87] Ceramics is an area that is receiving service in the low to mid market value due the high volume production there is often a direct replacement available at a lower cost than retail price [88] .

 

Fine Art Loss adjusters require a comprehensive data provider that displays market prices for at least the last five years. [89] Because of the poor quality of description at auction often they require images for direct comparison. The volume of objects in one claim requires a user interface that allows rapid access to precise details. The Loss adjusters imply that some of the systems available provide the majority of their needs compared to the market of 5 years ago. Claims managers confirm that ‘there is a long way to go before the art, antiques and collectables sector can be seen to offer similar service to the replacement of brown and white goods.’


Insurance Companies Transfer of Title

‘Every policy of insurance provides for subrogation rights to be exercised immediately a claim is made under that policy, modifying the common law principle of subrogation whereby such rights occur only after settlement has been paid.  In so far as the theft of fine art and antiques is concerned, this modification allows the Insurers to have a legal interest in the property before settlement has been made and in practice this enables a loss adjuster, immediately following notification of a claim under a policy, to make every effort to improve the prospect of a physical recovery of the stolen property, by whatever legal means are available’. [90]