Market Agreements

 In the past these were introduced with the following aims:-

        1. to reduce the cost of dealing with claims

        2. to speed up the repairs and claims settling procedures. 

        3. to promote good relations between insurers.

  These agreements, across the market, have largely been discontinued  and have been replaced by individual

     agreements between insurers.

        1. Bi-lateral agreements: 

             where Insurers now enter agreements with insurers in the same market, with the same philosophy  and

             underwrite a similar book of business. Eg: Motor Insurance subrogation portal. Once in agreement, the NON

             fault insurer received an electronic payment from the AT fault quickly and without further evidencing.

       The process involves little in the way of manual intervention, and so reduce the chance of error, delay or backlog, meaning the insurers can improve efficiency.

2. ABI Personal Effects Contribution Agreements: 

     The purposes are: 

            a. avoid adverse publicity and criticism of the insurance industry generated by insurers referring policyholders

                 to other insurers for payment of part, or all, of their claim.

            b. avoid costly and time-consuming handling and the payment of small contribution amounts.

            c.  To set out rules for contributing insurers.

     The agreement relates to subscribing insurers that transact , household, all risks, motor, travel  and other defined

     personal insurances.  It deals with claims for the loss of personal effects covered by two or more policies and applies

     regardless of any policy provisions to the contrary e.g., (Non-Contribution or Property insured elsewhere). 

The rules are:

             a. motor accidents and thefts – no contribution

             b. specified items, generally no contribution

             c. all other circumstances – contribution is generally required. Settlement will be made by the insurer against 

                  whom the claim is made, and it may recover a contribution from other liable insurer (s) provided:

                   i. the amount paid out exceeds £200.00    ii. The other policy is not a motor policy.

              d. Are no claims discount affected? Usually, with non motor policies  a discount provision will not be

                  prejudiced if a payment is made to another in reimbursement under the agreement terms. Please not this

                  does vary with insurers.