What are instouch readers’ views towards solving the ITV issue?
There has been much discussion by various stakeholders within the general insurance industry about the issue of ITV:
• Broker associations recommend guidelines
• Insurers create protocols for accepting new and renewal business
• Service providers offer their own unique cost evaluations
However, a definitive solution remains a challenge as guidelines, protocols and evaluations do not produce consistent and predictable results. Guaranteed Replacement Cost (GRC) does not appear to adequately solve the problem.
Here’s a recent situation. Custom-built home destroyed by fire, home is woefully underinsured but there’s GRC on the policy. No problem, right? No, because homeowner’s claims experience becomes a nightmare as Claims department attempts to mitigate settlement stemming from incorrect ITV – it is a vicious circle.
There is a need for Industry stakeholders to collaborate more to meet the needs of homeowners.
And the ITV issue is not isolated to Personal Lines business. Commercial Lines values are not any better; in fact, clients do not even have the safety net of GRC. Despite everyone’s best efforts to date - consumers are not being well served and this forms a poor image of the general insurance industry as a whole.