Marsh Australia is to extend its AIG pledge to pay multimillion-dollar claims within seven days to other insurers.
As reported by Insurance Business, the broking giant has agreed with AIG to pay clients with claims in excess of US$3m with working funds of 50% of the agreed estimate within seven days after coverage is confirmed.
The pledge covers material damage such as building, machinery, contents and stock; and the immediate increase in costs that are suddenly incurred. Business interruption is not included because it is difficult to measure so soon after an event.
The agreement was a product of the series of devastating catastrophes across the world including the floods in Australia.
“This sort of agreement starts the claim off on a good foot,” Pacific region claims leader, Richard Lance, told Insurance Business. “It also strengthens relations between the client and the broker, and the client and the insurer.
“This pledge formalises what brokers and insurers already do – it just further ensures that the client gets immediate help following a catastrophic event.”
Asked if Marsh Australia would set up claims agreements with other insurers, Lance said: “Insurers have seen what we are doing with AIG, and have approached us about doing something similar. There should be more to say in the next few months.”
The broking giant and insurer have already invoked the new agreement, paying a flood-hit Bundaberg business 50% of the $8m material damage costs sustained during last month's Queensland floods.