Femme StaffDirectline Assurance, once a prominent name in the insurance industry finds itself caught in a whirlwind of outstanding liability claims pushing the company to the edge of collapse.
Claims reports released by the regulator, Insurance Regulatory Authority (IRA) indicate that Directline recorded the highest number of outstanding liability claims throughout 2022.
The company recorded 22,074 , 21,295 , 20,402 and 19,116 liability claims outstanding in the 4th ,3rd 2nd and 1st Quarters respectively; This means that the company consistently recorded a significant increase in liability claims throughout the year leaving the company grappling with the formidable task of managing a deluge of claims that threaten its financial stability.
Many, especially the policyholders have been left postulating that the company is chocking with liability claims and is on its death bed.
“These high numbers of outstanding liability claims at Directline is ironical since Directline is the most expensive especially in PSV premium charged and excess fees when reporting claims. Besides, the company has been straining, struggling and delaying to pay claims” ,stated an aggrieved client.
Customers who once relied on the insurer for their coverage are now leaving in their numbers after being faced by the reality of the company’s inability to honor claims and provide the financial security promised. With mounting frustrations, policyholders are increasingly turning to alternative insurance providers, eroding Directline’s customer base and exacerbating the financial strain.
A collapse of the company would not only leave policyholders in a state of vulnerability but would also have far-reaching implications for the wider insurance industry.
