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DCL research: More focus required on First Notification of Loss – Brokers increasingly looking to collaborate


While fewer brokers are reporting rising claims costs across the commercial motor market in the latest Direct Commercial Limited (DCL) Broker Barometer, significant learnings for insurers and brokers remain, particularly on FNOL procedures.

Regarding FNOL, two-thirds (67%) of brokers report that policyholders are asking brokers to report claims on their behalf rather than directly approaching the insurer or MGA, contrary to best practice for FNOL procedures. Furthermore, only a quarter (28%) of commercial motor brokers are asking policyholders to report and make a claim from the roadside, which also deviates from the best practice identified by DCL.

Despite these findings, there are positive developments. The Barometer indicates that 41% of brokers now believe it is business-critical to have a strong working relationship with their insurers, MGAs, and policyholders, a substantial increase from 14% six months ago. The shift highlights the growing recognition of the importance of collaboration, particularly in the effort to reduce claims costs.

Brokers reported that claims costs are stabilising across the commercial motor market. In Autumn 2023, 91% reported rising costs, but the latest DCL Broker Barometer shows this has dropped to 81%.

Brokers also expressed a preference for working with in-house claims teams at MGAs and insurers, with over three-quarters (78%) finding them more responsive compared to outsourced support. Additionally, a notable 87% of brokers actively seek to collaborate with MGAs and insurers offering an in-house claims service, underscoring a rising demand for streamlined and efficient claims resolution.

Carl Cripps, Claim Director at Direct Commercial Limited, said:

“The latest Broker Barometer results reveal both challenges and opportunities within the commercial motor market. It is encouraging to see a greater emphasis on the preference for in-house claims teams and the importance of strong working relationships. These insights will help us and our partners to refine our approaches, not least the emphasis with which we ask brokers to convey to policyholders on adhering to FNOL best practice.”

“At Direct Commercial, we understand the crucial role of prompt and direct claims reporting in reducing overall costs. Our direct reporting system ensures that claims are handled swiftly and efficiently, minimising delays and unnecessary expenses. Moreover, by managing claims directly from the scene, we can offer vital protection to our policyholders in the immediate aftermath of an incident, for example, by ensuring legal privilege is maintained when required. This approach not only enhances the efficiency of our service but also provides peace of mind to our clients.”

Authored by Direct Commercial Limited



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