Directline Assurance is facing a crisis as it is on the verge of collapse due to overwhelming outstanding claims.
According to reports released by the regulator, Insurance Regulatory Authority (IRA), Directline recorded the highest number of outstanding liability claims in 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 policyholders have been left postulating that the company is choking on liability claims and is on its deathbed.
Customers who once relied on the insurer for their coverage are now leaving in large numbers after being faced with the company’s inability to honour 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.
The collapse of Directline Assurance would not only leave policyholders in a state of vulnerability but would also have far-reaching implications for the wider insurance industry.