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What is “claims defence”?

Receiving a complaint against your firm is an unpleasant experience, and often daunting. Complaints rarely arrive with any warning, so not only are you taken by surprise, but you may also find yourself in unchartered territory.

Complaints can also be costly. They can be time-consuming to resolve, and potential redress can run into thousands of pounds.

And that’s before you consider subsequent problems such as the potential negative impact on your professional indemnity premiums and, worse still, possible reputational damage.

Failure to address complaints properly can impact customer retention and open up the firm to regulatory intervention.

With so much at stake, it’s no surprise that a large majority of our work involves defending complaints. But what exactly is “claims defence”? Read on to find out.

Claims defence, in a nutshell

Claims defence is the process of defending against legal claims brought against a party. It’s a complex and challenging process that requires expertise in both legal and factual matters.

When it comes to financial services, claims defence can arise from a variety of sources, including:

  • Customer complaints
  • Regulatory investigations
  • Civil lawsuits.

Regardless of the reason behind a claim, the three primary objectives of claims defence are to:

1. Protect the financial interests of the company

When defending a claim, the main priority is often to minimise financial losses. As mentioned above, complaints can be costly.

From settlement payments to regulatory fines, we work to mitigate damages and reduce financial losses. By effectively managing claims, it’s often possible to avoid costly settlements and judgements.

2. Maintain the integrity of the company’s reputation

Negative publicity from unresolved claims can damage a company’s brand and erode customer trust. So, safeguarding the reputation of financial firms and individuals is paramount when mounting a defence.

While there’s no escaping the fact that allegations of misconduct or wrongdoing can damage customer trust and confidence, effectively defending against such claims can help you and your firm preserve your positive reputation.

3. Ensure compliance with legal and regulatory requirements

Failure to defend claims effectively can increase the risk of regulatory fines and penalties.

Professional input when responding to claims can help ensure that you or your firm respond to allegations in accordance with legal requirements and comply with all appropriate laws, regulations, and industry standards.

Claims defence can also help to protect you against unjustified claims.

Read more: How to respond when your account differs to claims being made in a complaint

While complaints are often speculative, failure to address complaints properly can impact customer retention and open your firm up to regulatory intervention.

Seek specialist support

If you’re unfortunate enough to find yourself on the other end of a complaint, we are a specialist firm who can help ease the burden – practically, financially, and emotionally.

We have experience at all levels of complaints and regulatory engagement from the low consequence and simple, to high impact and complex.

We can help:

  • Assist you in resolving customers’ complaints
  • Deliver great consumer outcomes
  • Manage regulatory interventions
  • You secure redress for new clients who have received poor advice from other advisers.

Get in touch

If you’d like to find out more about how we can help you resolve a complaint, we’d be delighted to answer your questions.

Please email mail@jencap.partners, book a short call by completing our online form, or call 029 2000 2325.