What does CUE do and why does it exist?
CUE isn’t just about recording claims requests. It’s a giant encyclopaedia of all incidents that have been reported to an insurance company – regardless of whether a claim was made in relation to that incident or not. The incidents recorded could be minor – from someone smashing your greenhouse window to fiddling with the locks on your garden shed.
How does CUE have so many incidents on record? Well – in many standard terms and conditions of insurance policies, it’ll state that you have to disclose any incidents that happen to your property – no matter how minor and whether or not you decide to claim for it; all those incidents get logged in CUE. Failing to disclose any relevant incidents to your insurance provider means that your policy could be invalidated.
CUE’s main purpose is to prevent fraudulent claims by detailing incidents and information about the policyholder. Having a central database means that insurance providers have a single point of reference that they can check if they suspect there is something fishy going on. This is good news for the rest of us because if fraudulent claims are stamped out, the less we’ll have to pay in premiums to cover the cost of fraudulent claims. So before you judge CUE and think it’s all a bit big brother, the ABI believe that the 130,000 fraudulent claims that are made annually add an average of £50 to your annual insurance bill.