Originally Posted by
Often1
it is better to sustain the occasional loss than to admit fault and risk the one crazy person who sues and obtains a lot more. Thus, everybody gets the same treatment.
I thought this myth had long gone away? An apology and an offer to make amends is not itself an admission of negligence.
A more likely explanation is that IAG is structured such that whoever decided that it is better to deny these claims is not the same person who has to explain why they are being sued by customers or fined by regulators.