Modern Claims Magazine 12

Linking the Industry Together

March 2015 | Issue 12 | ISSN 2051-6495 Alan Cottrill talks news: The Commercial Director at Trak Global explains why telematics technology is driving down crime rates.

Cyber risks: a role for insurance. With more digitalisation and changing work patterns, greater technology and network risks are evolving for professionals, as Keith Tracey reports.

The Economics of Access to Justice: Philip Coupe explains why the legal sector and the world of Maths are akin to feuding family members at Christmas.

Modern Claims Magazine | March 2015 | Issue 12

“Maintaining the status-quo whilst seeing what’s coming next is right for us; I don’t buy into all that “hurry up and do something before it’s all over” mindset”

Naomi Wilson

CANDY HOLLAND “Better mentoring and encouragement for women to remain in the workplace would help their confidence and pay dividends for the organisation”

Supported by Charlton Grant

Association of Regulated Claims Management Companies

Sponsored by

A CENTURY OF PROFESSIONALISM

Understanding legal costs can become unclear

Clear and hassle free costs solutions

Excellence in Everything We Do T: 01704 741210 E: info@ultimatecosts.co.uk

03

Welcome to T

he Claims industry has enjoyed a period of relative-quiet in the last few months, as practitioners continue to ride the waves of a very fluid market. More change is looming on the horizon though, with the impending introduction of more legislative changes in April, which will focus on how solicitors can report medical claims. It will be interesting to track the fallout of how these reforms play out. Keep an eye out for more extensive coverage in the next issue of Modern Claims.

Our front cover star for this issue is Candy Holland, the Managing Director of Echelon Claims Consultants Ltd, part of the JLT Group. I spoke to Candy about cultural, procedural and practical changes regarding attitudes to women in the industry and the challenges of dealing with major losses, in her interview, which is featured from page 12. Cultural change is something also picked up by Keith Tracey, the Managing Director at Aon Risk Solutions, who discusses why issues relating to Cyber Security (something of an industry hot topic at the moment), must be ingrained into the culture of a business as changing work patterns and evolving technology continue to influence the insurer risk-profile (page 53).

With this issue of Modern Claims, we have also produced a special supplement, focussing entirely on Military Claims and

sponsored by Hilary Meredith Solicitors. The supplement provides an interesting insight into the unique and niche section of the claims market and I urge you to have a read.

Final tickets are available for the inaugural Modern Claims Awards, which takes place on 30th April 2015 at New Dock Hall, The Royal Armouries, Leeds – for bookings please call 01765 600909 or e-mail ellie.campbell@charltongrant.co.uk.

Things certainly haven’t been quiet here at Modern Claims Towers, as we also have the annual Modern Claims Conference, which takes place on 19th May at Chelsea FC, Stamford Bridge, London. This years’ event will be chaired by Lyons Davidson’s Managing Director, Mark Savill and will deliver an industrywide review of all things related to ‘The Client’ and the notion of customer service in the claims industry. To book tickets, call 01765 600909 or e-mail victoria.lang-burns@charltongrant.co.uk Thank you to everyone who has made this issue of Modern Claims possible, and if you have any feedback, views or ideas on this issue or for a future edition, please get in touch. Drop me a line on 017655 600909 or e-mail me via charlotte.parkinson@charltongrant.co.uk

Charlotte

Charlotte Parkinson, Group Editor, Modern Claims Magazine

Dates for your Diary: The Modern Claims Awards, 30th April 2015, New Dock Hall, The Royal Armouries, Leeds The Modern Claims Conference, 19th May 2015, Chelsea FC, Stamford Bridge, London

Modern Claims Magazine

Issue 12 | March 2015 | ISSN 2051-6495

Project Director Kate McKittrick

Group Editor Charlotte Parkinson

Business Development Manager Martin Smith

Events Director Julia Todd

Production/Editorial Assistant Charlotte Lamb

Project Manager Ben Longbottom Modern Claims Magazine is published by Charlton Grant Ltd ©2015.

All material is copyrighted both written and illustrated. Reproduction in part or whole is strictly forbidden without the written permission of the publisher. All images and information is collated from extensive research and along with advertisements is published in good faith. Although the author and publisher have made every effort to ensure that the information in this publication was correct at press time, the author and publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause.

MC // March 2015

04

CONTENTS 03-08 INTRO & THE NEWS 07 Alan Cottrill talks news

The Commercial Director at Trak Global explains why telematics technology is driving down crime rates and how, in some cases, the technology could help in the fight against fraudulent and inflated claims.

21-48 THE OPINIONS 22 Sector Soapbox

11-20 THE INTERVIEWS 13 Interview with...Candy Holland

Charlotte Parkinson, Modern Claims, spoke to the Managing Director of Echelon Claims Consultants Ltd, part of the JLT Group about cultural, procedural and practical changes regarding attitudes to women in the industry and the challenges of dealing with major losses.

17 Interview with... Naomi Wilson

Charlotte Parkinson, Modern Claims, spoke to the Director and Solicitor from NW Law about putting her skills as a business woman into the law, and the unexpected benefits of operating as a niche practice in the Personal Injury (PI) space.

12

Industry Associations discuss market changes and updates over the last two months. Rob Cummings, Manager, General Insurance at The Association of British Insurers (ABI) discusses how the General Election will impact the claims market. Susan Brown, Chair of the Motor Accident Solicitors Society (MASS) gives a rundown of the latest trends in motor claims and Nick Parsons, President of the Forum of Insurance Lawyers (FOIL) explains why the Government’s decision to implement increased fees to commence court proceedings from this April, has touched a legal nerve.

22

24 Information Governance –

Don’t Forget about the Paper!

John Messeter, UK Software Ltd.

24 The art of listening

Pete Marsden, Managing Director, National Windscreens.

25 Who really looses out?

David Williams, AXA Insurance

25 How to make the most of what

35

you’ve got

Darren Gower, Eclipse Legal Systems, part of Capita plc

27 Are members of the armed forces

‘employees’?

Hilary Meredith, Hilary Meredith Solicitors

EDITORIAL COLUMNISTS Alan Cottrill Commercial Director Trak Global

David J Williams Managing Director, Underwriting AXA

Hilary Meredith CEO Hilary Meredith Solicitors

Andrew Chadwick Costs Manager Ultimate Costs

Derek Cooper Managing Director [veracity] Claims Solutions

Kamran Akram Principal Asons Solicitors

Andy Whatmough Managing Director S&G Response

Donna Scully Partner Carpenters

Keith Tracey Managing Director Aon Risk Solutions

Charles Cox CEO TLMG

Dr Masoud Saeedi Managing Director PurpleFrogText Ltd

Kim Renfrew Editor Lyons Davidson social media

Coby Benson Technical Legal Manager Bott & Co Solicitors

Emma Holcroft Director 2020 Investigations

Mark Hartigan Client Services Director Just Costs Solicitors

Darren Gower Marketing Director Eclipse Legal Systems, part of Capita plc

Gerry Lee Senior Partner P R Hanna Solicitors, Belfast

Martin Doyle Director Amberis ATE

Greg Stansfield Head of Sales & Marketing AutoRestore® Limited

Michael George Davidson Head of Business Development Parabis Consumer Law Service

David Simon Chairman Triton Global Limited

MC // March 2015

Mike Klaiber Disease Claims Manager, UK Claims Zurich Insurance Nick Parsons President FOIL Nik Ellis Managing Director Laird Assessors Nick Gibbons Partner BLM Paul Sykes Managing Director Audatex (UK) Limited Philip Coupe PI and RTA Claims Handler Glaisyers Rob Cummings Manager, General Insurance ABI

Rob Smale Claims Director Ageas Insurance Limited Scott Whyte Managing Director Watermans Steve Chelton Head of Claims Swinton Insurance Sucheet Amin Managing Partner, Aequitas Legal Founder, inCase™ mobile app Susan Brown Chairman Motor Accident Solicitors Society (MASS) Tim Wallis Mediator, Solicitor, Director Expedite Resolution & Trust Mediation

05

27 An insight into the world

of insurance

Rob Smale, Ageas Insurance Limited

29 The dynamics of B2B

C partnerships

Michael George Davidson, Parabis Consumer Law Service

29 Online Dispute Resolution - a

proposal to be resisted or developed?

45 A wise move...

47 Common sense prevails...

50 Legal Opinion

Tim Wallis, Expedite Resolution & Trust Mediation

Question

Gerry Lee, P R Hanna Solicitors

31 Are ABI Codes of Conduct worth

the paper they are written on?

Scott Whyte, Watermans

33 The power of social media

Andrew Chadwick, Ultimate Costs

33 A compelling case

Mike Klaiber, UK Claims, Zurich Insurance Emma Holcroft, 2020 Investigations

35 Armed and ready

Sucheet Amin, Aequitas Legal & inCase™ mobile app

37 Cash cow or burden?

Martin Doyle, Ameris ATE

37 A missed opportunity

Greg Stansfield, AutoRestore® Limited

Dr Masoud Saeedi, PurpleFrogText Ltd

41 The heart of the issue...

The toddler the airlines don’t want on board - Coby Benson outlines how Bott & Co’s flight delay department has evolved as it turns two.

Olly Culverhouse asks if your competitors are making money while you wait for ink to dry.

59 In it for the long haul

Kamran Akram explains why using social media purely for marketing purposes is a wasted opportunity and asks how social media can be used in alternative ways.

Steve Chelton, Swinton Insurance

the pitfalls...

Nik Ellis, Laird Assessors

The legal sector and the world of Maths have often sat across the table from one another like family members at a Christmas dinner who don’t get on. There is a grudging respect as there has to be, but little by way of co-operation, as Philip Coupe explains.

43 Improving relations...

62 5 minutes with...

43 Keeping in touch...

62 Bartletts Solicitors implements

Paul Sykes, Audatex (UK) Ltd David Simon, Triton Global

45 Cultural or operational change?

Derek Cooper, [veracity] Claims Solutions

50

61 The Economics of Access to Justice

41 Lost in translation: avoiding

Cyber breaches are a big story and with more digitalisation and changing work patterns, greater technology and network risks are evolving for professionals, as Keith Tracey reports.

57 Innovative thinking

39 Lost in the machine: Knowledge Management challenges for law firms

45

55 Flying high

Mark Hartigan, Just Costs Solicitors

39 The right direction

Modern Claims’ panel of resident legal experts address burning industry issues. Donna Scully, Partner at Carpenters discusses whether the CMA has let down consumers, Kim Renfrew, Editor, Lyons Davidson social media asks how claims practitioners should be using social media in different ways. Finally, Nick Gibbons, Partner at BLM explains what impact the Government’s calls for increased access to data, could have on those who provide cyber insurance policies.

53 Cyber risks: a role for insurance

35 The face of social media

Andy Whatmough, S&G Response

49-62 THE FEATURES

31 To CPD or not to CPD? That is the

Charles Cox, TLMG Limited

Peter Staddon

Proclaim

National law firm to roll out the Proclaim Case Management Software Solution.

55 MC // March 2015

We’ll make sure you

take the right route Got a case in Scotland? Our award winning team are there for you when you need us most and our expertise and dedication to our clients will ensure that you are in safe hands. With coverage throughout Scotland our personal injury specialists and Total Care rehabilitation service ensures that our clients receive medical and legal expertise whenever they need it.

Call us today to see how we can assist you.

01315164 481 www.watermans.ws The Oval Office, 83 The Shore Leith, Edinburgh EH6 6RG

Alan Cottrill talks news

07

ALAN COTTRILL TALKS NEWS...

The Commercial Director at Trak Global explains why telematics technology is driving down crime rates and how, in some cases, the technology could help in the fight against fraudulent and inflated claims.

U

nder EU regulations, new cars will be fitted with telematics technology from October 2015, to help emergency services find crashed or stolen vehicles. The Department for Transport wants to see how effective this initiative can be in improving driver behavior, as well as reducing accident risk and fraudulent claims.

The risks…

Fraudulent claims are an increasing concern, specifically within the car rental sector, an issue that Trak is all too familiar with. Rental companies are seen as an easy target in ‘crash for cash’ schemes, predominantly because the hirer has no long-term connection to the vehicle involved, making it more difficult to track the hirer’s history. On average, the value of organised crash for cash scams investigated by the Insurance Fraud Bureau since 2006 is £1.7 million. The time and cost involved in defending ‘cash for crash’ schemes for rental car businesses can be considerable - implementing a risk management strategy can help to manage this.

In 2014, it was reported that car insurance premiums fell by a fifth thanks to a government crackdown on crash for cash. In 2012, a landmark prison sentence was handed out to a crash for cash conspirator – a seven-years-and-threemonths jail term sent a clear statement from the industry, police and the justice system that insurance fraud will not be tolerated. And with the introduction of a dedicated police unit – the Insurance Fraud Enforcement Department (IFED) – crash for cash cases are in decline. Telematics can further aid this initiative. If all fleet vehicles were fitted with black box technology it would significantly reduce crime rates.

There would also be a reduction in fraudulent claims and give widespread duty of care to all drivers, as well as encouraging better driving across the UK road network in general.

Real results Trak has firsthand experience of actively reducing the time and costs involved when a rental vehicle is targeted by

‘If all fleet vehicles were fitted with black box technology it would significantly reduce crime rates’

‘In addition to the inconvenience and lost revenue from having a vehicle off the road for repairs, additional claims costs from damage, injuries and credit hire drive up premiums for the entire industry’ criminals, having worked with Cheshire Vehicle Rental and Sales. In 2013, the owner of Cheshire Vehicle Rental and Sales discovered an opportunist thief had stolen a brand new Peugeot Partner van, during its first outing since Trak engineers had fitted our GPS tracking device.

Upon realising a vehicle was missing, he contacted our control room and within less than a minute of making the call, the missing van was located. The police recovered the vehicle 90 minutes later and, thankfully undamaged, the vehicle was back in his fleet less than three days after it

MC // March 2015

08

Alan Cottrill talks news

‘When utilising a telematics black box, employers can instantly capture the circumstances in the event of a crime, including third party and passenger details’ initially went missing, ensuring its downtime was kept to an absolute minimum. This saved the business an estimated £28,000, clearly demonstrating the merits of equipping a Trak system to a fleet. The thief was charged with taking without consent and Cheshire Vehicle Rental and Sales now has all of its vehicles fitted with a black box.

The car rental business aside, limiting a vehicle’s length of time off the road is vital for all businesses relying on vehicles. In addition to the inconvenience and lost revenue from having a vehicle off the road for repairs, additional claims costs from damage, injuries and credit hire drive up premiums for the entire industry.

TIM: changing the face of risk management Trak Impact Management (TIM) is a technology system built by Trak Global and implemented by Carrot Car Insurance, the rewards driven telematics insurer of youngdrivers and sister company of Trak.

TIM uses telematics technology from the ‘i-box’ fitted in each Carrot policy-holder’s car to measure every impact that occurs in a customer’s vehicle. The technology is really shaping the future of road safety in terms of the level of analysis it provides, and it allows Carrot to act as a ‘Guardian Angel’ when it comes to driver safety.

A duty of care The industry is also experiencing rising concerns over chop shops at the moment. In motor vehicle theft, a chop shop is a location or business, which disassembles stolen automobiles for the purpose of selling them as parts.

Trackers built into vehicles will help police to trace chop shops, helping to wipe out this line of criminal activity.

The ‘i-box’ allows Carrot to measure impact live at 400 times per second, and the highly sensitive GPS and accelerometer chipset within the box provides accurate data for the vehicle’s location, speed and direction of travel. Every time a policy-holder has an impact an alert is instantly sent to the team at Carrot, which could signal anything from a small bump to a serious crash.

Tracking devices can also help employers to manage vehicle misuse from their employees, whether this be by monitoring driving distance, tracking speed or generally analysing vehicle movements. In this way, anything out of the ordinary can be picked up and dealt with in a quick and effective manner. The tracking device also provides a duty of care from employers to employees by making them safer and better drivers. This will save on costs associated with a high driver turnover and human resources expenditure in the case of driving incidents and grievances. A recent analysis carried out by a fleet with 500 vehicles using a Trak Global full functionality telematics device brought savings of 14%.

A series of graphs are then sent to the team, which detail speed change, impact severity and angle, g-force and location, all of which enable Carrot to quickly determine whether or not the customer involved is in need of help.

When utilising a telematics black box, employers can instantly capture the circumstances in the event of a crime, including third party and passenger details. In some instances, this could protect from inflated insurance claims that often arise when time has been allowed to pass following the incident, and before the other party claims.

Trak carried out extensive crash testing using remote controlled vehicles to develop the technology.

Ultimately, telematics protects employees, as well as the assets owned by a company. The commercial benefit of utilising black-box technology is particularly evident in the case of Cheshire Vehicle Rental and Sales. As it will soon be compulsory for manufacturers to fit all new vehicles with a black box, we expect to see a clear decline in the amount of criminal activity targeted at the fleet industry.

Alan Cottrill is Commercial Director at Trak Global.

MC // March 2015

The exact location of the incident can be pinpointed on an on-screen map, and flags mark the route of the vehicle involved, allowing Carrot to understand the context of an incident - if a car were to come off a country road and into a field, for example, this would be evident. The technology even allows Carrot to see if the car in question has flipped upside-down.

TIM allows Carrot to act as a ‘Guardian Angel’ without being intrusive towards customers. The technology is advanced and sophisticated enough to be able to tell if a policy-holder has merely clipped a curb, but if an incident looks serious, Carrot can step in and contact the customer to check on their wellbeing.

Legal giants fighting your cause. Always.

Personal Injury | Damage to Property | Commercial Litigation | Matrimonial | Licensing Matters | Commercial & Domestic | Conveyancing | Wills & Probate | Debt Recovery | Employment Law

t: 028 9023 5554 • e: info@prhannasolicitors.com • w: www.prhannasolicitors.com SBT1495 PR Hanna HP Ad v6.indd 1

21/01/2015 09:59

Accident Management Made Simple OUR PROFESSIONAL TEAM IS AVAILABLE 24 HOURS A DAY, 7 DAYS A WEEK.

A MBER CLA I M S M A N AGE M E N T: ON E C A L L S ORT S A LL Let Amber Claims Management leave you to what you do best.

Whether you are an insurance broker, Bodyshop, fleet manager or Taxi Company – if your business requires an exceptional level of service from a proactive accident management company, you need to know you are working with the right partner.

From the first call to ourselves, we make sure we reduce the impact of an accident on our clients day-today life. We immediately assign our clients to a claims handler who handles the case from start to finish and only work with carefully selected specialist suppliers to ensure that the highest standards are always maintained.

Fleet Management Vehicle Recovery Replacement Vehicle Vehicle Repair Personal Injury

Call 0800 500 3041 | or visit www.amberclaims.com Amber Claims Management is a trading style of Dynamic Assistance Limited Company Number 07760306 Dynamic Assistance Limited is regulated by the Ministry of Justice in respect of regulated claims management activities, number CRM28840

The Interviews

11-20

THE INTERVIEWS

11

Interview with... Candy Holland

13

Interview with...

CANDY HOLLAND Charlotte Parkinson, Modern Claims, spoke to the Managing Director of Echelon Claims Consultants Ltd, part of the JLT Group about cultural, procedural and practical changes regarding attitudes to women in the industry and the challenges of dealing with major losses.

Q A

How has the insurance industry changed since you started working in it?

I started working in this industry as a Lloyds claims broker in 1976 and it has changed hugely in many ways.

I’ve seen an increasing focus on professionalism and on the importance of qualifications that there wasn’t when I started. The impact of regulation on the sector has had a major impact on processes and procedures. Globalisation has brought changes to the risk landscape, insurance coverages and the availability of capital in the insurance market. One of the major areas of change has been technology. In 1976, I worked for Willis where most of the ground floor of their building housed their computer kit – it’s hard to imagine now! No mobile phones, no email, fax and telex were the norm and no such thing as 24/7!

Expectations have increased enormously because people now anticipate an immediate response to everything. Technology has resulted in massive process and efficiencies which are largely beneficial but we do have to ensure the right balance between process and dilution of quality. I think there has been a marked reduction in face-to-face dealings and personal contact in what we always describe as a “people business” and I do think it’s vitally important that we educate young people entering the insurance profession about the value of developing personal relationships and networks in this business. Sending an email can be fine for simple, routine or non urgent matters but is not substitute for 1-1 discussion in other situations.

Q A

How has the loss adjusters role specifically changed?

The loss adjusters role has changed significantly since I joined loss adjusting in 1980; insurers procurement procedures, increased focus on fees and subsequent cutting of loss adjuster fees has had a big impact on the loss adjusters’ role. In the last 15 or so years, an increased forensic approach by insurers with detailed investigation pre and post loss by lawyers and other forensic experts on large claims has made the claims process much more challenging for policyholders. There are now many more parties involved

‘Insurance companies do employ a lot of women but typically not many are in senior management positions and this is even more the case for the broking sector’

in the process, slowing it down and making it much more cumbersome. Where previously the loss adjuster had project managed the claim and the policyholder had one point of contact with responsibility for the outcome, now the policyholder has to deal with a whole variety of experts.

Q A

What are your biggest challenges in your current position as MD of Echelon?

Echelon is a team of chartered loss adjusters who represent policyholders, not insurers. We specialise in the larger, more complex losses, providing the assistance to corporate policyholders that many don’t have in house.

When an organisation has a large loss it can have a catastrophic impact on their business. At a time when an organisation’s primary focus will be on restoring their business operations and retaining their customers in the wake of a loss event, at the same time they have to deal with the demanding and burdensome process of managing the claim and fulfilling their obligations under their policy.

For us I think there are a number of key challenges flowing from this: • One is that most organisations, unless they have already experienced a large claim, have no experience of the claims process and actually don’t know what’s involved and how complex it is. When appointed at the outset of a claim when we can set the direction and ensure all the steps needed in the first few days are taken – we ensure the claim gets off on the right foot. Frequently we are pulled in some time later, when positions are already entrenched and then we have to unpick what’s been done and start again. We are very successful at this but if we were appointed earlier, we could avoid a lot of unnecessary problems. We try and raise awareness of this by putting technical articles, involving dealing with claims out into the press and also by providing guidance to clients. We also work with the Association of Insurance Risk Managers in Industry and Commerce (Airmic), running workshops and training sessions. We ran a three module training academy last year which focused on dealing with large claims, business interruption and stress testing policies.

• Claim preparation attitude from the UK insurance market vs the rest of the world, this is related to Insurers attitudes to representing the policyholder and assumptions that we are “loss assessors” and all the negative connotations of that.

• It needs to be recognised that chartered loss adjusters representing policyholders do not inflate claims, we are here to put policyholders on a level footing with insurers by giving them access to the same expertise and resources as insurers in the investigation and settlement of claims.

MC // March 2015

14

Interview with... Candy Holland

‘An increased forensic approach by insurers with detailed investigation pre and post loss by lawyers and other forensic experts on large claims has made the claims process much more challenging for policyholders’ Another challenge we face is the attitude of the UK Insurance Market regarding claim preparation. Many insurers think that because we represent the policyholder, we are in fact loss assessors with the sole remit of adopting an adversarial approach, inflating claims and with litigation in mind. This couldn’t be further from the truth. Outside of the UK, most insurers provide coverage in their property and business interruption policies for claims preparation costs. This is a well established practice internationally, but the UK has been terribly slow to get on board with this. Although there are claims preparation coverages available, it is still regarded with a huge degree of scepticism by the market. We do alot of work to get the message across that we are chartered loss adjusters who provide policyholders with the resource and skill base that they don’t have when it comes to preparing a large claim. We have made progress but some insurers still don’t get it.

Q A

How has Echelon changed since you started when the business had only been going for a year?

The company is owned by JLT and they set up the business in 2002 as a direct response to the hardening of insurers attitudes towards large losses and to advocate the fact that policyholders need help when dealing with a large loss. Echelon’s service augments what the brokers provide as their core broker role.

Q A

What are the specific challenges associated with managing and resolving major losses for clients?

The first one is expectation management on all sides; from the insured, this is often about a lack of understanding as to what they should expect and an expectation that they will recover all of their claim. There is still an idea that they can make a claim by presenting details of costs and losses on a spreadsheet, the insurer will issue their cheque, and that’s that. Sadly it just does not work like this.

Timescales also present a major issue; there are so many parties involved and the process can be slower than expected because Insurers are undertaking all their forensic investigations. It can take a very long time to get decisions made and this is a real issue. The next point is around inadequate policy coverage; when the policy cover does not properly fit the risk, which unfortunately is an all too common occurrence. The other issue arises when insurance limits are inadequate and when the policyholder is potentially not going to recover what they expect. Information provision can be a problem as the insured needs to provide a great deal of evidence and data (often that they wouldn’t normally collect) to support their claim.

Q

Which type of claims present the biggest ‘problem’ when trying to settle?

MC // March 2015

Candy Holland

Candy is a chartered loss adjuster with extensive experience in all aspects of the investigation, handling and settlement of major property damage and business interruption losses across a range of industry sectors.

She also advises clients on claims certainty services including claims protocols, policy stress testing, major loss planning, process and procedures, audit and operational claims issues.

Candy is Managing Director of Echelon Claims Consultants and President of the Chartered Institute of Loss Adjusters. She speaks regularly on claims matters at conferences and seminars.

Key projects include: • Preparing, presenting and negotiating significant property and business interruption claims for UK and International corporations.

• On behalf of a global telecommunications company, negotiating several large BI claims arising from catastrophe losses in the Caribbean.

• Developing and implementing bespoke claims protocols across client’s financial lines insurance programme.

• Working with global telecommunications company to develop pre-loss claim settlement protocols and claim quantification methodologies and obtaining agreement from insurers and suppliers.

• Conducting audits and operational process reviews for global transportation company.

• Creating and developing major loss plans for a number of international companies.

A

I discussed this with one of my colleagues and we concluded it is not about the type of claim, for example, fire or motor, it is more about mindsets and attitudes.

Some claims should be straightforward but they simply aren’t and others which are big and complicated are quite straightforward because everyone is working together and they have got a will to get the case settled. I think it is really about the quality of people involved, effective communication, management of expectations, a can do attitude from insurers

Interview with... Candy Holland

15

‘I believe that better mentoring and encouragement for women to remain in the workplace would help their confidence and pay dividends for the organisation’ and transparency. When any of these are missing, problems usually ensue.

undertaken by the insurance industry as a whole in looking at how it responds to natural disasters and surge events.

Q A

Q A

How should insurers be stress testing their policies and why is this so important?

Stress testing policies is so important and we run stress testing exercises with many of our clients. Because it is only when you have a claim that you find out whether the policy really covers you for what you think it’s going to and by then it’s too late if it transpires that there’s a problem with the cover. Policyholders don’t necessarily know exactly what is in their policy and what is involved in the claims process until they have a claim. There is no information available to give them any insight at all into what they can expect from the process and there is nothing that tells them how long it will take, which information they should be gathering and who all the parties are that the insurers will appoint; forensic accountants, loss adjusters and lawyers for example. That information should be accessible so policyholders know what to expect and can prepare for the claim process by having confidence that their policy will respond as they expect. They can prepare for this in advance by running hypothetical claims scenarios, asking questions of their insurers as to what will happen should they make a claim and addressing any shortcomings in their policy coverage. Over the past year or so there’s been more talk about the importance of stress testing but it’s still rarity and this has got to change.

Q A

Has the industry found a balance in terms of cost/ time when considering risk management?

There is a huge amount that has been done and Airmic and the IRM have been very active in promoting the importance of risk management.

Property losses have declined over recent years and one of the contributing factors must be improved risk management. Pandemics, ash cloud, natural catastrophes, floods and emerging risks have all received attention and there’s much more awareness of risk management now than in the past. It’s still got a way to go though, and I do wonder whether insurers give sufficient financial incentive to organisations with good risk management.

Q A

How can insurers help avoid supply chain fragility, particularly in light of an increasing number of natural disasters etc?

The insurance response to natural disasters needs to be improved. From a claims perspective, there are many challenges when dealing with natural disasters, including the impact of inadequate resources, inadequate policy coverage and arguably poor decisions taken on claims. For example, the decision in the case of OrientExpress Hotels Ltd v Assicurazioni Generali SpA 2010 has resulted in insurers adopting a particular approach to BI claims involving wide area damage which has provoked a great deal of controversy. The Chartered Institute of Loss Adjusters has produced a study which recommends simple tweaks to the standard BI wording which would bring greater certainty and clarity but the take up is very slow. I believe a lot more Research and Development needs to be

Do you think the perception of women in the insurance industry is changing and is the profession doing enough to encourage diversity?

Yes, it is changing very slowly and when I had my children, 20+ years ago, life was very different. When I had young children I barely talked about them because I was worried that people would judge me as unprofessional. In those days – and it’s only 20 years ago! - men didn’t leave early to pick up their kids from school – how things have changed! The Work/ life balance discussions are much more acceptable now and I think use of technology/internet/mobile phones have made that much easier in terms of flexible working which benefits women – although some employers still have the old fashioned attitude that working from home isn’t proper working!

The industry is still far from perfect, as is evidenced by how few women there are in senior management positions in organisations within the industry. If you look around, there are women in the sector, such as Inga Beale, the Chairwoman of Lloyd’s, Julia Graham, President of FERMA and Helen-Clare Pope, Airmic Chair. Women are gradually making their way and having their voices heard but there is still a long way to go. The changes need to be cultural, procedural and practical; there is a huge culture change that needs to take place within organisations which some are already very good at – lawyers are an example of this. Insurance companies do employ a lot of women but typically not many are in senior management positions and this is even more the case for the broking sector.

Some of that is cultural and some is about not supporting women enough to maintain their careers, particularly when they return to work after having their children. It’s not easy having children and maintaining your career. But it can be done. Having a supportive and understanding boss is important, make sure you make it a quid pro quo.

Women need to have the confidence that they can come back and they can achieve. I believe that better mentoring and encouragement for women to remain in the workplace would help their confidence and pay dividends for the organisation.

Q A

What is in the pipeline for Echelon now and in the future?

You could take the view that if all of the things I have mentioned actually happened - if there was better policy stress testing, better policy coverage, better awareness and better risk management – then policyholders wouldn’t need assistance with their claims! However, large losses will always need highly experienced, practical, technical claims people to deliver the right result and ensure there is parity in the claims process. We do need to ensure we have the correct succession plans in place, so that the next generation can come through and deliver the skills and resources required.

So for us it’s about continuing to deliver value, practical help and solutions on claims, ensuring we remain up to date and relevant for new and emerging risks. Stress testing insurances, providing advice and guidance, managing expectations and settling claims – it’s what we do well and we love it!

MC // March 2015

Interview with... Naomi Wilson

17

Interview with...

NAOMI WILSON Charlotte Parkinson, Modern Claims, spoke to the Director and Solicitor from NW Law about putting her skills as a business woman into the law, and the unexpected benefits of operating as a niche practice in the Personal Injury (PI) space.

Q A

Why did you decide to establish NW Law?

I had previously worked for three other firms and found the work/life balance very difficult.

I wanted to have more flexibility and also to be able to offer that to other people. I come from a family of selfemployed people and so I guess it is in my nature to want to work for myself. I’ve never thought of myself as a solicitor but more as a business woman and I approached NW Law in that way.

Q

What types of work currently make up the NW portfolio?

Have you diversified into other types of higher value work following legislative changes?

A

We have stuck to PI and do most types - from Road Traffic Accident (RTA) to clinical negligence. Our work type and mix hasn’t really changed since the legislative changes and most of our work still comes from recommendations and word of mouth.

Q

What have been the specific challenges for NW Law in light of the extensive changes/ turbulence in the PI market over the last 3 years?

‘I’ve never thought of myself as a solicitor but more as a business woman and I approached NW Law in that way’

A

I have found that the costs of advertising have increased massively as more PI firms seek to obtain work from sources other than paid referrers. It’s been necessary to implement internal structural changes and that has been stressful.

MC // March 2015

18

Interview with... Naomi Wilson

‘Maintaining the status-quo whilst seeing what’s coming next is right for us; I don’t buy into all that “hurry up and do something before it’s all over” mindset’

Q A

What are the specific challenges associated with being a niche/ small size law firm? Do you have plans for further growth?

It’s impossible as a small firm to match the large marketing budgets that the bigger firms have (to get work in to replace referrers), but fortunately we had already started to move away from referred work in the 18 months before the Legal Aid Sentencing and Punishment of Offenders (LASPO) Act. It’s certainly teaching us to be inventive! In some ways, being a small sized company can make it easier to implement changes quickly. I am the sole director and there is no panel of partners or other directors to consult with although at NW Law I do consult with my staff about major changes, after all they are the ones who have to work with them so it’s important that everyone has a say and feels that they have been heard. I was seriously ill last year and I am extremely lucky to work with such amazing people who really stepped up and have been supportive and patient with all the changes, even when difficult decisions have had to be made. At the moment, I’m concentrating on getting back to full health but we are already discussing ideas for expansion and possible diversification, but it’s early days. To some extent, I think maintaining the status-quo whilst seeing what’s coming next is right for us; I don’t buy into all that “hurry up and do something before it’s all over” mindset.

Q

NW Law is a member of the Motor Accident Solicitors Society (MASS), do you think sector organisations such as MASS are lobbying the Government hard enough in relation to preserving access to justice?

A

I was previously the regional coordinator for the Manchester group and saw firsthand at the committee

meetings how hard the organisation works to protect the rights of accident victims. The difficulty however is in getting past the media sensationalism.

I was asked to do an interview for a mainstream channel about the portal and the issues facing claimants at the hands of a reduced fee “conveyor belt” process.

That was not shown and instead the programme focused on “crash for cash” which the producer told me was a much “sexier” subject.

Q A

What impact could/will the General Election have on the PI/wider legal sector?

I once heard a Labour minister say at a conference that they will repeal much of LASPO but I can’t see that happening. I think it’s anyone’s guess.

Q A

Is the PI sector still attractive to young solicitors?

Solicitors, no, but those taking an alternative route to a career in law, yes (such as the new apprenticeships). We have an apprentice with us at the moment.

Why anyone would waste money on an LPC now to go into PI is beyond me. I know several very experienced, technically good solicitors who simply can’t get work.

Q A

What are your hopes for the future of the PI sector in the UK, do you anticipate more consolidation?

I hope we get chance to catch our breath before yet more changes! I think more consolidation is likely and we have already seen that with Slater & Gordon and others. I have been approached but so far it hasn’t been the right step for my company.

‘Being a small sized company can make it easier to implement changes quickly’ MC // March 2015

Naomi Wilson Naomi Wilson qualified as a solicitor in 1999 and worked for three firms in a mix of sizes before setting up NW Law in April 2008. The company, based in Radcliffe, employs 10 people. She has a postgraduate diploma in legal management and was previously “Highly Commended” at the Association of Women Solicitors Awards.

Having previously held the position of Regional Coordinator for the Manchester MASS group, she now acts as their treasurer. Spare time is taken up with renovating her house at Hollingworth Lake, where she lives with her three cats Dudley, Walter and Mr Ginge. She admits to an unhealthy amount of time on Pinterest and harbours dreams of running away to Rhode Island, Newport, USA to start an English teashop.

These are not simply ‘off the shelf’ policies. We pride ourselves in creating bespoke solutions

Bespoke insurance solutions for after the event

Legal market – entry options The legal market is valued in excess of £30bn.

Over 60% of UK consumers have indicated they would consider purchasing a legal service from trusted consumer brands.

www.amberis-ate.com

For specialist mediators

ABS formation, joint venture, contract for services, panel member...

Whatever the solution Parabis can work with you to supply a wide range of legal services.

Contact Us To find out how Parabis can help you, please contact: Michael George Davidson Head of Business Development – Consumer, Parabis Group T: 0787 280 7138 E: michael.davidson@parabis.co.uk

T: 0844 245 4000

www.parabisgroup.co.uk Innovative Solutions

www.ExpediteResolution.com 0844 879 3166 www.TrustMediation.org.uk 0207 353 3237

The Opinions

21-48

THE OPINIONS

21

22

Sector Soapbox

Sector Soapbox Industry Associations discuss market changes and updates over the last two months. Rob Cummings, Manager, General Insurance at The Association of British Insurers (ABI) discusses how the General Election will impact the claims market. Susan Brown, Chair of the Motor Accident Solicitors Society (MASS) gives a rundown of the latest trends in motor claims and Nick Parsons, President of the Forum of Insurance Lawyers (FOIL) explains why the Government’s decision to implement increased fees to commence court proceedings from this April, has touched a legal nerve.

Still alive and well?

W

ith the General Election fast approaching, there is much speculation and uncertainty over the outcome and the colour of the next Government. Like in 2010, the polls point to a split vote, with the new Government more likely to be decided by the outcome of negotiations than direct from the ballot box.

Whatever the makeup of the next Government, they will need to focus on continuing to reduce the cost of motor insurance for hard pressed motorists. Consumers, insurers and politicians are aligned in wanting motor insurance to be as affordable as possible and the best way of achieving this is by driving down unnecessary costs.

The key to this will be tackling the cost of frivolous and exaggerated personal injury claims. Reforms to the civil justice system in the form of the implementation of the Legal Aid, Sentencing and Punishment of Offenders Act (LASPO) and the reduction in the fixed legal fees have enabled insurers to pass on cost savings totalling nearly £600 million since the reforms where introduced. However, premiums can come down further and key to this will be cracking down on the UK’s whiplash epidemic.

Whiplash claims currently cost UK motorists around £2billion a year and the Government recognises that this is an unacceptable amount. That is why the Government has decided to implement MedCo, a new system for sourcing medico-legal reports for RTA soft tissue injury claims.

The new system will randomly allocate medical experts to produce medico-legal reports and all experts will eventually need to undergo an accreditation process.

MC // March 2015

However, whether these reforms will be enough is questionable and that is why the next Government must look to increase the Small Claims Track (SCT) limit. Raising the limit to at least £5,000 will ensure low value personal injury claims are settled quickly and efficiently, at a proportionate cost.

The new Government will need to be aware of the unintended consequences of cracking down on unmeritorious whiplash claims. Noise Induced Hearing Loss (NIHL) claims are fast becoming the new cash cow for claimant solicitors, eager to make up for the reduction of fixed legal fees. With solicitors typically pocketing three times the amount of compensation paid to the claimant, the rise in industrial deafness claims clearly shows that claimant solicitors are keeping the compensation culture alive and well and will be a source of concern for any new Government.

Rob Cummings, Manager, General Insurance, The Association of British Insurers (ABI).

Sector Soapbox

23

The old adage

T

he start of 2015 has seen a miniblizzard of new reports intended to suggest the latest trends in motor accident claims. The AA has said that the average motor insurance premium was £540 in the last quarter of 2014, down 10% on 2013. Towers Watson said that the figure was £594 having fallen by 7.9% over 2014. In early February the ABI said that the average premium was £372 down 4% during 2014 from 2013.

Whilst the differences will undoubtedly be explained by the use of different methodologies, there are clearly great variations in these figures.

But there does appear to be a trend. The average motor premium (which is somewhere between the vastly different £372 and £594) fell during 2013. We don’t know exactly by how much but it is somewhere between 4% (ABI) and 10% (AA). It is obviously welcome that premiums are falling for motorists and that, as the ABI noted, £595 million of savings have been passed on to motorists. The argument about whether the full savings from the round of legal reforms have been passed on to consumers is perhaps for another day.

The reports from the ABI, AA and Towers Watson were further supplemented by an Institute and Faculty of Actuaries report in January that stated that there has been a 12% reduction in the frequency of bodily injury claims, a 19% reduction in the overall costs of whiplash-style injury claims

and a 65% reduction of fixed legal costs for each claim made.

Although we may be able to identify general trends, such wildly different figures present a very real problem for good policy making. The concept that public policy by Government and Parliament must be “evidence-based” is widely accepted. But on the basis of these figures above, which figures should be used to form public policy towards motor accident claims going forward?

The selection and use of statistics is vitally important. In the recent past some key stats have had very real and detrimental impacts upon claimants. In 2011 the ABI produced the figure, based on an average paid premium of £440, that whiplash claims represented approximately £90 of the average premium. This figure became the cornerstone of the Government’s assault against motor accident claims, although precisely how it was justified remains unclear to this day.

If the old adage about lies, damned lies and statistics is not to be repeated yet again, it is important that there is clarity, precision and agreement about the current state of the market. For good policy to be developed, Government, Parliament and stakeholders alike, need access to the full picture, not selective spin.

Susan Brown is Chair of the Motor Accident Solicitors Society (MASS) and a Director of Prolegal.

Enhanced Court Fees

T

he Government’s decision to implement increased fees to commence court proceedings from this April, has touched a legal nerve.

The decision taken as a revenue-raising measure (to be reinvested in improving the court service) will increase the fee in money recovery cases (including personal injury) to 5% of the value of the claims over £10,000 up to a maximum fee of £10,000.

It is a very significant increase. The cost to issue a £190,000 claim will rise from £1,315 to £9,500.

The senior judiciary, the Bar Council, The Law Society and many solicitors groups, including APIL and FOIL have heavily criticised the decision.

FOIL’s opposition springs from two concerns. First, access to justice; the opportunity to seek redress should be available to all, and not just those who can afford a substantial fee to commence proceedings. Second, the cost of litigation will rise inevitably. Much of the increased cost will be borne by our clients as they will have to pick up the tab when their lawyers settle litigated claims. For insurers, that adds an inflationary cost, which raises the prospect of increased premiums down the line. For our public sector clients such as local authorities and health bodies, they will be footing a larger bill that they can ill

afford in these straitened times. It is ironic that a decision taken as a revenue-raising measure by the Government may mean robbing Peter to pay Paul, with one part of the State subsidising another.

If enhanced court fees are implemented then other impacts may follow. Will a market emerge to fund these additional costs? If so, the profit the funder takes will be an additional cost, with questionable benefit to the process. Down the line, if it becomes politically acceptable to charge some court users for more than the service they receive to crosssubsidise other parts of the court service, then a future government could target sub £10,000 cases. There the volumes of litigation would have a heavy financial effect.

The statutory instrument bringing in enhanced fees is the more unusual affirmative resolution type, which will require the approval of both the Houses of Parliament. Therefore the informal group led by The Law Society, of which FOIL is a part, is concentrating its opposition on lobbying MPs and peers so that the decision can be challenged and debated in Parliament.

It is a rare occasion when the legal profession unites but there is a real strength of feeling that this is neither fair nor a financially-justified decision.

Nick Parsons, President of the Forum of Insurance Lawyers (FOIL) and Partner at Browne Jacobson.

MC // March 2015

24

The Opinions

Information Governance – Don’t Forget about the Paper!

I

nformation Governance is a discipline increasingly seen as essential to the efficient and effective running of professional service firms, as well as supporting the mitigation of a variety of legal and operational risks.

Information is now widely recognised as a strategic and vital business asset, supporting and evidencing processes, decisions, activities, transactions and performance.

Much of the information that an organisation needs to use and manage is of course now ‘born’ digital: electronic documents, computer reports, email, instant messages, voice, video etc. However, many organisations will still have paper files. Indeed, with so many sources of digital content the properly managed and collated paper file is sometimes seen as the accurate and trusted source and narrative of the truth. Paper records are often retained where they contain “wet ink” signatures of evidential value.

Although most organisations are on a journey to implement electronic document management and workflow, we still regularly see large volumes of paper filing for underwriting, claims and client matter files, as well as personnel, accounting, estates management and other records. There will also be the physical items in storage, including archive boxes and backup tapes.

Policies, processes, procedures and enabling technology are required to ensure that paper records are properly filed, referenced and organised so that they can be readily found and utilised; that they are archived in appropriate facilities when not in active use, and that are governed and managed for retention and disposal purposes. At all times of course suitable measures need to be in place with regards their storage, movement and disposal to meet information security and business continuity requirements.

This includes the implementation of a robust approach for “P-Discovery” in support of any audit, investigation, litigation or tribunal, with the ability to quickly and easily find out the existence, or not, and current location of physical information assets. From a legal disclosure perspective this means the search for documents relating to a case and the need to disclose the documents that are relevant to the issues in dispute to the other party. It should form part of the litigation readiness of an organisation, whereby relevant documents can be found and supplied immediately, reducing the risks and costs of adverse inference, failure to meet litigation deadlines or other penalties.

John Messeter, Managing Director, UK Software Ltd.

The art of listening ????????

How important is customer feedback throughout all stages of interaction with service providers, to ensure satisfaction for both insurers and their policy holders?

A

s both business people and consumers, we are constantly bombarded with people and organisations vying for our attention in an increasingly noisy world where it can be all too easy to dismiss everything which isn’t of ‘highimportance’. However, by taking this view you might overlook a little nugget, which could make a vital difference to your business. ‘Listening’ is a dying art; I’m sure we all know someone who looks like they’re listening, but when it comes down to it they weren’t really. And it’s the same in business – there is now a whole online industry dedicated to providing spaces for customers to leave feedback providing organisations with more opportunities than ever before to find out what their customers are saying about them.

From online feedback forms, Google reviews and Trust Pilot, to an ever growing social media landscape, organisations have the potential to receive wide ranging customer feedback, but how many can honestly say that feedback is actively monitored and acted on? We surveyed a number of leading insurance providers last year about their use of the Net Promoter Score (NPS) customer satisfaction rating system, and whilst 58% of respondents stated their organisations prefer to work with suppliers that use NPS, only 27% admitted that their organisations have a formal monitoring system in place for suppliers. And of those 27%, only 43% advised that they have a process in place to deal with suppliers whose NPS does not measure up to the figure quoted at the outset of the supply agreement. As some supply contracts can extend up to three years, this could leave some insurers open to working with suppliers for whom ongoing customer satisfaction is not a priority.

This statistic suggests that whilst proof of customer satisfaction is an important factor in a successful tender, it may become less of a priority as the contract progresses – leaving both insurers and their policy holders vulnerable to receiving poor service. Without truly listening to customers on an ongoing basis, how do you know if your service, and that of your suppliers tasked with delivering services on your behalf, is valued and supporting policy holder retention targets? In an increasingly competitive market, insurers and suppliers that listen to customers and shape their services around market demands will ultimately be the ones to prosper. Even if that does mean logging into twitter on a daily basis!

Pete Marsden, Managing Director, National Windscreens.

MC // March 2015

The Opinions

Who really looses out?

At the end of last year, the Association of British Insurers (ABI) said the CMA had failed to tackle the “excessive” charges made by credit hire groups for replacement vehicles. They also said, “The U-turn on their proposed cap is likely to lead to higher charges for consumers.” Do you agree?

T

he CMA review was a glorious opportunity to correct a number of things that were negatively impacting the end Motor Insurance Customer, and presented a way of doing so without risking issues from and accusations of anti-competitive behaviour on the part of insurers. Sadly as has been reported widely since the announcement what we actually got was a missed opportunity and a ‘Damp Squib’ of a report.

So are charges ‘Excessive’? Absolutely, we regularly see day rates that are many multiples of the cost of any individual who wished to hire an appropriate vehicle on a first party basis. In addition there are the other very common abuses of the system, ranging from extending hire periods unnecessarily, additional costs being added with no real justification, and a trend of always providing a much better vehicle than is the one being replaced or actually needed by the customer. The tales of these abuses almost stretch to urban myth, but there have been credit hire bills presented for amounts in excess of £100,000, for cars only a few thousand pounds in value!

So whilst I don’t want to paint the entire credit hire industry with the same brush, there are generally excessive charges (even the CMA agreed that, it just questioned whether legislation was necessary to correct what they saw as a relatively small problem!). The GTA, the arrangement set up to try and correct these issues has summarily failed in that aim, with most insurers having their own side arrangements on fees and my own company exiting as we were so frustrated by its lack of action.

CHO’s were worried about the CMA, the Cap made sense to all outside those who earned from the inflated fees, but you could almost feel the sense of relief when CHO’s found they were ‘In the Clear’. So what do I think will happen?

Well spared the threat of any challenge whatsoever now the CMA have backed off, sadly rates will only go one way, and that is up. Much as I would like to dream of a sudden pang of conscience, different behaviours and charging regimes from the CHO’s, the reality is there are no signs of any of this. The losers in all this will be the general public, as this is reflected in the motor insurance premiums they have to pay.

25

How to make the most of what you’ve got...

How can claims professionals best make use of existing data to retain clients?

E

xisting client and case data is an absolute goldmine - and it never ceases to amaze me how often it is overlooked!

In retaining clients, and driving them back to you in the future, the data you hold about them is a great marketing tool. But to use it effectively, it has to be accessible. There’s little point in having historical data squirreled away in secret locations, as a) the majority of your staff won’t be able to find it of course; or b) those that do know where it resides will not summon up the effort to retrieve it.

To make use of the data, it has to be within easy reach for those who may need to utilise it. Your CRM or case management system should be able to store all relevant data, and be able to filter it from view when it is not needed - so as not to confuse any current activities or actions. This can be as simple as your current system hiding non-relevant data based upon the role of the staff member accessing it, or could alternatively structure historical data on another screen in the system - just a click away, but not hampering the current focus.

Existing data can take many forms and provide a number of advantages, for example: • empowering you to provide an online portal for the client, meaning that they can securely access their ongoing claim status over the internet, or via their mobile phone • enabling you to paint a picture of a client, to target them with complementary services or policies • highlighting any gaps in your service provision, flagging up products that would be of value to the client • providing data to feed into regular email updates or newsletters, keeping the client informed as to your service offerings.

Generating and capturing client data is an expensive exercise - don’t let the effort go to waste!

Darren Gower, Marketing Director, Eclipse Legal Systems, part of Capita plc.

David Williams, Managing Director, Underwriting, AXA Insurance.

MC // March 2015

How important is it to your workflow that documents are signed promptly by new clients and returned rapidly to your team?

Are you losing prospective clients due to delays? Or maybe you’d just like the option of a cheaper, yet more efficient service?

Expert Signup is the UK’s new national provider of document signup and return services for the legal profession.

Faster, cheaper, better... the superior ‘sign and collect’ service for legal documents At Expert Signup we understand the challenges of managing large volumes of legal cases – and how delays and uncertainty impact on conversion rates and work flows. So we designed our streamlined service to be rapid, reliable, cost- effective and easy for you and your colleagues to use.

Expert Signup has built the biggest network of agents in the UK and a state-of-the-art web portal to guarantee you the most efficient and seamless service possible… And the lowest charges.

Expert Signup offers: • • • • •

Online booking, automatic updates and rapid delivery of scanned documents The ability to choose the exact time that suits your client 3 hours’ notice for booking of appointments Guaranteed return of signed documents within 24 hours Secure log-in accounts with a dashboard to monitor and manage bookings

Visit our web portal and see for yourself. Setting up your account takes just a few minutes.

Put Expert Signup to the test, and see the savings – in time and money – for your business.

Find us online at: www.expertsignup.co.uk or Call us on 0121 201 3126

The Opinions

Are members of the armed forces ‘employees’?

A

bsolutely not. Thankfully, the High Court, on Appeal from the Senior Courts Costs Office, has recently agreed with this point of view in a very important ruling.

The case of Broni & Ors v Ministry of Defence [2015] EWHC 66 (QB) brought together three claims relating to injuries suffered by servicemen during training. Both Master O’Hare in two and Deputy Master James in the third had determined that they were employees as required by the old CPR 45.20. This defined an employee by reference to section 2(1) of the Employers Liability (Compulsory Insurance) Act 1969 as “an individual who has entered into or works under a contract of service or apprenticeship with an employer”. Consequently, the success fee uplifts in each case were fixed at 25%.

At the High Court, the claimants argued that the law is clear that a serving member of the armed services is not an employee under a contract of service and there was no proper basis for construing CPR Part 45 more broadly. The Ministry of Defence responded by calling for a purposive approach to the construction of the words ‘contract of service’. Mr Justice Supperstone found for the claimants, ruling that there was “no scope for giving a broad or purposive interpretation”.

This judgment is absolutely correct and it was a very good point to take to appeal. Military cases are highly specialised and face unique challenges, such as combat immunity. They are inherently riskier and consequently more costly to run. It follows therefore that they should not have been restricted to the fixed success fee regime, which assumes uniformity and something typical, which these cases are absolutely not. Each case has now been referred back to Costs Master Haworth to assess the success fee on each.

Hilary Meredith, CEO, Hilary Meredith Solicitors.

27

An insight to the world of insurance Do too many in the claims industry look at social media simply as a marketing tool? How else can social media be used in alternative ways?

I

t is amazing to see the growth of social media over the last decade or so. Could I have imagined it when I joined the industry all those years ago? Probably not. But here we are in a world where Smartphones and tablets mean we are a fingertip away from connecting with friends, family and even our insurers. The ease with which we are able to reach out to people or businesses on Facebook and Twitter provides a unique opportunity to have a direct line of communication with customers. This is what makes social media such a useful additional channel that organisations can use to generate conversations and get feedback.

At Ageas, far from using social media just for marketing, we believe it gives us a voice to share our expertise, knowledge and our human face. Though in comparison to social giants we are taking small steps but at least they are steps. Tweeting alerts when we know the weather is about to take a turn for the worst has proved popular, particularly amongst our brokers who can then pass on these messages to their customers. Being ready for such weather events can help our customers minimise and avoid serious damage to their properties by taking some manageable actions.

In order to make these messages more interesting, we launched our Mr Ageas character with a series of short animated clips showing the quick steps our customers can take to tackle some common household perils caused by storms, cold weather and fire. These light-hearted clips are intended to shed light on some common hazards around the home and simple steps on how to overcome them and what better way to share these with friends, family and colleagues than by retweeting?

We are also keen to pick the brains of our employees from across the business to form our regular blogs.

From directors to specialists, we give our people the opportunity to express their views on topical and industry related issues to hopefully spark the interests of readers, which range from brokers to customers. We recognise the wealth of knowledge we have across our business. Social media gives our experts an opportunity to showcase their experience and expertise in an informal but informative way. We hope this will build the credibility of Ageas, our employees and the insurance industry as whole whilst providing an insight to our insurance world to our customers.

Rob Smale, Claims Director, Ageas Insurance Limited.

MC // March 2015

Leave it to the experts Hilary Meredith Solicitors Ltd is the UK’s leading military law firm with a proven track record spanning decades and continents. Our military solicitors work with Armed Forces Service Personnel whose injuries may be catastrophic and life changing. Specialists in the Armed Forces Compensation Scheme, our experience helps to maximise the value of the claim.

We also operate a reciprocal agreement scheme for law firms forwarding military claims.

Contact us today on 0800 124 4444

www.hmsolicitors.co.uk

0800 124 4444

Meredith House, 25-27 Water Lane, Wilmslow, Cheshire SK9 5AR Central Court, 25 Southampton Buildings, Chancery Lane, London WC2A 1AL Hilary Meredith Solicitors Limited is authorised and regulated by the Solicitors Regulation Authority of England and Wales. SRA ID number: 561149.

The Opinions

The dynamics of B2B-C partnerships How can traditional law firms manage conflict when pursuing both affinity and direct to consumer strategies?

T

he UK legal marketplace is certainly hotting up as forecasters predict further annual growth of 5% in 2015 (£32.8bn) and a further uplift in 2016 to over £34.7bn.

With greater market share and revenue available, the debate of strategic distribution is of significant importance; in short B2B-C vs. B2C or both?

A question I am often asked concerns ROI. Which is the most cost effective distribution strategy: (a) Investment into direct media spend to acquire new business (B2C) or (b) investment through a brand partner? The latter brings reduced direct marketing spend but does, of course, increase referral fees. The most scientific way of doing this is to assess the total client acquisition costs of both strategies.

One thing is clear, law firms that opt for both strategies are often in danger of not achieving suitable ROI through either channel and risk becoming “Jack of all Trades and Master of None”.

As a leading affinity operation, Parabis’ brand partners want to see and feel commitment. Traditional law firm operators are often deemed to be “sitting on the fence” and/or “hedging their bets” by seeking direct distribution while also backing affinity brands. This has consequences both internally and externally as customer burn is inevitable i.e. where the end user is both a direct target of the law firm and the affinity brand. Conflict also arises from dual pricing and product/service differentiation issues.

Internal issues are created within the traditional model over budgetary and resource commitments e.g. spend on direct marketing campaigns resourced by dedicated teams at the expense of investing and supporting the efforts of a valued brand partner.

Market consolidation is now clearly underway with over 1,000 law firms closing their doors in the year to August 2014* and with predictions of major consolidation within the top 200 firms by 2017. Only those multidisciplinary firms who are able to mitigate conflict and clarify their strategic position will prosper!

Operating successfully in the legal affinity marketplace is by no means easy, however, if you understand fully and respect the dynamics of B2BC partnerships, both the ROI & ROE is clear.

“If you’re thinking like everyone else, then you aren’t thinking”.

29

Online Dispute Resolution – a proposal to be resisted or developed?

“A disruptive innovation is an innovation that helps create a new market…and eventually disrupts an existing market…(over a few years or decades), displacing an earlier technology.” (Wikipedia) The phrase “disruptive innovation” accurately describes the changes foreshadowed in “ONLINE DISPUTE RESOLUTION FOR LOW VALUE1 CIVIL CLAIMS”, the report recently published by the Civil Justice Council. As the report threatens the status quo, it appears quite challenging and will inevitably give rise to a range of concerns. Do the concerns, when examined, cause us to dismiss this report or support it?

What does the report say?

The report recommends that HM Courts & Tribunals Service establish a new, internet-based three-tier court service.

The first tier would provide Online Evaluation and information for claimants about options and remedies.

The second would provide Online Facilitation, a service to be provided by facilitators including mediation and negotiation. Some services would be provided by telephone conferencing facilities and some automated negotiation would be used.

The third tier would provide Online Judges who would decide suitable cases online. This process can also be supported by conferencing facilities.

What has been the reaction to the report and what concerns have been expressed?

The report has attracted a lot of comment, much favourable but some more sceptical. It does seem to be generally recognised that ODR is not the fanciful figment of some boffin’s imagination but a means of dispute resolution which is already established and being used in a variety of ways.

The concerns expressed include questions about the quality and nature of justice that ODR can deliver, and whether this approach inevitably risks breaches of Article 6 rights (ECHR).

Other logistical and economic concerns will centre on the overall cost and impact that these reforms will have on those handling large volume of personal injury and credit hire claims.

What happens next?

The ideas in the report need to be developed, costed, subjected to feasibility testing and consultation. Pilot schemes need to be established. In parallel with this activity, the existing and developing ODR projects in this country and overseas need to be monitored. Meanwhile, all existing types of claims under £25,000 will need to be reviewed to ascertain whether they are suitable for ODR. The key challenge, perhaps, is: How can the technology be shaped to best serve justice?

Michael George Davidson, Head of Business Development, Parabis Consumer Law Service.

Tim Wallis, a member of the Civil Justice Council ODR Advisory Group, led by Professor Richard Susskind, and Mediator, Solicitor and Director of Expedite Resolution and Trust Mediation.

*Source: UK Legal Market Trends report 2015, IRN Research

1. Up to £25,000

MC // March 2015

Innovative & Cost Effective Funding Solutions for Personal Injury, Clinical Negligence and Industrial Disease Practitioners.

Costs Advance: Allowing firms to draw down up to 70% of likely costs recoverable once cases have concluded. To date, over £7million has been advanced to law firms across the UK, allowing them to take advantage of and benefit from vastly improved cash-flow.

WIP Funding: Law Firms often have considerable sums of money tied up in their WIP which can significantly limit available money for growth.

Our new WIP funding facility advances the law firm a fixed sum per case so that unbilled WIP can be turned into working capital.

Improved Cash-Flow / Simple Administration / Fast Payment / No PGs Required

Authorised and Regulated by the Solicitors Regulation Authority – Registered in England and Wales: Number 05867110, Registered Office: 53 King Street, Manchester M2 4LQ

Contact Mark Hartigan on

0161 359 4666

SOLICITORS

or email: info@justcosts.com www.justcosts.com

We’re not just good at Personal Injury - we’re blooming marvellous!

The ready acceptance of our conclusions by practitioners on both sides of the fence avoids the escalation of legal costs, expediates settlement of claims and ensures that the injured party is compensated with a figure representative of their substantiable level of loss. In other words we save our clients time, money and whole lot of headaches.

Contact us today and discover how Forths can make a real difference to the total claimed in any action.

Leeds: 0113 387 5670 Manchester: 0161 237 0699

enquiries@forthsonline.co.uk @ForthsForensic www.forthsonline.co.uk

The Opinions

To CPD or not To CPD? That is the Question.

T

he recently proposed changes in England & Wales (E&W), that some might say represent a radical and unwelcome change in direction with potentially damaging implications for both Solicitors and clients alike, is yet another example of the dislocation between the legal jurisdictions.

In Northern Ireland (NI), no such plans are on the horizon and indeed, quite the reverse is happening. Only last autumn, APIL indicated it would be launching measures to ensure PI lawyers in NI were able to accrue their required accredited CPD hours, so as to maintain their status.

The scheme will be piloted until 31 March 2015 and was implemented due ‘inter alia’ to demand from the grass roots. Many of the measures have the active support of the Northern Ireland Law Society (NILS) through e.g. their PI publications such as the Writ, The NI Legal Quarterly and Legal books.

The measures, taken as a whole, represent a considerable investment in infrastructure and resources and when compared to the current proposals by the SRA, seem to suggest a marked dichotomy with the equivalent NILS. Concerns for E&W range from inadequate and insufficient training for Solicitors to the loss of financial funding for providers and local Law Societies.

Some even go further, voicing worries that the changes will reduce the status of Solicitors in the eyes of others. The trend with other professional bodies is to tighten up and expand CPD rather than, what some might see, as actively diminishing its importance for lawyers. The question that really needs to be asked - why is the SRA doing this when their equivalent body in NI is doing quite the opposite?

Gerry Lee, Senior Partner, P R Hanna Solicitors.

31

Are ABI Codes of Conduct worth the paper they are written on?

W

hilst starting to think of my next topic for this column, I was interrupted by one of my fee earning team leaders advising me of yet another case where an insurer had written directly to our client in rather intimidating terms, despite them being fully aware of our instruction in the case. A quick call to said insurer (who will remain nameless although the opportunity to name and shame is tempting) resulted in me being informed by their representative that it was company policy that they would disregard the ABI Codes of Conduct (of which they are signatory to when they chose).

So, what actually is the point of these oft-published, rarely adhered to and never enforced codes of conduct our ‘friends’ the ABI produce? Insurers seem to clamour very quickly to sign up to them to purport to be ‘good guys’ in their industry. I actually have more respect for the regular non-signatories, who you at least know are going to be a bit underhand from the off.

From my perspective as a claimant solicitor, these practices are frustrating, but ultimately something we continue to combat by issuing proceedings in every case against the offending insurer until they realise that such breaches of their own industry codes and the pre-action protocols will not be tolerated.

However, my real concern is for my clients; the genuine accident victims who have made the conscious choice to instruct a solicitor to pursue a claim on their behalf.

They play by the rules by signing our terms of business, completing medical mandates, attending appointments and signing our form of authority (which is sent out with every letter of claim we intimate). In return, we give them the reassurance that they only need to speak to us about their claim and that they should not be pestered or intimidated by an insurance company. That seems a fair offering, but clearly not fair enough for certain insurers.

I’ve no doubt that many of an insurer persuasion will be reading this and already starting to spout the usual ‘fraud prevention’ rhetoric. Insurers need to remember that they created fraud in their own industry with practices such as third party capture and pre-med offers. They should be looking to work with claimant solicitors to ensure the genuine claimant is appropriately compensated for their losses and should also remember that many claims do not ever reach their door due to the diligent work of claimant solicitors, who check the validity of a claim before it gets off the ground.

Scott Whyte, Managing Director, Watermans.

MC // March 2015

Let DWA take the stress away!

Had an Accident? Need a Niche Vehicle?

0800 064 5656

Talk to us now regarding provision of Niche Vehicles to your Clients or Insured MPV’s - Saloons - Executive & Commercial Vehicles

Specialist Claims Management for Hackney & Private Hire Drivers Available 17/18 Bridge Industries, Broadcut, Wallington. Hants. PO16 8SX Tel: 0870 950 7410 Fax: 0870 950 7411 Web: www.dwaclaims.co.uk

The Opinions

33

The power of social media A compelling case...

W

e now live and operate in an era whereby technology is ever present in our lives both personally and professionally. It is now relatively accepted that most businesses will use social media to some extent, but some only use it for particular means, rather than to its full benefit.

It is true to say from my experience that the use of social media has helped law firms reach out to new clients, which they may not have done in the past. Many of the people I speak with do see social media simply as another arm of the marketing strategy along with their usual methods.

However, for those in the industry who are looking beyond simply marketing, the use of social media like Facebook and Twitter can have further benefits for your company and also the client. There are many potential avenues you can explore and client feedback can be worth its weight in gold.

Clients (both old and new) are more likely to interact with you via social media regarding their experience of your firm, than they are filling in a questionnaire, which they have to send back.

We can never underestimate the power of recommendation and feedback and utilising social media to keep in contact and interact with your clients, can be an excellent way of building your brand and at no real cost.

Marketing is an ever changing landscape and technology is always on the agenda. With social media now used by so many and seen by some as the top way of communicating, we need to see this as more than simply reaching out to source our work but also as a way of building a rapport with the people we act for.

Innovation is key to business and only those who innovate and adapt will thrive in the future.

Andrew Chadwick, Costs Manager, Ultimate Costs.

Do you think the Governments second review into implementing sections 44 and 46 of the Legal Aid Sentencing and Punishment of Offenders Act 2012 (LASPO), concerning abolishing recoverability in mesothelioma cases, is necessary and what impact could it have?

O

ne of the key principles behind the Jackson reforms, embodied within LASPO was that costs had become disproportionate, largely through use of Conditional Fee Arrangements (CFAs) and After the Event (ATE) insurance. The success fee was intended to compensate a claimant‘s solicitor for the costs incurred and not recovered in failed cases. First introduced in 2005, the success fee for all asbestos cases was fixed at 27.5%. Since 2013, this has been retained for asbestos-related mesothelioma claims alone.

Mesothelioma is unique in that it is almost exclusively caused by asbestos exposure and diagnosis is rarely an issue for victims of this dreadful disease. There have been significant changes in the common law, legislation, court practice and general claims handling practices within the insurance industry during the past decade, all geared towards settling these claims quickly.

In the past, the vast majority of failed mesothelioma cases have arisen from difficulty in finding a solvent employer or their insurer. In 2011 insurers set up the Employer’s Liability Tracing Office which has improved tracing of historic insurers. More significantly, since April 2014, applications have been received for payments under the insurer-funded Diffuse Mesothelioma Payment Scheme for claims where no insurance cover can be traced. By the end of October 2014, 232 applications had been made with payment in 131 cases totalling £16.5m.

All these changes together have eased many of the difficulties and removed much of the risk of a claimant failing to recover compensation, which previously justified the higher level of legal costs in successful cases.

The Supreme Court’s decision in the Judicial Review sponsored by the Asbestos Victims’ Support Group and the report of the Justice Select Committee, have been critical of the Government’s process of review under s.48. This does not mean that the arguments for bringing mesothelioma claims within LASPO are any less compelling. A further review by the Government should be welcomed. Extending LASPO to mesothelioma claims would ensure sufferers and their families receive a 10% increase in damages, which they are not currently entitled to.

Mike Klaiber, Disease Claims Manager, UK Claims, Zurich Insurance.

MC // March 2015

Turn your closed cases into cash flow.

Your costs recovered , where costs are fixed these are split on a pre-agreed basis.

Files can be transferred via: DX, courier, collection, electronic transfer and Eclipse Proclaim (where compatible)

L L P

N E S B I T

L A W

G R O U P

Allegation of fraud Liability Issues Non-cooperative clients LVI Low prospects of success

T: 0161 763 0050

E: mail@nesbitlawgroup.co.uk www.nesbitlawgroup.co.uk

Association of Regulated Claims Management Companies

Contact Us Today

01282 693779

Your One Stop Solution to Marketing in the Personal Injury sector

Corporate Branding Online Advertising Lead Generation Public Relations Website Design Social Media TLMG provide a comprehensive and unique legal marketing package to law rms around the UK. We create bespoke marketing packages that are tailored to suit your rm’s needs and budget.

Enquire today:

01282 693779 Or visit us on:

www.tlmg.co.uk



The Opinions

35

The face of social media...

Armed and ready...

Do too many in the claims industry look at social media simply as a marketing tool? How else can social media be used in alternative ways?

How can the claims industry be using technology to spot potential reputation/financial issues in a business before they occur?

S

ocial media is a place to socialise, build relationships and get involved with the social media community. Particularly in the claims industry, where much of what is sold is commodities; people buy people. Social media should be seen as networking. It is where you get to know the people behind the businesses, their faces, their names and what they do day to day. This ‘behind the scenes access’ is what is interesting to people and what people like to see.

Taking insurance companies for example, their twitter accounts are faceless, their posts are non-offensive but also non-interesting and content is related directly to their services and their industry. Although they have followers in their thousands, there is little or no reaction to posts or interaction with followers, the majority being businesses within the same industry.

When it comes to personal social media accounts, people will not follow an account where they envisage that they will see marketing material that will clutter up their news feed.

They are in control of what they see and they can choose to see it or not to see it at the click of a button. With a main target audience being the general public, social media accounts should create a persona that is interesting to the general public and sets them apart from the competition.

My view of successful use of social media is Michelle Mone’s twitter account. She is the founder of Ultimo. She has 889 thousand followers but only follows 552 people. The Ultimo twitter account has 12.7 thousand followers and follows 1,400 and the business account does direct marketing of products. Michelle Mone’s posts rarely directly market the products. They are about what she aims to achieve that year, what she is doing that day, how she is getting to her meeting, what she is wearing to an event (where she occasionally drops in the Ultimo product she will wear). She also interacts personally with her followers. Her account attracts people who are interested in her, what she does and what she’s achieved. This indirectly leads them to become familiar with the brand that she represents.

Although it all boils down to marketing, social media used in the wrong way is a waste. Used in the right way, you can sell to an audience who do not realise they are being sold to.

Emma Holcroft, Director, 2020 Investigations.

A

ny business that has adopted a robust case management system will already have the technology in place to identify any internal financial risk.

Straightforward data can be extracted to identify detailed information over and above the usual profit and loss/balance sheet stats, such as client capture rates; lead times; turn times; bottle-necks; fees per case type; profitability and so on.

Where I think there are real opportunities to use technology (especially when it comes to reputation) is during the client/customer experience. More businesses, not just in the claims industry, value the importance of the customer journey and experience. It is obvious that a positive and rewarding experience will lead to repeat business and/or personal endorsement and recommendation.

Most businesses capture this data by customer reviews.

It is commonplace to post reviews on the website but I do wonder how many in the claims industry take action having collected such data. Reviews are really important for prospective customers to decide whether to make that enquiry or not. However, this is limiting as a review is asked at a specific moment in the cycle of the relationship. Typically, a law firm will send out a feedback form or survey at the end of a case, usually when the cheque is sent. That is only ever going to illicit a certain response.

What about the rest of the relationship? Why shouldn’t a customer/client be asked about their opinion during the life of a claim? Savvy organisations continue to get feedback and real-time information on their service.

Doing so will arm the business with vital information about how they are performing at various stages as well as identify potential reputational issues; manage client expectations and possible complaints.

Technology steps in here to automate the collection of opinion data and I have found this most effective through a mobile app. Simple, effective, real-time and at any stage, my firms gets a rating against 5 stars after an update. Picking out the 1-3 stars allows our team to meet any reputational issues or potential complaints head-on, remedy them and move on effectively and efficiently.

Sucheet Amin, Managing Partner of Aequitas Legal & Founder of inCase™ mobile app.

MC // March 2015

Triton Global Limited One provider. Many services.

> Multi-disciplinary services for the insurance sector > Outsourced claims

> Specialist loss adjusting > Legal services to the insurance sector*

www.triton-global.com | info@triton-global.com Triton Global is an independent business, owned by its employees *Licenced as an ABS by the Solicitors Regulation Authority SRA no.597577

[veracity] claims solutions consultancy

Credit Hire & Repair Claims Management  Guaranteed savings through technical expertise and proven robust processes  Cradle to Grave management including liability decision making  Flexible/customised pricing models  Full bespoke MI Reporting  Market Leading price from £40 per claim

We will reduce your credit hire spend at a fraction of the cost - Guaranteed or your money back For more information...

Download our CHM brochure from our website

Veracity Claims Solutions 7 Amber Business Village Amber Close Amington Tamworth B77 4RP T: 0844 335 0010 E: info@veracityclaims.co.uk www.veracityclaims.co.uk

The Opinions

37

Cash cow or burden?

A missed opportunity...

Are Noise Induced Hearing Loss (NIHL) claims the new ‘Cash cow’ for claimant solicitors?

How important is it for claimant firms to secure payments on account when the courts make cost orders?

A

s a result of LASPO, we have seen an increasing number of firms entering ‘new areas’ of personal Injury. A knee jerk reaction in light of falling profits or increased pressure from investors? Or a reasoned and considered move to ensure longevity?

Whilst the perception is that damages and resulting deductions from the client are significantly higher on NIHL cases, many other factors need to be taken into account to ensure a profitable move to this area.

Above all, knowledge and experience of what constitutes a good NIHL case and how to run it to ensure the maximum return for the firm, is key. There is plenty of work currently available but if Aviva’s claims are to be believed (Litigation Futures 11/2/2015), then selection and vetting has never been more important. Add to this recent decisions, such as, Malone v Reylon Heating Engineering Ltd [2014] EWCA Civ 904, with its implications to limitation and generally accepted market figures of less than 50% success rate, selecting the right case from the outset is of upmost importance.

Growing an ID department is a costly step, cases are front end loaded from a cost perspective with significant investigation required to establish whether the case does have prospects of success as initially thought at the vetting and acceptance stage. The costs are further magnified by longer settlement times, meaning cash is tied up for longer.

Cases can be fraught with difficulties, including multiple defendant cases, untraceable defendants/insurers, date of knowledge issues and adverse cost orders conflicting medical evidence. ATE Insurers are more alive to the problems associated with NIHL schemes and have seen this as the least profitable area of insurance. Standalone ATE facilities for ID cases are very difficult to arrange and more problematic when it comes to reporting requirements and ultimately making claims. ATE should not be viewed as the safety net when it comes to running cases.

Nevermoreso than the case of Impact v AIG where it was shown that ATE Insurers would not be liable for any costs if a firm has not vetted or run the case correctly. A professional negligence claim was successfully brought against AIG for the disbursements incurred in which Impact funded.

This decision will impact further on Professional Indemnity premiums and questions asked by Insurers at renewal.

D

espite cash flow improvement being just as vital to a law firm as a clear revenue strategy, clinical negligence solicitors throughout the UK are missing out on payments on account when the courts make costs orders - even though they are entitled to them in the vast majority of cases.

Research recently undertaken by Just Costs Solicitors, indicates that in cases where solicitors obtain an order for costs, the courts are automatically making an order for a payment on account in just 15% of cases.

In cases where the courts have not made an order for payment on account of costs, 80% of the time it is because solicitors have not asked for one. In only 5% of cases are the courts finding there is a good reason not to do so.

The Civil Procedure Rules (CPR) state that where the court orders a party to pay costs subject to detailed assessment, it will order that party to pay a reasonable sum on account of costs, unless there is good reason not to do so. Our research shows that claimant firms are missing out on the opportunity to significantly improve their cash flow by failing to secure payments on account.

If an application is made for an interim payment, the research indicates that costs are being recovered in 89% of cases.

Essentially applications should not be needed if advocates simply drew the court’s attention to rule 44.2(8). If the matter settles by consent, a term for payment on account should be included in the order.

Applications are needed when the costs agreement is by way of Part 36 – and if the application is made, the research shows that in the vast majority of cases they are successful in recovering the costs of their application in addition.

Mark Hartigan, Client Services Director, Just Costs Solicitors.

Industrial Disease departments should be led by individuals with experience, knowledge and a proven track record in NIHL for a firm to even stand a chance of turning a profit.

Generally, damages awarded are on the wane so every endeavour needs to be made to ensure this new area becomes a ‘Cash cow’ and not a burden.

Martin Doyle, Director, Amberis ATE.

MC // March 2015

Our projects to date total an assessment of WIP profile approaching ÂŁ100 million in all areas of legal service, with industry recognised expertise in personal injury due diligence Zoe Holland, Managing Director, Zebra LC

RISK | VALUE | OPPORTUNITY

General Enquiries

0161 635 0213 enquiries@zebralc.co.uk

Zebra LC is a management and technical due diligence consulting firm, committed to innovation in legal services. We are a trusted advisor to law firms and key legal sector stakeholders including banks, funders, investors and insurers.

Confidential Enquiries

Zoe Holland Managing Director zoeholland@zebralc.co.uk

www.zebralc.co.uk

@zebralc

Our advice and specialist reports are often the starting point for business improvement, funding options, M&A, private equity investment, business risk evaluation and strategic planning.

We are nationally renowned for WIP due diligence and valued for our advisory role within some of the legal sector’s highest profile deals.

The Opinions

The right direction What can we expect in 2015 in terms of advancing technology vs. reduced insurance premiums?

F

rom a vehicle repair point of view, we can expect 2015 to be a year where the technology, that was the preserve of luxury vehicles, makes its way into the more mainstream market.

The strides made by manufacturers is admirable - and correct - to assist drivers in avoiding fatigue at the wheel and for the vehicle to make more pro-active responses to potential incidents, but as ever this technology will require specialists. Once a vehicle is involved in an incident, it is critical that the cameras, sensors and pedestrian safety devices are correctly reset to ensure the vehicle acts as it should in any subsequent incidents.

This will carry a cost for enhanced diagnostics and trips to dealers for specialists resets and of course the cost of replacement parts and components to keep the technology operative. The only drawback to these advances will be human beings becoming more complacent and convinced of our prowess behind the wheel. But how will we cope when we get behind the wheel of something less advanced?

The continued development of hybrid vehicles will see more advanced technology make its way into more claims. The repair processes for hybrid vehicles is not so different to standard vehicles, but the procedures to protect the energy cells will require more training and in some cases specialist equipment. This will slow the overall claim process, adding time and cost to the overall handling, which will be reflected in the claim experience and subsequent renewal costs.

A positive impact on motor insurance renewals will be the continued growth of telematics; especially useful for younger drivers but also of huge interest to fleet managers and anyone who is interested in monitoring their own drivers. This is a genuine step forward for the consumer to become actively involved in setting their own premium; might it lead to consumers putting their own insurance premium out to tender at renewal?

Overall, the increase of technology will only see vehicles becoming safer and drivers more aware of their own driving style, which should drive premiums in a positive direction.

Greg Stansfield, Head of Sales & Marketing, AutoRestore® Limited.

39

Lost in the machine: Knowledge Management challenges for law firms

A

ll sectors in industry including law firms are having to manage ever increasing amounts of information, much of which is not held in any structured way, for example in emails. According to recent research1, corporate digital content is growing at a rate of 200% each year. Most of this information, together with the knowledge that it contains, is lost to the firms that hold it or can only be accessed in a costly and time inefficient manner. As a result, knowledge has to be recreated time and again. Information overload is an expensive reality, which undermines competitiveness.

The technology has not kept pace with the information explosion and many solutions require some form of manual intervention, for example the process of “tagging” data, in order to increase search accuracy.

The available solutions often fail to provide a way of accessing information across all sources, so multiple queries are required in order to access information both internally and outside your organisations. The individual fee-earner has to navigate a variety of paths and gateways to get the information needed. Research indicates that professionals, including lawyers, spend an average of one day a week just on searching for information, mostly unsuccessfully. The corresponding cost in UK alone is £29 billion/year (£557 million a week) - around 1.8% of the country’s GDP2. For a 50 fee earner firm, this means an average of £45,000.00 in lost revenue every week3. Market research indicates a clear need for a streamlined, cost effective single hub for searching, collaboration, communication, sharing information, collaborative case development and many other Knowledge Management functions. Such a system should support the collation and recycling of knowledge so that both individual lawyers and their firms can produce the best advice, drawing on all relevant information, in an efficient way. An effective system is also a key tool for risk management by ensuring that all lawyers have access to previous advice, all relevant legislations and case laws and the issues analysis within their firm and beyond.

Dr Masoud Saeedi, Managing Director, PurpleFrogText Ltd. 1. Forrester 2012 2. http://www.blmforum.net/en/blm/News/3729/%C2%A32-billionwasted-looking-for-lost-documents.htm#sthash.8MYyyrRg.dpuf 3. Assuming an hourly rate of £150 X 6 (hours per day) X 50 = £45,000.00

MC // March 2015

T: 01244 421 002 | W: www.solicitor-assist.co.uk

Solicitor Assist First Floor, Unit 3, Evolution, Lakeside Business Village, St. Davids Park, Ewloe, Flintshire, CH5 3XP

...We Deliver

The Opinions

The heart of the issue...

T

he CMA’s failed attempt at regulating the claims sector is well documented, and it is unlikely that any further attempt at regulation will be sought ahead of this year’s General Election. However, it isn’t inconceivable that parts of the LASPO Act will come under more scrutiny later on, which could be a catalyst for the strengthening of some rules and introducing others.

Fundamentally, LASPO as it relates to the insurance industry and personal injury claims, has failed in its aim to reduce the volume of injury claims. Industry data suggests that, following a moderate reduction immediately after introduction, figures are back at pre-LASPO levels, in spite of huge investment in initial investigations, parliamentary debate and new systems and processes for businesses.

In my opinion, this is because the Government have missed the point, failing to address the real problems of fraudulent, exaggerated claims. That said, the Criminal Justice and Courts Act 2014 received royal assent recently. Section 57 of the Act targets those claims for personal injury where the evidence suggests that the claimant has been fundamentally dishonest, and allows for the whole claim, and any related claims, to be struck out. Clarification is still needed on certain terms associated with the Act and no doubt these will be tested through the courts. This is a good step but it and LASPO could and should go further.

For example:

• Unsolicited contact inconveniences millions of people daily, when a firm with no relationship with a claimant acquires their details to persuade them to make a claim.

• The limitation period for personal injury claims stands at three years – and for good reason. But should that apply to whiplash? If a person is sufficiently injured to make a claim, they would know within three months of an accident and certainly would have the opportunity to make a claim within a year.

• The ongoing prevalence of organised gangs generating huge amounts of cash from fraudulent claims is alarming.

The significant amount of information about individuals and gangs held by insurers and some brokers is rarely made available to the wider insurance industry. In the fight against serious fraud, surely issues around the DPA can be overcome.

Whatever the result in May, our industry can hopefully influence thinking and subsequent action so that regulation results in tangible value for insurers, brokers and, above all, customers. It remains to be seen if the above points will be considered.

Steve Chelton, Head of Claims, Swinton Insurance.

41

Lost in translation: avoiding the pitfalls...

“How can translation services help streamline the efficiency of a case, in terms of both cost and time, and how can claims professionals source the best translation provider?”

ny outsourcer worth their salt should have an exceptional knowledge of not only their expert subject, but also a sound understanding of how of the legal sector operates.

As an example, we are often asked to provide an interpreter for a meeting, but a better option can be to simply translate the original documents. This is not only considerably cheaper but typically significantly quicker to arrange. Having foreign language documents translated from the offset or an initial meeting alongside an Interpreter, can save a lot of time and money plus provide early clarity for the solicitor; often helpful as the case progresses.

The best business to business relationships are built on a partnership basis rather than simply suppliers, so a chosen expert must ensure that they provide the most cost effective and useful service. Do they consider whether all the documents in the bundle need translating or could costs be saved by just translating specific pages? If they’re asked to translate the same documents time and time again do they suggest having it translated once and kept as a template? Do they provide (via API), direct instructions from their case management system ensuring 100% accuracy and immediate delivery?

If it is a rare language, the interpreter may be 200 miles away meaning a large expense; a partner outsourcer will look at more cost effective solutions such as video conferencing. An effective translation provider will also know the often subtle differences in dialect, region and importantly culture to ensure not only a technically accurate translation but one with the correct meaning or spirit in English.

The more proactive law firms who deal regularly with foreign clients have their website and brochures translated into other languages or client packs translated to ensure that there is a clear understanding from day one of the relationship and requirements.

When selecting an expert, it’s so important to trust a company that has your best interests at the centre of their decision making process rather than just seeing you as another instruction. There are many translators dotted around the UK to choose from but do they understand the legal industry, the often lengthy waits for payment, the importance of accuracy, the necessity for a cost effective solution?

With around 70 different languages spoken across the UK on a regular basis, solicitors are looking for an uncomplicated solution to provide a cost effective and trustworthy expert translation or interpretation service, irrespective of language or location.

A

Nik Ellis, Managing Director, Laird Assessors.

MC // March 2015

0800 612 6263 Sending out documents for signature is a real pain Documents take time to send Postage is unreliable, slow and expensive Chasing people for their signed copy is a hassle

Get all of your claim and insurance documents signed in minutes!

Fast

Minutes to send, no postal delays

Compliant

Meets & exceeds all electronic signature laws

Flexible

Pay-as-you-go or rolling monthly contracts; change your plan at anytime

Secure

All data stored in a highly secure centre

www.signable.co.uk/modernclaims

WARNING RISK OF NEGLIGENCE CLAIMS! ARE YOU OFFERING YOUR CLIENTS

ATE INSURANCE? *The SRA Code of Conduct requires a discussion of costs risks and consideration of insurance (Outcomes 1.2 & 1.6; Behaviours 1.13 – 1.17) www.sra.org.uk

For more details, contact Kirsten Roberts 0870 766 9997 | kirsten@boxlegal.co.uk | www.boxlegal.co.uk

Supplied by Solicitors...for Solicitors

The Opinions

43

Improving relations...

Keeping in touch...

What can we expect in 2015, in terms of advancing technology versus reduced insurance premiums?

Do too many in the claims industry look at social media simply as a marketing tool. How else can social media be used in alternative ways?

A

dvances in technology continue to drive the industry in new directions. Most recently, telematics and vehicle safety technology have given insurers a new level of insight into driver behaviour. This in turn has been enhancing the underwriting process, enabling insurers to offer more accurate premiums. But, that’s only a small part of the benefits we can expect to see in the not so distant future. With better access to vehicle data, such as specifications, value, keeper changes and accident history, insurers can further increase the accuracy of their risk and premium pricing decisions.

Insurance premiums which accurately reflect a combination of driving style, lifestyle of an individual and very specific insight into the actual vehicle they drive are no longer the stuff of fantasy. Creating a future where insurers bring together data richness, with intuitive and intelligent systems will see truly bespoke premiums fast becoming a reality.

Crucially, these tailormade products will be designed to influence driving behaviour, which in turn, will further influence underwriting.

Another vital benefit that advanced technology brings us is an increase in the level of interaction insurers will have with customers. Up until very recently, a motor insurance policy required very little communication between the customer and insurer. Indeed, there have been three typical interaction points, starting with creating a new policy, through to making a claim and then the point of renewal.

But this is set to change. By drawing upon the level of consumer lifestyle, driving behaviour and asset ownership information now becoming readily available, there is the opportunity to increase those interaction points, leading to enhanced customer retention for the insurer and more favourable underwriting for the policyholder.

Technology is moving quickly and it’s bound to be another interesting year for the motor insurance industry.

Improvements to data collection doesn’t promise cheaper car insurance for everyone, but it will mean a more intelligent use of information, ultimately improving the relationship between customers and insurers.

D

uring the last 10 years, there has been a huge upsurge in the use of social media. All sorts of apparently stuffy institutions are now apparently incomplete without informing anyone who is in contact that they have a Facebook page and a Twitter feed. Clearly many of these august establishments have been galvanised into this by a desire to demonstrate to their contacts (and to their younger members of staff) that they “get it”. The time and cost involved are written off as being an investment in a new form of marketing. But is that right?

If you subscribe to the view that “all publicity is good publicity”, and that the object of the marketing department is to keep driving home familiarity with a brand name, then of course you have a point. Social media can disseminate a brief snapshot of news in thousands of directions in a way undreamt of in earlier decades. However there is more to marketing than brand awareness - and social media is not much good at highlighting the qualities that establish a differential: it is difficult to advance a case for specialist knowledge on an abstruse subject when limited to 140 characters!

What social media can do is highlight trends and thought leadership (the promotion of employee ownership is an obvious example).

In my view, however, the real value of social media in the context of the insurance sector is a more basic one. The London Market is, after all, proud of the fact that it is a “market” and that it grew up on personal relationships.

In the age of paperless files and instant electronic transactions, some of that market feel has been lost, even in EC 3. Social media can and does now fill that gap. “Keeping in touch” was the watchword of those who worked in the old-style market and social media allows you to do that in spades.

David Simon, Chairman, Triton Global.

Paul Sykes, Managing Director, Audatex (UK) Ltd.

MC // March 2015

IS IT TOO MUCH TO ASK?...

Medico-Legal Reports turnaround times: REPORTS RETURNED WITHIN 20 DAYS OF INSTRUCTION

80% APPOINTMENTS ARRANGED WITHIN 24HRS

90% REPORTS RETURNED WITHIN 48HRS OF APPOINTMENT

80%

...THE CHOICE IS EASY

...when service matters www.doctorschambers.com

Medical Agency of the Year 2013 (Personal Injury Awards)

The Opinions

Cultural or operational change?

Will insurers commit to more explicit service levels with their customers?

S

o, Direct Line will now pay you £10 per day if they can’t fix your car in 7 days – (well up to a maximum of £70 anyway!) This seems to be very much the exception rather than the norm in the industry when it comes to insurers setting expectations or service agreements with their customers. It’s perhaps quite surprising really given how closely insurers manage their own supply chain, as many of us in the industry will attest to!

So, why not? Insurers are naturally risk adverse, but one of the most common causes of dissatisfaction in the claims process is not being kept informed of delays. Often, this can flow from unrealistic expectations or insufficient explanation during the FNOL stage, or earlier at policy inception. A clear explanation of the process of your customer rights up front surely makes sense. A repair network I recently visited had almost no inbound calls as they made sure they proactively monitored SLAs within their network and chased up by exception, meaning that they could keep the customer fully updated and avoid the need for them to chase.

Looking at the process from a customer perspective and setting SLAs on that basis, should actually mean that suppliers and claims teams alike spend less time on dealing with failure and more on delivering a seamless service. I’m sure that Direct Line won’t be wanting to pay out £70 per customer. By focussing on repair time, i.e. the time which the customer is without the use of their vehicle, (arguably the most important factor within the process) all parties can unite around a common purpose.

The industry should also be motivated to change the public perception of motor insurance and seek to move away from just competing on price, to a position where published service levels and adherence to them gets customers thinking about service too.

Some of this change is cultural, other is operational. As experts in motor insurance and the related supply chain, the team at [veracity] would welcome the opportunity to share their thoughts on how insurers can achieve this change.

Derek Cooper, Managing Director, [veracity] Claims Solutions.

45

A wise move...

Y

our business may work hard on promoting content through website(s), blogs, and social media with the hope that it is shared widely. Why leave it to chance?

There are opportunities that lie in social media that could give your business the results you need and reach a larger audience in the process. One of the most significant is paid advertising.

Firstly it is important to establish which social media networks are right for your business. As a rule of thumb, you may want to use advertising on Twitter to increase followers, Facebook to build your community and LinkedIn to generate leads. However, which advertising platform you use will depend on the audience you are trying to reach and the overall objective.

For just a small budget, you could potentially attract thousands of new visitors to your website or social media profiles. Set your objectives first; do you want to increase conversions to your website, promote your page, raise attendance at an event or get video views?

Whatever your goal is, with promoted posts and paid for advertising you can reach larger volumes of people and potentially increase sales as a result through a variety of social media networks.

Think about your campaigns methodically. Taking your time and understanding your audience will help you in the long run and enable you to target the right market; essentially getting the most out of your campaign. This is where the use of analytical tools becomes crucial.

Once you have developed a campaign that is working, try not to get too comfortable and don’t abandon your campaign. Social media is fast changing so always take the time to evaluate each of your campaigns. Use the analytics available to you daily to make sure that your campaigns are achieving what you need them to. What might work for one campaign may not for another and by doing so you can tweak your campaigns and adjust bids.

If you have identified video as an essential component to your social media strategy, be consistent with your presence and look at the possibility of paid advertising.

If you post on YouTube, post regularly and at the same time every week to encourage return visitors.

If used wisely, this medium of advertising has great potential for all sectors. But, in spite of the many obvious benefits of advertising on social media, tread carefully.

Start with a small budget, set a strategy and understand your target market. By doing so you have the potential of reaching a much larger audience and achieving a great return on investment for your business.

Charles Cox, CEO, TLMG Limited.

MC // March 2015

8.30AM

2152 Half Page Ad 190x135-art.indd 1

10 .20 AM

10.10 AM

M

A .00 10

9.0 0AM

AM 30 11.

1.30 PM

19/02/2015 14:55

The Opinions

47

Common sense prevails...

At the end of last year, the Association of British Insurers (ABI) said the CMA had failed to tackle the “excessive” charges made by credit hire groups for replacement vehicles. They also said, “The U-turn on their proposed cap is likely to lead to higher charges for consumers.” Do you agree?

T

he Competition and Market Authority’s (CMA) first report into Private Motor Insurance was released on the morning of Thursday 12th June 2014 and I remember coming into the office early to read what the initial findings were. Needless to say, by 08.30 the mood was grim, the diary rearranged, and our FD and I sat down and started reworking all the variables we could to consider survival in a world where revenue was facing a 50% cut.

It was a case of going back to the drawing board and challenging every assumption in the book. If we had taken the grim reapers scythe to the central overheads, laid off a fair few staff, asked the remainder to take a pay cut, and relocated the business to some far flung off-shore land... then, yes, it might have possibly worked. And by that I mean, the doors would just about have been open although it would be a break even model at best.

So, in light of that journey, and the contemplation that we would be forced into every employer’s worst nightmare

(redundancies), do I believe that credit hire companies make “excessive profits”?

No, I don’t.

Fortunately, by the time the final report was released on the 24th September, common sense had prevailed (and I think this was largely the result of a particularly well-organised lobbying campaign by The CHO and their retained advisors). Amongst the other proposals which were taken off the table, the CMA conceded at paragraph 6.31 that “we believed it unlikely that CHC’s earned more than normal profits”.

And as for higher charges for consumers, again the CMA answered this question for us itself when it stated: “The CMA investigated several possible options…but found that these remedies would require a significant change in the law, which was not warranted since the problem caused an increase in the average premium of only £3 per year.” (https://www.gov.uk/government/news/cma-finaliseschanges-for-car-insurance).

Andy Whatmough, Managing Director, S&G Response.

P-DISCOVERY

The buzz word on everyone’s lips is E-DISCOVERY but what about paper? …

Is your Record Management System able to …

Lock-down named/all files?

Exclude individuals’ access?

Analyse all file movements?

Download full Audit Trail?

If it can’t, isn’t it time you Switched to TranSearch?

See www.transearch.eu then Contact jem@eu-s.eu MLM17 UK Software HP.indd 1

09/03/2015 13:53

A unique and modern claims service If you’re looking for an innovative and effective legal service, talk to us.

Whether you’re a business or an individual, you can trust us to use our innovative thinking, clear advice and effective solutions to get the resolution you’re looking for – we’ve been doing that for our UK clients for over 40 years.

Perhaps it’s no wonder that with such a great combination of expertise, knowledge and technology, our people have gained a reputation for providing a powerful and unique legal service.

To experience it for yourself, give us a call or take a look at our website.

www.lyonsdavidson.co.uk T: 0117 904 6000 E: info@lyonsdavidson.co.uk

The Features

49-62

THE FEATURES

49

50

Legal Opinion

Legal Opinion Modern Claims’ panel of resident legal experts address burning industry issues. Donna Scully, Partner at Carpenters discusses whether the CMA has let down consumers, Kim Renfrew, Editor, Lyons Davidson social media asks how claims practitioners should be using social media in different ways. Finally, Nick Gibbons, Partner at BLM explains what impact the Government’s calls for increased access to data, could have on those who provide cyber insurance policies.

Has the CMA let down consumers?

T

here were high expectations that the CMA would drive down credit hire costs. It found that hire costs were increased because the party incurring the fees did not pay the bill.

This is however a consequence of Tort Law, and so beyond the remit of the CMA. There were other available remedies that many considered would reduce the cost of hire, but that the CMA chose not to pursue them.

Hire organisations say that they provide a valuable service to consumers – providing a replacement vehicle that the consumer cannot afford and that is not offered by his insurer. The ABI complains that the result of the CMA’s failure to act is that the consequent hire bills are excessive.

The suggestion is that claimants are unconcerned about incurring increased credit hire rates, because the at-fault insurer is paying. Additionally, we are likely to see continued arguments that hire periods are excessive, or that the vehicle was not needed in the first place. These excessive charges are ultimately payable by the consumer through increased motor premiums.

The ABI is right that the CMA’s failure to take action will result in increased charges for consumers. Many feel that an opportunity has been missed to curb the excesses of the industry. Payment of hire referral fees is commonplace, and it is hard to follow the logic of banning referral fees in personal injury cases to reduce costs, but not applying the same principle to credit hire. Opportunities have been missed to ensure that claims were not inflated by the provision of vehicles that were not required, and to stamp out practices that inflate hire claims.

MC // March 2015

Any model is open to abuse where the person arranging the service does not pay the bill, and the CMA should have done more to restrict sharp practice.

Many argue that the credit hire industry only exists because of a gap in the market left by insurers. Until such time as the insurance industry is able to provide equivalent replacement vehicle cover to all motorists, we are left with an opportunity for hire companies to provide a service required by many consumers. The CMA should have done more to prevent abuse of that service, and their failure to do so is likely to mean higher motor premiums for all consumers.

Donna Scully, Partner, Carpenters.

Legal Opinion

Unlock the potential

T

here’s now such a proliferation of social media sites that the term is becoming meaningless.

Is the claims industry missing opportunities on WhatsApp or Tumblr? Probably not. Is it underusing Twitter? Absolutely.

I’m concentrating on Twitter, because it’s the platform Lyons Davidson uses most. My own, unscientific survey suggests that claims Tweeters focus on pursuing conversion rates. For many sectors, this works well if your product elicits warmth. The difficulty with this industry is that we aren’t selling Budweiser or shiny trainers: people make claims when something unpleasant happens – and don’t like being reminded about the nasty stuff during downtime. (To illustrate: promoted tweets from one CMC receives uniformly un-warm, very sweary responses.)

What’s another approach? Well, try using Twitter to keep clients you’ve already got. If your customers use it, you should too: chances are they’ll moan about you if something goes wrong. In retail, Twitter customer service is standard; online clothing store ASOS handles 100,000s enquiries brilliantly, even down their name: @ ASOS_HeretoHelp.

Recognise Twitter’s limits, though: you won’t process claims through it, because they’re too complex for 140 characters and too sensitive. As an adjunct to phone lines, however, Twitter is fantastic for engagement: it’s free, quick and easy to monitor while doing other things. At LD (or rather: @LyonsDavidson), our current approach is CustomerService Lite but people do fire questions or gripes our way and when they do, we have to answer them as quickly as calls or emails. This method of communication will grow exponentially as digital natives mature.

Twitter is also perfect for sharing information, which doesn’t just mean blowing your own trumpet in clients’ faces. Look to other sectors to see the potential: @ HSEPressOffice uses #bustedmyth to expose egregious untruths about the tabloids’ beloved elf ‘n’ safety–with creativity, claims stakeholders could be doing the same. @acasorguk hosts #AskAcas employment surgeries, putting people’s minds at rest and doing so publically: helpful, great PR and an opportunity for calls to action.

Timing is everything, though:@BritishGas’s 2013 Q&A held immediately after price hikes was memorable –for all the wrong reasons.

If you maintain a Kim Jong-Un approach to reputation management, Twitter’s not for you. The bottom line is you can’t control – or delete – what anybody says.

Recognise they’ll be saying it anyway and you’ll be able to seize opportunities, show you’re listening and turn the situation around.

Kim Renfrew, Editor, Lyons Davidson social media.

51

The Snoopers’ Charter...

The Government has called for increased access to data to prevent future terrorist attacks on the UK, what impact could this have on those who provide cyber insurance policies?

I

mmediately after the Charlie Hebdo incident, David Cameron promised that if he wins the next election, he will increase the power of the authorities to access both the details of communications and their content.

There should be no “means of communication” which “we cannot read”, he said. David Cameron’s announcement follows: • The Draft Communications Data Bill 2012, which would have permitted officials to see the content of the messages with a warrant but was blocked by the Lib Dems.

• The Data Retention and Investigatory Powers Act 2014 - emergency legislation introduced to maintain the requirement for telephone and internet companies to log records (but not the content) of calls, texts and internet use.

• The Counter-Terrorism and Security Act 2015 - part of the Act adds to the Data Retention and Investigatory Powers Act to allow the identification of the individual or the device that was using a particular IP address.

Why should insurers worry?

As a result of the Edward Snowden incident, it became very clear that the United States’ National Security Agency (NSA) and the UK’s Government Communications Headquarters (GCHQ) have accessed personal communications data for some time on a significant scale.

Any new legislation in the UK will legitimise GCHQ’s activities (the NSA already have almost carte blanche from the US government) and make them more common. Access to personal or commercially sensitive data without the consent of the data subject and/or computer owner, might result in a covered claim or at the very least a policy coverage dispute despite war and terrorism exclusions found in many policies.

The problem arises not just because of the content of electronic documents seen by government agencies without their owner’s consent but also by virtue of the methods that such agencies use to gain access to them.

The NSA and GCHQ identify and/or implant vulnerabilities in a target’s computer system, which can be exploited by hackers as well. These vulnerabilities can be used for denial of service attacks and cyber extortion as well as the theft of trade secrets and personal data.

Any data breach will need to be reported by its victims.

However, from Insurers’ perspective, attempting to argue after the event whether such attacks were in fact facilitated by a “back door” installed by GCHQ during a legitimised spying exercise in order to deny policy cover is likely to be very difficult both in technical and forensic terms.

Conversely, insurers with a war and terrorism exclusion in their cyber product cannot sensibly use any new “Snoopers’ Charter” legislation as a marketing tool.

Nick Gibbons, Partner, BLM. www.blmlaw.com

MC // March 2015

Did you know each lawyer wastes on average one day a week on ineffective searches and information sharing?

Did you know each lawyer wastes on average one day a week on ineffective searches sharing? * andinformation the risk impact!

Imagine the costand Imagine the cost* and the risk impact!

* If 6 hours are lost per fee-earner per week with an hourly rate of £150 in a 200 fee earner firm, the loss is £180,000 per week! * If 6 hours are lost per fee-earner per week with an hourly rate of £150 in a 200 fee earner firm, the loss is £180,000 per week!

An affordable, intuitive and easy to use solution SynAPPs-Legal Hub enabling lawyers to An affordable, intuitive and easy to use solution  Find all relevant know-how and other internal information 

Find relevant documents from external sources,

SynAPPs-Legal Hub enabling lawyers to e.g. Lexis-PSL, PLC, HMRC, websites…

Find relevant know-how and other internal information Sharealltheir expertise to provide best advice Find relevant documents from external Collaborate with colleagues and clientssources, e.g. Lexis-PSL, HMRC, websites…  Develop cases inPLC, a collaborative environment  Share theirmore... expertise to provide best advice And much  from Collaborate with colleagues and clients system with no training and zero overheads All an intelligent, adaptive, tailor-made  Develop cases in a collaborative environment  And much more...  

All from an intelligent, adaptive, tailor-made systemavailable with no training zero overheads Our award winning technology is now to alland law firms

For larger law firms  SynAPPs-Enterprise – a built-in system within the firm Our award winning technology is now available to all law firms For smallerlaw lawfirms firms  – with full security For larger  SynAPPs-On-Line SynAPPs-Enterprise – a built-in system within the firm For For smaller lawTRIAL firmsofSynAPPs-Legal SynAPPs-On-Line with full security a FREE please–contact us: Call 01904 567629, or email us: enquries@purplefrogtext.com, or visit our website www.purplefrogtext.com PurpleFrogText Ltd, The Catalyst, University, Bairdplease Lane, Heslington, YO1001904 5GA, North Yorkshire, UK For a FREE TRIAL ofYork SynAPPs-Legal contact York, us: Call 567629,

or email us: enquries@purplefrogtext.com, or visit our website www.purplefrogtext.com

PurpleFrogText Ltd, The Catalyst, York University, Baird Lane, Heslington, York, YO10 5GA, North Yorkshire, UK

KEEP KEEPYOUR YOURCLIENT CLIENTHAPPY HAPPY– – by bysettling settlingtheir theirdispute disputepainlessly. painlessly.

A happy A happy is client is client is potentially is potentially a repeat a repeat clientclient and with and with the right the right mediator mediator your your clientclient will be willhappy. be happy.

They’ll They’ll face face less less stressstress whilewhile you can you maintain can maintain control control of of their their case case and manage and manage your your on-going on-going relationship relationship with with them.them.

As a As member a member of the ofCIArb the CIArb and RICS and RICS BruceBruce has exactly has exactly the right the right experience experience and knowledge and knowledge to help to help you achieve you achieve a a satisfactory satisfactory settlement settlement in property, in property, workplace workplace and company and company disputes. disputes.

Bruce’s Bruce’s style style is so issuccessful so successful because because he is he articulate, is articulate, commercially commercially astute astute and solution-focussed. and solution-focussed.

“I was “I was delighted delighted to work to work withwith Bruce Bruce in ain commercial a commercial dispute. dispute.

TheThe issues issues were were complex complex andand trialtrial seemed seemed inevitable. inevitable.

Bruce’s Bruce’s pragmatic pragmatic approach approach andand determination determination helped helped to to resolve resolve the the issues issues efficiently efficiently andand painlessly” painlessly” Call Call me today me today on 01372 on 01372 878841 878841 or email: or email: bruce@bbamediation.co.uk bruce@bbamediation.co.uk to help to help solve solve youryour client’s client’s disputes. disputes.

Bruce BruceBourne Bourne A A S SS O S O CC I AI TA ET SE S

Commercial Commercial and Community and Community Media Media tion tion

www.bbamediation.co.uk www.bbamediation.co.uk Bruce Bourne HP AMENDED.indd 1

05/01/2015 14:19

The Features

53

CYBER RISKS: A ROLE FOR INSURANCE Cyber breaches are a big story and with more digitalisation and changing work patterns, greater technology and network risks are evolving for professionals, as Keith Tracey reports.

T

here is a significant government focus on the issues with the Cyber Essentials Scheme and 10 Steps to Cyber Security, and of course the SRA is conscious of the risks. The HM Government publication, ‘Cyber Security: Balancing Risk and Reward with confidence’, is an excellent short primer for management.

A new EU Data Protection Regulation is being finalised with an uncertain ratification period that will have new rules on data, breach notification and sanctions. One of the key problems is the random and unexpected nature of attacks and the ability therefore to be confident that technical and business protections are adequate. This uncertainty creates a role for insurance in the management of the risks. Many organisations are attracted to the claims and response services that insurers provide along with the insurance protection. A single incident response point provides breach coaching, IT forensic services, legal support, crisis management and public relations advice.

Insurance purchase Key covers address the risks arising from confidentiality of data, its integrity and the availability of systems; liability arising from network breaches and privacy claims, event management costs, business interruption arising from a network event, cover for extortion threats and media liability. Policies can be bought in modules to address the risks of greatest concern.

Policies were not designed for professionals with broad Professional Indemnity (PI) cover in place. A significant degree of cover already exists for the major risk of client confidentiality claims. Other claims centring on the availability of systems and testing the resilience of the business to a cyber-incident may not be covered but could be within the liability cover offered by a Cyber policy.

The PI overlap presents wording complications that require solutions. Some approaches being used are; affirmatively make clear that network breaches are within the scope of PI cover, buy separate cover or buy separate cover that supplements and wraps around current PI insurance. Careful attention to the risks being covered and policy drafting are clearly required.

The first step is an understanding of the risk exposures and their potential consequences. Sources of threats are well known and publicised such as hackers, nation states and organised criminals but the likelihood of attack and the motivations of the assailants may be less difficult to identify.

There is a broad consensus that 100% protection of data is not possible. In this respect “standards“ and guidance

such as ISO 27001 or SANS have a role, as indeed can the insurance underwriting process.

Insurance role in risk management Studies such as those produced by Net Diligence and Ponemon list sources of loss. ICO cases are quite instructive about what can go wrong.

Vulnerabilities can arise from technical sources, business process shortcomings, human errors and lack of awareness of the threats. One of the most important risk management challenges is increasing employee awareness of the potential of threats, such as phishing attacks. The loss of equipment and lapses of security procedures are common causes of failure.

Balancing the needs of users with IT security is a common issue.

Mobile working and BYOD demonstrate that securing one’s own immediate perimeter is insufficient protection. IT budgets and their security component have limitations and this may be why cyber insurance becomes part of the defence strategy.

Going through the underwriting process can be instructive in identifying the key areas of risk and contingency planning.

Underwriters will enquire about types of data, vulnerability of the IT structure, policies and procedures and preparedness for an incident. Client requests for confirmation of cyber cover are, in part, motivated by a need for reassurance that the firm’s risk management has passed the scrutiny of the insurance underwriter. Outside of that process, many insurers, consultants and brokers have self-assessment diagnostics that can assess vulnerability and the need for cover.

Returning the business to normal operation, addressing the causes of a possible breach and dealing with the legal and customer issues that arise can be managed through the claims and response support services that insurers provide.

Breach management and breach response must be in place and insurers can offer immediate access to all the expert services required in an emergency situation. This is of considerable value when there are many issues to address in a short time frame. This is of course in addition to the indemnity provided by the insurance.

Being vigilant and staying aware of threats with appropriate technical and business controls are a good start but insurance can play a role especially in incident situations.

Insurance is not of course the complete solution: the most damaging losses can come from loss of client confidence and reputation damage. To conclude with two thoughts: Cyber is a business not just a technical risk and the insurance market’s services can offer vital resources to supplement internal capability.

Keith Tracey is Managing Director at Aon Risk Solutions.

MC // March 2015

Thursday 19th November The Hurlingham Club London

NOMINATIONS OPEN MAY 2015

www.modernlawawards.co.uk

The Features

55

FLYING HIGH The toddler the airlines don’t want on board – Coby Benson outlines how Bott & Co’s flight delay department has evolved as it turns two.

T

he personal injury industry has endured a turbulent few years.

With referral fees banned and recoverable costs slashed, the personal injury landscape has, in recent times, appeared bleak at best and downright disastrous at worst. Post-LASPO, many law firms moved into high ticket work but a long flight delay sparked an idea to take the opposite approach yet deliver the same solution.

Every cloud has a silver lining After being delayed myself for six hours, I looked into my rights and found out about EC Regulation 261/2004, which entitles passengers to up to €600 for long delays/ cancellations/denied boarding.

Being a solicitor, I thought claiming for my own delay would be easy – How wrong I was! Initially the airline ignored my request and I soon felt my only recourse was to issue court proceedings.

At this point the airline instructed a high profile law firm and filed a twelve page defence. The airline’s stance and the law’s complexities made me question how the average consumer could pursue a claim like this without expert legal advice.

I approached Bott & Co’s Managing Partner, where I was a personal injury solicitor, with a business proposition to open a department supporting clients with consumer disputes against the well-financed airlines.

‘An estimated 1.5% of flights are delayed by over three hours and therefore potentially eligible for compensation, yet around half are ineligible for various reasons – the trick is in knowing which half!’

Overcoming turbulence Approximately 221 million passengers use UK airports each year. An estimated 1.5% of flights are delayed by over three hours and therefore potentially eligible for compensation, yet around half are ineligible for various reasons – the trick is in knowing which half! The potential demand for a flight compensation service is clear but less obvious is how to turn a profit from handling these low value claims.

Flight claims have a maximum value of €600 (£450) per passenger and, as small claims track work, law firms can only recover approximately £50 per litigated case. Although

these claims are for small amounts, they’re often technical and complex. It is rare that airlines will concede liability straight away, meaning it’s usually necessary to issue court proceedings and represent clients in court.

Such tight margins necessitate a business model, which can generate a significant volume of cases and win a high percentage of cases taken on.

Getting technical £500,000 of IT innovation and investment has been pivotal in the success of Bott & Co’s flight department. Central to this is our Flight Checker: Clients enter their flight details and the Flight Checker uses web forms linked to an API to access in real time millions of flights from across the world over the last six years. It automatically rejects claims with no prospect of success or that are not eligible so we know we have appraised each case we accept.

Flying high Bott & Co won two landmark flight delay cases at the Court of Appeal in June 2014: Huzar v Jet2.com around technical problems and Dawson v Thomson Airways on the limitation period for flight claims. The airlines applied to the Supreme Court for leave to appeal but this was refused in October 2014. These cases brought English and Welsh law into line with European law and created binding case law, opening up billions of pounds in consumer compensation.

I anticipate there being other substantial issues to address and strongly believe there will be similar high-level cases to further clarify the Regulation’s boundaries in the near future.

An upward trend?

February 2015 marked two years since Bott & Co launched its flight department. In that time we’ve secured £4.2million in compensation for 11,000 clients against 70 airlines.

Currently flight compensation can only be claimed on flights departing the EU or landing in the EU on an EU airline. I think it unlikely that the Regulation would ever be extended to cover all international flights. Several countries are introducing their own version of Regulation 261/2004 which does go some way to widen the geographical scope of flight compensation for consumers but falls short of presenting a business opportunity for UK law firms. Having said this, I think this area of law is very much in its early stages with more people learning about their right to claim each day. Although a vote to leave the EU in a Torypromised referendum might shed a different light on this!

The real appetite amongst consumers to hold airlines to account has been a pleasant surprise. We’re proud to be able to act on behalf of passengers who need help to enforce their rights. As such, Bott & Co is looking into additional ways to help consumers enforce their rights, be it on land, sea, or air.

Coby Benson is Technical Legal Manager at Bott & Co Solicitors.

MC // March 2015

carpenters

The Features

57

INNOVATIVE THINKING Olly Culverhouse asks if your competitors are making money while you wait for ink to dry.

I

f you’re in the claims industry, you will know the frustration and cost of waiting for clients to sign and return legal documents. You might still be relying on snail mail, paying high postage charges, racking up paper and printing costs (harming the environment in the process), and endless waiting. In the fiercely competitive legal claims market, getting your clients’ documents signed and returned first means a big advantage.

documents signed legally. I created Signable to help bring what has been a traditionally slow, frustrating part of the business process into the 21st century”.

To get around this issue, you might use the services of a document collection company. This speeds things up and some may argue that the face-to-face collection will ensure the documents are signed there and then, but it doesn’t reduce your printing and paper costs. With the cost of each document collected being in the region of £20-£40, it can prove costly. Plus you’re still dependent on your client being available for an appointment. For busy global travelling professionals, that may not always be quick and simple to arrange. Wouldn’t it be easier to just remove the human middleman and get the documents directly to your clients’ inbox?

The company now sends out over 15,000 documents a month with huge demand from the SME sector, property markets and any business requiring legally signed records, including the claims industry. Prices start at just £1 for a single document or from £19 per month, making it a much more affordable solution than historic routes.

‘In the fiercely competitive legal claims market, getting your clients’ documents signed and returned first means a big advantage’

It’s the round the clock ability to send documents that John of Just Cashflow enjoys. “Since using Signable, customer feedback has been excellent as we can deploy the documents throughout the working day and our customers can have access 24 hours a day, from anywhere in the world, to respond. This level of flexibility and agility of service provision is a key driver in how we manage our workflow outputs”.

Doing things differently Signable was one of the first companies in the UK to make it easy to sign documents legally electronically. Established in 2009, the company has rapidly gained customers, with numbers doubling each year. Signable founder Olly Culverhouse said: “The US market has been using electronic signatures for a while, back in 2009, the UK market was still doing things the old fashioned way, despite the Electronic Communications Act making it legal since 2000. I realised there had to be a quicker, cheaper, safer way of getting

How it works The system is simple. The person sending a document creates an account on Signable. The company then sends the recipient an email containing a unique link, which they click and sign. The person signing doesn’t need to register.

They can sign by typing their name, uploading an image of their signature or sign using a mouse if on a PC or Mac, or using their finger on a touchscreen tablet or phone.

The system traces the signature process, which is what makes it legal. Clients can also upload scanned copies of any additional documents needed like proof of address, picture ID or supporting materials. Details of the device or computer that was used is stored in the system and printed on a certificate as proof.

Managing outputs Signable client Steve Hickling of SMART Inventory agrees with the cost savings. “Prior to using Signable, all reports would have been printed and posted. By using Signable we have been able to reduce our print, paper and postage costs considerably”.

Olly Culverhouse believes this new way of document delivery has an added bonus which is often overshadowed by the cost savings. “Any organisation wanting to demonstrate its green credentials will benefit from using our system. Every year millions of trees are cut down to be turned into paper for offline documents. These documents need to be delivered, emitting harmful gasses into our atmosphere from vans, lorries and planes. Our online solution cuts all of this out”.

For more information go to www.signable.co.uk Olly Culverhouse is Founder of Signable.

MC // March 2015

Tues 19th May Chelsea F.C. Stamford Bridge London

Programme coming soon To register your interest please contact Victoria Lang-Burns on 01765 600909, victoria.lang-burns@charltongrant.co.uk or visit our website www.modernclaimsevents.co.uk/ Headline sponsor

www.laird.expert

The Features

59

IN IT FOR THE LONG HAUL Kamran Akram explains why using social media purely for marketing purposes is a wasted opportunity and asks how social media can be used in alternative ways.

I

suppose the question of whether too many in the claims industry use social media simply for marketing purposes, depends on what you mean by ‘marketing’.

There are a great number of CMCs and savvy law firms out there leveraging the notoriously cost effective power of social advertising, to generate claims.

Facebook has some of the cheapest rates around and Twitter’s ‘sponsored tweets’ have made the masses more accessible than ever before.

In many of the conversations I’ve had with BDMs and agencies, as soon as you start talking ‘social media’, the conversation quickly turns to lead generation - but I guess for many it has a sizable impact on the bottom-line and, it is a measurable and effective channel if used properly. So, it makes sense that many would link social media to lead generation.

A wasted opportunity To say that ‘too many’ are guilty of this is a little unfair though. I’ve seen big law firms run Twitter competitions and charity drives, I’ve seen smaller and niche law firms run whole recruitment campaigns purely on social channels.

I think the claims industry is adapting much more quickly than we are giving them credit for.

Social media on a basic level, is a means to reach a lot of people, based on interest - whether you wield that power for good or ill is up to you, but to limit it’s use to lead generation alone, is a wasted opportunity.

Our marketing team, like many top digital agencies; produce content, info graphics, white papers and more, based on the interests of influencers on social media. If you can get just one person with a following in excess of six figures to share your work - you’ve reached thousands

‘Social media on a basic level, is a means to reach a lot of people...but to limit it’s use to lead generation alone, is a wasted opportunity’

‘If you have the right data gathering software and platforms in place, you can use social media traffic to do whatever your mind can imagine’ in an instant. Most digitally-minded firms know that getting quality, relevant content shared, is great for Search Engine Optimisation (SEO) and that’s something we’re keen to develop.

Social advertising can produce great, cost effective shortterm results - but it doesn’t build the same long-term competitive advantage that dedicated content-marketing via social media, can deliver.

The bigger picture Whilst developing our own SEO capabilities, we’re also looking at the bigger picture. Client retention probably doesn’t get the focus it deserves in many firms. So, I think social media will become a useful tool for us in the future. Think about how easy it is to say ‘Happy Birthday’ on Facebook, compared to, say, shopping around for a card ahead of time, getting it stamped and getting it in the post? If you can semi-automate existing client communications across the platforms they use every day, collecting crucial data whilst you do so, you can only do well out of it.

At the same time, we’ll be beefing up our event tracking and analytics capabilities to gain more insights from those clients who do visit our site via social media. Using this information, we hope to continue tweaking and evolving our online presence to suit them.

For those firms who are actively A/B and multi-variate testing, as well as using heat mapping, they know that this data is a boon. It’s crucial to us at the moment, as we develop our site to respond properly across devices in a way that simply works for people.

But I digress. If you have the right data gathering software and platforms in place, you can use social media traffic to do whatever your mind can imagine - from re-inventing the design of your site for improved conversions, to halving the cost of your direct hires. Fortunately, we’ve got a team in place to manage all that for us. For those that don’t, why not use LinkedIn to search for someone who can sort it all out for you?

Kamran Akram, Principle, Asons Solicitors.

MC // March 2015

The Features

61

THE ECONOMICS OF ACCESS TO JUSTICE The legal sector and the world of Maths have often sat across the table from one another like family members at a Christmas dinner who don’t get on.

There is a grudging respect as there has to be, but little by way of co-operation, as Philip Coupe explains.

N

ever has this been more apparent in the current climate of ever decreasing Claimant costs, particularly via the MOJ portal. This has now reached a tipping point where economics now dictates how insurers deal with third party claims, rather than the legal obligations. The result is that the adversarial system is no longer a level battlefield as Claimant Solicitors are fighting with swords and Defendants are fighting with cannons.

Punishing the common man The most disappointing thing about it is that the Court system should be the ones handing out the weapons at the start of the battle. The weapons are handed down to them

by Government and unanimously this has been weighted to providing Defendants with the greater arsenal.

This is plainly evident in the stunted small claims procedure following the increase of the small claims limit to £10,000.

We are seeing vastly increased numbers of small claims proceeding through to a final hearing or settling on the steps of the Court, due there being no financial incentive for Defendants to address claims at an earlier time. The increase in Court fees and the average length of time it takes to resolve a small claim is costing Claimants significantly greater legal fees while Defendant Solicitors invariably work on a fixed fee basis. A Court system, perpetually complaining of being bloated by too much work, has only added to their woes in not creating an applicable punishment for a Defendant not abiding by CPR and narrowing issues.

This is anti-justice but has now reached a point of punishing the common man and not just the Claimant Solicitors, who are sitting in their ivory towers thumbing through wads of £50 notes. It is regular practice for insurers to consider the merit of a claim at first submission via a CNF on the grounds of the Claimant injury presented and the likely position of liability. Where economics begins to dictate this process ahead of the MOJ Protocol and the CPR is when liability is likely to be an uneven split.

In it together?

Emergency vehicle accidents are a simple tool for explaining.

When emergency vehicles are involved in accidents while proceeding to an emergency it is almost never the case that liability falls 100% in favour of one party. Often there will be a

‘Where economics begins to dictate this process ahead of the MOJ Protocol and the CPR is when liability is likely to be an uneven split’

‘When emergency vehicles are involved in accidents while proceeding to an emergency it is almost never the case that liability falls 100% in favour of one party’ 10% or 20% contributory element by one of the parties. Stay with me through this. Joe Bloggs is driving his car. He gets hit by a Police car attending an emergency. The case law suggests Joe Bloggs will get 80% liability in his favour. He has a relatively minor 1 year whiplash type injury. John Smith as the driver of the Police car bangs his head in the accident, experiences post-concussive syndrome that will be there for the rest of his life.

The insurers for the Police will weigh up the economics of disputing liability and running the matter to trial against the economics of settling Joe Bloggs claim via the Portal at Stage 2. We don’t have to speak to our Maths cousin across the table to know what the economics will answer in this situation. This leaves John Smith with a lifelong injury, of which he should have been able to receive general and special damages proportioned at 20% following the accident but will be prejudiced from bringing this claim by his insurers who wrote into his contract of insurance a delegated authority to deal with claims and simply crunched the numbers.

And before we can say anything, the Turkey has been put on the table, our Maths cousin has got a full leg in his hand and we’re left with sprouts and stuffing. Economics has won and it is hoisting a Defendant flag.

Philip Coupe, GCILEx, is a PI and RTA Claims Handler at Glaisyers.

MC // March 2015

62

5 minutes with...

5 MINUTES WITH...

Peter Staddon

Q: Has the industry changed drastically since you started working in it?

A: There is no doubt the industry has experienced, and continues to experience, change in so many aspects.

From regulation and compliance through to new models of distribution, the use of technology and social media, our industry is continuing to evolve and respond to new opportunities and emerging risks. MGAs are at the forefront of innovation and are therefore best placed to address these changes.

Q: What has been the key positive or negative impact of change in your area of the market?

A: The Managing General Agents market has seen accelerated growth over the last decade. This has been in response to a combination of factors including hard and soft markets where insurers have limited their partition in

high exposure/low returns risk areas, the growth of direct insurers’ penetration in traditionally brokered consumer personal lines distribution, together with the consolidation of retail insurers and the growth of the broker consolidators.

The increased understanding and recognition of the key role MGAs play in the insurance industry has also helped to strengthen the sector’s ability to combine entrepreneurial expertise and product innovation within a flexible business model.

Q: Who inspires you and why?

A: This industry has many inspirational characters. Reg Brown, a founder and now Chairman of the Managing General Agents’ Association, is certainly one of them. He had the drive and vision to bring together the key stakeholders in this sector and to push for the creation of a dedicated trade body to represent MGAs. Q: Have you had/got a mentor? If so, what was the most valuable piece of advice they gave you?

A: It would have to be one of my first bosses, Tony Harris, who was policy manager of Lloyd’s insurance brokers, Seascope Insurance Services.

He gave me the understanding of the construction of policies - their terms, clauses and conditions, what they were there to do and the consequences if there was failure. Moreover, the need to understand how different clauses interacted and, that every policy was unique in its own way.

Q: If you were not in your current position, what would you be doing?

A: It would be something related to the water. My family have always been keen sailors and I love to be by the sea. I am at present drawing up plans to build my own inshore boat, which I hope to start when I have time. I also love cricket so I will look to go to India to watch the IPL. Peter Staddon is Managing Director at the Managing General Agents’ Association (MGAA).

BARTLETTS SOLICITORS IMPLEMENTS PROCLAIM National law firm to roll out the Proclaim Case Management Software Solution.

L

iverpool-based law firm, Bartletts Solicitors, is implementing the Proclaim Case Management Software solution from Eclipse Legal Systems.

Established in 1860, Bartletts Solicitors employs over 60 staff at 8 offices across the North West region. Boasting a nationwide reputation for providing trusted legal assistance and superb client care, the firm provides a full range of legal services to both corporate and private clients. To further strengthen this position, and as part of a strategy to continually invest in the latest technologies, Bartletts Solicitors has implemented Proclaim throughout its Personal Injury team.

Proclaim will provide a central secure platform across all 8 offices ensuring a consistent approach to each Personal Injury case. As part of the solution, the Personal Injury team at Bartletts Solicitors will have instant desktop access to Proclaim’s A2A (Application-to-Application) tools for processing Portal claims for both RTA (Road Traffic Accident) and EL/PL (Employer Liabilit /Public Liability).

MC // March 2015

The firm will monitor and analyse ongoing performance using Proclaim’s integrated reporting toolkit. Its inbuilt functionality will facilitate the easy creation of custom automated management reports - allowing trends to be spotted and empowering the management team to quickly make informed operational and growth decisions.

Mike Craven, Practice Manager at Bartletts Solicitors, comments: “Client care is our highest priority; it’s at the forefront of everything we do. Proclaim will enable us to meet clients’ expectations, automatically keeping them up to date with the progress of their case. This seamless client journey, combined with the increased efficiencies from the streamlining of time-sapping administration, will be crucial for staying ahead of the competition in this increasingly competitive sector.”

For further information, please contact Darren Gower, Marketing Director at Eclipse Legal Systems, part of Capita plc, via darren.gower@eclipselegal.co.uk, or call 01274 704100. Alternatively, visit www.eclipselegal.co.uk

Building Policyholder Trust with Insurer Partnerships

Customer focus brings national success National Windscreens is proud to be a finalist in the Service Provider of the Year Catagory in the Modern Claims Awards.

108 fitting centres holding in excess of £3million of glass stocks and supported by 800 mobile technicians, means on average a UK motorist is never more than 11 miles or 20 minutes away from a National Windscreens technician - delivering outstanding service for insurers and policy holders.

Our record speaks for itself: Ç We have formal direct billing arrangements with 70 leading insurers and maintain sole supplier status with many of these Ç Leading Net Promoter Score of 88.1 Ç Industry leading ‘Time to Serve’ y

Same day / next day target

y

1.6 day average achieved over past six months

Find out more about our dedicated service for Insurers and Insurance Brokers by visiting www.nationalwindscreens.co.uk

0800 622 122

info@nationalwindscreens.co.uk Silica House, Galena Close, Tamworth, Staffordshire B77 4AS

@Zurich service from day, e iv s s re p Im to indscreens an and @NatW n a th re o been m can’t have chip and a g in rt en repo e tw e b r u o h ed getting it fix @NatWindsc reens great se rvice today from th e Croydon br anch. #thanks #win dow

t poor hinging abou w ys a lw a I’m , but had rvice on here se r e m o st cu o insurance from @tesc rt o p p su b fa day. dscreens to & @NatWin Top notch.

e v a H you heard?

Proclaim® is the only Practice Management Software solution Endorsed by the Law Society.

It speaks volumes that Proclaim, Eclipse’s market-leading system, is the solution of choice for 22,000 legal professionals in 800 organisations. Proclaim encompasses practice, case and matter management, and is now the only system to be endorsed by the Law Society.

From new start-ups to industry heavyweights, Proclaim is the system of choice for forward-thinking law firms.

• • • • •

Fully integrated Practice Management Software solution SAR-compliant legal accounting End-to-end case and matter management workflow processes Ready-to-go workflows for specific practice areas Fast to implement, easy to use

Contact

e the Proclai se – n o ti ra st n o em d us for a

CALL 01274 704 100 www.eclipselegal.co.uk/lawsociety lawsociety@eclipselegal.co.uk

m difference