Modern Claims Magazine Issue 13

Linking the Industry Together

May 2015 | Issue 13 | ISSN 2051-6495 David Williams talks news: The Managing Director, Underwriting at AXA Insurance outlines three recent initiatives which he hopes will alter the claims sector for the better.

The Doctors Chambers Modern Claims Awards: The first of these new annual awards took place on 30th April. Charlotte Parkinson summarises the pioneering event.

Modern Claims Magazine | May 2015 | Issue 13

“I have a personal quest to revolutionise claims handling and I wouldn’t want to lose the control we have as a privatelyowned business”

Jeremy Hyams

GORDON VATER “Our industry can be notorious for taking an idea and using it as the panacea that will resolve our issues”

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03

I

n the last issue of Modern Claims, I mentioned that the introduction of more legislative changes, in the form of MedCo, the Government’s scheme for independent whiplash diagnosis, was looming on the horizon after a period of relative quiet in the sector.

So, now MedCo is out there, is it having the anticipated impact, and how are practitioners fairing now their choice to choose a medical expert has been taken away? Exploring this issue head-on is Giles Reading, LEI Product Manager at AmTrust Europe Legal who offers the insurer’s perspective on what he calls a ‘moving target of ongoing regulatory changes’, from page 59. Our News writer for this issue, David Williams, Managing Director, Underwriting at AXA Insurance also considers industry expectations and concerns around MedCo from page 7.

It will take time for the next wave of reforms to bed-in as the industry adjusts again, but something at the forefront of people’s minds is whether MedCo will ultimately be a good move for clients. With the client in mind, the second Doctors Chambers Modern Claims Conference takes place on the 19th May at Stamford Bridge, Chelsea F.C and seeks to explore all aspects of the client’s journey in the claims process. Look out for full coverage from the event in the next issue of Modern Claims.

In the spirit of industry events, the first annual Doctors Chambers Modern Claims Awards took place on 30th April

Modern Claims Magazine

at New Dock Hall, Leeds and was a great success. Have a look at the full coverage, which is featured from page 53 and also includes a list of winners and photo’s from the evening.

Keep your eyes peeled for details for next year’s event, which will be announced soon. Other upcoming events to look out for under the Charlton Grant umbrella include The Eclipse Proclaim Modern Law Awards for our sister publication, Modern Law, which will take place on 19th November at the Hurlingham Club, London. Nominations are open now, so please have a look at the website for more details: http:// www.modernlawawards.co.uk/ Also in this issue, I spoke to our front cover star Gordon Vater, the CEO of claims management and consultancy specialists, RiiG, about driving forward new concepts in an established industry, and what he calls his ‘people-focussed’ role, read the full interview from page 13.

Thanks to all our contributors to this issue of Modern Claims, I hope you enjoy the issue and if you have any feedback or ideas for a future edition, please get in touch with me via charlotte.parkinson@charltongrant.co.uk or call 01765 600909.

Charlotte

Charlotte Parkinson, Group Editor, Modern Claims Magazine

Issue 13 | May 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 // May 2015

04

CONTENTS 03-08 Intro & THE News 07 David Williams talks news

The Managing Director, Underwriting at AXA Insurance outlines three recent initiatives which he hopes will alter the claims sector for the better.

11-20 THE INTERVIEWS 13 Interview with...Gordon Vater

Charlotte Parkinson, Modern Claims, spoke to the CEO of RiiG Limited to find out about managing change in an evolving market and what makes the RiiG business model stand out.

17 Interview with…Jeremy Hyams

Charlotte Parkinson, Modern Claims spoke to the Chief Executive of Claims Consortium Group about how investing in the business has lead to exponential growth over the last few years, and the appeal of remaining privately owned.

21-44 The Opinions 23 Sector Soapbox

24 New territory...

24 Opening the door...

Nicola Klimkowski, LAMP Services Limited

Janet Tilley, Colemans-ctts

25 Data is the new Oil

Philip Swinburn, slicedbread

25 Litigation Funding

Adèle Coates-Lyon, Medical Records UK.

27 A level playing field...

Hilary Meredith, Hilary Meredith Solicitors

27 One step ahead...

23

Rob Hopkins, Ageas

29 What customers really want

Michael George Davidson, Parabis Consumer Law Services

29 Can you mediate a costs dispute?

Tim Wallis, Expedite Resolution, Trust Mediation, Association of Costs Lawyers and others

31 Northern Ireland - A good place to

be doing business

Gerry Lee, P R Hanna Solicitors

31 The most valuable marketing tool...

Modern Claims’ resident panel of experts discuss the most topical issues facing the industry at the moment.

17

Scott Whyte, Watermans

31

33 Genuine innovation...

Stephen Ward, Clerksroom & Clerksroom Direct.

33 A catalyst for change

Paul Sykes, Audatex (UK) Ltd

Editorial Columnists Alex Bagnall Associate & Costs Advocate Just Costs Solicitors

Donna Scully Partner Carpenters

Kamran Akram Principal Asons Solicitors

Peter Tyson Director of Projects Insurematics

Andy Whatmough Managing Director S&G Response

Emma Holcroft Director 2020 Investigations

Martin Doyle Director Amberis ATE

Philip Swinburn Head of User Experience slicedbread

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

Gerry Lee Senior Partner P R Hanna Solicitors, Belfast

Michael George Davidson Head of Business Development Parabis Consumer Law Services

Giles Reading LEI Product Manager AmTrust Europe Legal

Nick Parsons President FOIL

Rob Hopkins Head of Household, Travel and Commercial Claims Operations Ageas

Hilary Meredith CEO Hilary Meredith Solicitors

Nicola Klimkowski Head of Business Control and Development LAMP Services Limited

David Hertzell BLM Consultant Former Law Commissioner David Simon Chairman Triton Global Limited David J Williams Managing Director, Underwriting AXA

MC // May 2015

Janet Tilley Managing Partner Colemans-ctts

Paul Sykes Managing Director Audatex (UK) 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 Victoria Rawlings Media and Marketing Manager TRS Claims

05

35 Promises, promises

Emma Holcroft, 2020 Investigations

51 Listen to your customers

35 A bittersweet state of affairs?

Sucheet Amin, Aequitas Legal & inCase™ mobile app

37 Sound risk management

Alex Bagnall, Just Costs Solicitors

39 A happy customer?

53 The Modern Claims Awards 2015

Martin Doyle, Amberis ATE

37 Under the radar?

Victoria Rawlings, TRS Claims

The first of these new annual awards took place on 30th April. Charlotte Parkinson summarises the pioneering event and takes a look at the winners.

59 Medical reports, rising costs and

39 A lack of clarity...

Chris Thornton explains the importance of listening to customers and outlines his key strategies for success.

Kamran Akram, Asons Solicitors

managing risk

Giles Reading looks at the recent changes with the way in which experts and medical reporting companies are appointed, which took effect from 6 April 2015.

41 Protecting and serving honest

61 To ADR or not to ADR, is there

customers

Steve Chelton, Swinton Insurance

41 Claims with a vengeance...

David Simon, Triton Global

42 UK Insurance Telematics - when will

the tipping point occur?

Peter Tyson, Insurematics

42 Change from within

Phil Hodgkinson, Pure Legal Costs Consultants

43 The age of the DIY approach?

Andy Whatmough, S&G Response

39

any question?

Courts increasingly expect litigants to settle claims away from the courtroom.

Craig Wallace, Partner and Head of Insurance at Shakespeares, considers the courts approach to alternative dispute resolution (ADR) in civil cases.

62 5 minutes with

Darren Pardon

62 Personal Injury Practice Ltd

chooses Proclaim

Compensation specialist to implement the Proclaim Case Management Solution.

49

45-62 The Features 46 Credit Hire: A Sea Change

Charlotte Parkinson, Modern Claims asked three Credit Hire experts what impact the recent ruling by the Court of Appeal concerning ‘lowest reasonable rates’, will have on the Credit Hire industry, claimants and defendants.

49 Legal Opinion

Modern Claims’ resident legal experts, Tom Wormald and David Hertzell discuss the burning issues facing the claims industry at the moment.

59 MC // May 2015

David Williams talks news

07

David Williams Talks News...

The Managing Director, Underwriting at AXA Insurance outlines three recent initiatives which he hopes will alter the claims sector for the better.

A

s I sit writing this, I’m just back from Holiday, the sun is shining and there have been so many positive developments recently I wonder if I’m dreaming! Thinking back to the worst excesses of my time in claims I seemed to be constantly at war with the claims farming community over inducements and other inappropriate behaviour. Credit Hire Operators I felt were charging ridiculously excessive fees, often for car hires that weren’t even necessary, and there were so many ‘Bungs’ or earning opportunities in the whiplash process you could well understand Jack Straw’s comments about Whiplash being a figment of the imagination of “Dodgy Doctors”.

Well things seem to be changing and whilst we have yet to see any ‘Golden Bullet’ there are a number of recent initiatives and announcements that hopefully will make a meaningful difference.

MedCo The government’s long-awaited scheme for independent whiplash diagnosis came into force at the start of April, in case you somehow missed all the debate, all soft tissue injury claims caused by a road traffic accident will be subject to diagnosis through the operation of a new company, MedCo. The devil is in the detail of course and, going forward, any claim notification form sent must be commissioned from a medical expert or medical reporting organisations (MRO), sourced through the MedCo website. So no more passing business to ‘friendly’ or connected firms, or those that maybe are known to give the ‘right’ report more often than a truly independent firm might have!

So where is the benefit? What are the expectations?

Great, it would seem, as Justice Secretary Chris Grayling stated a few months back that he expects the MedCo system randomly allocating medical experts to claims and removing those links between experts and law firms, to drive down motor insurance premiums, as a result of its introduction. He also stated he expected insurers to use MedCo rather than settle claims without any examination – a much maligned process known as Pre-med Offers.

“Unless there is a very good reason to do so I would hope you would use MedCo as a routine and not simply accept claims,” he said. He continued, “It will make very little sense to accept a claim which has not been appraised by a MedCo medical specialist. We have all seen cases of people being bombarded by people who would wish them to pursue claims. If you don’t challenge those cases they will try it on and there is no tangible disincentive to do that.”

Whilst in no way claiming that my own company has never used Pre-med Offers, the financial benefits of such an approach have been demonstrated by many in the market previously. I do have to agree with his argument that if we don’t stop paying claims without challenge, then how can

we expect the number of fraudulent or exaggerated claims to reduce? The question that has yet to be answered is whether the introduction of MedCo, and the severing of that link between ‘experts’ (deliberately in inverted commas based on the performance of some of them in the past!) and claims farmers/lawyers is enough to really make a meaningful difference, or whether it is just one of the many smaller things that needs to be different, which will lead to a sea change that some of us think is essential.

In a brief moment of trying to be balanced in my arguments here, I should confirm that I have not yet heard of any great rush to abandon the Pre-med approach, but maybe it is just too early days at this point.

There are other concerns about MedCo; one of the things that told me it was on the right track however was the announcement that a group of personal injury law firms has begun a legal challenge to the government’s plans for vetting whiplash claims. Whilst the rhetoric behind the challenge is perhaps interesting, my reading of it is that a group of people see MedCo independence as being a threat to their income.

Whilst clearly not good news for them, I have not made any secret of my own views that whilst I do fundamentally believe we should make prompt appropriate payments to genuinely injured individuals, a large number (maybe even the vast majority of whiplash claims we currently see), should not be receiving compensation or lining the pockets of anyone in the claims farming production line.

MC // May 2015

08

David Williams talks news

Insurers and the defendant side have had some concerns that the ‘random’ allocation of a Medical expert, based on what some have compared to a ‘Cab Rank’, could in fact lead to complications based around insufficiently tech savvy or efficient firms being put forward. Any positives being outweighed by inefficiencies of dealing with firms that might have great medical talent, but limited admin capability.

Fortunately, the structure of MedCo looks like it will ease those concerns, and the ability for Solicitors seeking to instruct an expert having the choice from one top-tier provider and six regional second-tier providers should also bring comfort to any in the claimant lobby citing lack of choice as an issue with the MedCo concept.

‘Together, insurers and other defendants have substantially increased firepower to tackle the increasing problem of fraudulent claims’ Inducements and Fundamental Dishonesty!

Away from MedCo a couple of other welcome developments appeared under the auspices of the Criminal Justice Courts Act. From 13 April 2015, Section 57 introduces a ‘Fundamental Dishonesty’ regime. This is very different to existing Fundamental Dishonesty provisions, which enable QOCS protection to be set aside on claims that are fundamentally dishonest.

Whilst still relying on the somewhat nebulous concept of Fundamental Dishonesty, they do have completely different outcomes (and costs consequences). Together, insurers and other defendants have substantially increased firepower to tackle the increasing problem of fraudulent claims.

Worrying however was the rumour that a number of claimant lawyers were looking to rush through proceedings on all claims, in advance of the 13 April commencement date, to avoid being caught by the Section 57 Provision. By the time this goes to print we will be able to see whether there was a spike in litigation volumes, or whether I should be accused of paranoia or attempting to (further) discrete the claimant lobby!

In addition to this important development, the other news was that the Government brought forward rules against inducements to make a personal injury claim.

Stories of offers of cash upfront (£2,000 promised from a prominent billboard getting regular reference), along with iPads and foreign holidays abound, and the Government is clearly of the opinion that such an approach at the very least encourages people to submit a claim when they otherwise would not, and at worse is positive marketing which encourages fraudulent claims ‘Not before Time’ most insurers would say of this change, Lord Young recommended it in his 2010 report ‘Common Sense Common Safety’, endorsed by the Prime Minister, and a ban already applies to Claims Management Companies. So what we are seeing now is just an important gap belatedly plugged. The fact the SRA didn’t themselves impose a ban and we had to wait for this rule change is something I hope they feel thoroughly embarrassed about. That point, together with the ‘questionable’ anti-insurer advertising, are the two biggest things in recent years that have caused some to question their focus.

MC // May 2015

That criticism aside, I am confident they will police the rules as required by the Act, and hopefully may even have already identified firms whose practices would be seen to be in contravention of the rules. I know from other commentaries that the majority of their members are embarrassed by the lack of professionalism shown by such practices and the impact it has on the reputation of the claimant side generally.

A ‘Hammer Blow’ to Credit Hire Operators?

Whilst the constant battle with CHO’s over the years has made me stop short of celebrating individual case wins (as they are so often overturned by some other clever arguments from silver tongued lawyers), I couldn’t help but smile when I saw the Court of Appeal decision in the Stevens v Equity case. I have been quite vocal for many years about the fact that Credit Hire costs are excessive and often unnecessary. Yet whilst openly accepting that the whole emergence of Credit Hire could have been avoided, had insurers made provision in policies as standard, I have been the focus of personal abuse for such views (and even mentioned by name often in one CHO’s Press Releases!)

The Courts in the Stevens case have decided that the claimant may recover no more than the lowest reasonable rate charged by one of the main hire companies operating in the relevant geographical area. The recoverable rate may now be (as it turned out to be in Stevens) lower than even an average of local market rates.

I discussed inducements earlier and that is the element that links this story with those above. The claimant gave evidence that he would not have hired at all had it been up to him, but he accepted the hire car because he thought his insurance arrangements obliged him to do so. He further said he would have gone to a garage that offered free courtesy cars if the choice had been his.

Such clear commentary from someone you could view as impartial, suggesting that CHO’s are adding unnecessary costs, emphasises that the CMA were wrong to suggest that it wasn’t worth doing anything on replacement vehicles in their review recommendations. Again, it would appear those silver tongues employed by the CHO’s worked their magic.

The detail of the case further illustrated the complexity and cost of the CHO practice, excesses being ‘bought out’ by excess waiver polices, no doubt a common practice, further inflating cost for what should be a simple transaction.

The CHO argued as they always do that, because there were some basic hire rates as high as their rate, the defendant had failed to discharge the burden of showing that there was a difference between the credit hire rate and the basic hire rate. The full credit hire rate should therefore be awarded. This was an interesting argument to raise, as it saw that particular CHO arguing that high excess comparable rates should be taken into account when assessing basic hire rates, contrary to the stance they usually take to the claimant’s entitlement to a zero excess vehicle!

As I mentioned at the start of this segment, I have stopped short of celebrating, and fully expect there to be further litigation in this regard. But seeing both the detail of the verdict and the case itself, and the judgement being referred to as a ‘Hammer Blow for CHO’s’ did restore some faith that maybe as this whole thing eventually plays out, common sense and what is morally right might actually prevail over clever arguments and self-interest.

David Williams is Managing Director, Underwriting at AXA Insurance.

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The Interviews

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The Interviews

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Interview with... Gordon Vater

13

Interview with...

Gordon Vater Charlotte Parkinson, Modern Claims, spoke to the CEO of RiiG Limited to find out about managing change in an evolving market and what makes the RiiG business model stand out.

Q A

How has your position as CEO of RiiG changed since the management buyout in 2013?

My focus is now on innovation and driving forward new concepts and business opportunities. We have an incredibly supportive and ambitious investor, along with a management team who own a chunk of the business. With their support, and a great team behind me, I have been able to set up a specialist claims recruitment business, APT. RiiG is also getting to grips with the talent issues facing the industry. We’re tackling this head-on with the launch of our new initiative, Claims Academy. We always said we wanted to “Change Claims Forever”. Now we have that opportunity.

Q A

You are predominantly responsible for Operations and Business Development activity; what does a typical day involve?

I am not sure I would be in claims if I wanted a typical day! Days can be hugely varied involving travel to our project sites, meeting with current and prospective clients, seeing fellow CEOs; either in the industry or outside - I find it useful to get their take. There are inevitably some office days spent catching up with the team and doing admin. My role is to articulate our vision internally and ensure operational managers and teams have the opportunity and the ability to deliver it. I operate by the mantra “Why are we doing it?” My teams are hugely successful in the “How are we going to do it?”

Fundamentally, my role is people-focused.

Q A

What are the key issues around change management for insurers/claims handlers and why?

Smaller insurers appear to manage change effectively. They are agile and respond quickly when disruptive events force change. It’s often the larger organisations that experience issues with change. They tend to be cumbersome, bound by outdated process, with resource challenges. Therefore, they are slow to react to and embrace change. We are in an age where change has become a constant. Insurers’ response to change is reactive rather than proactive. The industry doesn’t look far enough ahead. Customers and regulators are driving

‘Our industry can be notorious for taking an idea and using it as the panacea that will resolve our issues’

MC // May 2015

14

Interview with... Gordon Vater

the insurance agenda. In most cases that is fine, but some organisations are tripping over themselves as they fight to keep up. For example, we were involved in a project that saw four Claims Directors come and go in the space of 14 months. Each had their own views and agendas.

The end result was a confused claims operation. The front line handlers were trying to juggle various change initiatives. Do you think they were motivated? Do you think customers were happy? Probably not. With any change programme, we [the industry] have to be better at articulating the vision. We need to communicate it effectively and ensure that our people have the skills and capability to execute the programme. Then it’s about having the courage to see the idea through. There is too much tinkering that leads to confusion. Finally, our industry can be notorious for taking an idea and using it as the panacea that will resolve our issues. We take it, make changes within our business, state the benefits that will be delivered and then, when they don’t come through – we change again.

Q A

RiiG advises the insurance and financial industries; what are the similarities and differences between the two markets?

We provide a wide range of services to UK general insurers and currently, PPI claims services to UK retail banks. The main difference is in terms of scale. In the PPI claims world tens of thousands of people are involved in resolving PPI claims. A complete new industry of handler was created. In my experience, the general insurance market may not have such scale, but it has a better capability in terms of skill set. Another clear difference is speed. In our experience, dealing with the banks has been very quick. Some general insurers take too long to decide what they want to do and how they are going to do it. Banking operations are more open to our thoughts and ideas. General insurers tend to be a lot less flexible and less open to new approaches to handling claims, although we are starting to see a change here.

Both industries want the best for their customer and that is evident. In the digitised world, the banking industry is ahead. It has sophisticated and automated distribution and communication channels with customers, often with a self-service capability. This is coming in the general insurance sector, but it is playing catch up. Finally, there are much more established routes for attracting young blood and new talent within the banking sector. The insurance sector lags behind. It is still seen as the poor cousin in terms of desirable careers, even after all the bad press that the banking sector has suffered. The insurance industry has to sell itself more as a viable and worthy career option. Through our initiatives, we have found kids to be very receptive.

Q A

Have recent pressures on CMC’s from regulators affected RiiG in any way?

In reality, no. We are not a cold calling set up. We have always been engaged by general insurers and banks, which have always had suspicions and concerns around some CMC operations. Our involvement has always been to handle cases and ensure fairness to all, so we haven’t seen a huge change from our existing business.

MC // May 2015

Gordon Vater, CEO RiiG Limited As RiiG Limited’s CEO, Gordon Vater is responsible for Group Operations and business development activity.

In December 2013, Gordon led the management buyout of the commercial and trading business of Resources in Insurance Group plc. with Chairman, John French, to form RiiG Limited.

He has held senior operational management positions in the adjusting, claims management and consultancy sectors. During consultancy secondments to major UK composite insurers, he was responsible for the delivery of national strategic change initiatives.

Gordon has 22 years’ claims experience and is a Chartered Insurance Practitioner.

‘We need to compete with other more established career routes.

As an industry, we have a fantastic opportunity to get more talent’

Interview with... Gordon Vater

‘The insurance sector... is still seen as the poor cousin in terms of desirable careers’

Q A

RiiG provides outsourced solutions on an insourced basis, how does this work?

Our implant (iteam) teams were born out of a request by an insurer to outsource cases to us, but have the team within their claims operation. It is a very simple concept.

RiiG claims consultants operate in project managed teams across the UK. When an insurer engages with us they have the option to have the outsource operation on our premises or their own. In the main, we find that if a client can locate a RiiG team within their operation, they will do so. We use the client IT system so there are no integration issues or rekeying of information. The benefits of locating our highly skilled teams of consultants within the client business are significant.

Invariably there is a form of knowledge sharing by osmosis.

Our experienced personnel pass on a great deal of knowledge to more junior client colleagues. It gives the client flexibility and ensures visibility over what we do. In many cases, we are inserted into ‘stressed’ situations with high workloads. The RiiG teams are usually welcomed by the client’s staff and as a result their management benefit. What we then find is the client will ask us to look at their claims operation. We provide advice on and support into how it can be changed and improved upon.

This can then involve the delivery of training, coaching and mentoring, or major reengineering.

Q A

Is the insurance sector an attractive proposition to young people and is the sector as a whole doing enough to safeguard its future?

Recently, I was lucky enough to be invited to a 6th Form College on the South Coast to give a presentation to school leavers not wishing to go to University. The event was attended by other employers; Nestle, KPMG, EY, the Army and the RAF. Because I was travelling from Bristol, I had the last shift of the evening. I wasn’t sure there would be many people left when I arrived, but over 100 students and parents were still waiting to hear from ‘the insurance man’. The feedback from them had a common theme: “We never knew that about insurance; claims is really interesting; can you tell me more about the opportunities?” The fundamental challenge for our industry is getting the message out. Youngsters believe that they have no interaction with insurance and claims. Their parents don’t know anything about it. But, when you start talking to them about how integral it is to their lives - no buses would run, no planes would fly, no schools would open - they start to get it. I think our industry has done a great deal. For example, initiatives like ‘Discover Risk’ run by the CII have played an important part but we still have work to do to raise the industry’s profile and attract new talent. That work, I believe, has to be down to employers.

We have to put in place a framework that attracts these individuals. It’s not just a clear career framework that’s needed, but also an attractive financial package. We need to compete with other more established career routes. As an industry, we

15

have a fantastic opportunity to get more talent. After all, we offer a variety of roles that not many industries can match.

Now is the time to act.

Q A

Why did RiiG establish it’s APT arm?

APT is a recruitment business that operates in the claims space. We set it up initially to serve our own recruitment needs. We wanted to cut our recruitment spend. We also wanted to reduce our reliance on the traditional recruiters who fell short of the claims expertise that they purported to offer. Our clients discovered the offering and asked us to open it up as an external recruitment operation. Clients recognised that we know claims, the market and understand claims recruitment. APT has grown from there. It focuses on the claims market and now offers services internally and externally.

We have big plans for it.

Q A

What are the greatest pressures/challenges for your business at the moment and why?

Talent is by far the biggest pressure. My business relies on quality people with good skill sets and levels of experience. Unfortunately, the industry historically segmented the claims process and lost a great deal of experience as a result. This experience was not replaced. Now the industry needs new blood in order to grow. Our Claims Academy initiative will be critical in the search for new claims talent, both for RiiG and the wider industry. Procurement can still be totally price driven and a real battle at times. But, it is a battle that we have not been afraid to walk away from when margins have been squeezed to the point of unprofitability.

For a small business in our sector, walking away from business can be quite a brave thing to do.

Q A

What is next for RiiG? Does the business have plans for further growth?

As a business we want to continue our focus on delivering lasting, significant improvements to our clients and their customers. We also want to be a business that is recognised as retaining and developing exceptional people. We will continue to focus on our key markets: UK claims and financial services. We know that insurance markets across the world face similar issues.

Our model is flexible and portable. Our primary focus at the moment is the launch of our Claims Academy. We are targeting school leavers and offering a funded induction to claims, with professional qualifications. This can then be converted to a two year training contract for those who have the right attitude. This initiative will see new blood being trained by claims experts across the core claims areas: motor, property, casualty and specialist lines. It offers real handson training. We’re very excited about it. Our discussions in the market have been revealing. A number of insurers have expressed an interest in sponsoring courses and having the opportunity to take on individuals who, for whatever reason, decide to move on from RiiG. In addition, we have entered into dialogue with Local Educational organisations, which have been amazingly supportive. It is a significant investment for RiiG and a strategic decision that is critical to our continued success and our aspirations to grow.

MC // May 2015

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Interview with... Jeremy Hyams

17

Interview with...

Jeremy Hyams Charlotte Parkinson, Modern Claims spoke to the Chief Executive of Claims Consortium Group about how investing in the business has lead to exponential growth over the last few years, and the appeal of remaining privately owned.

Q A

How does it feel to have been shortlisted for ‘Technology Initiative of the Year’ at the Modern Claims Awards 2015?

Amazing. We’re continually seeking to innovate through technology and reaching the finals of this particular category really is testament to the hard work our expert in-house IT team put to keeping us ahead of the curve. This is a great accolade for our team’s hard work over the past 12 months.

Q A

How important is technology in terms of being able to provide accurate data/MI to customers?

Traditionally IT in the claims sector has provided a silo approach to management information. We recognised that this is a problem because it doesn’t portray the bigger picture, and that affects people’s ability to make good decisions. In keeping with the idea of ‘big data’ we’ve focused on providing our insurance clients with end-to-end management information at the click of a button. They get transparent, detailed information, and can integrate with other sources of data for a complete picture.

Q A

Which area of the business has received the greatest investment over the last few years and why?

We invest all profit back into the business to enable us to deliver our financial strategy of sustainable growth.

We invest heavily in IT, as we believe that technology is the way to make the customer experience the very best it can be. It is truly at the heart of all of our services.

‘In keeping with the idea of ‘big data’ we’ve focused on providing our insurance clients with end-to-end management information at the click of a button’ MC // May 2015

18

Q A

Interview with... Jeremy Hyams

Have you noticed an increase in surge events over the last few years and if so, how has Claims Consortium Group responded to this?

The unpredictable UK weather has always meant we are susceptible to surge events. The storms of early 2014 resulted in the biggest surge our industry has seen for some time, and this is where our technology innovations really came to the fore – our online customer portal, TrackMyClaim™, enables customers to track and manage their claims 24-7 via a portal or app. The usage of TrackMyClaim™ messages to our claims handlers increased from nearly 800 in December 2013 to nearly 2,800 in January! Messages are replacing phone calls and this enables customers to contact us and get responses all hours of the day.

Q A

Turnover for Claims Consortium Group is predicted at £30 million this year, how has the business managed its growth since its inception?

The business has grown from just me in 1996 to over 200 people, alongside a nationwide network of 200 suppliers. We have changed significantly over the last 20 years but I’ve always retained focus on providing a customer-centric experience and a commitment to innovation and transparency. We have a highly-experienced management team in place who believe in reward and recognition of our staff to ensure they are motivated and committed to our culture of honesty.

Claims Consortium Group Claims Consortium Group is a leading UK property insurance claims management and buildings repair network. We work for many major insurers as well as brokers and other commercial enterprises.

We have four core services – Property Consortium UK, Property Consortium Drainage, Building Claims Services and Motor Claims Services.

Established in 1996 by now-CEO Jeremy Hyams, we have grown from 3 to almost 200 employees. A lot has changed during this time, but our values of transparency and honesty have remained firm, and central to our strategy.

We remain privately-owned, a position which enables us to be truly adaptable and flexible to meet client needs and respond quickly to macro changes.

We are innovators and always seek to challenge the ‘norm’ to achieve our aim of delivering an exceptional customer experience. Our claims workflow technologies – Synergy and TrackMyClaim™– answer an industrywide need for better communication and sharing of information between all parties involved in a claim.

MC // May 2015

‘I have a personal quest to revolutionise claims handling and I wouldn’t want to lose the control we have as a privatelyowned business’

Q A

Are there any plans to sell the business or would you prefer to remain privately owned? If so, why?

We have a unique customer-centric proposition, which my management team and I believe in wholeheartedly – and are committed to driving throughout every aspect of the business. I have a personal quest to revolutionise claims handling and I wouldn’t want to lose the control we have as a privately-owned business. We’re debtfree, have no venture capitalist investment and all profit is invested back into the business. So no, no plans to sell.

Q A

How has the Group managed its customer proposition over the last few years, have you launched any bolt-on services for example; how do you add value for clients?

Claims Consortium Group now provides four core services, offering claims validation, property repairs, drainage and water services, and property thirdparty motor claims handling and repairs. We add value for our clients by first and foremost, focusing on the needs and satisfaction of their customers. We launched our Foundations initiative in 2014, which communicates and educates our staff and suppliers on the need to deliver customer excellence. It’s innovative, and very effective.

Q A

What is the biggest challenge for the business in the current market place in terms of external/internal pressures?

Insurers and other property service organisations are facing increasing financial pressures. Services need to be price-competitive since purchase decisions based on price have become the norm. For them, more and more substitute businesses and comparison sites are available and this gives customers choice. That’s why our focus on the customer through technology is so important.

It’s key to reducing the claims lifecycle, reducing cost and – paramount – retaining customers.

Interview with... Jeremy Hyams

19

Jeremy Hyams

Q A

What is next for the Group, do you have plans for further growth?

Sustainable growth is our strategy. We’re not interested in simply growing as big and as fast as we can. We want to ensure the quality of our performance – of what we offer to customers and clients – is retained. So, yes we have plans for significant growth. But in a controlled and steady way.

Jeremy founded the Group in 1996 and, though his role has changed dramatically as the business has grown, he remains totally hands-on. Jeremy is a champion for better standards across the industry – believing 100% in the values of openness, honesty and transparency.

It’s these values that have led the Group to the leading position it enjoys today.

‘Services need to be price-competitive since purchase decisions based on price have become the norm...more and more substitute businesses and comparison sites are available and this gives customers choice’ MC // May 2015

The Opinions

21-43

The OPINIONS

21

Motor Support offer branded and bespoke products and services to various blue chip clients, insurance companies, commercial insurance brokers, vehicle leasing companies and other volume vehicle users and corporate entities throughout the UK. Outsourced claims management Captive fund management One call claim reporting facility 24 hour vehicle rescue and recovery Replacement vehicle provision Nationwide repair network Comprehensive legal services

T 01625 562260 E info@motor-support.com Authorised and regulated by the Financial Conduct Authority. Reference No: 492518 Regulated by the Claims Management Regulator in respect of regulated claims management activities. Regulation Reference Number: CRM 3451

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Sector Soapbox

Sector Soapbox

23

Modern Claims’ experts from industry associations, MASS and FOIL, tackle burning issues in the claims industry. Susan Brown, Chair of MASS and Director of Prolegal explains why looking at the outcome of the General Election provides a chance to take stock, and Nick Parsons, the President of FOIL explains why the new Part 36 is welcome but not the final word.

Wishful thinking?

A

General Election is often a good point to take stock, to look back at the policies introduced by government, in this case, over the last five years, and to look ahead to the future. Strictly speaking, Lord Chief Justice Jackson’s final report was published in January 2010, several months before the election of that year, but that is a good place to start.

As we approach the second anniversary of the introduction of the Jackson reforms, the sector is still trying to come to terms with the scale of the changes over the last five years – Jackson, ABSs, LASPO, the Enterprise and Regulatory Reform Act, the Mitchell ruling, new Civil Procedure Rules on soft tissue injuries, the Social Action, Responsibility and Heroism Bill, the Criminal Justice and Courts Bill, the Medical Innovation Bill, and reforms in medical reporting (MedCo).

Many people lost their jobs, many firms have closed down as a direct result of the reforms and those remaining have been forced to fundamentally recalibrate their business models. Some have argued that those surviving firms are stronger as a result, but there has been a high price to pay and few solicitors will look back on this period with any fondness. Although it is sometimes hard to admit, there have been some positives, particularly around greater fraud prevention, which has blighted the sector for too long.

The sector has survived, and will continue to adapt and change. But it has not just been the sector itself that has

been hurt. Already coping with their injuries, the genuine accident victim has been deeply wounded by these reforms. Taken as a whole, the accident victim is now less likely to have legal representation against insurers and will receive less compensation for their injuries. We must return to a fairer system where injured claimants receive full compensation commensurate to their injuries.

This is why MASS will press the new government, whatever its political composition, for a better and fairer balance between claimants and defendants. We must ensure that those with claims of lower value can still access professional legal advice. Insurers must honour their commitment to cease making pre-medical offers and end the practice of third party capture. We need better enforcement of data protection legislation and a review of the fixed costs regime to ensure claimants whose claims fall within the fast track are receiving full access to justice.

The new court fees that unfairly discriminate against poorer claimants should be abandoned.

And, at the appropriate juncture, MASS would like to see a review of LASPO, MedCo and the concept of fundamental dishonesty to ensure that they are working effectively in the interests of claimants. It is probably wishful thinking that all of this can be achieved, but that should not stop the claimant community from trying. The accident victims we represent deserve nothing less.

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

New Part 36 welcome but not the final word

A

rguably, Part 36 is the most important rule within the Civil Procedure Rules as it provides the mechanism by which offers to compromise claims may be made and a stick with which to beat opponents on costs. Given its importance, much case law has arisen regarding how it operates in practice with parties inevitably keen to exploit loopholes or take advantage of unintended consequences of the rules. The significant changes to Part 36 that took effect in early April will therefore be closely studied by practitioners.

Most will improve the working of Part 36 with practitioners’ minds being firmly focused on the need to consider whether settlement is possible. The simplified procedure for making Part 36 offers set out at CPR 36.5 (1) (b) should mean less technical point scoring (compare and contrast to the case of Thewlis v Groupama [2012] EWHC 3 (TCC)).

We have clarification of the pre-issue situation courtesy of Part 36.14 – with the onus on there being early offers.

Parts 36.9 deals with how offers can be improved without earlier offers being regarded as withdrawn. The claimant

makes a claim. The defendant believes the case has merit but that quantum is overstated. The defendant makes a Part 36 offer at £75,000 pre-action, which it increases to £100,000 following service of the Defence. At trial, the claimant is awarded £60,000. The defendant can refer to the first offer made and claim enhanced costs from that date.

Until now, there has been some difficulty with Claimants making “cynical” very high Part 36 offers with a view to extracting indemnity costs at the end of the case, higher rates of interest and the post-Jackson windfall of up to 10% of damages. The court is now given the option of considering “whether the offer was a genuine attempt to settle the proceedings”. There is a danger that this new, subjective test may lead to uncertainty – will a Part 36 offer at 95% of the value of the case be seen as a cynical attempt to extract a better deal at trial? What about 80%? Time will tell.

The new Part 36 introduces some welcome changes and addresses some shortcomings in the old rules. Nonetheless, given the cost consequences for a party on the wrong side of a Part 36 offer, probing new rules will soon start in earnest. This will not be the final word on Part 36.

Nick Parsons, President, FOIL.

MC // May 2015

24

The Opinions

New territory...

Opening the door...

What are the main risks associated with the rise in wearable technology and whose responsibility is it to ensure customers have the right cover in place?

How can claims professionals combine front-end customer service with their back office systems to increase Customer loyalty and satisfaction and is this a big enough focus in the claims market at the moment?

B

efore I begin to address the risk and responsibility associated with the rise in wearable technology, I must first explain what it actually means.

According to Wikipedia ‘Wearable technology, wearables, fashionable technology, wearable devices, tech togs, or fashion electronics are clothing and accessories incorporating computer and advanced electronic technologies. The designs often incorporate practical functions and features, but may also have a purely critical or aesthetic agenda’.

Over the last two decades, we have witnessed an explosion in technology and significant development and innovation in wearable devices such as smart watches, fitness bands and smart glass.

To put this into context a colleague of mine attended a networking event and noticed that a group of people, working for a large corporate organisation were all wearing fit watches. These watches track your activity in terms of weight, food, exercise and more, creating real-time information about you, day and night. This information is automatically synced to a device such as a phone, PC or tablet. So what is the risk? It must be the risks associated with data security of course!

As interest and demand in wearable devices increases, the potential for personal and professional data being leaked or intercepted is greater than ever before. Therefore the customer must make sure they have the correct level of insurance cover in place. Technology has allowed us to make life style changes on a personal and professional level, which must logically be underwritten accordingly in the technological era that we live in.

We have all heard of cyber risk, as one of the new emerging risks and as we embrace wearable technology for efficiency, we must also adopt robust security polices and risk management controls, with clear policies, and training to employees to prevent data from leaving an organisation.

Some businesses allow their employees to ‘Bring Your Own’ Devices to Work, where employees can conduct work business on their tablet or smart phone, which means significant investment in cyber policies to prevent loss, which could be catastrophic.

The continued evolution of wearable technology is still very much new territory for us all and time should be invested in ensuring adequate cover is in place, along with advanced data security measures which ensure that data (in respect of your personal and professional lifestyle), is safe guarded.

Nicola Klimkowski, Head of Business Control and Development, LAMP Services Limited.

MC // May 2015

C

ustomer expectations have changed. What was a one off claims transaction delivered how, when and at the speed of provider choice has become the start of a richer and deeper relationship judged on response to wider needs, communication, quality and control.

A good shop window on the web is essential not only to market services but to deliver front-end interaction. It should be clear, unambiguous and interactive, with the capability to offer advice, completion and submission of forms and documents and matter tracking, where back office case management work flow translates into a front-end information centre. The ability to track medical appointments, read medical reports and supply comment and content directly back to a case management system creates not only an interactive quality experience for the customer but (in giving back claims control) reduces file touch time. Linking as much as possible to back office systems effectively reduces transactional cost and frees up staff to focus on service excellence.

Having created a great customer journey the door is open to offer additional services. By using a back end data management system that tracks the customer relationship rather than the matter transaction, it is simple to identify and target services tailored to customer specific needs. Combine identification of need with service delivery, by linking all consumer legal services from front-end to backend and it is not a big leap to add in self-service products, ranging from free self generated Wills for Consumer Clients, to Contracts and documents for SME’s. Satisfaction flows from speed, efficiency, information and control. By linking the front and back end process not only do you improve satisfaction and generate loyalty but significantly improve the bottom line!

Is there sufficient focus from claims professionals in combining front-end service and back office systems to create greater loyalty and satisfaction? Whilst there is an awareness of clear benefit to system interaction, translating awareness to action is slow within the claims industry. It has been left, on the whole, to new entrants to the market to capitalise on gaining market share through system integration for service satisfaction.

Janet Tilley, Managing Partner, Colemans-ctts.

The Opinions

Data is the new Oil…

T

here has never been a more interesting time with respect to the world of data and it is now seen as the “new oil” for the 21st century digital economy. Analogous to oil, data has an immense potential value and offers huge rewards to those who learn how to extract and use it. In contrast to oil, however, the volume and variety of data continues to explode. In fact, in the last 10 minutes alone, we created more data than we did from prehistoric times up until 2003.

For many claims professionals, data analytics has traditionally centered on the data warehouse; a single data tank servicing the information needs of the organisation.

Key goals of this approach were to create a single repository for historical data, improved quality, reduced information silos, and insights into historical trends through prescriptive reports and dashboards.

Although these are worthy goals, there are some major downsides to this approach. The most critical issues concern latency, usability and the overall complexity of building the warehouse itself. Typically, this is a long, drawnout and expensive process, taking on average 6 months to deploy the first action able artifacts.

The brave new world In recent times, we have seen a rapid paradigm shift from traditional data warehouse solutions to in-memory architectures and on demand cloud platforms such as Amazon Web Services (AWS) and Microsoft Azure. This new world not only offers rapid deployment but brings a toolbox of highly interactive user interfaces, predictive analytics and machine learning to the fingertips of users regardless of technical know how.

It is at this current juncture where business intelligence ceases to be a “technology task” practiced by the few, but seamlessly interwoven into everyday applications and back into the control of the users that understand the data the most.

This breaking down of barriers is enabling a new breed of data exploration to evolve, known as predictive analytics, which is concerned with the prediction of future probabilities and trends. The central element is the predictive model, which can be trained over your data, learning from the complete experience of your organisation within hours. As a result, claims professionals can now benefit from real-time data-driven-decision making (DDD), where intuition is supported by empirical evidence, to achieve successful, repeatable outcomes.

25

Litigation Funding

T

he cost of litigating higher value clinical negligence claims continues to rise, with the issue fee alone for many such cases now at £10,000. There is a risk that these cost pressures may limit access to justice, with the client unable to fund the proceedings. Firms may be unable to take on the funding of large numbers of cases due to cash constraints. High value clinical negligence cases are lengthy and complex.

There are a number of ways the gap can be filled and value added.

By using Litigation Funding, firms are able to pay disbursements promptly e.g by outsourcing pagination and analysis to Medical Records UK, up to 20% discount can be claimed for prompt payment and value can be added to your bottom line by reclaiming Medical Records UK’s fee note at your usual fee earning rate. For example, at a D band National 1 rate of £118 claimed against Medical Records UK’s discounted rate of £44, a profit of £74 can be claimed for every hour of work Medical Records UK completes on a case. An A band London 1 solicitor can claim £365 every hour of work Medical Records UK completes on a case.

Cash flow that would otherwise be used to pay such ongoing disbursements can instead be used to acquire new cases and increase your portfolio of high value litigated cases. Utilising a litigation funder minimises the risk to the solicitor, as the funder will not recover any money if the claim is unsuccessful.

Claim Finance LLP provides litigation funding for high value clinical negligence claims on a contingent basis.

This unique funding scheme will meet own sides costs and recoverable disbursements according to an agreed budget. Claim Finance will also meet the cost of an ATE policy specifically designed to run parallel to its funding.

If a funded claim succeeds, Claim Finance is repaid the costs plus recovered disbursements, plus a fee calculated as a proportion (up to but never exceeding 25%) of the damages awarded or agreed. If a funded claim is unsuccessful nothing is due to Claim Finance. Applying for litigation funding is not complex and the whole process normally takes only a few weeks. Using Claim Finance and Medical Records UK in conjunction takes away cost pressures: funding claims and adding value.

Adèle Coates-Lyon, Managing Director, Medical Records UK. www.claimfinance.com

Ultimately, businesses that deliver usable analytical solutions outperform their peers financially by 20% [Gartner, 2014].

Philip Swinburn, Head of User Experience, slicedbread.

MC // May 2015

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The Opinions

27

A level playing field...

One step ahead…

Should Human Rights legislation be removed from conflict operations or the Theatre of War?

As the fight against personal lines fraud continues to succeed, how can the profession, regulators and industry bodies shift their focus onto other sectors (particularly commercial), to ensure fraud levels do not increase?

I

believe lawyers who have used the Human Rights Legislation and taxpayers’ money, via legal aid, to pursue unfounded cases against our own military, are in the wrong and should be made to refund a large proportion of the funds they have received - win or lose.

The loophole in the Legal Aid system, which allowed nonUK residents or non-UK taxpayers to make a claim on the fund, has now been thankfully plugged. The difficulty our military has, in the heat of battle, when pursuing the enemy, is difficult enough and I as a lawyer wholeheartedly support the removal of Human Rights legislation from conflict operations or the Theatre of War. However, this is not to be confused with our own soldiers’ rights. Since 1987 and the repeal of S10 of the Armed Forces (Crown Proceedings) Act, armed forces service personnel have been entitled to claim for accident injury or death in service. The idea behind this was to place members of our armed services, working alongside civilians, in our dockyards, on a level playing field when in contact with asbestos and the rights to claim.

These claims are similar to a factory accident - if there are dangerous procedures, unsafe equipment, or a lack of training resulting in injury or death, there is the right to claim. Again, this should not be confused with the Ministry of Defence’s (MoD’s) own, in house, employer’s scheme, the Armed Forces Compensation Scheme (AFCS), which gives financial redress for death or injury in service and is deducted and repaid to the MoD, from any S10 claim as above. The MoD will argue that claims are on the increase but which claims are they talking about?

We know that AFCS claims have increased since Iraq and Afghanistan – as would be expected. Human Rights legislation has cost the MoD and the taxpayer dearly, but S10 Civil claims are down year on year and count for a small proportion of the defence budget. This is probably due to the fact that the AFCS award has to be deducted from the S10 Claim and as the top award is £570,000, the injury has to be life changing for a claim to be made. It is crucial, in my view, that the rights of our own soldiers under S10 are preserved.

Hilary Meredith, CEO, Hilary Meredith Solicitors.

C

ommercial insurance fraud is on the increase, particularly in the areas of slip and trip and Noise Induced Hearing Loss (NIHL) claims. When we see specific claim trends occurring, we look to identify the possible cause. For example, the increase in NIHL claims being experienced across the insurance sector may be attributed to the fact that many claims management firms are focusing their marketing efforts on these types of cases.

Fortunately, when it comes to these claims, the medical tests available are reliable and can help differentiate between genuine claims and fraudulent ones. However, this is not true for all types of commercial claims so insurers need to adopt and implement a robust strategy to tackle fraud, with every part of the supply chain within the insurance industry working together.

Identifying and investigating commercial insurance fraud can often be complex and challenging due to the way corporate entities are structured. To tackle this issue, we tend to use loss adjusters on a more frequent basis to investigate commercial losses. As our eyes and ears on the ground, we emphasise the importance of investigating and raising the issue of any potential fraud.

While loss adjusters play a fundamental role in helping us to stamp out fraudulent activity at the claims stage, there is also a great deal of focus on tackling fraud at the front end, using the tools that have worked with great success in personal lines. Brokers are in the perfect position to assist in this process by asking crucial questions at policy inception. This information is used alongside public information databases to identify any inconsistencies or inaccuracies so that we can act as early as possible.

Sharing information on claims databases, along with internal recording and database referencing is key to combating fraud. For example, financial history checks on commercial enterprises are carried out and the CUE database is used for Personal Injury to identify whether an individual has a reputation for making claims for false injuries elsewhere.

With a clear, multi-pronged strategy and a united front on all types of insurance fraud, we’re working hard to keep one step ahead of both commercial and personal lines fraudsters.

Rob Hopkins, Head of Household, Travel and Commercial Claims Operations, Ageas.

MC // May 2015

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The Opinions

What customers really want How can insurance/claims professionals keep hold of customers, with a continuing rise in aggregator websites?

A

ttrition! Attrition! Attrition! With switching rates at their highest level for years, have we seen the last of good old-fashioned customer loyalty?

With the rise of the machines (AKA new digital technologies), access to key information is real time. The finger of blame is often pointed at Aggregators for loyalty destruction. Surely they have only given customers what they really want “Access to make key buying decisions on key information quickly”.

Good news! Loyalty does still exist! Policyholders, believe it or not, can still be loyal. The problem, however, lies within the often inefficient structural models we see today.

Some commentators believe Aggregators are the beast insurers have created themselves by taking their eye off existing customers; the ownership structures of the majority of aggregators are also of interest.

Physiologists believe the majority of customers do not actually want to switch providers every year, but are incentivised to do so by certain triggers. These vary but key are: • Poor Claims Experiences (Whether at fault or not) • Poor Customer Service (Difficulty accessing key information; call waiting; premium numbers) • Poor Expectation Management (Sold add on’s and unaware; auto-renewals and exit fees) • The worst of all: “Customer incentives exclusive to new customers only” • Erratic pricing at renewal when claim free and no policy amendments Across both commercial and personal lines, there must be a balance between retention and acquisition strategies. It is well known that acquisition cost is several times higher for a new customer than an existing one! NPS scores are great for benchmarking policyholder opinion but should not be used in isolation; re-address the key triggers that drive customers away. Price is not behind every exit! The right FTE in the right place at the right time is crucial to retention.

Proactive engagement with existing policyholders is easily neglected; we only interact with them when we need to and sometimes not at all. In a digital world where social media is king, this cold shoulder approach is criminal. Before loyalty can be rewarded, it must be recognised. Those who believe auto-renewals are a sign you have cracked it should think again! Customers will do what they have always done….vote with their feet next time.

29

Can you mediate a costs dispute?

A

costs dispute is… a dispute.

Many disputes can be resolved by mediation or other forms of ADR. Costs disputes are no exception.

This thinking is endorsed by a new costs ADR service launched by the Association of Costs Lawyers assisted by former senior costs judge Peter Hurst, some experienced mediators and costs lawyers.

With any dispute or claim there is always a range of outcomes, from early settlement to trial (or appeal).

Clients rely on practitioners’ skill and experience to: • fully understand the client’s objectives (a swift commercial settlement or a precedent at trial) • advise on the best means to achieve the desired outcome (Part 36, negotiation or ADR) and • comply with the CPR relating to settlement, proportionality and ADR. Although ADR has not been a mainstream tool for resolving costs issues, there are significant examples of its use. The Civil Justice Council has used it to resolve “big ticket” personal injury costs issues, such as predictable RTA fees, success fees, and medical report fees. Some mediators, particularly in the personal injury field, make it clear that their service includes mediating costs on the day of the mediation, as well as the claim.

During the last 2 years, the court has imposed costs sanctions on a number of parties for unreasonably refusing to mediate. As many costs lawyers are aware, these cases apply to costs disputes just as they apply to other disputes.

(See Lakehouse Contracts Ltd v UPR Services Ltd [2014] EWHC 1223 (Ch): a refusal to mediate the costs of a winding up petition was held to be unreasonable.)

In providing an ADR service for its members and their clients ACL are not, however, reacting to case law or the CPR. They cite the additional service that costs lawyers can offer and, crucially, the commercial benefits of using mediation and other forms of ADR: for every case where both parties want to proceed to a detailed assessment there are many where the paying party would like to close its file more quickly, and the receiving party would like to turn the WIP into cash without a long wait.

Tim Wallis, Mediator and Solicitor with Expedite Resolution, Trust Mediation, Association of Costs Lawyers and others.

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

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

MC // May 2015

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The Opinions

Northern Ireland – A good place to be doing business

W

ith all the dramatic changes affecting England & Wales, now may be the time to look at options that previously might have seemed a step too far. Certainly, recent progressive developments by the more traditional Insurance based sector, coupled with a trend set several years ago by the big City boys, seem to confirm a pattern has now been established for looking at Northern Ireland (NI) and in particular, Belfast, as the place to be doing business in.

Liberty Insurance recently acquired one of the biggest Insurance brokerages (Hughes) in what was rumoured to be a £50m plus deal, and BLM merged with local Belfast firm, Campbell Fitzpatrick Solicitors. These developments follow similar moves several years ago by Pinsent Masons and Kennedys and come on the back of global firms such as Allen and Overy, Herbert Smith and Axiom, all seemingly delighted with their strategy of expansion into NI. The pool of legal talent available in this region has long been a source of local pride, and coupled with considerably lower overheads, with such things as property prices and rents only add to the feel good factor. The region is also now benefiting from the economic recovery and seems set to progress from a change in Corporation Tax that many feel will be set at 12% or less to compete effectively with our neighbours in the Republic of Ireland, who operate within the Euro zone.

From a claimant perspective, the outlook is even brighter, especially when you compare the landscape with England & Wales (E&W). The only change in the post Jackson reforms to affect NI was with the referral fee ban announced in May 2013, with the result that the current legal framework resembles something akin to that that existed in E&W some 20 years ago. Thompsons NI has a formal association with the so named organisation practising ‘inter alia’ PI, and employment law. The claimant sector generally still has recourse to public Legal Aid funding, that their colleagues in E&W can only dream about. Even if this funding becomes a victim to the UK wide public sector cuts, ATE insurance is now available to proven firms via DAS Law and Financial & Legal. All in all, NI is worth a look.

Gerry Lee, Senior Partner, P R Hanna Solicitors.

31

The most valuable marketing tool...

How can claims professionals combine front-end customer service with their back-office systems to increase customer loyalty and satisfaction and is this a big enough focus in the claims market at the moment?

F

or all too long, many in the claims sector committed arguably the worst mistake in business by not focusing on the client. In our industry, we regularly have to fight on many fronts - whether it be battling with competitors to win or retain business, battling with those on the “other side” in individual cases or wider issues and adjusting the business model in the face of regulatory changes. It is therefore understandable that on occasion, things have slipped. However, losing sight of the needs of your client is always that last thing that should be allowed to slide.

Client satisfaction is key to ensuring that any business working within the claims sector is actually making a positive difference to the sector as a whole. Pursuers, defenders, CHOs, insurers…we’ve all had a battering in recent times (and often we’ve been throwing the rocks at one another) and the result of that is that the public perception of the claims sector as a whole is not in a particularly good place. It is therefore essential that that businesses within this sector look to change that perception by showing customers that claims professionals are genuinely here to assist individuals through the claims process. After all, unlike most industries, our clients (or customers) don’t enter this market out of choice; they enter it because something unfortunate has happened to them. This makes our duty to make a positive difference to them all the more compelling.

Combining front-end service with back office systems is of course key to this. There is little point in greeting your clients with a winning smile and “can do” attitude if you have neither the skills nor systems to actually deliver upon what you have said you would do. Creating a great first impression is important but it means nothing if it isn’t maintained throughout the whole claims process.

Ultimately, clients want to be helped through the process.

A simple process of regular communication, imparting information and providing reassurance will in most cases, see the job of creating a happy client achieved. That in turn can then create your most-valuable marketing tool; word of mouth recommendation.

Scott Whyte, Managing Director, Watermans.

MC // May 2015

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The Opinions

Genuine innovation...

W

inning the Modern Claims Award 2015 for Innovation has evidenced to us that the claims industry is either happily surprised that the Bar can be so commercial, or that we are genuinely innovating the claims market for customers.

Clerksroom Direct was deemed a winner, we think, because we aren’t afraid to challenge traditional models of workflow for barristers, nor are we concerned about having to develop and prove our value to legal consumers, directly.

Clerksroom Direct is the first online service of its kind for members of the public, claims companies and businesses to gain an upfront quote, instruct and manage a claim directly with a public access authorised barrister. Customers can compare our barristers online and ask questions about their skills before they ‘buy’. The decision to instruct a particular barrister is, therefore, made by the customer, not clerk – removing any risk of internal politics so often found in traditional chambers. It is also key to securing customer choice in the process and control.

Our additional ‘innovation’ has also been to collaborate with over 80 national barristers’ chambers to secure strength and depth for the customer and create the first truly effective (by capacity to serve) public access provision from the Bar. The exclusive portal was designed for us with customers in mind. It garners honest feedback from our customers – often essential prerequisites for consumers who are more used to shopping around for professional services online.

This keeps us on our toes in terms of barristers’ customer service, so often criticised in the public access debate. As a brand, we run a tight ship, so it’s in our best interest as much as it is for customers to ensure they are supported to a consistently high standard.

Our Modern Claims Award is fantastic recognition of the huge amount of work undertaken and all those who have contributed to the service as a whole. We have had great support from the Bar Standards Board, our 1,000 registered barristers, our 80+ collaborative chambers and their clerks.

It is always hard to innovate as this means any service is new and untested, by its very nature.

Going forwards, we are very excited by the prospects of working with claims companies and other potential marketing partners who can help us generate new enquiries and add value. Our immediate aim is to work towards 100 new instructions a day by working with interested partners.

33

A catalyst for change...

How can insurance/claims professionals keep hold of customers, with a continuing rise in aggregator websites?

C

onsumers prefer, indeed expect, digital interaction. From banking and news, to shopping and selling, consumers like to be able to manage their lifestyle on the go. Not surprisingly, our modern society is today therefore supported by the convenience of apps, which helps us simplify, control and enrich our digital lifestyle. However, it is our belief that insurers are lagging behind in making the most of what this trend has to offer.

Insurance is a legal requirement and therefore the key weapon in the battle to win customers is price; this is the advantage point of aggregators. However, other markets are largely price driven today, so how do they make themselves stand out from the crowd given the success of their offering is driven by consumer compulsion, not a compulsory mandate?

Understandably, insurers aim to differentiate themselves by how they manage claims and secure renewals. After all, a customer who makes a successful and hassle free claim is likely to return. Historically, motor insurers have had touch points with customers at the time of creating a new policy, change of vehicle details, the point of renewal or when making a claim.

This is why a broader approach to customer service is required - extending way beyond the claims process.

In reality, policyholders have assets to manage all year round, from buying and selling their current and other household vehicles, to servicing, maintaining and repairing these assets, all of which offer touch points for customer interaction.

Front-end customer service should be a personal and a technology-based solution, ensuring insurers are at the fingertips of their policyholders, throughout the vehicle ownership experience. Imagine how much loyalty could be built into the relationship, if an insurer gives additional support to motorists, helping them keep their cars legal, maintained and repaired, all year rather than just during a claim. Could this represent a catalyst for a change in consumer perception about the motor insurance industry?

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

Stephen Ward, Director, Clerksroom & Clerksroom Direct. www.clerksroomdirect.com

MC // May 2015

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The Opinions

What impact could a new Government have on the claims sector?

Conservatives The Conservatives claim to have done their bit to deal with the price of car insurance by introducing independent medical panels so that only medical evidence from accredited, independent professionals can be considered and by cutting the fees solicitors can recover from insurance companies.

Maybe this will lead to larger profits for insurance companies or a reduction in insurance premiums in 2015?

They are also keen to boast that under its leadership, Britain’s roads have received triple the amount of funding for repairs, maintenance and development. Could this lead to a reduction in accidents? Particularly those contributed to by poor road surfaces and layouts?

Labour Labour suggests that insurers should offer cheaper ‘travelto-work-only’ insurance for young drivers monitored by telematics. They also claim that they will take action to improve young driver safety by improving experience. They don’t have solid proposals in place advising that they are continuing to discuss improving safety with road safety organisations and are open to proposals. They claim that these things will reduce insurance premiums.

Liberal Democrats The Liberal Democrats have launched a green paper on improving safety of young drivers which looks at a range of options such as: • A minimum learning period before candidates can take their test.

• Enabling learner drivers to take lessons on motorways, during adverse weather conditions or during darkness.

• Increasing the probationary period from 2 to 3 years for a new driver’s licence to be revoked if they receive 6 or more points.

• Incentives for young drivers to take up additional training after passing their test.

If this is passed, could it reduce the number of accidents involving new drivers?

UKIP There is very little in UKIP’s proposals relating to our industry. They promise, as the other parties do, to improve the state of the roads although little has been said about exactly how this will be achieved.

All parties promise the general public that they will reduce insurance premiums but we all know that they say what they think will get them a vote. All in all, it appears that any government led changes have already taken place in the previous 5 years and perhaps an uneventful 5 years is to come for the claims industry.

35

A bittersweet state of affairs?

Is wearable technology a commercially viable and useful tool for the modern-day claims professional, or will it merely heighten the ‘always-on’ world and be a step too far?

W

earable technology has actually been around for a few years. In fact, those of you that had similar tastes to mine, may even remember the classic Casio calculator watch – technically a wearable bit of kit… of course banned from the exam hall!

In today’s world, we are talking about smartwatches and it was as long ago as 2013 that Pebble launched a smartwatch that used Bluetooth technology to pair with a phone. Since then, other competitors have entered the market, predominantly for Android phones with the largest being the Samsung Gear range.

However none of these have had the marketing powerhouse of Apple behind it and millions of people around the world will be purchasing the Apple Watch after its release on 24th April 2015. In comparison, the Watch is an expensive accessory to its competitors with the cheapest coming in at £299 and the most expensive, an eye-watering £12,000!

Leaving the cost to one side, what is interesting is that I’ve come across a few articles that have mentioned Apple’s intention to “give back time” to the user. It is no secret that smartphone users are constantly looking at their phones as they look to consume as much information as possible in every waking moment. The time is takes to reach for a phone, unlock it, locate the right app, find information or view a notification is only seconds but with the number of times we do this every day, it adds up.

Apple is spot on when it says it is going to “give back time”. With their Watch in particular, synced to an iPhone, it will display notifications and even allow you to send instant replies to any messages or emails from a selection of suggested responses or even speak into the Watch to write a personal reply. Coupled with the technology to wake up and show a notification when raising your hand to read the screen, it really will save time.

As busy professionals, constantly in meetings, the Watch will help to quickly see important messages and reply faster and more effectively. The question is right to ask if this will create an “always-on” world as this kit will further enhance our accessibility and ability to react. Arguably, a bittersweet state of affairs, depending on your point of view.

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

Emma Holcroft, Director, 2020 Investigations.

MC // May 2015

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The Opinions

37

Sound risk management... Under the radar?

What questions should solicitors ask of insurers and brokers to assess compliance concerns prior to purchasing after the event policies for their clients?

P

ost LASPO, the After the Event (ATE) market has evolved to provide products and facilities that address the liability issues of the policyholder.

Solicitors are required to advise their client of all the funding options available to them at the outset of the process which include ATE. ATE is recognised as the perfect solution, providing risk transfer and certainty of cost, ultimately ensuring the policyholder is in the legal process to its conclusion.

It therefore follows that ensuring the product the Solicitor is providing is fit for purpose, is of paramount importance.

Failure to do so could result in a claim against the Solicitor under their Professional Indemnity policy.

Both Insurers and Brokers are regulated by the Financial Conduct Authority (FCA), (or should be if a Solicitor is considering using their services!). A Solicitor should ensure that when dealing direct with the Insurer that they contribute to the Financial Services Compensation Scheme (FSCS) which means that if the Insurer is unable or likely to be unable to pay claims made against it, then the policyholder has on-going protection.

Insurer’s terms and conditions should also be fully analysed and agreed prior to the policy being incepted. A Solicitor has obligations on behalf of the policyholder to the Insurer, to ensure that in the event of a claim it will be paid. Failure to comply with reporting requirements and conduct stipulated by the Insurer will leave the policyholder without indemnity for their claim. Again, this would result in a claim being made against the Solicitors professional indemnity.

Finally, brokers fall into 2 distinct categories, intermediaries who work with 1 or 2 Insurers exclusively and independent brokers who can provide access to all the Insurers who meet the required, compliant criteria. It is the broker’s role to provide guidance on the most appropriate arrangement, once the information has been gathered about the Solicitor and their client’s requirements.

The selection of policy and Insurer should take into account the regulatory issues of the Solicitor and the broker should make them aware of the policy conditions and reporting requirements, and recommend the package that best suits the agreed framework.

What impact will the Court of Appeal’s decision in Cox v Woodlands Manor Care Home have on the enforceability of solicitors’ retainers and conditional fee arrangements (CFA)?

C

ox v Woodlands Manor Care Home Ltd [2014] EWCA Civ 1068 confirms that the Cancellation of Contracts made in a Consumer’s Home or Place of Work etc.

Regulations 2008, SI 2008/1816 (the Cancellation Regulations), apply to solicitors’ retainers.

Initially, this slipped under the radar of lawyers - it took the Law Society almost two years to produce a practice note which dealt with the Cancellation Regulations and give guidance to solicitors on how to comply.

We’ve seen a handful of County Court decisions regarding the application of the Cancellation Regulations to solicitors’ retainers. This is the first time the Court of Appeal has dealt with the issue. The thrust of the decision is that, where clients who are consumers signed up to a retainer with a solicitor - whether on a CFA or ‘traditional’ basis - in their home or place of work before 13 June 2014, compliance with the Cancellation Regulations was essential. In the absence of this compliance, the retainer is unenforceable.

Many firms of solicitors have clients signed-up to CFAs ‘en masse’, by agents who visit the clients in their homes.

Unless compliance with the Cancellation Regulations is ensured, it is possible that none of the costs incurred on behalf of these clients are recoverable.

A more nuanced point relates to circumstances where CFAs are entered into in anticipation of a before-theevent (BTE) insurer refusing to allow their insured the freedom to choose their own solicitors - in the event the insurer provides an indemnity, the CFA falls away, but if the indemnity is refused, the CFA continues. In such cases, Cox confirmed that the CFA is ‘made’ (for the purposes of the Cancellation Regulations) when it is signed, rather than when the insurer refuses the indemnity.

Alex Bagnall, Associate & Costs Advocate, Just Costs Solicitors.

Transferring the main compliance issues to a broker is sound risk management and ensures that the Solicitors own regulatory issues are transferred in part to a professional advisor.

Martin Doyle, Director, Amberis ATE.

MC // May 2015

The Opinions

A happy customer?

A lack of clarity...

How can claims professionals combine front-end customer service with their back-office systems to increase customer loyalty and satisfaction, and is this big enough focus in the claims market at the moment?

What impact could a new Government have on the claims sector?

N

o, it isn’t a big enough focus but it should be. A hot topic since 2001, now 14 years later, we are still talking about it. There is no question that customer service should be at the forefront of every decision that is made. The question companies should be asking is: Is it on your agenda or are you actively improving? If efficiency in claims is what you are after, where reduction in cost of claim processes, settlement, speed of claim conclusion and increased customer satisfaction is the goal, the software and supplier support is there for the taking.

My own personal experiences left much to be desired.

I was out of my home 6 months more than anticipated.

The reasoning? No urgency or efficiency shown by anyone involved. The lack of organisation between parties resulted in me chasing the insurer for updates, instead of the opposite. If it wasn’t for my persistence, the insurer would still be forking out for rent. I count myself unlucky to have dealt with poor service, where intermittent and vague phone calls would ‘suffice’. If technology is meant to enable the process from policy inception right through to when I submitted my claim, why is it not being used? DLG unveiled their videoing software, which enables decisions to be made onsite. Why would you wait? The software and connectivity is available, no excuses.

TRS follow a ‘hub and spoke’ model, using ‘Claimbrain’, a like for like validation database to provide an end to end solution, quicker and faster. Claimbrain allows a customer to view products, validate and quantify the liability before making a decision about the settlement route. The customer can select their chosen route with fulfilment of product/repair or a cash equivalent. This ensures that a claim will no longer linger around like chewing gum on your bottom of your shoe; it will be settled correctly, here and now. This model no doubt increases customer satisfaction, having a result within hours is preferable, especially when a claimant is treated as an individual, not by claim number.

Combining empathy, expertise and tried and tested systems maintains loyalty.

The industry needs to keep pace and adapt their services accordingly. Would you buy into the services that you provide? Would you honestly be a happy customer?

Victoria Rawlings, Media and Marketing Manager, TRS Claims.

39

T

he rights of civil litigants and access to justice have deteriorated under the coalition government. This is not in dispute.

David Cameron has put weight behind the reduction of what he decries as the ‘compensation culture’ and sought to put greater power within the hands of insurers.

He has also concerned himself with the weakening of health and safety legislation, under the belief that the public’s ability to make claims against employers’ liability insurance somehow puts small businesses under threat.

In a poor choice of words, Cameron even went as far in January 2012 as saying that it was a Tory party New Year’s resolution “to kill off the health and safety culture for good.” Statistics have shown a reduction in the number of claims each year, with a 60 per cent reduction in awards for work-related diseases or injuries from 2000 - 2012.

As Rory O’Neill, Professor of Occupational Health at Stirling University, told the TUC: “We are seeing a denial of justice because the government is putting the health of the insurance industry and the safety of the most dangerous rogues in the business community over the health, safety and survival of people at work.”

Working on the assumption that the next government to take office will be headed by a new cabinet, the Labour party, specifically Shadow Justice Minister Andy Slaughter, has promised to repeal Chris Grayling’s legal reforms to some extent. This would include ‘quick wins’ followed by a more detailed reform plan. The party does say that it would protect NHS whistleblowers, therefore lending support to clinical negligence cases.

The Liberal Democrats were opposed to the court fee increases that have hit the claims sector and their Justice Minister, Simon Hughes, could spearhead a reversal, should the Lib Dems retain office independently.

Delegates at the party’s spring conference condemned the fee rises and the party leaders agreed to consider action against the new fee structure.

The remaining main political parties, UKIP and the Green Party, have focused their energies on other proposed policies and do not appear to have immediate and clear plans in place that relate to the claims arm of the legal industry.

Kamran Akram, Principal Director, Asons Solicitors.

MC // May 2015

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The Opinions

41

Protecting and serving honest customers

Claims management with a vengeance

What impact could a new Government have on the claims sector?

What behavioural changes in claims management can be expected from the new Professional Indemnity Protocol?

R

A

egardless of which party or parties take control of Downing St after the General Election, it is important that our industry continues to influence the thinking of that government. Unlike in recent times however, we need to come together and provide a unified voice to ensure that any legislative change is for the good of the whole insurance community and its customers.

ll in the claims sector have grown used to the impact of Protocols on the procedure for identifying and resolving claims.

Many would argue that the existence of this pre-litigation option has sped up the resolution (and payment) of claims. Recent administrative changes have now reinforced the role of the Protocol in a way which will give it even more edge.

Fundamentally, we in the insurance industry want the same thing; a clearly defined and well balanced system that looks after the needs of the insurance buying public, both at the point of sale and at the time of use.

The Ministry of Justice has provided the 79th update to the Civil Procedure Rules, making changes to some Pre-Action Protocols, including that for professional negligence. These changes came into force on 6 April 2015. The intention appears to be to encourage more wide-ranging pre-action exchanges in order to avoid court proceedings. The amendments may also reflect greater numbers of unrepresented litigants, following the litigation funding reforms in 2013. As before, the Protocol itself can have no effect on the limitation periods for the claim.

It is a well documented fact that fraudulent and exaggerated claims cost eye watering amounts of money and much has been done in recent years, at great cost, to address the problem. Sadly, there has been little or no impact.

In my view, this is because the lobbying parties have presented government and the regulators with vastly opposing views and, whilst I respect those views in equal measure, I do think that a joint representation aimed at tackling the real issues of fraudulent and spurious activities would have been far more effective in terms of cost and outcome.

In particular, any future government should consider implementing the following points: • Prohibiting the sale of personal data.

• Banning unsolicited contact – a bugbear for millions of people on a far too frequent basis.

• Prevent advertising by claims management firms which promises large cash rewards for people that make personal injury claims.

• There are too many cases clogging up the court system involving replacement vehicles and injury claims – insurance customers are being used not to settle liability disputes but to help with arguments over quantum. All they want is a car and a fair settlement. We should work more closely together to create an environment that recognises there is a customer at the heart of it.

• Enforce tighter controls and get tough with firms that flout the rules.

• Encourage better engagement between legitimate/ responsible claimant firms and defendant insurers/lawyers.

Lobbying government collectively to demonstrate an industry wide desire to tackle these and other related issues must surely bring about quicker and more cost effective results and achieve our aim of protecting and serving honest customers.

Steve Chelton, Head of Claims, Swinton Insurance.

The principal changes to the Pre-Action Protocol for Professional Negligence can be summarised as follows: 1. If the claimant is unrepresented, the Defendant’s Acknowledgment of Claim should now contain a copy of the Protocol; 2. If the Letter of Claim is non-compliant, the professional should “as soon as reasonably practicable” advise the claimant why and how it is non-compliant; 3. Parties must cooperate openly in the exchange of relevant information and documentation. Importantly, however no party is obliged to disclose any document which a court could not order them to disclose; 4. Adjudication becomes a permissible form of ADR; and 5. Finally, a new “stocktake” provision has been introduced which, once the Protocol procedure is complete, compels the parties to undertake a further review of their positions and consider whether proceedings can be avoided.

This is “cards on the table” claims management with a vengeance. Most of the steps seem to require an element of willing assistance from the hapless defendant to keep the Claimant on the right tracks. Our observation is that the pre-action period is likely to become more protracted and insurers are likely to see Letters of Claim that contain even more comprehensive disclosure requests. It remains to be seen whether adjudication will take off outside the construction arena but this could have a positive impact on costs in the long term if the reception is positive.

David Simon, Chairman, Triton Global and Isaac Jenkinson, who helped with this article.

MC // May 2015

42

The Opinions

UK Insurance Telematics – when will the tipping point occur?

Telematics continues to grow in UK Personal Lines, but significantly short of the pace that most of the market was predicting. Why is this?

A

long list of reasons have been given, including, high supplier fulfilment costs, difficult integration with legacy IT systems, low customer loyalty, privacy, security and complex data ownership paradigms, all contributing to the slow growth.

There has been tangible, hard-earned progress in alleviating each of these barriers, but there is a danger that these factors disguise the truth. The simple reason for slow adoption is the customer does not yet see value in telematics products. The market is currently in a state of ‘low-end disruption’. Lots of new products coming fast, faster than insurers can adapt to their unprecedented potential.

We at Insurematics are constantly being approached by service providers with the ‘next big thing’ in telematics, looking for routes to market. The product that will tip the current niche market into mass market is possibly out there already. Maybe only in an entrepreneur’s mind, maybe it is in developmentally ready, or maybe even being tested and about to be piloted.

Disruption will then be ‘new-market disruption’ and a new product, service or process will prove too good for the customers to ignore and the tipping point reached. This could lead to a very disruptive new two-tier motor insurance market, with bigger disruption to follow from connected, then autonomous cars. Interesting times ahead, with insurers crucially needing to be in the right tier.

With market penetration so low (c3%) motor insurers, most of whom have already invested heavily in telematics, need to look at simple quick wins to provide a level of return in investment. Until such a product, service or process is introduced, one that will turn heads and kick-start the process of mass-market adoption, further expensive integration projects should be avoided. Having said that, the long list of benefits that encouraged insurers to enter the telematics space in the first place remain, and quick wins are still available. Benefits in areas such as : • Reduction in Claims Management costs • Reduction in Claims Frequency • Reduction in Claims Severity • New Value-added services

• Accident reconstruction • The Hawthorne effect • Targeted driver education • Brand / Marketing wins • Better pricing • Improved Retention • Fraud reduction.

Change from within What are the biggest threats to the UK claims market and how can practitioners and service providers work to turn these threats into opportunities?

T

here is a very simple answer to this question. The biggest threat to the UK Claims market, is the market itself, and a large number of the people within it. Over the last 20 years the market has changed for the worse, many CMC’s have entered the market with no previous background, having seen an opportunity to make quick money at the expense of the consumer, and the industry as a whole.

The British public has had enough of cold calling, text messages and e-mails, asking if they have had an accident in the last 3 years or whether they have PPI. Surely, common sense dictates that if that person has not picked up the phone voluntarily, then they do not believe they have a valid claim, or have a wish to pursue it.

These CMC’s are using data which has been sold around the market 20 or 30 times over, often this data is not opted in, and their staff are trained to coach people into claiming. This is inherently wrong.

Commercially the CMC’s generate more income than the Solicitors handing them, thus reducing any real profit element, and contributing to law firms employing less skilled staff, taking on fewer qualified Solicitors and Fee Earners, which can only lead to the service and quality to the consumer becoming poorer. In my opinion this is a big part of the reason that the MoJ and Defendant Insurers have forced the changes to our industry, that in reality should never have needed to happen, to try to force out manufactured claims, coaching of clients and fraudulent or staged accidents.

I agree with the reasons the MoJ have made the changes, I do not agree with the way they have done it, but until the Claimant industry realises that they have brought this on themselves, by taking work from the companies I have eluded to above, encouraging murky cold calling and client coaching, generating claims that never existed, then there is no prospect of positive change.

If the Claimant industry does not collectively make significant change, and refuse to deal with sub-standard work from greed driven CMC’s, who only have their own pockets at heart rather than service to the Consumer, then the industry as it stands will not exist in 3-5 years time. The MoJ will continue to implement changes designed to destroy the industry, in the absence of the industry self-policing, thus, de-skilling the legal profession in the process and taking away access to justice for genuine claimants in its entirety.

So until THAT product comes along, it may not be wise to expensively integrate your solution based on technology that has not proven itself. Simply grab the quick wins, learn from the data and the experience, innovate and get ready to move...fast.

I believe this industry is ready for change, indeed, this industry desperately has to change, and the only people who can make those changes are those within it.

Peter Tyson, Director of Projects, Insurematics.

Phil Hodgkinson, CEO, Pure Legal Costs Consultants.

MC // May 2015

Think Pure Thoughts.

The Opinions

43

The age of the DIY approach?

Currently, what are the biggest threats to the UK claims market and how can practitioners and service providers work to turn these threats into opportunities?

T

he adversarial nature of the claims sector means it is always facing challenges of one sort or another. Over the last couple of years, we have seen them come from political, regulatory, and technological perspectives and they show no sign of abating anytime soon. Yet despite all the rhetoric and talk of industry implosions, most people are still here (still talking about how bad it is but here nonetheless). And that’s probably because the sector has a habit for innovation and reinventing itself.

So, what might be round the corner?

Technological developments: the development of telematics will turn the road traffic claims sector on its head. Currently, most business models are based around the capturing the customer resulting in the consequent

prevalence of the FNOL model. In a world where the vehicle reports the accident itself, and effectively brings the customer to you, the whole dynamic around client capture is changed. It follows that we should see some serious consolidation in the RTA market over the course of the next couple of years.

Political influences: the coalition government has transformed the sector since 2010 and eroded access to justice in the process. The events of the General Election will set the tone for the next 5 years; the return of a Conservative led administration will materially raise the prospect of further challenges with the small claims track limit probably back on the agenda at some stage.

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MC // May 2015

carpenters

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The Features

Credit Hire: A Sea Change?

Charlotte Parkinson, Modern Claims asked three Credit Hire experts what impact the recent ruling by the Court of Appeal concerning ‘lowest reasonable rates’, will have on the Credit Hire industry, claimants and defendants.

Form over function...

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recent ruling by the Court of Appeal indicates that judges assessing future credit hire charges involving pecunious hirers should take into account the “lowest reasonable rate”, this being a hire rate offered by a local mainstream rental company, or a reputable local rental company. These basic hire rates (formerly called spot hire rates) can vary considerably in the same locality, for the same car group, depending on the amount of excess required and other factors. In this case, the vehicle provided was an Audi A4 at £194 (including VAT) per day for a 28 day period. The judge in the initial case took an average of the local rates to come to a “reasonable rate”, however this was rejected on appeal. The Appeal Court stated that the judge should take the lowest rate available locally.

‘This appears to be yet another ruling, which, at first glance, seems to simplify and clarify this contentious subject, but may turn out to cause more disagreement and litigation’ Tim Jones A closer look...

There have been several comments by interested parties from both the insurance industry and credit hire organisations. Many are forecasting that this ruling (which the claimants, Accident Exchange, are planning to take to the Supreme Court) will lead to significant reductions in credit hire charges, and could lead to insurers reviewing ongoing cases and withdrawing offers. This may well be the case, although it should be borne in mind that half a million claims are settled amicably every year via the GTA – General Terms Agreement, followed by most leading insurers and credit hirers (including ourselves at Collision Solutions).

It is likely that, as a Credit Hire company, we will need to look at prospective clients’ personal and financial circumstances more closely, as age or driving licence points, for example, could result in rental rates offered by local

MC // May 2015

companies being higher than credit hire rates.

Also, if the client is put in the position of having to hire a car his or herself and doesn’t have a credit card, or an insufficient balance on their card at the time of hire, it’s very unlikely that a rental company would be able to provide a vehicle at all.

This appears to be yet another ruling, which, at first glance, seems to simplify and clarify this contentious subject, but may turn out to cause more disagreement and litigation.

Tim Jones is Managing Director at Collision Solutions Ltd.

Stevens -v- Equity: What does this mean for the credit hire industry?

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he Court of Appeal recently dismissed the appeal in the credit hire case of Stevens v Equity Syndicate Management, and this is one of the most significant decisions since Bent v Highways and Utilities Construction (No.2). A key point to remember is this case does not affect the impecunious client, so when a hirer can prove they had no funds available to hire on upfront cash terms, they will be able to recover the full credit hire rate. Turning to the pecunious client, the ruling in Stevens seems a strange decision and one that contradicts many established principles with regards to the way a Basic Hire Rate should be calculated.

The implications...

The fundamental question is how does this affect the credit hire industry? As was expected, since the judgement of the Court of Appeal was handed down, there are large numbers of defendant motor claims handlers that have jumped on the Stevens bandwagon. What they fail to realise, is that in many instances the so called nationwide hire companies would not provide hire to the claimant due to various factors which include, but are not limited to: Hirer age, driving experience and penalty points/endorsements on the driving licence. Further to this, many of these nationwide hire companies refuse to hire a car to someone who has just been involved in an accident, even

The Features

if it is a non-fault one. This is before we even begin to look at availability! In this instance, the claimant has no alternative but to seek the assistance of a Credit Hire provider, who specialise in offering mobility solutions to non-fault victims of RTC’s.

‘Whilst Stevens is an unwanted decision for the Credit Hire industry, which muddies the waters and raises more questions than answers, it is by no means the end of Credit Hire as some may suggest’ Salman Chaudhry Speaking to my recoveries team, they tell me they are now being presented with a plethora of BHR reports citing Stevens. However, once these defendant BHR reports are perused it is plain to see that when considering the exact same vehicle hired on the same terms, including CDW and surcharges for driver age etc. the daily rate often exceeds the GTA Rate!

Muddying the waters...

In the subsequent case of Cheung v UKI, the credit hire company involved proved that the rates quoted in the BHR report, that the Defendants were seeking to rely on, were not available to their client and therefore not applicable.

They were duly awarded their full daily credit hire rate.

Another point to note is Stevens will not have as much of an impact on specialist vehicle providers. For example, here at Pearl Assistance, we specialise in licenced Private Hire taxis, and they just simply are not available to hire on a daily basis from any reputable source.

Whilst Stevens is an unwanted decision for the Credit Hire industry, which muddies the waters and raises more questions than answers, it is by no means the end of Credit Hire as some may suggest. CHO’s provide an invaluable service, stepping in to provide temporary replacement vehicles to innocent victims following an RTC. As long as there are victims that require our assistance, we as an industry will ensure we are here to help.

Salman Chaudhry is a Director at Pearl Assistance Ltd.

Clarity: will it last?

On the 26th February 2015, the Court of Appeal handed down its decision in the case of Stevens v Equity Syndicate Management. Mr Stevens’ Audi A4 was damaged in an accident in 2011 and he was provided with a replacement Audi A4 by Accident Exchange at an aggregate rate of £165.50 plus VAT. Liability was not at issue and the repair had previously been agreed.

The Recorder had previously been asked to decide on three issues, whether Mr Stevens was impecunious, what sum could be attributable as the basic hire rate and whether the period of hire was reasonable.

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A fair playing field...

The High Court had upheld the Recorders findings that Mr Stevens was not impecunious, however reversed the Recorder’s findings as to the reasonable period of hire, finding that as the vehicle had been stripped on arrival at the repairers with the parts being ordered straight away, Mr Stevens could not be responsible for the delay in the parts arriving, nor was it reasonable to reassemble the car and the full hire period was recoverable. The Recorder’s previous decision to arrive at the basic hire rate by averaging rates quoted by four mainstream hire companies was also upheld and Mr Stevens appealed this aspect of the decision to the Court of Appeal on the basis that the subjective approach was contrary to the decision in Pattni v First Leicester Buses Ltd [2011].

The Court held that in future, Judges looking to identify the basic hire rate should seek out the lowest reasonable rate charged by a mainstream supplier operating in the Claimant’s local area. The decision puts Defendants in a stronger position on rates, with the Courts being able to award the lowest rate, which may now of course be less than both an average and the ABI GTA rate.

‘An impecunious claimant ought still to be able to recover the credit hire rate charged and evidence in support of the claimant’s financial position including copy bank statements may be obtained prior to hire’ Andrew Makepeace The challenges ahead...

That rate ought to be justified by evidence from a large established supplier for the same kind of vehicle hired, (not replaced) and to the same sort of client, in the same geographical area, at the material time of hire. Claimants may be seeking sequential exchange of rates evidence, enabling them to consider the defendant’s evidence and to ascertain whether it really is a correct rate of hire.

Has the defendant produced evidence on comparable terms hired, looking at the amount of any security deposit required, the insurance arrangements including any applicable excess, the number of drivers and their driving histories, any mileage limitations and perhaps even interrogating the terms and conditions of hire.

Claimants and defendants alike may now collate and retain a database of daily rental locations and rates, perhaps making actual enquiries with local providers before or at the point the Claimant is actually put in hire. Impecuniosity is now more important than ever, an impecunious claimant ought still to be able to recover the credit hire rate charged and evidence in support of the claimant’s financial position including copy bank statements may be obtained prior to hire. “Is the claimant in a financial position to meet the bill from cash assets and only those not required for everyday living and potentially one-off bills?” TOAL NI BUR 9528.

There are undoubtedly more challenges and legal arguments to come, the decision in Cheung v UKI [2015] may have clarified comparable rate arguments for the time being, and whether the ABI GTA can or will survive in its present form remains to be seen.

Andrew Makepeace, Managing Director, Motor Support.

MC // May 2015

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Legal Opinion

49

Legal Opinion Modern Claims’ panel of resident legal experts tackle the burning issues in the claims industry. Tom Wormald, Operations Director at Carpenters explains how claims professionals can combine front-end customer service with their backoffice systems to increase customer loyalty, and David Hertzell, BLM consultant and former Law Commissioner, discusses the key challenges that will arise from the UK Insurance Act 2015, which received Royal Ascent on 12th February.

Customer satisfaction: top of the agenda How can claims professionals combine front-end customer service with their back-office systems to increase customer loyalty and satisfaction and is this a big enough focus in the claims market at the moment?

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ustomer service expectations are continually increasing in this digital age. Gone are the days when most customer contact came via the post and telephone. With increasingly sophisticated means of communication, at any time and any place, today’s customer expects their interaction with their claims professional to be as switched on as they are.

The industry has turned its focus in recent years to being more customer focused, with highly trained call centre and claims staff helping to improve customer satisfaction. Increasingly however the back office functions have not kept pace with the changes. In many organisations, the back office technologies were designed to deal with paper management, and limited numbers of partners to the claims process.

So how can claims professionals increase customer loyalty and satisfaction, through its technological development?

• Having solutions in place for dealing with volume digital, social media and messaging communication received is essential, as is being able to adapt that solution as new communication platforms emerge. Being able to communicate with customers across many platforms will improve response times and enhance customer satisfaction.

• Ensuring that information is captured and handled seamlessly, avoiding where possible unnecessary data inputting which can produce errors.

• Having platforms that work across multi organisational systems.

• Being able to report on all aspects of the system – ‘cradle to grave’ reporting which gives visibility to the whole process.

Carpenters solutions Carpenters has always invested heavily in its technology, recognising that to do so ensures that we have been able to adapt to the fast pace of change over recent years. Some of the key improvements that we have developed are; • Links with systems for validation.

• Deployment of all services for a claim from a single internal “Hub”.

• Integrated technology with partners, so information is distributed seamlessly and robustly between systems.

• MyClaim Portal with direct customer access to correspondence on the file, and real time messaging direct to the claims handlers desktop. This is available as an App on a mobile device too so accessible anytime, anywhere.

• Real time MI, with automated reporting to be able to track claims at all times.

The claims industry is now starting to embrace these changes, with many claims professionals offering claims services available through apps on mobile devices and direct portals for information. Continued focus on this area is required. This can be achieved by continued investment in back office technology, and the next big innovations, which will ensure that we can interact with our customers, and maintain customer satisfaction and loyalty.

Tom Wormald, Operations Director, Carpenters.

MC // May 2015

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Legal Opinion

Preparing for change The UK Insurance Act 2015 received Royal Ascent on 12th February. What are the key challenges that have/will arise from the Act?

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he Insurance Act 2015 brings UK insurance law up to date.

It creates a new duty of “fair presentation” whenever commercial insurance is purchased. The policyholder must provide enough information to allow the insurer to write the risk or, failing that, sufficient to put the insurer on notice to ask further questions.

Information must be provided in a way that is clear and accessible to the insurer – data dumps are not acceptable.

The policyholder is not obliged to provide information that the insurer already knows or ought to know. The Act gives some guidance as to who is expected to provide information – it clearly cannot be everyone in a large company. However, the policyholder has an obligation to carry out a reasonable search for material information.

If a policyholder fails to give a fair presentation then the insurer is always compensated. If the failure was deliberate or reckless then the insurer can avoid the policy. Otherwise the insurer is placed in the position it should have been in had a fair presentation been made.

New terms can be imposed, limits changed and if the insurer would have charged a higher premium then any

claim can be reduced pro rata.

The Act also considers warranties. The Act proposes that warranties become suspensory and must be relevant to the type of loss. Whilst the policyholder is in breach, there is no cover. If the policyholder remedies the situation then cover is restored. In addition the Act outlaws basis clauses which convert all information provided by the policyholder into warranties. In future such clauses will have no effect.

The Act removes any confusion as to what should happen if the policyholder makes a fraudulent claim. That claim is forfeited in its entirety including any genuine part, although previous genuine claims are payable. The insurer is also entitled to terminate the policy from the date of the fraudulent act.

The new proposals are a default regime. It will be possible to contract on different terms. However an insurer wishing to do so must make that clear and must also be clear as to the new terms it wishes to impose.

Policyholders, brokers and insurers will need to examine their existing processes and documentation to ensure compliance. The new Act comes into force in August 2016.

David Hertzell, BLM consultant and former Law Commissioner.

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51

Listen to your customers Chris Thornton explains the importance of listening to customers and outlines his key strategies for success.

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s a fellow customer, there have been occasions when I’ve found that my opinion and feedback on a service has fallen on deaf ears. It’s frustrating for anyone to receive a poor level of care and worse still, to feel that there is no platform on which to complain.

Since joining Auto Windscreens, a leading UK automotive glass repair and replacement company as Managing Director in 2014, I have made it my primary focus to ensure that Total Customer Satisfaction is at the heart of our business.

I’m pleased to say that since January 2015, we have won three awards for customer service, including the Modern Claims Award 2015 and recently received our 5,000th review on ReviewCentre.com, where well over 80% of customers consistently give us five star feedback. I believe that these accolades come from us putting great effort into translating customer feedback and advice into actions.

‘A recent McKinsey study found that nearly 70% of the overall customer experience from a purchase is based on how customers feel they’re treated throughout the purchase process’ Complacency is the enemy In the past, dissatisfaction with a purchase was sometimes ‘swept under the carpet’ by businesses unwilling to acknowledge customer complaints. However, the rise of social media and online review sites has made it increasingly difficult to drown out the voice of the people, giving them direct access to name and shame at the click of a button.

I see this open forum of dialogue as a welcome and continuous challenge to get things right. I sincerely believe that complacency is the enemy in business and that in order to deliver an outstanding service we must not only work hard to maintain a customer centric ethos but to adapt and improve along the way.

A recent IBM survey found that while 80% of CEOs believe that they deliver a superior customer experience, only 8% of their customers agree. This substantial mismatch in perception demonstrates why customer feedback is so vital for businesses in order to continuously improve and remain engaged with both customers and clients.

Valuable insight At Auto Windscreens, our customers frequently take the time to provide feedback. It’s up to us to treat this valuable

insight appropriately and create a structure that responds to customers’ thoughts and ideas. We do so by taking the following key actions: • Act quickly Customers want a reliable service and to speak to someone as quickly as possible so invest in ensuring that you have the means to deal with any demand. At Auto Windscreens, we aim to answer 80% of calls within 20 seconds and since 2014, we have answered 86% of calls within this timescale.

• Encourage feedback The popularity of independent online review sites is growing rapidly as is giving feedback via social media platforms such as twitter and facebook. This is creating an explosion in the quantity and quality of customer feedback.

Businesses should see this as an opportunity to listen and improve, engaging with customers on a personal level whether their comments are good or bad.

• Identify and act on sources of dissatisfaction Every customer is important, so any sign of dissatisfaction needs to be acted upon quickly and efficiently. We constantly review satisfaction levels and the overall customer journey to ensure that we continue to provide a superb service every time.

• The devil is in the detail Incorrect information can cause delays, inconvenience, worry and dissatisfaction for the customer. In our case, all our call advisors use advanced HPI Screen Check technology to identify the right windscreen for the right vehicle. This technology has boosted first-time glass replacement fitting rates to an industry-leading 97%.

Identifying the trends As a service provider, we are able to harness huge quantities of information about our customers through digital platforms.

Access to this kind of data is critical to managing a company’s reputation and continually improving its service quality, should be embraced by businesses keen to succeed.

A recent McKinsey study found that nearly 70% of the overall customer experience from a purchase is based on how customers feel they’re treated throughout the purchase process. Quality staff training is therefore fundamental to instilling a philosophy and culture that will translate to the customer experience delivered. We invest in our team with first-rate training and actively engage in feedback received by our front line employees in order to spot trends and anticipate new customer needs.

Behind this is the desire to deliver a fantastic service for our customers and to be the best in our industry. It’s a continual challenge but one that we’re eager to embrace in order to maintain our mantra of Total Customer Satisfaction.

Chris Thornton, Managing Director, Auto Windscreens.

MC // May 2015

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53

The Doctors Chambers Modern Claims Awards 2015 The first Doctors Chambers Modern Claims Awards ceremony took place on 30th April at New Dock Hall, Leeds. Charlotte Parkinson, Modern Claims takes a look at the winners and summarises the new industry event.

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he first annual Doctors Chambers Modern Claims Awards had been hotly anticipated as the new ‘go to’ industry event, designed to celebrate the successes and talents of those in the claims industry. The sun was shining as upwards of 400 attendees arrived and queued to enter New Dock Hall, next to one of the Maserati’s brought by sponsor, JCT600. The Champagne Reception, sponsored

by Forths Forensic Accountants, buzzed with excitement and anticipation, as the guests congregated ahead of the awards presentation.

Recognising talent...

The cross-industry Judging Panel of experts was Chaired by Donna Scully, Partner, Carpenters and included Michael Lee, Managing Director, Hastings Insurance Group (Vice Chair); Nicholas Bacon QC, 4 New Square; Laurence Besemer, CEO, Forum of Insurance Lawyers (FOIL); Rob Cummings, Manager, Civil Justice & Data Strategy, Association of British Insurers (ABI); Ben Fletcher, Director, Insurance Fraud Bureau (IFB); Ant Gould, Director of Faculties, CII; Alan Nesbit, Founder, Association of Regulated Claims Management Companies (ARC); Professor Dominic Regan; Janet Tilley, Managing Partner, Colemans-ctts; Kerry Underwood, Founder, Underwood Solicitors and Ashton West, Chief Executive, Motor Insurer’s Bureau (MIB). After the guests were seated and had enjoyed a three-course meal, the Host for the evening, Comedian, Tom Stade, took to the stage and the awards presentation was underway.

‘In response to recent changes and pressures in the claims industry, swathes of claims professionals have risen to the challenges and are providing innovative solutions for their clients’

Tom Stade

Guests are seated for dinner

Winners on the evening included Robert Weir QC, Devereux Chambers, who scooped the prestigious ‘Lawyer of the Year Award’, Club Insure Limited, who picked up the award for ‘Broker of the Year’ and LV=, who were awarded ‘Insurer of the Year’. The awards for ‘Broker Team of the Year’ and ‘Insurer Team of the Year’ were First Insurance Solutions Ltd and Ageas respectively.

MC // May 2015

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The Features

Insurer of the Year: LV=

The Taxi Cab Photo Booth, Sponsored by DWA Claims

Other notable winners were First4Lawyers who secured a double win, taking home the award for both ‘Claims Management Company of the Year’, and ‘Claims Management Team of the Year’. Bott & Co, the ‘No Win, No Fee’ personal injury and flight delay compensation solicitors were victorious in three categories, ‘Legal Team of the Year’, ‘Technology Initiative of the Year’ and ‘Marketing Campaign of the Year’, making them one of the most successful entrants.

Industry pioneers...

In response to recent changes and pressures in the claims industry, swathes of claims professionals have risen to the challenges and are providing innovative solutions for their clients, and this was reflected by the number of nominations into the ‘Innovation of the Year’ category. The eventual winners were Clerksroom, who were selected by the Judges for their new venture, Clerksroom Direct, a public access portal that allows members of the public, in-house legal teams, insurers, local authorities or public bodies to obtain a fixed fee quote or request a tender from a barrister who has undertaken public access training. The claims industry is also not slowing down in its approach to fraud, and of the most topical awards of the evening, ‘Counter Fraud Initiative of the Year’, was picked up by DAC Beachcroft Claims Limited. Another hotly anticipated award, ‘Client Care of the Year’, was taken home by fleet automotive glazing company, Auto Windscreens. As well as recognising existing talent within the industry, the Judging Panel also selected two ‘ones to watch’ and chose Steve Godbold, Sterling Insurance Group Limited as the ‘Rising Star of the Year’, and Carrot Car Insurance, as ‘Newcomer of the Year’.

Guests enjoy the Photo Booth

Client Care of the Year: Auto Windscreens

To reflect the collaboration in the claims sector over recent years, the Judging Panel also included an award to recognise the ‘Service Provider of the Year’, an accolade which was eventually awarded to Laird Experts for their exceptional client support. Supporting the future and longevity of the claims profession is certainly high on the agenda for many and the award for ‘Outstanding Commitment to Training’ was collected by Sterling Insurance Group Limited for the development and delivery of their Training Academy.

Celebrating success...

‘Outstanding Achievement of the Year’ award went to John Spencer, Director of Spencers Solicitors and one of the UK’s leading personal injury solicitors with

MC // May 2015

Pool Tables, Sponsored by Europcar

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55

Outside the venue

Winners Lawyer of the Year

Innovation of the Year

Winner: Robert Weir QC, Devereux Chambers Highly Commended: Glynis Wright, Glynis Wright & Co Family Lawyers Sponsored by: Amberis-ATE

Winner: Clerksroom Highly Commended: DAC Beachcroft Claims Limited Sponsored by: Shakespeares

Broker of the Year

Winner: Steve Godbold - Sterling Insurance Group Limited Highly Commended: Jessica Swannell - A&M Bacon Limited Sponsored by: ISO

Winner: Club Insure Limited Joint Highly Commended: First Insurance Solutions & SME Insurance Services Ltd Sponsored by: Kindertons

Insurer of the Year

Winner: LV= Highly Commended: Ageas Sponsored by: Auto Restore

Claims Management Company of the Year Winner: First4Lawyers Ltd Highly Commended: S&G Response Ltd Sponsored by: Tower Costs Solutions

Legal Team of the Year

Winner: Bott & Co Highly Commended: Neil Hudgell Solicitors Sponsored by: Ultimate Costs

Broker Team of the Year

Winner: First Insurance Solutions Ltd Highly Commended: Club Insure Limited Sponsored by: MSL Claims

Rising Star of the Year

Technology Initiative of the Year Winner: Bott & Co Highly Commended: Swiftcover Sponsored by: EDI TRACK

Counter Fraud Initiative of the Year Winner: DAC Beachcroft Claims Limited Joint Highly Commended: I-COG & Ageas Sponsored by: Synectics Solutions Ltd

Marketing Campaign of the Year Winner: Bott & Co Highly Commended: First4Lawyers Ltd Sponsored by: mmadigital

Service Provider of the Year

Winner: Laird Experts Highly Commended: Auto Windscreens Sponsored by: CCL Accident Support

Outstanding Commitment to Training

Insurer Team of the Year

Winner: Sterling Insurance Group Limited Joint Highly Commended: Ageas & Auto Windscreens Sponsored by: Lyons Davidson

Claims Management Team of the Year

Winner: Carrot Car Insurance Highly Commended: First Insurance Solutions Ltd Sponsor: Sopp & Sopp

Winner: Ageas Highly Commended: LV= Sponsored by: EASIDRIVE

Winner: First4Lawyers Ltd Highly Commended: S&G Response Ltd Sponsored by: CLAIMBRAIN

Client Care of the Year

Winner: Auto Windscreens Highly Commended: LV= Sponsored by: Checkaprofessional.com

Newcomer of the Year

Outstanding Achievement of the Year Winner: John Spencer Sponsored by: Carpenters

Lifetime Achievement

Winner: John O’Roarke Sponsored by: Doctors Chambers Ltd MC // May 2015

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The Features

‘It was special for me to receive this award, and especially so in Leeds, where my dear daughter Lydia who tragically died on the 7th May last year, studied at Leeds Metropolitan University.

We must never forget the centrality of the injured person to all we do’ John Spencer, Outstanding Achievement of the Year

Marketing Campaign of the year: Bott & Co

Outstanding Achievement: John Spencer

over 27 years’ experience. Spencer said of winning his award, “It was special for me to receive this award, and especially so in Leeds, where my dear daughter Lydia who tragically died on the 7th May last year, studied at Leeds Metropolitan University. We must never forget the centrality of the injured person to all we do.” The most highly anticipated award of the evening, for ‘Lifetime Achievement’, went to John O’Roarke, Managing Director, General Insurance, LV= and Chairman of the IFB Supervisory Board. Chair of the Judging Panel, Scully said O’Roarke was “an excellent role model for people coming into and progressing through the Industry” and called him “professional, balanced and innovative”.

Following the awards presentation and to kick off the evening’s entertainment, which was sponsored by silcedbread, was a Laser Violinist who took to the stage to amaze guests. This was followed later by the London Gospel Choir, who ensured guests were out of their seats and on the dance floor. The attendees certainly weren’t short of things to do on the night and plenty of networking opportunities were available, as well as a cordoned off area to play Pool, which was sponsored by Europcar, and a Taxi Cab Photo booth, sponsored by DWA Claims. A Silent Auction, organised by Impulse Decisions and sponsored

by InCase, also ran throughout the evening and was raising funds for Action Aid (supporting the Nepal Earthquake) and the British Heart Foundation. The auction raised almost £2,000 for the respective charities. Modern Claims would like to thank all those who attended, nominated and sponsored for making the evening possible.

To view more images from the night and to register your interest for next year’s awards, please visit www.modernclaimsawards.co.uk, or get in touch with Ellie Campbell via ellie.campbell@charltongrant.co.uk or 01765 600909.

MC // May 2015

Chair of the Judges: Donna Scully

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‘The most highly anticipated award of the evening, for ‘Lifetime Achievement’, went to John O’Roarke, Managing Director, General Insurance, LV= and Chairman of the IFB Supervisory Board’

Counter Fraud Initiative of the Year: DAC Beachcroft Claims Limited

Guests enjoy the entertainment

The Champagne Reception

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The Features

59

Medical reports, rising costs and managing risk Giles Reading looks at the recent changes with the way in which experts and medical reporting companies are appointed, which took effect from 6 April 2015.

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I lawyers should be aware that they will no longer have freedom of choice to elect an expert or medical reporting organisation (MRO).

This change affects soft tissue injury whiplash RTA claims brought under the Pre-Action Protocol for Low Value Personal Injury Claims in Road Traffic Accidents. This change was announced at the end of last year and, given the short timeframe within which the change was implemented, it may come as a surprise to many.

Adding to the uncertainly (at the time of writing) is news that the introduction of the MedCo system is the subject of a Judicial Review launched by a group of claimant solicitors and MRO’s; in their view, the Government did not permit adequate consultation time in advance of the planned revisions. Whilst acknowledging this development – it has been reported there could be a hearing ‘before the summer’ - previous changes have not been deflected by challenges of this kind.

‘As insurers, we understand the pressure on law firms to ensure their client achieves satisfactory access to justice and that this is not helped with the uncertainty created by a ‘moving target’ of ongoing regulatory changes’ Further changes on the horizon In spite of the possible uncertainty, preparations continue, with medical experts and MRO’s starting to register with MedCo (www.medco.org.uk), in order to provide an initial fixed cost medical report. The new system will see MedCo providing a list of experts and MROs from which the solicitor will make their appointment.

changes are ahead as, from 1 June 2015, a claimant’s legal advisor will have to undertake a ‘previous claims’ check on their client. In addition, from January 2016, all medical experts must be accredited with MedCo in order to be able to prepare the initial fixed cost report. However, for the moment, the quality of the expert the legal advisor is dealing with remains an unknown quantity.

To date, solicitors’ relationships with preferred doctors and other medical experts have often existed because the firm was familiar with their skills and expertise. As a consequence, some law firms had decided not to take out ATE insurance because they felt that the law firm and expert’s respective collective experience - gained through handling a high volume of PI claims – was sufficient in providing the necessary certainty.

A moving target However, given the changes, from April the financial risks involved in these types of claim have now increased - both for the law firm and the client – and should not be ignored.

Protection for both can be provided by a Legal Expenses Insurance policy. This will provide cover for the medical report and other disbursements on a lost or discontinued case.

There has been a raft of changes affecting personal injury litigation and this is a trend that looks set to continue. The new rules on relationships between MRO’s and law firms outlined above and the recent rise in Court Fees are just two examples of the increasing uncertainty but potential for significantly reduced access to justice for clients –plus an increased exposure for them to the rising costs of litigation.

As insurers, we understand the pressure on law firms to ensure their client achieves satisfactory access to justice and that this is not helped with the uncertainty created by a ‘moving target’ of ongoing regulatory changes.

When looking at any claim, we encourage law firms to talk to clients at the earliest opportunity about their funding and protection options - be this BTE insurance, Private Fee Basis or CFA and ATE insurance.

Giles Reading is LEI Product Manager at AmTrust Europe Legal.

As a result of these changes, the standard terms and conditions that are currently the norm when working with experts and MROs will inevitably begin to change. Further

MC // May 2015

The Features

61

To ADR or not to ADR, is there any question?

Courts increasingly expect litigants to settle claims away from the courtroom.

Craig Wallace, Partner and Head of Insurance at Shakespeares, considers the courts approach to alternative dispute resolution (ADR) in civil cases.

T

he specialist insurance team at Shakespeares regularly undertakes all forms of ADR, in particular mediation and joint settlement meetings.

These forms of ADR are invaluable, not only in exploring the possibility of settlement, but also to agree discrete issues or differences between the parties so as to narrow the areas in dispute.

Courts are increasingly adopting initiatives such as ‘ADR orders’ (compelling the parties to consider ADR) and pre-trial settlement hearings.

At the very least, the court asks parties now to explain why they are not considering ADR. Of course, there may be cost consequences for a party that unreasonably refuses to participate. However, how long will it be until the court compels the parties to undertake ADR?

‘Claim handlers will need to up-skill in identifying at an early stage cases suitable for ADR and then ‘prepare’ their case accordingly’ The value of mediation This is not entirely unchartered territory, the Court of Appeal in Dunnett v Railtrack in 2002 for all intents and purposes made mediation in civil cases compulsory. The same court in realising this, concluded two years later in Halsey v Milton Keynes NHS Trust, that it was a step too far to impose such a requirement on unwilling litigants.

Dyson LJ and Ward LJ stated in Halsey that, “It seems to us that to oblige truly unwilling parties to refer their disputes to mediation would be to impose an unacceptable obstruction on their right of access to the court.”

As a precursor to the recent reforms, Lord Jackson in his 2009 report recognised the value of mediation stating, “... properly conducted mediation enables many (but certainly not all) civil disputes to be resolved at less cost and greater satisfaction to the parties than litigation.” Although even Jackson LJ is against compulsory mediation.

However, there appears to have been a marked sea change in terms of the Halsey approach in the Court of Appeal case of Wright v Wright (2013). It involved the same judge as in

Halsey, Ward LJ who in unison with Dyson LJ concluded that mandatory provisions amounted to a bar to justice.

The right approach In Wright, Ward LJ stated that the right to a fair trial, as per Article 6 of the European Convention on Human Rights, influenced his decision in Halsey and Ward LJ questioned whether he was correct in this approach. Of course he could not comment further (as this point was not before the court), however what was remarkable was his comment that a “bold judge” may wish to revisit the authority of Halsey should an opportunity present itself. Ward LJ went further by suggesting that CPR 26.4(2)(b) (which allows a court at the allocation stage to stay proceedings of its own initiative in order for the parties to attempt ADR), might permit the court at any time to direct a stay for mediation to be attempted, with the warning of adverse cost consequences for unreasonably refusing to attempt ADR. Is therefore this apparent U-turn by one of our leading Lord Justices indicative of how the judiciary’s appetite has changed during recent years? Of course, such a “bold judge” has yet to step forward. However, are we all guilty of looking at the prospect of compulsory litigation at opposing ends of the spectrum?

An increasing appetite Sir Bernard Rix (a former advocate and judge) stated during a lecture before the Chartered Institute of Arbitrators, “I do not regard mediation as being in opposition to litigation, as distinct from being applied to it”.

But, why wait until a case is litigated and for the court to determine if or when ADR might be considered? The recent hike in court fees acutely illustrates the need to avoid litigation at all costs, which means we should be attempting ADR prelitigation. Claims handlers will need to up-skill in identifying at an early stage cases suitable for ADR and then ‘prepare’ their case accordingly. Where the claimant is unwilling insurers can call upon case law and the CPR in relation to unreasonable conduct and the threat of cost consequences. This can be supported by an insurers’ preferred lawyers ‘touching’ claims at a much earlier stage and have some ‘skin in the game’ in terms of innovative pricing models.

Whilst the closing comments of Ward LJ in Wright make for sober reading, “…you may be able to drag the horse (a mule offers a better metaphor) to water, but you cannot force the wretched animal to drink if it stubbornly resists.” Our experience at Shakespeares supports the suggestion that insurers and claimants alike have an increasing appetite to attempt ADR at a much earlier stage. Let us see therefore if this apparent trend continues and in time is indeed championed by such a “bold judge”.

Craig Wallace is a Partner and Head of Insurance at Shakespeares.

MC // May 2015

62

5 minutes with...

5 minutes with...

Darren Pardon

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

A: I started in the industry at a large motor insurer and saw significant change throughout my 12 years there. Since I have been working in the claims management sector, the amount of change has been unprecedented. Over the last 7 years, as an industry we have been constantly responding to consultations or investigations that have been designed to make further changes to the way Access to Justice is delivered. Business models in all parts of the industry have undergone profound change.

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

A: As I mentioned earlier, there have been unprecedented levels of change over the last few years that

have had a significant impact on the claims management sector. The main premise for these changes has been to reduce the level of premium that the motorist has to pay. If this had happened this would have had a positive impact. But, I don’t believe we have seen a demonstrable downward trend in premiums that can be accredited to the changes. Change always brings opportunities though and the opening up of the legal market through the ABS structures now available has been a really positive step for many in the industry – ensuring that customer care is taken seriously as well as profit.

Q: Who inspires you and why?

A: It has to be Sir Douglas Bader, a highly decorated fighter pilot from the Second World War. Despite having lost his legs in a flying accident, he was credited with at least 20 enemy kills before being captured. He then tried to escape so many times that his false legs were taken away from him! If ever there

was someone that truly flew in the face of adversity, Sir Douglas was that man.

Q: Have you had/got a mentor? If so, what was the most valuable piece of advice they gave you?

A: The most valuable piece of advice that I was given from my mentor was to “be authentic”. This advice is always at the front of my mind and hopefully the people that know me well, always see the “real me”!

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

A: Outside of work, I spend some of my spare time supporting a charity that improves the lives of Nepalese children and their families. If I wasn’t doing what I do now, I would like to think that I could spend more time visiting Nepal and providing more support to the charity.

Darren Pardon is the Commercial Director at NewLaw Solicitors.

Personal Injury Practice Ltd chooses Proclaim Compensation specialist to implement the Proclaim Case Management Solution

C

heshire-based law firm, Personal Injury Practice (PIP), is implementing the Proclaim Case Management Software solution from Eclipse Legal Systems.

Established in 2003, PIP specialises in road traffic and injury claim litigation.

With a renowned reputation for efficient and friendly service, the firm provides trusted legal advice nationwide. To strengthen this position, PIP is rolling out the Proclaim Case Management platform firm-wide.

Proclaim will replace PIP’s incumbent system - providing a fully integrated desktop solution ensuring a secure and consistent approach for each client.

As part of the drive to further promote superb client service, PIP is to integrate Eclipse’s FileView Interactive tool within its company website. FileView will securely display selected live Proclaim information allowing clients to access support around the clock, reducing the volume of ‘update’ calls the firm receives.

MC // May 2015

To enhance operational efficiencies, PIP is to take advantage of Proclaim’s direct A2A (Application to Application) integration with the MoJ’s Portal for RTA (Road Traffic Accidents) – significantly reducing administrative overheads, leaving more quality time for client care.

Dominic Moss, Senior Partner at Personal Injury Practice, comments: “We’re proud to be different from the competition. Our clients are at the core of everything we do, it’s critical they know we have their best interest at heart and their case is being handled by professionals. Proclaim’s process streamlining toolkit will enable us to provide superior levels of client care. Automating previously repetitive manual tasks will permit us to spend the vital time with clients that they deserve, all without sacrificing our case throughput.”

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

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.

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