Modern Insurance Magazine - Sustainability: Future-proofing your business

SUPPLEMENT 2018

Sustainability:

Future-proofing your business

INTELLIGENT TRIAGE SMART D E P LOY M E N T www.sandgresponse.co.uk

One size doesn’t fit all...

Our intelligent repair triage process works with our unique supply chain of innovative repair partners to offer a convenient repair solution by applying smart, mobile or fixed site bodyshop repairs on private vehicles, LCVs and HGVs.

MOBILE REPAIR Our national mobile repair solution provides the opportunity for light damage to be repaired within 24 hours at a convenient location.

FIXED SITE BODYSHOP Our national network of BS10125 accredited repair partners cover all major insurance and vehicle manufacturer approvals.

SALVAGE When beyond economic repair our agents will collect the salvage, offering the customer the possible fastest settlement time.

commercialteam@sandgresponse.co.uk

01625 416 817

Welcome

One year on from their last supplement, S&G Response (S&G) have continued to make waves within the automotive industry.

Now a nationally recognised solutions provider servicing insurers, manufacturers and fleets in the UK motor market, they are successfully anticipating and adapting to the changes of the automotive market. The significant investment into their people has enlisted S&G as a fantastic example of how to ensure that your employees have the opportunities to develop and achieve, as well as help to drive the business forward. Make sure you ‘Meet the Directors’ and follow S&G’s journey over the last twelve months; Dan Chesney, Commercial Director, S&G, introduces the concept of vujà dé and we hear from Emma Entwistle, Organisational Development and Communications Manager, S&G, about the importance of culture and what values are fundamental to S&G. Jost Wahlen, Head of Learning and Development, Allianz Insurance, explained that Allianz’s ability to continue to grow as a business has been down to the learning and developmental opportunities they have provided to their employees. He introduces an array of fluid learning opportunities, which he says are essential if you want to attract and retain new and upcoming talent. Charles Layfield, CEO, Charles Layfield Limited, echoed Jost’s message by saying that one of the top priorities for businesses wanting to ensure that they are sustainable is that they should attract and retain the best people possible for their business. But also, you should have a strategy in place – risk management and governance frameworks play an important part in building a sustainable business of the future.

Contents

Modern Insurance also heard from Chris Ashworth, ARMS Business Solutions, Enterprise Holdings, who took on the topic of technology and how emerging, innovative technologies are going to carve a new and improved customer digital journey while creating exciting sustainable solutions for the insurance industry. David Corner, Supply Chain Manager, AXA Insurance, continued with the theme of technology and how technology is changing the motor repair market, as well as customer requirements and the need for digital solutions.

Jason Tripp, Coplus, writes about motor legal expenses within a post reforms world and what effect these changes are going to have on the market. He questions whether brokers will be able to continue to build sustainable businesses in motor legal expenses insurance and shares Coplus’s ‘whiplash ready’ product and the importance of planning ahead. S&G’s Head of Engineering, Mark Percy, also comments on the importance of always being ahead, but in terms of knowledge, learning and qualifications as technology begins to advance rapidly.

I hope you enjoy reading this supplement, and if you have any feedback or comments, please do get in touch via the details below.

Poppy

Poppy Green Editorial Assistant, Modern Insurance Magazine 01765 600909 | @Modern_Poppy | poppy@charltongrant.co.uk

Interviews

Features

4 Meet the Directors

22 Future proofing motor legal expenses in the post reforms world

As a successful and sustainable business, S&G Response (S&G) are anticipating and adapting to the changes in the automotive market. In the last year they have heavily invested in their people as they drive their business forward! Modern Insurance sat down with their Board of Directors and mapped out the past twelve months as well as what the future holds for S&G.

10 Jost Wahlen

Learning and development programs are becoming essential tools for businesses. Jost Wahlen, Allianz Insurance, tells Modern Insurance how the introduction of learning and development programs have engaged their employees alongside social responsibility initiatives to help strengthen the business as a whole.

14 Charles Layfield

Charles Layfield, Non-executive Chairman of S&G, spoke to Modern Insurance about the importance of aligning governance, risk management, culture and leadership to build a prosperous and sustainable business of the future.

24 The sustainable supply chain

Technology is continuing to enhance the customer experience within the motor industry. Chris Ashworth, ARMS Business Solutions, Enterprise Holdings, explains how technology can provide a new and improved digital journey for customers while creating sustainable solutions for the insurance industry.

Editor Brendan Gurrie

Editorial Assistant Poppy Green

David Corner MCIPS, Supply Chain Manager, AXA Insurance

26 Vujà Dé - something familiar viewed with a fresh perspective

Dan Chesney, Commercial Director, S&G

Case Study 28 Sustainable engineering – protecting our customers

18 Chris Ashworth

Jason Tripp, Operations Director, Coplus

Mark Percy, S&G, talks sustainable engineering and the importance of always being ahead in terms of new technology and advancements in the field.

28 The importance of culture

Emma Entwistle, S&G, discusses the values that are fundamental to their business and what frameworks have been implemented into their company culture in order to benefit and enhance S&G Response’s employees.

Project Manager & Event Sales Rachael Pearson

Modern Insurance Magazine is published by Charlton Grant Ltd ©2018

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.

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Interviews

Meet the Directors S&G Response (S&G) has become a nationally recognised solutions provider within the automotive industry. In the last year they have heavily invested in their people as they drive their business forward!

Modern Insurance sat down with their Board of Directors and mapped out the past twelve months as well as what the future holds for S&G.

Q

How has S&G future-proofed their business against possible disruptors within the industry?

Andy Whatmough: In our last supplement, we spoke about our transition to becoming a solutions provider rather than an outsourced claims handling organisation.

The last twelve months has been about how that has been embedded, how we have taken our story to market and how we have gained significant traction with current and new customers. There have been case studies over the last year where we have worked collaboratively with our customers to crystallise their needs, identify a solution, before building and embedding the solution within their business. Rather than being in a traditional customer-supplier relationship, we are now a part of their own strategy. 85% of what we do now is around providing solutions-based products and services for our customers around cost control or operational efficiency. We have stripped out as far as we can the contentious element of the business that we used to transact.

We have also embarked on a Strategic Change Agenda. We have identified twelve areas within the business that we want to positively change over the course of the coming twelve months, and that covers all aspects of the business, from regulatory, to processing, systems, customer type, corporate and social responsibility, cash profile, supply chain, etc. We have identified where we think we are today, and we have set ourselves an aspirational goal of where we want to be in the next twelve months. Those strategic objectives have then been cascaded down and made into personal objectives for each member of the Board, which is then cascaded down through to the rest of the business; resulting in the whole business pushing in the same direction to achieve our overall commercial objectives.

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Dan Chesney: From a business point of view, we have taken decisions to change the profile of the business, but fundamentally, the Strategic Change Agenda and the objectives have all been driven by our people.

AW: The real core and heart of it is making sure that the staff come along for the ride with us. We have invested in a bespoke learning and development department to facilitate this and there has been ÂŁ1.2 million worth of investment into getting our people

Interviews

What we are looking to deliver, effectively, is the Amazon Prime of the claims world Andy Whatmough

and the business ready for the future.

We have introduced a new platform, STEP, which stands for “Strive Towards Excellence Programme”. It is an online learning and development suite where staff can access over 150 online courses, ranging from functional health and safety or regulatory matters to sales improvement courses, delegation, persuasion and negotiation advice.

Nik Griffiths: We want people to feel that S&G is the best place for them to work from a values and culture perspective and for their own career path and progression.

We developed a Competencies Framework to support this a few months ago; there are four levels within the framework, from apprentice (first job level) through to management.

This also helps to identify the real talent within the business; we are not only giving them a platform for development but a clear path of how we can get them to the next stage.

AW: It is about getting people with the right aptitude/attitude rather than with the most experience. We get people that we can develop and shape into the essence of S&G and then we will overlay knowledge, guidance and experience on top of that.

DC: The whole business is built on relationships, so for us, crystallising that culture is more important than a lot of the other things you can develop through training.

The whole business has an energy, and there is an energetic and entrepreneurial dynamic within the Board. We have all had that since day one. There is a massive injection of energy, and there is a real drive on what is important to us: people.

But there is a really clever, knowledgeable precision around what we know, where we want to put the business and how we want to target the market. That is S&G.

Q

How would you define S&G’s company culture?

Nick Stone: We take pride in the basics.

Every new starter will meet each of the Board and we will sit down with them and have a coffee – we share the drinks rounds. From day one we reiterate this open culture and the fact that there are no closed doors. Everyone sits in an open plan environment, and that helps with the collaborative approach and the togetherness that we try to harness.

DC: Being approachable is really important, both for staff and customers.

NS: It’s one of our USPs. DC: If you can have trust and empathy, then the staff and customers believe in you, and that is massively important.

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Interviews

Q

How are changing technologies and company cultures enabling greater flexibility, and what benefit does this provide to S&G and its employees?

AW: We look at what technology is trying to do in our sector. And, invariably, in its essence, it is trying to reduce time. It is about the immediate fulfilment of a claim or an immediate delivery of a service. So we’re embracing emerging technology, whether that is something we are creating and developing ourselves or interfacing with third party applications, or a hybrid of the two. But what we are looking to deliver, effectively, is the Amazon Prime of the claims world. What we want to do is condense time so that fulfilment is within hours, if not, potentially, minutes. Through the adoption of technology, we are piloting a number of schemes with different clients, which are all about settling claims within 24/48 hours. That is the role of technology as far as we’re concerned.

DC: Does technology enable us to be more

nimble in our product offering and become even better? One hundred percent! Really solid technology, which is based on a specific outcome rather than just being created for the sake of it, combined with a can-do attitude and internal skill base to be able to make decisions, creates a totally different environment. That is not an environment that exists in the marketplaces that we are challenging. That is how we benefit our customers.

It goes back to customer journey; everyone is a customer at some point. The analogy of Amazon Prime works because we are delivering to the end customer through a number of partners, and the focus has to be on their journey or experience; customers want a resolution as quickly as possible.

AW: I don’t think the industry will have a choice whether it moves forwards with that approach or not – the question is whether it will be dragged along or if it will embrace it. The industry is not an early adopter in the overall scheme of things, so it is already behind, and that creates

There are still markets that we want to go into, and the more we learn, the more opportunities are available for everyone Dan Chesney

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opportunities for organisations like us as we can set the pace.

Q

How does building relationships with your employees benefit S&G’s relationships with its clients?

NS: We can’t do what we want to without them; they are an extension of us, and it is critical to understand their journey.

AW: Our Competency Framework is about empowering our people to feel confident in the decisions that they make. That in itself gives a better customer experience, because the people that you are dealing with are empowered to resolve matters without a handoff or referral, which mitigates expressions of dissatisfaction.

This not only gives our clients and customers a better experience, but it also minimises the frictional activity within the business, so you haven’t got management teams sat there spending time doing frictional work like complaints handling.

NG: That’s the culture; there is no fear of failure. If something goes wrong, we analyse it and use it as a learning curve.

AW: If we use a new innovation, we look to fail fast, putting a huge amount of effort into it upfront. Therefore, if it is going to fail, it will fail quickly, and then we will move onto the next thing.

Interviews

We want people to feel that S&G is the best place for them to work from a values and culture perspective and for their own career path and progression Nik Griffiths DC: We are looking to create a safe environment to do that. We can create a safe environment, fail fast and then move on, or we can create an environment, create something special and then roll it out very quickly. To change a company culture from one structure to another involves sharing empowerment, supporting each other and not being afraid to fail.

This is what creates more confidence in individuals and better relationships.

Q

In 2017, the evolution of the business was focused on diversification and strategic change. What are S&G’s focuses in 2018?

DC: We strive to be better all the time in every area. We set a goal and an agenda in 2017 to change customer profiles and internal structures, but that is not yet complete because we’ve continued to stretch ourselves in wider areas. We’ve built and implemented a foundation, but there are still markets that we want to go into, and the more we learn and our customers learn, the more opportunities are available for everyone. The next twelve months are all about being exploratory around other opportunities and technological change. The industry landscape is completely different to what it was twelve months ago.

NS: 2017 was building the foundation, and now we have three focuses: diversification, technology and people.

Q

How have the Directors’ outlooks on the industry changed since forming or joining the business?

DC: My opinion is that the industry talks a lot about embracing technology and there is a lot of smoke getting blown around, but the substance is lacking. The future has to be a lot more around customers and their experience and how technology in the home and mobile environments can empower insurance. For example, I might ask Alexa to get the cheapest possible car insurance quotes around a basic cover requirement and therefore I could potentially buy my insurance without even considering the alternatives or speaking to someone. The customer only ever sees the true value of their insurance purchase when something happens to them. If they never need to action a policy however, it’s merely a legal requirement and transaction.

AW: I don’t think my outlook on the industry has changed. There are different challenges presented today than there were fifteen years ago, and there are going to be some big changes coming in the next few years, but because of the steps we’ve taken in the course of the last three

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Interviews

You need to have the balance between processes, governance and technology, but Andy also the human aspect; making Whatmough sure these dovetail and work with each other is imperative Nick Stone years, we are fairly insulated against some of them.

On the cost control and indemnity side, we’re being challenged by our customers all the time to innovate and deliver better results, so we are looking at new models around mobility. The challenge is trying to stay ahead of the curve. It is about trying to second guess the next question and build the solution in advance.

NG: From our perspective, we are flexible, but a portion of our target market are sometimes set in their ways. We need to build solutions for them that flag up where they could be and that there are massive benefits of doing so.

Q

How is company leadership in the insurance industry evolving to meet the needs of a modern workforce?

AW: We have a high percentage of millennials working at S&G. They’ve got a completely different set of motivators, drivers and expectations than a “traditional” workforce. Everything has to be instant. I don’t think the ‘job for life’ mentality is prevalent in any way, shape or form.

NS: We provide forums for us to understand what is important to our people and how best to facilitate that.

One of the positives over the last year is that we have facilitated 95% of the things they recommended or mentioned. We aren’t quite Google, but there are TVs, PlayStations and chill-out areas in the office.

All of the learning and development has had to change – when you were at school you learnt how to write a letter and how to use grammar. We are in a different age now, and no one writes a letter because it is all over email. So when you are in an industry like this, people still expect a certain level of communication, and we have had to adapt to that change. They are a generation that know how to do things as quickly as possible because that is how they have grown up.

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DC: When you talk about the industry as a whole, the modern workforce has an external environment when they go home and work fits around their hobbies. We’ve created facilities that enable that external environment to be a part of our internal macro business.

Q

How has your prior professional experience influenced the way S&G is being shaped?

AW: It is about getting the balance between the backbone and the architecture of the business right, making sure that there is substance and the ability to fulfil what is being sold, whilst also maintaining the ability to go out and grow, innovate with new customers and drive the engine from the top.

NS: Culture must be strong. You need to have the balance between processes, governance and technology, but also the human aspect; making sure these dovetail and work with each other is imperative.

DC: I’d like to think that I bring a different way of thinking about what we do. I’m a marketer by design, so my focus is around building a picture and about understanding true value. Our team is very open and engaging about what is in S&G’s DNA and what makes us different. It feels like being able to articulate our goals and ambitions to customers and internally to staff has really helped to accelerate S&G. Every individual is always growing through new responsibilities in their roles or new parts of the business.

Q

What practical steps are S&G taking to increase productivity and therefore profitability?

NS: We collectively have the time to spend the energy doing the ‘what if?’ We know that changes are going to come, and it is about trying to second guess the question and build the solution.

AW: Watch this space.

DC: In a world of glass ceilings, we are giving people ladders and hammers. n

AW: It is about getting the balance between the backbone and the architecture of the business right, making sure that there is substance and the ability to fulfil what is being sold, whilst also maintaining the ability to go out and grow, innovate with new customers and drive the engine from the top.

NS: Culture must be strong. You need to have the balance between processes, governance and technology but also the human aspect; making sure these dovetail and work with each other is imperative.

DC: I’d like to think that I bring a different way of thinking about what we do. I’m a marketer by design, so my focus is around building a picture and about understanding true value.

Our team is very open and engaging about what is in S&G’s DNA and what makes us different. It feels like being able to articulate our goals and ambitions to customers and internally to staff has really helped to accelerate Andy has over 15 years’ S&G. Every individual is always growing through new responsibilities experience in the outsourced in their roles or new parts of the claims handling sector and business.

as Managing Director, Andy is responsible for thesteps overall What practical are S&G taking to increase strategy but takes a particular productivity and therefore interest inprofitability? both new product development and the sales NS: We collectively have the time to pipeline of the business. This spend the energy doing the ‘what if?’ hasWe seen the know thatcompany changes are grow going to come, and it is about trying to second quickly but organically from guess the question and build the a niche provider of traditional solution. accident management services AW: Watch this space. to now offering the complete DC: In a world of glass ceilings, we are range ofpeople insurance giving laddersback-office and a hammer. solutions, including a fully contracted private car and LCV repair network, a separate HGV network, and a full third party claims handling function.

Q

Interviews

Nik Griffiths

Dan Chesney

As Operations Director, Nik is responsible for the delivery of all services S&G are contracted to deliver on behalf of the customer base. This includes process adherence, service level delivery, quality and assurance.

A Chartered Marketer, Dan cut his teeth in the medico-legal/ LEI sectors, working firstly for Premex Group before spearheading a number of successful initiatives at Speed Medical. He was head-hunted

by S&G in November 2016 after having worked with the existing team as both a customer and supplier.

Nik began his career in the insurance sector in 2001, initially working as a trainee within a provincial insurance brokerage before moving into the outsourced claims handling arena in 2001 (with a short interlude as Project Manager at a multi-national PLC).

Dan oversees all sales, marketing and supply chain management within the business, working with a team of seven industry experienced professionals to deliver the commercial requirements of the strategy.

Nick Stone

A law degree graduate, Nick aspired to be a professional footballer in his youth and achieved semi-pro status.

Having spent a couple of years abroad in the States teaching and training “soccer�, Nick returned to the UK and started working in the insurance sector in 2003 - initially in an operational capacity within Claims.

In 2009, Nick was one of the founding members of S&G, where he is now responsible for Finance, Risk and Compliance.

Sustainability Supplement 9

Interviews

Jost Wahlen Learning and development programmes are becoming essential tools for businesses.

Jost Wahlen, Allianz Insurance, tells Modern Insurance how the introduction of learning and development programmes have engaged their employees alongside social responsibility initiatives to help strengthen the business as a whole.

Q

How has the investment of learning and development within Allianz helped to grow the business as well as its employees?

Could you also tell us about the different programmes you offer your staff?

A

By engaging our employees, being inclusive, enabling them to develop and offering them career opportunities, we aim to be a great company to work for, which delivers outstanding and innovative products and services to our customers.

Treating our employees well and providing development opportunities is essential to the prosperity and longevity of our business. That’s why we believe in listening to our employees’ views, equipping them with the skills and knowledge they need to perform and making sure everyone has the opportunity to progress. We want our employees to be proud to work for Allianz, which will make them great ‘brand ambassadors’ when serving our customers.

It all begins on day one as all of our new starters attend a Welcome Day event to learn about our company values and to find out how they can make the most of working at Allianz.

An engaging learning and development programme is essential when it comes to attracting and retaining key employees, so alongside the traditional options, such as classroom training, online courses and studying for professional qualifications, we explore ways of integrating learning into employees’ day-to-day activities.

More fluid learning opportunities such as webinars, bite-size seminars and lunch and

10 Sustainability Supplement

learn sessions are a great opportunity for employees to share expertise with others.

One particular strength is our focus on developing technical expertise. Through personal development plans, employees are encouraged to undertake relevant professional qualifications through the professional chartered institute. Allianz also offers a range of internal professional accreditations within our internal underwriting academy and within our specific excellence programmes for claims, customer service and sales.

To further support career development in such a broad organisation, we promote opportunities for job shadowing and secondments as well as longer-term career moves within the UK or to Allianz companies in other countries.

Q A

How important is it for businesses to invest in their people and what benefits can it bring to a company and its future?

Our learning and development programme offers variety in terms of topics and formats. The programme supports our overall business objectives, covering technical, wellbeing and people-focused training.

We are investing in leadership and general skills as well as wellbeing offers to maintain our attractive position as an employer offering career development opportunities across our various business areas. All of this strengthens our capability as a commercial organisation while offering attractive opportunities to our current and future employees.

Interviews

Q A

How else does Allianz invest in its people?

We offer everyone a range of diversity, inclusion and wellbeing workshops, as well as eLearning modules that people can access flexibly when needed.

We offer every employee who would like to take up the opportunity to work with an internal mentor, and we invite every employee to volunteer some of their time for a charitable cause, which in itself offers some learning opportunities.

We want our employees to be proud to work for Allianz, which will make them great ‘brand ambassadors’ when serving our customers

Each quarter we place an emphasis on a different aspect of wellbeing and associated activities are supported by champions in each UK branch. Regular onsite activities also include exercise classes, yoga and therapies such as reflexology.

An ongoing and important focus is around supporting employees with their mental health, and our Work Well programme is designed to take preventive action to avoid stress in the workplace. For example, we train our managers who have responsibility to lead others to understand and support people in the workplace with their mental health. For this we work with MIND, the leading mental health charity, who delivers this leadership training.

Employees also have access to a free and confidential support line 24 hours a day as part of our Employee Assistance Programme. Provided by an external organisation, the support offered includes health issues, legal guidance and financial advice.

In terms of our regular ‘Flexible benefits’; once a year a dedicated portal opens enabling employees to select different levels of health, travel, insurance and pension contributions. The portal also offers year round access to leisure activities including hotel, cinema and shopping discounts and other deals.

Q A

How does diversity and inclusion bring new insights and outlooks to a business and how does it help to future-proof it?

Diversity and inclusion are key competitive factors and will help us ensure that we attract and develop the best talent in the right

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Interviews

Achieving our business goals will require a good mix of talent and experience throughout the business to drive innovation and to keep providing a reliable service jobs based on merit, aptitude and ability, regardless of their background or personal circumstances.

Achieving our business goals will require a good mix of talent and experience throughout the business to drive innovation and to keep providing a reliable service that addresses our customers’ needs today and tomorrow.

For example, we’ve significantly increased our visibility across careers fairs and job boards in order to attract candidates from a wide range of backgrounds and abilities.

All of our vacancies are advertised on ‘Diversity Jobs’ and we also advertise on ‘Working Mums’ and ‘Timewise’ (from a gender perspective), ‘Evenbreak’ (Disability), and ‘Skilled People’ (crossgeneration).

We also want to better understand our diverse customer base and make provisions so that they can access our products and services or find specially tailored solutions for their needs.

Q A

How important is collaboration within a business and what benefits can it bring?

Collaboration is incredibly important within any business and ensures that a variety of approaches, ideas and experiences are shared. People learn and think differently through the strengths of a collaborative team and the organisation will also benefit from this approach.

We have four people attributes which form part of employee personal and professional development assessments. Collaborative leadership is one of these attributes as we see it as an essential part at all levels of the business.

Q

What are the common cultural hurdles to modernisation in the insurance industry, and how is the sector looking to overcome these?

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A

The industry is offering its customers solutions to manage their risk, and to be effective and successful in delivering on our promise, the industry has to retain its commercial strengths. In order to ensure future stability and commercial success, the industry will naturally explore opportunities very carefully while also constantly pushing innovation in a rapidly changing market environment.

Q A

How is Allianz looking to innovate in order to find sustainable solutions?

We run a number of programmes that encourage the future talent pool, including new schemes such as Technical Leaders in Claims (TLC), an eighteen month training programme, which delivers bespoke technical development for the delegates, a pipeline of technical leaders for our business and experts for our industry.

It’s also important to recognise the changing nature of the workforce. We recently launched Returners@Allianz, a programme specifically designed to recruit talented people who have taken a career break but are looking to return to work. The programme is a six month paid placement with the aim of finding long term talent, and has been created for people who have been out of the work environment for at least two years. Throughout the programme the candidates are offered training and mentoring support to help them achieve their ambitions.

Q A

How does Allianz encourage employee engagement?

At Allianz, engagement is important because we understand that a strong leadership culture leads to engaged employees, contributing to better business performance.

We hold regular roadshows with senior

management and there are plenty of opportunities for employees to ask questions. Our intranet also covers business news on a daily basis and each business area has its own communications cascade.

Employee engagement isn’t purely about business, however; it’s about culture too.

Making a difference to the communities in which we operate through voluntary partnerships with charities and not-forprofit organisations is an integral part of our social responsibility strategy. We provide financial support to local and national charities and encourage our employees to get involved in fundraising and volunteering.

We offer employees up to ten hours of volunteering a year, with many choosing to work on projects that help the local community. As well as providing tangible benefits for these organisations, this offers valuable opportunities for team building and sharing experiences and connections across the business.

On a corporate level, in 2016 we launched a new corporate charity partnership with the Association of Air Ambulances, which will direct funds to the twenty regional air ambulance charities that cover the UK. Our employees are busy fundraising; organising bake sales, sponsored runs and even abseiling events.

We’re also the main club and stadium sponsor of Saracens Rugby Club and support the Saracens Sport Foundation, which seeks to inspire people of all ages and abilities in the community with the power of sport.

Similarly, we’re also a sponsor of the British Paralympic Association. The partnership with the BPA supports our commitment to promoting inclusion, diversity and excellence; both in the workplace and in the world of competitive sport. This includes a business mentoring scheme where Allianz employees work with professional athletes.

By giving our employees the chance to meet world class athletes with a range of abilities, we’re raising awareness and understanding of disability, while providing strong role models to encourage colleagues to fulfil their potential.

In 2017 we launched a series of Dare to Believe Festivals, which has so far involved over 140 schools and 1,146 Allianz volunteering hours. We’ve held festivals up and down the country to develop the legacy of the Paralympics, bringing together young people, local communities and brokers for inclusive, multi-sport festivals.

Interviews

Engagement is measured, amongst other means, through the annual global Allianz engagement survey. The survey gathers employees’ feedback on promoting a high-performance culture within Allianz.

And the results result in tangible follow-up actions every year to improve the employee experience and the business. n

Employee engagement isn’t purely about business […] it’s about culture too

Jost Wahlen

Jost Wahlen is Head of Learning and Development for Allianz Insurance plc. In this role he leads the L&D function in the UK and is responsible for building leadership and technical capabilities that positively impact Allianz’s high performance culture.

His remit also includes diversity and inclusion as well as graduate talent recruitment and development.

In 2016 Allianz won the ‘Investing in the profession’ award at the British Insurance Awards, and the ‘Excellence in Diversity Award’ for the private sector at the Excellence in Diversity Awards.

He previously held management roles at Bombardier Transportation, Palm Europe and PricewaterhouseCoopers.

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Interviews

Charles Layfield Charles Layfield, Nonexecutive Chairman of S&G, spoke to Modern Insurance about the importance of aligning governance, risk management, culture and leadership to build a prosperous and sustainable business of the future.

Q

What are the benefits of having a comprehensive corporate governance framework and what should the key features of this be?

A

The modern definition of corporate governance was produced as far back as 1992 when the initial review of what good governance should look like in the UK was undertaken; it was stated as “the system by which companies are directed and controlled.

The responsibilities of the board include setting the company’s strategic aims, providing the leadership to put them into effect, supervising the management of the business and reporting to shareholders on their stewardship”.1 I commonly find that many organisations equate governance with bureaucracy and red tape. In my experience, there are far too many businesses that allow their management approach or their well-intentioned but overzealous central functions to create such an environment.

But this misunderstanding is a dangerous one and couldn’t be further from what an efficient governance framework should be.

An effective framework is nicely summarised in the current (soon to be revised) UK Corporate Governance Code as having a purpose to “facilitate effective, entrepreneurial and prudent management that can deliver the long-term success of the company”.2 Having good governance in place will ensure a business makes informed decisions on both risks and opportunities.

1 Cadbury Report 1992 2 https://frc.org.uk/getattachment/ca7e94c4-b9a9-49e2 a824-ad76a322873c/UK-Corporate-Governance-Code April-2016.pdf

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It is essential for a dynamic business operating in the modern fast-paced world we occupy to empower their workforce. I

equate this to pushing down the decisionmaking processes to the very lowest possible level.

To ensure this is done in a controlled manner, you need to surround yourself with highly competent and motivated colleagues who deeply understand the strategic direction of the business and the context in which they are to make day-today decisions. In large part, this is about the Board ensuring there is a culture of constant and transparent communications.

It is also the Board’s responsibility to see that good governance permeates throughout the business and facilitates improved decision-making and better outcomes for the business, and ultimately the most important stakeholder of all, the customer.

A robust governance framework will support a healthy culture. Key objectives of good governance are to promote honesty, transparency and accountability at every level of the business. A symbiotic relationship between governance and culture will dictate how an organisation conducts itself and deals with its key stakeholders, including how it manages its workforce, customers and other stakeholders.

Q A

What is the value of staff training and education about risk in efforts to reduce it?

Risk management is the tool by which an organisation can identify, assess, mitigate and monitor the myriad of risks it faces in an ever more complex environment.

Effective risk management is not about

Interviews

Surround yourself with best in class people, then through your culture ensure your people are highly motivated and aspirational individuals and they will drive your business forward eliminating risk, far from it. It is about ensuring you can clearly articulate the extent of the risks you face, and in this context, take any appropriate remedial steps to mitigate the risks or make effective decisions on the risks you wish to take to be entrepreneurial and develop the business. All set within your own appetite for taking risks.

To succeed, you will need to take risks. To have a framework that supports a comprehensive understanding of the risks you are willing to take, and those you are not, simply enables you to reach better outcomes.

However, risk management is not only the preserve of the second line team, the Board and Executive team. To be effective, the culture of the whole organisation must reflect the desired approach to risk and be embedded at all levels.

On a daily basis, your leaders and people are making decisions for the benefit of the company and you want to have comfort that they are cognisant of the risks they are taking, not to avoid risk taking but to ensure they are making fully informed decisions in line with the risk appetite of the company.

Therefore, training and education of the workforce, supported by a demonstrable culture constantly reinforcing the importance of risk management, is of paramount importance.

Sustainability Supplement 15

Interviews

Q A

How important is it for businesses to invest in their people? And what benefits can this bring for the company and its future?

I believe the number one priority for any business should simply be to attract, develop, motivate and retain the best people they possibly can for that particular business.

Human capital management sounds like business jargon, and it is. But what the growingly popular term does demonstrate is that there is clear value in the collective capabilities of your people and how you develop practices, which develop your people, who in turn are solely responsible for delivery of your long-term value creation initiatives.

They typically should be your greatest, albeit intangible, asset. Intangible assets, however, are of more relevance and value on a balance sheet than ever. Intangible assets are now said to typically account for 84% of a company’s market value, compared to 35% only thirty years ago.3 The fundamental importance of your people was plainly proclaimed in the infamous Good to Great by Jim Collins.

Having studied the performance of 1,435 good companies over a forty year period they identified eleven who did great.

The first step those companies took in taking their company from good to great wasn’t to set a first-rate strategy for the company and then get their people committed behind the new direction.

They did not at first figure out where to drive the bus and then get their people to take it there. The first thing they did was to get the right people on the bus, the

wrong people off the bus and then allowed those people to figure out where to drive it; how to take it someplace great. This is something I have always lived by and nicely encapsulates and evidences there is nothing more important than investing in your people.

Q A

How can businesses promote their company culture to positively influence the staff and the company?

Corporate culture can be defined as a combination of purpose, values, attitudes and behaviours, which is brought to life in how a company runs its operations and manages its key stakeholders.

A healthy culture is an extremely valuable asset, which is commonly not truly appreciated. It is an enabler of strategy and often a source of competitive advantage, and as such, vital to the creation of long-term value. The importance of culture is highlighted by a growing recognition that the value of many organisations is principally vested in the quality of its people.

The culture of the company must always be aligned to long-term performance and in doing so drive the right behaviours of its workforce and avoid short-term thinking.

The Board ultimately has the responsibility to ensure they continually promote the long-term best interests of the company, and as such establishing a healthy corporate culture behind which its people are aligned to the long-term interests of the business is a powerful tool to achieve.

A poor culture represents a significant business risk in its own right. Therefore, the Board must lead by example and set the

I believe the number one priority for any business should simply be to attract, develop, motivate and retain the best people they possibly can for that particular business 3 www.oceantomo.com/intangible-asset-market-value-study

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tone for the organisation from the top and at all time genuinely live and breathe the values.

As leaders of the business you need to be aware of the shadow you cast, positively and negatively. Every action, or inaction, is closely scrutinised by your colleagues and any deviation from the expected cultural norm will be immediately spotted and can in a moment undo all good work.

Equally, robust and public action must be swiftly taken when there is a clear deviation from the expected standards to demonstrate to all that such behaviour will not be tolerated.

As with any intangible asset, it is extremely difficult to measure and therefore monitor cultural performance. Nonetheless, the Board should continually monitor and assess the culture and adherence to the core values.

There are numerous ways in which this can be done, including ensuring performance management and reward systems are designed to ensure the behaviours of the workforce are consistent with the company’s culture and values. Internal Audit functions are increasingly capable of supporting the analysis of a corporate culture and more simple tools such as a 360 assessment of the directors living the values can be undertaken.

Recent cases of misconduct indicate that the misconduct is not just the product of a few individuals or poor processes, but rather reflects the culture of the business and the leadership team. This highlights that culture is a self-contained risk itself and must be given due focus by the leadership team and appropriately managed through the risk management and governance processes.

Q A

How else do you suggest businesses should future-proof in order to remain sustainable?

I would suggest that there are two key areas of attention to ensure you have a sustainable business.

My headline suggestion is simple: surround yourself with best in class people, then through your culture ensure your people are highly motivated and aspirational individuals and they will drive your business forward. On this there can be no compromise and you must be ruthless.

Interviews

A poor culture represents a significant business risk in its own right. Therefore, the Board must lead by example and set the tone for the organisation from the top Thereafter, probably the hardest challenge for any organisation busy running the business is to ensure you regularly carve out time and sufficient resource to properly debate long-term issues. The Board performs a primary role in ensuring there is regular and meaningful debate on the long-term, which should be effectively supported by the use of suitable experienced Non-Executive Directors.

However, the Board are not running the company and the greatest strain on time is felt within the Executive team, for it is they who are engulfed in daily operational matters and it is here that it is the most difficult to establish regular strategic dialogue.

But a key differential between companies who out-perform the market and those that do not is the amount of time dedicated to strategic discussions. Many Executive teams do on a periodic basis undertake, at least superficially, a strategy review session, often at an offsite venue to ensure the occasion feels special and a one-off. But that’s just the problem; often it is a one-off event (at least annually) and then the Executive team go back to their day jobs.

Strategy design is 5% of the equation; 95% of the task resides in the execution.

Implementation of strategy therefore should be seen as a priority and BAU activity, not a discrete separate process.

The creation of a simple internal strategy management system, which is as commonly discussed as Finance, Operations and HR, is a key source of competitive advantage and will go a long way to future-proofing any business. The role of the Board should be to oversee, through challenge and support, the design and execution of the strategy.

The risk management and governance frameworks play an invaluable role in supporting the above processes, as does ensuring the business regularly gathers external insights from the local environment to the business, as well as on more macro market matters.

Charles Layfield

Above all else, it’s about the hard yards.

Most companies won’t truly commit to the above initiatives and see them through.

Taking the tough decisions and committing in the short-term for long-term gain puts most off. Do this and you’re likely to outperform the competition. n

Charles remains a qualified lawyer but has worked purely in a full-time leadership role since 2006. He has held various Executive and Board roles with the likes of Pannone LLP, BGL Group and Minster Law before establishing his own company providing advisory services to a range of companies, including acting as a Chairman, NonExecutive Director, consultant and mentor to numerous Boards, Executive teams and investors.

He has a specialism within the legal and claims sectors, with a particular focus on leadership; strategy; strategic execution; corporate governance; human capital management; political lobbying and public affairs; organisational design; audit, risk and compliance; stakeholder management and regulatory management, having occupied regulatory approved persons roles.

He has held leadership roles in companies that have successfully executed varying strategies, including: growth within the same market segment; diversification into new markets; turnarounds, as well as being involved in a number of acquisitions/ disposals.

Sustainability Supplement 17

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Chris Ashworth Technology is continuing to enhance the customer experience within the motor industry.

Chris Ashworth, ARMS Business Solutions, Enterprise Holdings, explains how technology can provide a new and improved digital journey for customers while creating sustainable solutions for the insurance industry.

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Q

How does ARMS (Automated Rental Management System) bring insurance and collision industry partners together? And what is the effect of this?

A

The ARMS application has served us in the UK for more than twenty years and is relied on by more than 1,050 bodyshops in the country and used by leading insurers.

While mobility is one way that insurers can differentiate their offering, it also requires careful monitoring and control.

ARMS is Enterprise’s bespoke solution to enable insurers and bodyshops to keep customers mobile in the most efficient and effective way. It does this by connecting insurers to their collision industry partners.

The result is to increase operational efficiencies and create an environment for a better customer journey by linking the insurer and the repairer to the same

mobility solution. At the moment this is a rental car, while in the future this could become a car club vehicle or another option.

Q A

What are the potential benefits of a collaboration between insurers and Enterprise?

Insurers collaborate with Enterprise to benefit from a growing range of products and services designed to improve service to policyholders during a motor claim, as well as streamlining the process to increase efficiencies.

While a guaranteed hire car is now the standard for third party claims, many insurers are starting to work with Enterprise to deliver first party mobility, as this can increase customer loyalty. The ‘crunch’ point in a motor policyholder’s relationship with their insurance provider is when they make a claim. A policyholder

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is more likely to renew and become a loyal customer if they feel supported and valued through the claims process.

Enterprise now offers a number of software and connectivity solutions to enable all of the organisations involved in repairing the vehicle to work more effectively, efficiently and ultimately make better decisions.

In the future, by linking the supply chain and enabling easier communication, Enterprise technology will help provide a digital journey for policyholders as insurers enter a self-service digit We can also help insurers prepare for emerging vehicle technology. Enterprise brings expertise of repairing the largest fleet of rental vehicles in the UK and the world. The fact that the fleet is comprised of the latest models has enabled Enterprise to gather knowledge on repairing vehicles with cutting-edge technologies, which can help insurers to better manage repairs and increase efficiencies.

Q A

What technological advancements are Enterprise Holdings investing in to improve the overall customer experience?

We have invested in extending ARMS across our European markets to support a growing need for policyholder mobility. This will enable international insurers to leverage greater benefits in those regions. Enterprise has also launched an ARMS Accelerator for GuideWire to provide insurers access

By linking the supply chain and enabling easier communication, Enterprise technology will help provide a digital journey for policyholders as insurers enter a self-service digital era to a number of rental solutions, from reservations to rental management and invoicing.

claim. Over time, these technologies will help our partners deliver a more digital and self-service experience for policyholders.

In 2017, Enterprise established a new global division called ARMS Business Solutions to house its burgeoning range of software solutions. These applications include a supplier hub, Performance Gateway, a bodyshop management system called Eclipse, and CAPS, which is a secure and scalable data exchange platform.

Q

Enterprise continues to develop ARMS, Performance Gateway, CAPS and Eclipse to enable insurers and bodyshops to better manage the claims process and collaborate with other companies that are also involved, such as salvage firms. The objective is to ensure the repair is carried out by the most suitable bodyshop.

Future development will deliver more knowledge about the vehicles and the types of repairs needed at the point of

How can the sector further utilise technologies that customers already possess in order to streamline processes and enhance the customer journey?

A

The majority of policyholders have a smartphone or a tablet and want to access services through these devices when it suits them. This could be to send images or videos, to complete forms, to select services and products, or to track progress.

By ‘wiring’ the motor claims supply chain, our technologies will enable insurers and others to provide policyholders with access to data from all parties in the process. This data only has to be inputted once. This increases both efficiency and accuracy and helps customers to take a self-service journey supported by reliable, secure data.

Sustainability Supplement 19

Interviews

People are vital to our future, and hence customer service is our principal metric for success

Q A

How could the increase of automation in vehicles influence Enterprise Holdings?

Vehicle automation and technology have decreased both accident severity and claims frequency, while at the same time leading to increased vehicle repair costs. With the largest fleet in both the UK and world, complete with the latest technologies, Enterprise is actively involved in finding ways to address rising repair costs.

We are enlarging our base of repairers and increasing our knowledge of their capabilities through Performance Gateway.

We use our own software solutions to communicate digitally so that the car of today and of the future can be repaired in the right place at the right time, and that the repair is performed accurately. This is already helping to mitigate cost inflation while we are helping more advanced bodyshops to benefit from increased repair volumes.

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Automation also underlines our Car Club services in the UK and North America, which enables customers to access on-street vehicles 24/7, 365 days of the year. As our network expands, this could significantly speed up the provision of a replacement vehicle to a distressed policyholder. It could also enable policyholders to ‘borrow’ the vehicle as and when it suits them, rather than retaining a hire car for the full length of a repair even though it may be left parked for significant periods.

Q A

What role does data play in customer service and communication and how do you see this evolving?

Data helps everyone to deliver a better service to customers as long as all parties involved in processing a claim have access to the same information. Reliable, secure data is

the new oil. It is critical in enabling digital journeys for the consumer. It also allows insurers and repairers to make the best decisions.

There will always be multiple parties involved in a claim, and insurers will continuously change these suppliers to suit their customer base. As a mobility partner, Enterprise Holdings provides a suite of software solutions to ensure that the correct data is available to everyone who needs it.

Our software enables bodyshops and insurers to communicate more easily when providing policyholders with replacement vehicles and helps to make bodyshops more efficient. It is now integrated to leading claims software such as GuideWire, which further streamlines access to solutions that will benefit policyholders.

CAPS provides a common standard that enables data to be shared securely and with integrity by all the parties involved in the claim.

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Q A

What sustainable solutions does Enterprise Holdings offer and what effect will these have on the business?

We work closely with the motor industry to be a responsible partner and ensure that our extensive fleet of vehicles provides the best available sustainable option for individuals and businesses needing a wide range of mobility options.

This now includes every type of vehicle, from every class of passenger vehicle to vans, commercial vehicles and also performance and luxury cars. We help our commercial customers to comply with new environmental legislation, and we are increasing our fleet of electric and plug-in vehicles. Our car fleet is on average less than a year old, and benefits from the most fuel-efficient and environmentally friendly technologies.

Q A

How does Enterprise Holdings aim to make its fleets greener in the years to come?

In North America and Europe in particular, Enterprise has been a ‘shop front’ for new and greener vehicle technologies, enabling consumers to sample and trial with the minimum commitment, and this is ongoing.

We are also extending our network of on-demand Car Club vehicles that enable motoring in one-hour increments, as well as exploring new applications that help motorists access mobility, exactly and only for when they need it.

Q

How will the consumer’s relationship with their vehicles change in the future, and how should vehicle and mobility solutions providers respond to this?

A

Consumer insight indicates that there is growing demand for a range of mobility solutions, and that drivers are open to many more motoring options, especially ‘on demand’.

We’re working closely with the motor industry to explore how we can leverage our employees and their dedication to customer service, plus our vehicle expertise, local and global branch network,

on-street car club vehicles and claims software solutions, to expand and support these options better.

Q

How important is the investment in people within Enterprise Holdings and how does this further strengthen the growth of the company?

A

People are vital to our future, and hence customer service is our principal metric for success. It is key to how we measure branch performance and how we assess employees for promotion and pay reviews.

Our employees are the critical link in driving innovation and ensuring complete customer satisfaction. We continue to invest in the recruitment of high-calibre and diverse employees that bring fresh perspectives, insight and passion to the business. n

Reliable, secure data is the new oil. It is critical in enabling digital journeys for the consumer. It also allows insurers and repairers to make the best decisions

Chris Ashworth

Chris Ashworth is well known in the insurance and repair industry. Before becoming managing director of Enterprise Holdings’ ARMS Business Solutions, he served as managing director of Innovation Group’s UK motor division. He was also a consultant to Enterprise for nearly seven years, during which time he was instrumental in helping to build Enterprise’s successful repair model. ARMS Business Solutions provides technology and claims services to the insurance industry, delivering innovative solutions that allow insurers and the collision sector to manage the claims process more efficiently.

Sustainability Supplement 21

Features

Future proofing motor legal expenses in the post reforms world Motor legal expenses insurance is an invaluable product for many drivers and provides an attractive supporting income stream for the insurance broker, explains Jason Tripp, Coplus, who asks what brokers can do to safeguard themselves and their customers with the market about to undergo some radical changes.

The government’s reforms to personal injury claims are about to have a massive, and to some degree, still relatively unknown, impact on the motor and legal expenses insurance market.

For the past twenty years, since the Access to Justice Bill in 1999, customers have been able to benefit from legal expertise to pursue compensation seemingly ‘for free’ when making a personal injury claim, with solicitors being able to recover their costs from the other party when the case is successful. For motor legal expenses insurance, this means a relatively low cost product that gives an effective and valuable service.

In these reforms, the government wishes to make personal injury claims ‘less attractive’ as they seek to remove fraudulent and exaggerated claims. However, for all of those people with a legitimate injury claim, getting access to justice will be more difficult.

It will be more difficult for all claimants because one of the key components in the reforms is an increase to the small claims limit, from the current £1,000 level up to £5,000 for injuries as a result of a road traffic accident. This is significant because around 95% of personal injury claims fall under £5,000.

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In the small claims track, solicitors’ fees are not recoverable so the legal expertise, currently available to all, will need to be provided or funded through another means. This too will necessitate changes to motor legal expenses insurance policies.

For insurance brokers, decisions need to be made quickly if they want to provide an uninterrupted legal expenses service to their customers.

Getting the timing right The first consideration is timing.

The Civil Liability Bill, which is the means of bringing the reforms to law, is now in parliament, and although some opposition is anticipated, April 2019 is the expected commencement date. If that is the case, then any customer who purchases a twelve month motor legal expenses insurance policy will now be subject to the terms of that policy in the post reforms world.

What will the policy provide for them in that scenario? Every month that passes, more and more customers renewing or taking out new MLEI insurance that isn’t ‘whiplash ready’ will be subject to terms that may no longer be favourable or perhaps not even suitable for their needs.

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Commercial considerations Finally, commercial considerations are also an area where brokers will need to prepare.

With the legal costs no longer recoverable from the majority of personal injury claims, the question becomes one of how to fund this service in the post reforms world.

Controlling claims handling costs is very important in order to mitigate the inevitable increase. Solicitors may therefore cease to be the primary route to legal assistance for RTA personal injury claims.

Keeping operating overheads to a minimum, economies of scale and good

a ‘whiplash ready’ motor legal expenses insurance product. We felt action now was so important to protect brokers from having to try to implement changes to a product, which may not provide the right level of service in a post reform environment. Our product now available to brokers continues to provide cover in the usual way, whilst no legislative change happens. However, if, or when, the reforms come into effect within the twelve months after the policy is sold, a new service element ensures legal expertise remains accessible.

This level of forward planning will help to mitigate the risks further down the line.

For brokers who gain good understanding around these changes and have the support of a quality product and good sales process, there is definitely the

Whilst the reforms will create disruption, early decisive action could see a real opportunity open up in this market Although a clear timeline is still unknown, early action in getting suitable MLEI cover in place will offset problems in the future.

Another consideration is that of reputation.

Whilst press coverage has documented the promise of lower premiums if personal injury claims are reduced, any countenance of the downsides has not been discussed.

The public are unaware of what the changes will bring and the consequences should they become injured in a road traffic accident.

The risk for brokers lies in the expectation a customer has for legal assistance after an accident. The long established ‘no win, no fee’ option won’t exist without a motor legal insurance expenses policy, which specifically provides legal services in the small claims track, and the customer will be left without help.

One of the outcomes for Treating Customers Fairly states “Consumers are provided with products that perform as firms have led them to expect…”, so it will be vitally important for brokers to be clear of what cover the motor legal expenses insurance will provide, and that could be from April 2019, and in affect, policies in force now.

technology support will all assist providers in streamlining a lean legal services function. This in turn should allow the continuation of MLEI products that remain in line with current market rates.

However, high quality control standards and legal expertise is necessary to continue to give value, rather than simply substituting qualified legal expertise with a lesser version.

Ultimately, the cost of motor legal expenses insurance will be likely to rise, and for brokers a view on what service they wish to provide and at what cost should be under consideration as soon as possible.

Continued sustainability?

Can brokers continue to build a sustainable business in motor legal expenses insurance?

Whilst the reforms will create disruption, early decisive action could see a real opportunity open up in this market.

At Coplus, we have invested heavily in product development in order to create

opportunity to increase penetration for motor legal expenses insurance.

Whilst some decisions and actions need to be done now, this change will create new opportunities for those willing and able to do things differently. n

Jason Tripp Operations Director Coplus

The risk for brokers lies in the expectation a customer has for legal assistance after an accident Sustainability Supplement 23

Features

The sustainable supply chain David Corner, AXA Insurance, examines insurer supply chains and how they can be optimised to meet the future needs of the industry and its customers.

The key to any insurance proposition is the claims experience. This is ultimately what customers pay their premiums for, and at their time of need the claims service needs to be responsive, agile and able to efficiently manage the most demanding and complex customers.

In motor claims, a customer is more than likely to utilise multiple services from an insurer’s supply chain, whether that be a repairer, salvage agent, mobility provider, glass provider or engineer. These suppliers are the face of the insurer to the customer as they are usually the only people they have face to face contact with.

It is vital that the insurer’s supply chain manager works closely with all suppliers 24 Sustainability Supplement

to ensure that their services are efficient, customer focused and ultimately sustainable in an ever-changing market.

This comes against the perennial challenge of insurers managing the costs of their supply chain. Whilst costs form an important element of the decision to work with a certain supplier, this needs to be balanced with the overall proposition from the supplier, considering other factors such as customer service, technical capability, cultural fit and the desire to form a strategic partnership.

What is becoming evidently critical is that a motor supply chain requires suppliers who can work in partnership with other suppliers and work as a supply network that benefits the customer. Suppliers need to think and act strategically in line with the insurer. This can be complex and all parties need to have the desire to collaborate, flex and tailor processes to achieve efficient and sustainable solutions.

Current market challenges The motor repair market is going through an unprecedented period of change, forced by increases in technology, customer requirements and the need

to provide continually evolving digital solutions.

There will be an exponential rise in the number of hybrid and electric vehicles in the next few years. Repairers will need to retrain to be able to repair these vehicles and manage the safety issues that come with handling high voltage batteries.

The increased use of technology in vehicles is leading to more complex and expensive repair methods. Advanced driver assistance systems such as automatic emergency braking, lane control systems and automatic lighting mean that cars are fitted with a multitude of complex electronic systems, with numerous sensors placed around the vehicle (most in the front bumper – the main crash zone), which all need expensive diagnostic tools to identify problems, and complex repair methodologies to follow when carrying out the repairs.

Vehicles are also being made from more complex materials as manufacturers look to make them lighter and stronger to meet ever more stringent regulations. Materials such as aluminium and carbon fibre composites are filtering through to the mainstream market from prestige vehicles and specific repair techniques and tools are required to repair these vehicles.

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the service that matches the exact needs of each repair and meet the specific customer requirements. Repairs need to be allocated to mobile, rapid repair, full repair or even high-tech repair, depending on the severity of damage and complexity of vehicle.

They also need to further adapt to the customer requirements. This can be in how and when they communicate with the customer, working to the customer’s timescale rather than their own, to even allowing the customer greater autonomy in the process. Insurers will need to recognise that traditional service metrics may not be right for its future customers. There needs to be continual review, and if they are not working, sensible discussions between insurers and repairers should be held and

Rather than changing how the pie is shared, the aim should be looking at ways of enlarging the pie to achieve a greater share for all On top of this, the customer is more demanding than ever. The age of the smartphone and social media means customers want constant visibility of where their vehicle is in the repair process.

Insurers and their supply chain therefore need to have a joint digital presence that can be used on multiple devices by customers, and soon the digital platform will become the main vehicle for managing a claim, from first notification through to conclusion. Customers will not want to sit on hold waiting for an FNOL agent when a full electronic notification of loss systems will allow them to upload all their details online and progress their claim.

the metrics adapted to meet the new customer needs.

All these advances add cost and complexity to the repair process. Whilst ultimately the safety systems on cars will reduce crash frequency and severity, the average cost of repair is currently rising year on year and this brings the biggest challenge to the market – how can repairs be made on a sustainable basis, whilst controlling costs?

Above all, collaboration and partnership is key to sustainability. A skilled supply chain professional at the insurance company working with key suppliers to build a mutually beneficial supply chain should be the aim. By facilitating the sharing of strategies, innovation of process and practice, an efficient, mutually beneficial process can be achieved. However, suppliers should not be backwards in proposing change. It’s not all about a sales pitch though. Often such approaches can be perceived as a supplier wanting to generate further revenue rather than being truly collaborative and driving additional value for the benefit of all. A delicate balance between innovation and revenue

How to be sustainable in the market Insurers are more aware of the impacts of technology and are seeking alignment with repair networks who can accurately triage the vehicles, ensure that they have

Our society is constantly looking at how work can be done more efficiently. The challenge around cost will not go away, so if suppliers can provide more efficient processes through areas such as increased technology, AI, slicker processes or better procurement, then they can provide greater value to the insurer. This does not mean there needs to be a full reengineering of their business; continual small changes can soon make a big difference.

generation needs to be achieved. Rather than changing how the pie is shared, the aim should be looking at ways of enlarging the pie to achieve a greater share for all.

What should be avoided?

Complacency, at all costs. Suppliers need to be adaptable and willing to change. It is widely said that ‘we’ve always done it this way’ is the worst phrase in business – but it’s true. Just because something has worked in the past, or works now, doesn’t mean it will work in the future and there should be constant reviews of processes and scanning for new technology and techniques that will enable a competitive advantage over others in the market.

Apathy. Suppliers need to be in active contact with the insurer and participate in their strategy. A supplier that is passive and just goes through the motions will lose insight into the insurer’s vision and it is likely that they will offer what they ‘think’ the insurer wants, rather than what they need. This will end up with the customer receiving a sub optimal service and the relationship between the insurer and supplier failing.

In conclusion, for a sustainable supply chain there needs to be trust, collaboration, communication, flexibility and a strategic alliance between insurers and suppliers. The supply chain should work as a network with ideas flowing between multiple parties and suppliers should not be afraid of speaking up to the insurer if they believe improvements can be made that will bring benefit to all parties and ultimately the customer. n

David Corner MCIPS Supply Chain Manager AXA Insurance

Collaboration and partnership is key to sustainability.

A skilled supply chain professional at the insurance company working with key suppliers to build a mutually beneficial supply chain should be the aim Sustainability Supplement 25

Features

Vujà Dé

- something familiar viewed with a fresh perspective This is the foundation of our approach to creating and developing a truly customer centric solution provision.

The industry will change fundamentally over the next ten to twenty years. In the next couple of years, accident management, from notification to rectification, will pretty much follow the same path as it does today. However, the way in which the customer engages with the process and how services are managed and deployed could change dramatically.

This is where vujà dé comes to mind.

Sourcing and procuring a commoditised service can be a simple exercise, but you may be limiting the true value of the outcome by your prescribed need. The key to creating a truly unique service provision is to start by identifying your core need(s), instead of focusing on the current provision, i.e. a hire car or mobility.

Focus on your end customer and build your service provision around them. Ask ‘why’ at every available opportunity. Don’t accept and become complacent with the current status quo.

Sustainable businesses do not compete on price sensitive models with defensive marketing strategies. Being brave and trusting your partners and customers is essential, pro-actively share knowledge

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and be open to a new way of approaching old requirements. We believe that our relationships become stronger and more valuable when we share more of our intellectual property regarding how we deliver the services we offer. It’s not magic, it’s innovative simplicity.

Our approach: • We partner with companies who some may consider competitors • There are no barriers when it comes to our customers interacting with each other • Sharing knowledge and best practice is important to the success of our partnerships • Helping our partners to modify our technology platforms provides the best solutions for them • We listen to recommendations from our employees • Driving innovation through every aspect and level of our work to ensure the best possible service • We have fun

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given event may be forecasted with a clear resolution and reflective thought; if they are ill tempered or dictatorial, then the reaction will differ greatly.

S&G is renowned for its personable approach to business. We recently undertook an expertise to define the essence of S&G and through our employees created a set of values which truly defines our identity: • Teamwork • Commitment • Innovative simplicity

S&G takes pleasure from providing the best possible journey to the sole benefit of the customer, this equates to acting with integrity – commitment to doing the right thing, which is not always the easiest option, and going the extra mile – instead of the quickest way to tick a box.

Sustainability comes from being curious and questioning everything, all the time. n

Dan Chesney Commercial Director S&G

• Integrity • Accountability

If the leader of a business is a relaxed and composed individual, their reaction in any given event may be forecasted with a clear resolution and reflective thought Creating an environment of shared knowledge and expertise with employees and customers, as well as opening the door to technological marginal gains, unearths truly valuable trends and opportunities to both innovate and deliver a great service.

We have been able to drive significant operational cost savings through the seamless integration of third party technology into our systems. Taking an existing model/process, stripping it back to basics, applying collective learning and redeploying back into our customer base is part of our strategy to continually improve and positively disrupt industry wide standard processes.

Intrinsic motivation Differentiating yourself in a commoditised market can be extremely difficult if you do not have a clear identity. Both internally and externally, a strong identity helps in defining the course of action a business might take, as well as the way in which the business will react to any given situation.

If the leader of a business is a relaxed and composed individual, their reaction in any

These values represent how we act and behave on a daily basis as both individuals and as a business as a whole. Innovative simplicity is at the core of our values as it is within our business - take something (a product/service/process), simplify it to the basic need or required end result, then innovate.

Having a clear style of leadership is reflected within your customer base and sets a precedent for how the relationship will grow and develop over time; it is also critical to the internal culture of a business.

Our focus is always on providing a first class customer service; we want to place customers at the centre of every solution, providing a managed and convenient experience. This focus is the cornerstone of our employees’ day to day activities, one which truly reflects S&G as a business.

When your employees are motivated by a happy customer and providing the best service possible, you see very clearly the difference between intrinsically driven people and those who are driven by external motivators, i.e. bonuses and benefits.

Focus on your end customer and build your service provision around them.

Ask ‘why’ at every available opportunity, don’t accept and become complacent with the current status quo

I truly believe that when an employee of

Sustainability Supplement 27

Case Study

Sustainable engineering - protecting our customers

Mark Percy, S&G, talks sustainable engineering and the importance of always being ahead in terms of new technology and advancements in the field.

I was fortunate enough to stumble across a new legal guidebook this week (Breaking Law by Stephen Gold). Stephen, a retired former judge, wrote the book detailing all manner of possible legal disputes. The book offers great insight into how disputes are dealt with by courts of law. As an engineering manager, it is of the utmost importance for myself and my team to understand how the law operates and the ways in which it can provide protection against third party companies and services who may not always play fair.

S&G are first and foremost a solutions provider, which operate within a regulated legal framework. Personally, I take great pride in the protection we provide for our customers that use our engineering services.

I have mentioned the previous two subjects for a specific reason; law and

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customer protection. These items, although not alone, are fundamental to our service provision and play a crucial part in building a sustainable engineering service.

In December 2017, four years after their motor accident, Matthew and Marcia Seebachan were awarded $42 million in Dallas, Texas, as a result of injuries caused in part by poor quality vehicle repairs. The couple’s legal team were able to prove the repairer had not fitted a roof panel in accordance with the manufacturer method, causing the vehicle to come apart on impact. Had the repairer and authorising engineer looked at the method and ensured repairs were carried out correctly, the situation could have been entirely different. Thankfully, the incident was a rarity, but it goes to show that no one should pay lip service to repair methods as the consequences can be severe.

New technology, which is unlike anything seen before, has created a steep learning curve for the current generation of vehicle engineers

Case Study

It is important for engineers to avail themselves of all the research repair documentation.

The march of vehicle development waits for no-one Therefore, it is important for engineers to avail themselves of all the research repair documentation. The march of vehicle development waits for no-one.

Vehicle technology and construction changes occur almost daily, with advancements in the fields of autonomous braking, radar detection, self-drive and park systems, to name but a few. It is imperative that existing technology and new developments are understood before authorising repairs, as they are often interconnected. A failure to identify the correct repair method will cause complications with the vehicle and potentially put the occupants in danger.

In the last two years there have been numerous fatalities as a result of the failure of autonomous vehicle technology.

New technology, which is unlike anything seen before, has created a steep learning curve for the current generation of vehicle engineers. For the current generation trained on yesterday’s technology, the training they received had no mention of many components found in modern vehicles, let alone explanations of their function or how to repair them…

Manufacturer training programmes are far in advance of generic assessor qualifications. The manufacturer training programmes give repairers a distinct advantage as this knowledge can be used to enhance the repair process. Engineers who do not understand the technical details will often just agree with the bodyshop’s suggestions and authorise the offered repairs to avoid a disagreement based on methodology the engineer doesn’t understand, instead of helping to offer the best repair solution for that situation.

As a result, two issues can arise from the previously mentioned circumstances: The Consumer Rights Act 2015 provides protection against poor quality repairs and holds those responsible for the provision of that service accountable. This includes claims handling and engineering services.

It should be said that no business wants to be paying out millions for the use of avoidable and incorrect repair methods, nor does any business want to be held responsible for an individual or group sustaining injuries as a result of the incorrect repair. One needs to consider the implications of engineers authorising work they are not qualified to direct and do not fully understand...

The engineer is by definition the director of the repair as they have the final say.

How do we ensure engineers have the necessary skill sets to direct any and all repairs accurately and efficiently? How does a business decide which training resources and skills to put in place? Not all vehicle systems are the same, and unlike Tesla, who share their technology, some manufacturers do not.

Sustainability - staying ahead of the curve To create and continue developing a sustainable engineering service, our engineers are constantly in the pursuit of new knowledge, and we consider it fundamental to the service we provide and the success of the business to ensure that the information and training they need is available. Our training programme is not limited to only certificates

and qualifications. We insist on our engineers working towards and attaining membership of the IAEA, IMI and IRTE and accept these are the benchmark requirements for most insurers. What we do not accept is that these memberships are enough to stop learning. We look to reinforce our skillsets with training programmes designed to cover areas such as new technologies, repair methods and law. Our programme initially started by creating a weekly test with questions on both new and old technology, engineering principles, repair methods and law.

The challenge is for our engineers to demonstrate knowledge in all subjects, as well as their ability to research what is not fully understood. We encourage interaction with manufacturers and discuss issues with technical service providers so that our reports are well researched and documented. Our engineers also attend manufacturer training programmes so they have a grasp not only of the technology but of the thought process behind its introduction and use. We have also held training sessions at repairers and salvage yards, most recently to examine a commercial vehicle fire to determine the cause and effect.

Qualifications do set the standard - like a driving license, they only stand on the day the test was taken. We take the view that technology is changing constantly and the risk of not keeping up to date with the latest knowledge will impair our ability to repair safely and in accordance with the law, which adds a risk that is unacceptable to both our business and our clients. n

Mark Percy A inst AEA amimi MsoeMirte ATAVDA MFIEA Head of Engineering Sustainability Supplement 29

Case Study

The importance of culture Emma Entwistle, S&G, discusses the values that are fundamental to their business and what frameworks have been implemented into their company culture in order to benefit and enhance S&G’s employees.

At S&G our values are essential. These values are not just words; they are embedded into how we approach our work and the environment around us from the Board to the newest member of the team. Our values were created by our employees as they are fundamental to our business and are the best indicator of what we stand for: • Accountability – Taking ownership for what we do and how we do it.

• Commitment – Committed to each other, our customers and delivering the best service.

• Innovative Simplicity – Generating great ideas, simply.

• Integrity – Doing the right thing for the right reason.

• Teamwork – Working together to achieve our goals.

Through our Competency Framework, which is unique to the business, all core competencies are linked to our company values to ensure they are embedded right through the business and are an integral part of our company culture. We have implemented the Competency Framework so that every employee of S&G has a clear and defined career path with achievable goals and incentives to encourage their personal and professional development.

Giving clarity to employees on their role and the desired attitude and behaviour we expect has supported understanding of our corporate objectives and has enabled them to understand the role they play in continually improving performance and ensuring our customer experience is first class.

Heavy investment in the learning and

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development of our staff culminated in the launch of our internal learning and development programme called STEP (Strive Towards Excellence Programme), which has over 150 courses that can be used to up-skill our staff through e-learning. The equipment, tools and time that our staff members require to train themselves is readily available and through our competency framework is tailored to meet their needs and shape their future career path within the business.

This investment in staff development has produced fantastic results. Employees are performing more efficiently within their roles, this means a faster service and all round improved journey for our customers.

As part of our commitment to make S&G a great place to work, we value the opinions of all our people. Having a voice and being able to share thoughts and ideas to shape our working environment is important to our staff, so it is important to us. Therefore, we have developed the staff committee to make sure there is always a way for our employees to be heard, get involved and make a difference.

Volunteers on the staff committee represent all of the departments across the business and act as an ambassador for the business. One of their main responsibilities is to support our Corporate Social Responsibility strategic objective.

This is where we create opportunities to get involved in the local community and the wider industry and give something back; our people have the opportunity to be creative and contribute to many local charities and good causes, which are in desperate need of help and support.

The business has also voted internally to become a Platinum Sponsor of the

Autoraise charity; the motor repair industry’s official charity.

All employees are also given the opportunity to share their thoughts and opinions on what would make S&G Response a great place to work through the Best Companies Engagement survey.

The eight workplace factors that make up the survey give real insight into how we can continually improve the working environment by helping to understand what matters most to our employees. By simply listening to the opinions of our greatest assets, our people, we have been able to shape the working environment and drive a culture of continuous improvement. n

Emma Entwistle

Organisational Development and Communications Manager S&G

By simply listening to the opinions of our greatest assets, our people, we have been able to shape the working environment and drive a culture of continuous improvement

“We would like to thank all of our hardworking staff for a fantastic year and look forward to seeing S&G continuing to grow and prosper.�