Modern Insurance Magazine Issue 44

ISSUE

44

ISSN 2515-3803

Connecting Insurers, Brokers, Lawyers & Claims Professionals

“ NOWIS THE RIGHT TIME TO

SEIZE THE MOMENTUM, WHILE SO MUCH

CHANGE IS ALREADY SET IN MOTION” Reggy De Feniks, DIA The

New Normal Steve White, BIBA

Working with

How to strengthen organisational resilience Lisa Meigh and Karyn Strickland, Covéa Insurance

How to deliver a Industry Customer Innovators Rockstar Experience Interview James Dodkins, Metabiota

Customer Experience Rockstar

WELCOME

DRIVING EXCELLENCE IN CUSTOMER SERVICE

The New Normal The disruption caused by Covid-19 requires several changes before we can go back to normal, or at least some semblance of it. It’s fast-moving nature and unknown variables have enabled coronavirus to cause widespread challenges for our health services as well as any number of problems for areas both in and outside of our professional lives.

This issue takes a look at the practical steps organisations have taken in response to the coronavirus crisis, how they are adapting and where their areas of focus need to be: customers, employees, crisis and risk management and response, finance, fraud, strategy and brand.

What’s included?

You can expect an article from Steve White, Chief Executive of the British Insurance Brokers’ Association (BIBA), who offered his insights as the industry continues to adjust to the ‘new normal’, especially as more of us return to office working. Steve discussed some of the major learnings of the Covid-19 lockdown, and how these lessons learned can be used for forward planning; staff, the hardening market, and Brexit all made it onto his list of considerations for the new normal.

(Left) Poppy Green, Editor, (Right) Rachael Pearson, Project Manager

Lisa Meigh and Karyn Strickland, Covéa Insurance, talked us through some of the changes Covéa have put in place as they adapt their business and employee frameworks following the pandemic. Their example shines through as they proved not only their resilience but their dedication to supporting their people.

Lior Koskas, Digilog UK Ltd, provided an interview that delved into the Digilog Solution and its fraud-busting technology. Lior introduced us to the world of Voice Risk Analysis (VRA) technology as he gave Modern Insurance a lesson in detecting deception!

When it comes to credit hire, you won’t find a better post accident service than EDAM. Not only are we the UK’s largest privately-owned company that deliver credit hire, we’re also the market leading service provider in the sector.

We can keep your policyholders mobile with a seamless customer journey from the moment they report a non-fault accident, to the day their claim is settled.

But don’t take our word for it. Take a look at what the people who really matter say, your customers: With comparable replacement vehicles, same day delivery for unroadworthy cases, and real-time updates to keep you informed, it’s no wonder we’ve achieved an excellent Net Promoter Score averaging 82+ over the last 6 months.

Or that people give us such great feedback on Trustpilot.

So for excellent customer service that you and your policyholders can trust, trust EDAM.

As always, we have our resident editorial board experts tackling the industry’s every-day problems, as well as zooming in on those need-to-know questions regarding future strategies and prioritisation following the coronavirus outbreak.

Absolutely brilliant service!

Our spotlight articles feature James Dodkins, the self-proclaimed Customer Experience Rockstar; The New Eden Way by Mark Langley-Sowter, who explains the concept of rewarding insurance; and our Industry Innovators Interview with Metabiota. Plus, loads more to keep you busy with!

Ms Ruth Appleby

The World of Customer Engagement Modern Insurance teamed up with Sabio to produce a thirty-two-page supplement detailing the world of customer engagement and the function of the contact centre. Kicking things off is an interview with Sabio’s Chief Innovation Officer, Stuart Dorman. Stuart spoke of the role of technology and innovation in the customer experience, and how he predicts the customer service market will evolve, even amidst the Covid-19 pandemic.

Fantastic car and staff very helpful Miss Charlotte Priday

A collaborative project, the supplement features articles and interviews from some well-known names, such as the BGL Group, Cifas and loveholidays.

Quick and easy highly recommended

UKCSEA 2020 The shortlist has been announced for the UK Customer Service Excellence Awards 2020. Look out for details regarding our Virtual Awards Ceremony soon.

That’s all for now!

Make sure you keep up to date with the latest Modern Insurance news via our website and Twitter @ModInsuranceMag

Mr Malik Uddin

Align yourself with a leader, call:

0330 333 3344

Poppy Green, Editor, Modern Insurance Magazine. @modern_poppy | poppy@charltongrant.co.uk

or email: hello@edamgroup.co.uk Editor Poppy Green Project Manager & Events Sales Rachael Pearson

ISSUE 44 ISSN 2515-3803

Modern Insurance Magazine is published by Charlton Grant Ltd ©2020 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.

MODERN

INSURANCE

|

3

CONTENTS M A G A Z I N E

09

19

INTERVIEWS

INSIGHT 09 The new normal

As the industry continues to adjust to the ‘new normal’, and as more of us return back to office-working, Steve White, Chief Executive of BIBA, talks us through some of the key changes and challenges to be considered as we move forward.

23

Adapting to a changing industry

Ahead of DIA Prime Time in November 2020, Modern Insurance spoke to Reggy de Feniks, DIA, to discuss the four key post-Covid trends that insurers need to be aware of.

Plus, he examines what impact the pandemic has had on customer engagement strategies and how companies need to adapt their digital strategies in order to move forward.

INTERVIEWS 13

How to strengthen organisational resilience Up and down the country, organisations have had to substantially adapt their business and employee frameworks following the Coronavirus pandemic. Lisa Meigh and Karyn Strickland, Covéa Insurance, talk us through some of the changes Covéa have put in place, proving not only their resilience, but their dedication to supporting their people.

19

The Digilog Solution: fraud-busting tech

The Digilog solution is designed to provide an accurate and efficient process for validating conversation-based transactions and integrity. Lior Koskas, Digilog UK Ltd, spoke to Modern Insurance about Digilog’s approach to fraud risk assessment as he delved into the world of Voice Risk Analysis (VRA) technology as we discussed the effect of the pandemic on fraudulent activity.

EDITORIAL

BOARD

43

EDITORIAL BOARD

Industry Innovators 43 Interview: Metabiota

47

Find out what our editorial board panel of experts have to say in this edition of Modern Insurance Magazine.

SECTOR S OA P B OX 39

Modern Insurance’s panel of resident associations outline the burning issues facing the claims sector.

Metabiota’s mission is to make the world more resilient to epidemics. Following the impact of Covid-19, change is on the horizon as the need to cover risk becomes ever more prevalent. Nita Madhav discusses Metabiota’s work and ability to mitigate against the outbreaks.

Epidemic risk factors will only continue to escalate across the globe, and Metabiota is working hard to inform the industry of the data and tools available that could help them mitigate against future epidemic and pandemic risks and their consequences.

54 UKCSEA Shortlist 2020 Pushing the 57 AX: boundaries in the

accident aftercare sector

59

61

Kindertons: Great customer service doesn’t happen by accident

63 65

ICAB: We make it happen

eviid: Faster, better, happier: using video to transform claims processes

Plantec Assist: Uniquely tailored service delivery

to deliver a 66 How Rockstar Customer

In discussion...

There’s nothing more stimulating than a discussion forum. Here you will have access to several different opinions, experiences, and insights from some wellknown specialists in the field.

While we may not always agree with what we read, if it enables a platform to discuss, explore and engage with not only your colleagues but our fellow peers, then mission accomplished.

73

68

Experience

James Dodkins, the Customer Experience Rockstar, is a high energy, entertaining, and musical keynote speaker who uses his experience as a reallife rockstar to help companies understand and improve their customer experience and company culture. The UK’s #1 CX Influencer, James shares his mindset and framework with Modern Insurance Magazine as he explains how to deliver a Rockstar Customer Experience.

Perseverance is the key

Martin Weaver-Parker, Lockyer Insurance, outlines how Lockyers responded to the Covid-19 crisis as he details how the team facilitated the repatriation of a critically ill individual during the height of the pandemic, and how they went above and beyond to achieve the best possible outcome in such challenging times.

A key time for change 70

The industry is experiencing

huge change and opportunities

CONTRIBUTORS

EUROPCAR NEW BRAND BLOCK Color gradient background File: 20151645E Date: 7/10/2015 AC/DC validation : Client validation :

4

|

MODERN

INSURANCE

78

F E AT U R E S

F E AT U R E S

27

66

following the Covid-19 pandemic.

Peter Thompson, BGL Group, discusses with Modern Insurance how customer behaviours have changed in response to the outbreak, but also how collaboration, data and technology is enabling growth and unlocking potential within the industry.

73

75

Maintaining business continuity in an age of pandemic

Craig Hartley, OPEX, reflects upon some challenges presented to different customers in both the private and commercial sectors who both needed to ensure continuity of workflow processes, explaining how OPEX were able to support them in challenging circumstances over UK lockdown to achieve their required outcomes.

insurance world by bringing balance and reward to the forefront. Focused on making a difference to the market for underwriting Solicitor’s Professional Indemnity Insurance, Mark Langley-Sowter, New Eden, introduces us to the concept of rewarding insurance and the impact of cultural data on PII.

78

Finding fraud through deceptive behaviour

The introduction of social distancing measures into our workplaces has required many businesses to offer remote and virtual services. In terms of the insurance industry, many companies have had to stop face-to-face meetings and conduct risk and claim assessments via video chat.

But how has this effected their fraud detection rate? Cliff Lansley, Emotional Intelligence Academy, is known for his work in emotional intelligence, behavioural analysis, and highstake deception detection contexts. He spoke to Modern Insurance about what to look out for when analysing body language through a screen and why staff training is essential for accurate detection.

81

Just a Thought from Eddie Longworth

Prosthetic technology: Impacting change during the past, present and future

The world of prosthetic rehabilitation is ever changing and ever evolving. With nearly twenty years of experience in the industry, Matthew Hughes, Dorset Orthopaedic, has seen game changing moments that have truly altered the course and changed the lives of patients.

Here he discusses the role that technology will play in the outcome of rehabilitation journeys.

The New Eden Way 77

New Eden is changing the

Disclaimer: Our publications contain advertising material submitted by third parties. Each individual advertiser is solely responsible for the content of its advertising material. We accept no responsibility for the content of advertising material, including, without limitation, any error, omission or inaccuracy therein. We do not endorse, and are not responsible or liable for, any advertising or products in such advertising, nor for any any damage, loss or offence caused or alleged to be caused by, or in connection with, the use of or reliance on any such advertising or products in such advertising.

The post pandemic claims world needs a new vision.

10 MINS WITH 82 10 minutes with…

Suzanne Liversidge, Kennedys

MODERN

INSURANCE

|

5

EDITORIAL BOARD CONTENTS

27

Rethinking recruitment Lisa Bartlett, President, UK & Ireland, Crawford & Company

35

Technology is key

All hands on deck James MacBeth, Managing Director, Auto Windscreens

31

How does increasing complexity of ADAS calibration impact the policyholder?

37

How the insurance industry continues to respond to Covid-19 Malcolm Tarling MCIPR, Chief Media Relations Officer, Association of British Insurers (ABI)

Refining our approach to the future Lesley Jackson, Chief Commercial Officer, EDAM Group

James Roberts, Business Development Director, Insurance, Europcar Mobility Group UK

Customers need more David Williams, Managing Director, Underwriting & Technical Services, AXA Insurance (UK)

Further research needed in light of increasingly digital civil justice system Paul Nicholls, Chair of Motor Accident Solicitors Society (MASS) and Senior Partner at Nicholls Brimble Bhol Solicitors

40

Injury Prevention Week

Sam Elsby, President, Association of Personal Injury Lawyers (APIL)

Liability in the time of Covid

Anthony Baker, Partner at PLEXUS and President of Forum of Insurance Lawyers (FOIL)

Sam Clements, Assistant Manager, Technical & Training Department, National Windscreens

Tackling the missing link in a ‘Covid-safe’ motor insurance supply chain

33

39

Jonathan Guard, Commercial Insurance Director, LexisNexis Risk Solutions

There’s a lesson in commitment Andrew Chandler, Sales Director, FMG

Donna Scully, Director, Carpenters Group

How has the need for real time data changed in catastrophic events?

Nik Ellis, Managing Director, Laird Assessors

29

Collaboration is still the way forward

SECTOR SOAPBOX

41

Adapting to the rise in remote working

Dr Matthew Connell, Director of Policy and Public Affairs, Chartered Insurance Institute (CII)

The new normal

Graeme Trudgill, Executive Director, British Insurance Brokers’ Association (BIBA)

A positive effect on company culture Jason Tripp, Managing Director, Coplus

6

|

MODERN

INSURANCE

MODERN

INSURANCE

|

7

Consistent, reliable & robust outcomes for every customer

INSIGHT

THE NEW NORMAL As the industry continues to adjust to the ‘new normal’, and as more of us return back to office-working, Steve White, Chief Executive of BIBA, talks us through some of the key changes and challenges to be considered as we move forward.

Socrates (the philosopher, not the Brazilian international footballer of the early 1980s) is quoted as saying: “The secret of change is to focus all of your energy, not on fighting the old, but on building the new”. As business life starts to focus on a ‘new normal’ (building the new), what ‘normal’ might look like differs considerably depending upon where a business is situated, what it does, how it does it and its appetite to do things differently.

184 days

*

saved by reducing case life-cycle Resolver

£273

I have been speaking to broking business owners and leaders of all shapes and sizes over the last few months and so have heard first-hand how businesses are wrestling with the ingredients of a different normality and their journey to this ‘new normal’. Many have said that they are very mindful of striking the right balance between the safety and wellbeing of their staff and the economic realities of running their business. It is a delicate balance that, as Chief Executive of BIBA, I recognise as we are, at the time of writing, finalising our own return to officeworking plans.

*

saved in costs per claim

As we move towards a new normal, many people will take stock on what works for them, their work/life balance and importantly, for their employer, and adjust accordingly

from

www.carpentersgroup.co.uk | 0344 249 3844 MODERN

INSURANCE

|

9

INSIGHT

INSIGHT

One of the major learnings of the Covid-19 lockdown has been how well certain functions can and have performed remotely Elsewhere in this edition you can read an article by Covéa on HR and wellbeing, which I don’t want to either replicate or contradict, but clearly it is important for businesses of all sizes to take their staff with them on the journey to the new normal. As a business based in the City of London, one of the key considerations for BIBA’s planning has been the issue of commuting and people’s willingness, or otherwise, to use public transport, sometimes for lengthy journeys, as a means of getting to the office. Interestingly, during the health and safety inspection we arranged as part of our return to the office planning, it was recommended to us that we should not encourage staff to use public transport!

One of the major learnings of the Covid-19 lockdown has been how well certain functions can and have performed remotely.

A good number of brokers have told me how surprised they have been at the completely seamless way certain functions have transitioned from being performed in the office to being undertaken remotely. Now, clearly, some types of function and process better lend themselves to remote fulfilment than others. There is some consensus that the more repetitive tasks are perhaps better suited to remote working than some of the more intellectual ones. That consensus contends that for these more intellectual or collaborative-type tasks, being in a faceto-face environment allows the optimum discourse between colleagues needed for best results. The use of Microsoft Teams, Zoom, Webex and other remote meeting applications during this period of remote working has demonstrated to businesses, large and small, what can be done highly effectively, but as firms plan for a new normal, they are reflecting on the lessons learnt and taking the best of these learnings into their forward planning.

10

|

MODERN

INSURANCE

Having decided what tasks are better done where, businesses obviously have had to consider also which tasks are best done by whom. Staffing considerations are a major factor in planning for the new normal. As we move along this road, I’ve seen many examples of polarised views on what a new pattern of working might look like. Some staff have taken the view that they are working well and efficiently remotely and would like to have the flexibility to continue, either full-time or at least in part, not in the office workplace. Others, on the other hand, have been keen to return to work with colleagues in the workplace, although I hear that in some instances, returning to offices with one-way walking restrictions, face masks, social distancing and separation between work stations has put some off and led them to return to working remotely! Employers of course have to balance this with the needs of the business and their abilities to monitor, supervise and motivate their teams.

Another telling and relevant quote from Socrates is “beware the barrenness of a busy life”. Many brokers with whom I have been speaking tell me that the last six months has led them to reflect on their work/life balance, and I’m sure this is true for many people. One of the most common challenges of homeworking can be the blurring of demarcation lines between working time and personal time, with many employers reporting that ‘production’ has increased during this period, a result perhaps of a mixture of fewer interruptions but also of possible longer working hours. As we move towards a new normal, many people will take stock on what works for them, their work/life balance and importantly, for their employer, and adjust accordingly.

Reflecting on the above, I think we can see enough different moving parts to suggest that what ‘normal’ might look like going forward will be a kaleidoscope of styles and approaches, but what will not change is brokers’ focus on providing the same (or more) broad range of services to their customers and clients. The new normal we are approaching comes with other changes and challenges so let’s take a look at some of those.

One of the bastions of the ‘old normal’ was the underwriting room at Lloyd’s of London. Lloyd’s itself has obviously undergone many changes since emerging from a coffee shop on Tower Street in the City of London in the late 1600s, but its decision to introduce a ‘virtual underwriting room’ to sit alongside the traditional room marks a significant change in the way it is prepared to do business. As a number of brokers have pointed out to me, if Lloyd’s can effect such major change to the way it works then we really could see similar seismic changes across the piece.

At the start of 2020 it would have felt very strange to pen an article on the future without giving early mention to Brexit but, here we are, nearly 1,000 words in before raising an issue that is going to change the way of working for many brokers and others in our sector. As I write this, the negotiations around a possible future free trade agreement are reaching the critical stage. However, there is nothing in the offering that gives any comfort to insurance brokers – indeed any deal will, in all likelihood, be a ‘no use to us’ deal. Brokers have known for some time that to continue servicing their EU-based customers with EU risks post 31 December 2020, they need to obtain an EU authorisation, and this is not something that can be achieved overnight. For those with significant EU exposures, the steps have largely been taken, but for many there is still likely work to be done.

Insurance brokers have been aware for some time that certain markets were starting to harden. The pandemic has accelerated that hardening. At BIBA we have had Governmental discussions on trade credit insurance which have led to the Government stepping in to take 90% of the risk. We

This ‘crisis of confidence’ could give brokers the chance to once again demonstrate their value to customers by doing what they do best – discussing needs, giving advice and offering choice

have also had several discussions with the Ministry of Housing, Communities and Local Government regarding professional indemnity insurance for fire surveyors and fire insurance for multi-floored clad buildings. Sectors such as care homes, film and production, brokers’ own professional indemnity, and even single business cars, are becoming problematical. One of the consequences of the market hardening after many years of ‘softness’ is that a generation of account executives and account handlers have little experience of having that difficult conversation with their customer, i.e. explaining why costs are increasing and, in some situations, why restrictions have been imposed and perhaps excesses increased.

It’s clear that despite Government assistance, some businesses will struggle to survive and many that do will have their business confidence badly affected. Certain sectors are likely to be worse hit than others (the entertainment and leisure sectors are being spoken about as being particularly vulnerable) so brokers may well have to adjust their focus and seek new areas of development. This ‘crisis of confidence’ could give brokers the chance to once again demonstrate their value to customers by doing what they do best – discussing needs, giving advice and offering choice.

Finally, we return to our people – our staff. A new normal will inevitably feature new methods and ways of working and the will, support and enthusiasm of all involved to make it a success. From BIBA’s perspective, I’m following the advice of Barack Obama, who said: “The future rewards those who press on. I don’t have time to feel sorry for myself. I don’t have time to complain. I’m going to press on”.

So, with that said, let’s press on!

Steve White

is the Chief Executive at the British Insurance Brokers’ Association (BIBA).

MODERN

INSURANCE

|

11

How to

INTERVIEWS

strengthen organisational resilience Up and down the country, organisations have had to substantially adapt their business and employee frameworks following the Coronavirus pandemic.

Lisa Meigh and Karyn Strickland, Covéa Insurance, talk us through some of the changes Covéa have put in place, proving not only their resilience, but their dedication to supporting their people.

MIM: Employee mental wellbeing is pivotal to an organisation’s resilience; how do you ensure collaboration on this issue amongst all stakeholders?

Lisa Meigh: Resilience is about having the ability to cope with and adapt to new situations, and the unprecedented position we’ve found ourselves in over the past six months has been strange, challenging and testing for us all; organisations and individuals alike. Our ability to adapt, find new ways to work and live has never been so prevalent. Looking after our people’s wellbeing and providing them with the tools to help build their own resilience is something we’ve always done, however, in the face of the shock and uncertainty of 2020, this has now become even more crucial.

Early on in the pandemic, we formed a Covid-19 Tactical Response Team (TRT), made up of senior leaders from the business, HR,

Facilities, Digital and Comms. As well as enabling swift high-quality decision-making, the advantage of this multi-disciplinary team has been its ability to consult widely across the business and feedback on the issues faced. One example is the additional strain working from home was putting on employees with young children, so we adopted a much more flexible approach asking them to just do what they can, when they can.

Karyn Strickland: We also have our companywide Covéa Minds group providing mental wellbeing support to our people.

This has been active for a few years now, training mental health first aiders, and running various events and workshops, so we have established support structures and processes involving people from all sites and at all levels across the business. This has created companywide awareness of the importance of looking after mental health so that people know that it’s ok not to be ok, and where to turn for help should they need it.

Resilience is about having the ability to cope with and adapt to new situations, and the unprecedented position we’ve found ourselves in over the past six months has been strange, challenging and testing for us all – Lisa Meigh MODERN

INSURANCE

|

13

INTERVIEWS

INTERVIEWS

MIM: How has the pandemic impacted your leadership roles and how have you supported them?

MIM: What has been your biggest internal challenge over the last six months?

LM: Regularly communicating virtually and connecting and

transition from office working to home working. We were already in the middle of a companywide digital transformation, but our plans were accelerated when we mobilised our entire workforce of almost 2000 people, regardless of role, to work from home over the course of just a few days.

leveraging digital tools to engage with our teams have become essential for all leaders. We have evolved our leadership development programmes to include new scenarios and sessions, e.g. leading remote teams, commercial and strategic thinking, delivering the content virtually to build confidence in communicating remotely. There’s also been the opportunity for managers to forge better connections with employees, so we’ve adapted our approach to mid-year reviews, encouraging them to ‘pause, reflect and inspire’. We have encouraged managers to acknowledge the challenges, empathise, confirm priorities, and demonstrate their understanding of each of their team member’s unique working environments. Leadership has to be empathetic and not “on task”; engaging and connecting with individuals and rallying teams to pull together to support each other.

We’ve also developed and delivered Espresso Sessions, short, strong ‘shots’ of learning, to equip our people with new-world leadership skills, including leading through change, leading remote teams and agile working. Through lockdown, we’ve introduced coaching as a leadership style for all managers to facilitate more forward focused and empowering conversations. We are encouraging managers to horizon scan and ensure all plans are future focused and we placed a greater emphasis on the skills and benefits of networking both internally and externally.

KS: As we are not seeing our team members face to face (other

than via a screen), our leaders have been worried about how to make sure that our employees continue to be happy, healthy and productive without having the usual face to face interaction.

We’ve used this as an opportunity to rethink our approach to performance management, with plans to adopt an approach that is engaging, dynamic and reflects the importance of empathy and staying connected.

Looking after our people’s wellbeing and providing them with the tools to help build their own resilience is something we’ve always done – Lisa Meigh

KS: One of the biggest challenges we’ve faced is of course the

LM: It was a huge achievement for our Digital teams, but we also wanted to make sure informal collaboration and connection could continue. With those impromptu meetings in the breakout area and quick chats in the stairwells gone, we needed to find alternative ways to keep those conversations and networks going, so we needed to be creative in how we deliberately choreographed those spontaneous interactions we normally have with people every day, introducing new tools and technology across the business to help our people to stay in touch and feel connected.

KS: Although some collaboration tools were used before the

pandemic, roll-out and adoption of new ways of working might have taken longer, but by using agile methods, we’ve been able to introduce new systems and technology at a much quicker pace than would have been possible previously, so this has actually been a positive outcome.

LM: People have had to learn in a new way in a completely new

environment. It’s been a testament to just how resilient our people are as they’ve dealt with remote rollouts of new technology and processes remarkably.

MIM: How have you been able to support those that find working from home lonely, or struggle to separate work and home life? What has Covéa done to reassure and support employees?

KS: No two people have had the same experience of this

pandemic. Individuals’ situations have varied massively; some have adapted well to the current ‘new normal’ of working from home, whilst others have really struggled. Some had to balance childcare with work whilst schools were closed, others have been working completely alone. Sense checking how our people are feeling has been key. Since the beginning of the pandemic in March, we’ve asked the whole business to tell us how they’ve been doing throughout so that we can make sure our actions are having a positive impact, and that we’re doing what is needed. It’s

Our collaboration tools have proven invaluable in opening up conversations between our people – Karyn Strickland important to constantly review what you’re doing as a business to make sure you’re meeting people’s needs.

LM: This remote world we’re now in has blurred the lines between

work and home life, but it’s crucial that there is a line between the two. We’ve made sure our people have had access to a range of support; tips on how to maintain a healthy work/life balance, mental health first aiders, an improved Employee Assistance Programme (EAP) provider, short ‘power boost’ videos from mental health advocate Luke Ambler, regular live business updates and Q&A sessions with our leaders, and we’ve introduced new platforms for different demographics to share their experiences.

For example, we now have a dog channel on Slack for people to share photos of their pets!

KS: As well as making sure our people are supported and have all the tools they need to look after their wellbeing, we’ve found it’s important to still have some fun together. We’ve seen virtual celebrations, scavenger hunts, through the keyhole and lunch and learn sessions, online yoga courses, and of course, quizzes!

Staying connected in a meaningful, creative, and fun way is nonnegotiable.

MIM: It is almost a year to date we spoke to you about ‘Covéa Minds’. What role has Covéa Minds played in supporting employees through the pandemic?

KS: Our Covéa Minds group have played a huge role throughout

the pandemic and they’ve been busy adapting their planned calendar of events to work in our current situation. They’ve been working closely with our internal comms team to provide content and suggestions for sharing with our people and have started a channel on our collaboration platforms as a forum to offer proactive support and information and as a place for people to share their worries and details of things that have worked for them.

MIM: How do you think your people centred practices and core values will help your post pandemic recovery?

LM: A company’s true DNA shows up in a time of crisis. Our

actions during this time of uncertainty and fear have been centred around keeping our people safe, healthy, and equipping them with the skills and resources to be able to cope with the sudden shift in the way we work. The response has been incredible and the advocacy we have seen from our people has been so strong. How you respond and look after your people will stay with them for a long time. When it was crunch time, our people came first, and our strong community culture took us through this.

Those seeking employment will be looking at how companies treated employees during the pandemic. Were they supportive? Did they truly have their peoples’ interests at heart? Did they take action to combat the spread of the virus? And in this era, where people have their own platforms in the form of social media and blogs to voice opinions and experiences, this information will be readily available and will impact a business’ reputation as an employer.

MIM: As many believe the mental health effects of the pandemic are likely to persist long-term. How have you planned to incorporate your resources into people management strategies?

KS: We are working on an approach to increase levels of

flexibility regarding when and where people work with a sense of balance, both for the business and our employees. This has meant redefining what we think is acceptable when considering flexibility and being more open to what it could mean and look like. With so many things changing, and managers and employees being more connected through the visibility of people’s homes and families, it’s a real opportunity to make our connections more personal and meaningful.

LM: Going back to the way things were isn’t an option. This new

way of working, whilst of course has its challenges, has been successful in many ways. It’s created opportunities and accelerated our people strategy around virtual development and has brought with it a new flexibility that is no doubt here to stay and will be demanded by the next generations of talent.

Through pulse surveys that we’ve been carrying out since the start of the pandemic, we’ve found that the majority of our people prefer a hybrid of home and office working and so, whilst technology has been a huge enabler, it’s clear that our people feel it’s no replacement for actually being together. This means the way we come together to collaborate will have a different purpose and agenda. We are reimagining how we all work, connect and maintain a healthy work/life balance. Our approach to this will be agile and it’s clear that no one size fits all. Functions and teams will work together to test and learn what works for them, we don’t intend to set anything in stone.

MIM: What role has technology had in supporting employee engagement?

KS: It goes without saying that technology has played a huge role

in enabling us to continue working effectively and stay connected throughout the pandemic. We have increased the number and variety of channels to allow our teams to connect. Our people have been using the tools to keep up as many actions as possible as they would in the office; team meetings, informal catch ups, having lunch ‘together’ etc., but it goes beyond that. In our guidelines and updates, we have continued to provide safety, stability and security in a way that is focused on trying to give a sense of meaning to this crisis and make our actions feel like they are relevant and make sense.

This remote world we’re now in has blurred the lines between work and home life, but it’s crucial that there is a line between the two – Lisa Meigh 14

|

MODERN

INSURANCE

MODERN

INSURANCE

|

15

INTERVIEWS

Your people, supporting each other.

WE ARE WELLBEING

WE ARE WELLBEING

Your people are at the heart of your organisation. So help them to help each

It’s important to make sure people feel safe and supported, so we’ve been completely open about the actions we’ve been taking throughout the pandemic – Karyn Strickland LM: Supporting and giving back to our community has

always been an integral part of our company culture, and we wanted to recognise the heroic efforts of those carrying out vital work in local communities during the pandemic. Usually, our people would be taking part in a huge range of ‘in person’ engagement activities, particularly charitable events, that Covid-19 has prevented. However, thanks to technology, employees have maintained their community engagement remotely, nominating charities with personal meaning to them to receive a share of the Covéa charity fund. The response from our people has been overwhelming, creating a wave of giving resulting in contributions to over 100 different charities.

MIM: Should there be an outbreak, what have you planned to support the emotional impact this may have on employees?

KS: It’s important to make sure people feel safe and supported, so we’ve been completely open about the actions we’ve been taking throughout the pandemic. We have been gradually reopening our offices for those who cannot work effectively from home for any reason, and have been reassuring our people of the measures we have in place to ensure their safety whilst there, and keeping them informed every step of the way.

LM: The safety and wellbeing of our people is paramount. We’ve

taken many precautions within the office to prevent an outbreak from happening and we have measures in place to make sure our people are emotionally supported. We have moved to a new holistic EAP provider who provides assistance for both employees and their families, offering things such as counselling, bereavement support and specific Covid-19 related resources. Managers have been provided with new resources to help them support their teams and of course we have our Covéa Minds group and Mental Health First Aider (MHFA) network that we are promoting internally through the individual stories of our MHFA’s, so they are relatable, approachable and accessible. We have a programme of virtual events in the pipeline, from yoga, mindfulness, resilience power boosts, creating your own success strategies, virtual Christmas parties, recognition schemes… the list is long!

KS: Our collaboration tools have proven invaluable in opening up conversations between our people too. New online social groups have been formed as a result of the new situations our people have found themselves in, giving them forums to discuss a range of personal and workplace topics they have in common, such as

16

|

MODERN

INSURANCE

children returning to school, working from home alone, pets, and those returning to the office. It’s been wonderful to see our people all supporting each other through this process too.

MIM: HR departments have been on the front lines of supporting employees and managing wellbeing.

How can firms ensure their own HR departments are supported in themselves?

LM: Each department

within a company has their own challenges but, as you’ve said, HR are one of those teams on the front line of supporting employees, and it’s so important they know they have access to support too. We have piloted a lot of new support initiatives with our HR and Learning team first, so they can share with the business and point people to the resources and support that is available. It’s crucial that they have access to the same support as everyone else.

Having a TRT represented by all business functions has created a sense of shared accountability and collaboration in supporting employees.

This has really faced into our values of standing shoulder to shoulder and shared the responsibility for decisions based on the feedback from our people.

other. By training, inspiring & motivating a team of in-house Wellbeing Champions you can make sure your company culture stays strong, and your people stay happy and healthy.

Access our unique CPD Certified Wellbeing Champions Package which includes: • Accredited Training Course • 2 x Follow Up Workshops • Wellbeing Champions Toolbox • Wellbeing Champions Lanyards • CPD Certificates

Lisa Meigh is People Director at Covéa Insurance.

Your Wellbeing Champions Package*

£1,999 +VAT Karyn Strickland is Head of HR and Reward at Covéa Insurance.

hello@wearewellbeing.co.uk wearewellbeing.co.uk

Find out more & book now on hello@wearewellbeing.co.uk quoting MIM20.

*Terms & Conditions Apply

INTERVIEWS

The Digilog Solution: fraud-busting tech

Are you listening to what your customers are actually saying?

The Digilog solution is designed to provide an accurate and efficient process for validating conversationbased transactions and integrity.

Lior Koskas, CEO, Digilog UK Ltd, spoke to Modern Insurance about Digilog’s approach to fraud risk assessment as he delved into the world of Voice Risk Analysis (VRA) technology as we discussed the effect of the pandemic on fraudulent activity.

Q

You have been involved in the development and deployment of VRA technology for many years, and across many assignments. What drew your expertise to Digilog?

A

We are.

Find out more:

The ‘Digilog Solution’ is designed to enhance your business objectives by accurately and efficiently validating conversation based transactions.

Email: enquiries@digiloguk.com Call: +44 1494 582 021 www.DigilogUK.com

Our unique software enables the fast & accurate validation of genuine customers whilst identifying key risk issues associated with a claim, application or dispute, irrespective of the customers past, profile or geographic location.

I have been involved with the subjects of Voice Analysis and Cognitive Interviewing techniques for more than twenty years now. I am originally from Israel, where the technology was invented, and I have worked on this technology right from the point at which it was just an idea on a piece of paper. I have always been fascinated by technology and to have had the opportunity to be involved right from the beginning has been fantastic. Since then, I have worked with VRA, Narrative Integrity Analysis, Cognitive Interviewing techniques and Conversation Management on a variety of international assignments and highprofile fraud and criminal cases with several corporate and public bodies, including both police and security services.

In 2003, I was appointed as Business Development Director at Digilog UK to help them develop their business and training and assist with their rapid growth into the varying markets. I was initially attracted to the post at Digilog because they were at the forefront in terms of cutting-edge technology and I wanted to be a part of it. Today, I am the CEO of Digilog UK, so it has been quite a journey!

Q

VRA monitors the stress levels within customer responses during calls to detect risk and deception. Given the current pandemic, it is natural to assume that stress levels have been elevated. How has this been considered and have any adjustments been made?

A

You are right to assume that stress levels will have been elevated due to the pandemic, but in truth, fluctuating stress levels are something that we are already equipped to handle.

For example, any type of insurance claim, whether your house has been burgled or your car has been stolen, will automatically increase your stress levels. Our technology takes that into account from the outset by introducing an element which we call calibration. So, at the beginning of every conversation we have with a customer, we calibrate their voice to eliminate any pre-existing stress. To do this, we will ask them a few simple questions which we know the answer to, such as their first and last name and their date of birth. The technology will then establish a base line, or ‘truth line’, and take into account the pre-existing stress factors at this specific point in the customer journey. The technology will not take the customer’s stress levels into account later down the line, only if their stress levels increase dramatically as a result of a particular question they are answering.

Furthermore, it is important to understand that there are many more emotional reactions that we measure that combine and contribute to the assessment of an answer, stress is just one of them. We look at a variety of parameters in the frequency of the voice and then we establish the acceptable level of the emotional reaction. We will then measure anything that is below or above that level. As long as you are within the acceptable range, for example, the parameters reacted exactly as when

We can and must continue to find ways to stay a step ahead of the fraudsters MODERN

INSURANCE

|

19

INTERVIEWS

INTERVIEWS

Having technology working alongside a skilled user has proven to be the best way to accurately assess risk in the conversation and to ensure that there are multiple elements supporting the decision

Organisations must be prepared to explore any opportunities or technology that is currently available to help them fight the potential increase in the amount of fraud that is expected during and after the pandemic you told the truth about your name, we would assume that the answer you gave is likely to be genuine. If it goes above that set parameter, then it will signal to us that you might be a risk and not providing a genuine answer. We use these indications and ‘readings’ as signposts alongside the other complementary techniques we train the user to apply in real time. They assist in determining whether further investigation is needed, or whether the transaction could be ‘fast tracked’.

Q A

Why is a Dual Approach to fraud risk assessment important?

There is no silver bullet solution or technology in the market that is 100% accurate. Our technology, in terms of detecting potential risk, has an 80-85% accuracy rate.

Therefore, we combine our technology with the human element.

We train our operators or users to apply Cognitive Interview techniques, this will enable them to analyse statements based on the way the individual is expressing themselves; their word choice can indicate whether the answer is likely to be truthful or deceitful. These language indicators, commonly used by various organisations to validate statements, are extremely powerful and provide a real insight into the validity of information given by a subject.

We never base our decisions solely on the technology or the human element, it is always a dual approach. Having technology working alongside a skilled user has proven to be the best way to accurately assess risk in the conversation and to ensure that there are multiple elements supporting the decision. Combining this type of process with existing fraud detection tools can only improve the overall customer journey.

Q

Insurers must aim to deliver an exceptional customer experience every time, but many claimants are willing to offer misrepresented material to falsely secure higher compensation. How does Digilog’s solution juggle the customer experience and fraud detection?

20

|

MODERN

INSURANCE

A

The customer experience is at the heart of our solution.

Many of our customers use our solution to detect the genuine, truth tellers first and foremost. Why? Because they want to eliminate any potential fraud quickly, in real-time, and then put their genuine customers on the fast track route for settlement.

Our solution is not just about detecting fraud, it is also about enhancing customer service by being able to detect genuine customers quickly and effectively.

We have one insurance company that used to have a claim life cycle of 30 days from the First Notification of Loss (FNOL) to payment. However, once they started using our solution, they were able to cut that process down to four days for genuine claimants, because they were able to identify them almost immediately without having to go through a laborious investigation process. It is about finding the right balance between customer service and fraud detection. Having the ability to remove genuine customers from a group of suspect claims confidently and accurately must have a positive impact on the vast majority of customers that experience a genuine and sometimes traumatic event.

Q

Vishing fraud has been on the rise throughout the coronavirus crisis. How would you advise the industry tackles this issue? Could educating the public more thoroughly on fraudulent activities help?

A

It needs to be done on two levels. Firstly, organisations must be prepared to explore any opportunities or technology that is currently available to help them fight the potential increase in the amount of fraud that is expected during and after the pandemic. Anything that can assist in improving and streamlining these companies processes and procedures should be seriously

We never base our decisions solely on the technology or the human element, it is always a dual approach

considered. There is absolutely no doubt that this is going to be high on the agenda for many organisations. Fraudsters are becoming more sophisticated in their methods. Vishing is just one of the ways they adapted to ‘wider the net’ and take advantage of the current situation we all find ourselves in.

It is the duty of the industry to increase public awareness and educate them. We need to help customers understand what fraudulent activity is, and what impact it can have on their day-to-day cost of living and cost of premiums. The bottom line is that the further fraud rises, the more it will cost genuine people. Fraudsters are always one step ahead and they will take advantage where they can. We can and must continue to find ways to stay a step ahead of the fraudsters.

Q

How would an increase in data and sharing information across the industry allow for easier identification of potential fraud indicators?

A

Data sharing has been high on the agenda for financial services in recent years and I think it is a fantastic way of utilising existing information to improve processes and anomaly detection.

Organisations like the Insurance Fraud Bureau (IFB) are crucial as their aim is to bring together insurance companies to share data on fraudulent activities which will only help others to be proactive in detecting such activities before they happen. The problem is, until we have a scenario where all organisations are engaged in sharing that data, it would be difficult to take the full advantage of using data sharing capabilities. More organisations are becoming ‘open minded’ in relation to data sharing. With GDPR in mind, coming together and helping each other can only result in a win-win situation for the benefit of all.

Q

From a Fintech perspective, what has been the most challenging aspect of the 2020 pandemic? And, following that, what have been the most beneficial ‘opportunities’?

A

The biggest challenge for us has been the migration of our users from an office to a home-based environment. We have had to put all our focus into helping our customers take the processes and procedures that they used and followed before the pandemic into a home-based environment. It was a challenge, but our technology can be used anywhere, and we have worked with our customers to ensure that they had a smooth and transparent transition from office to home/remote working.

On the flip side, our solutions are on demand because fraud levels are on the rise. Our ‘opportunity’ is to continue helping organisations fight fraud. The pandemic has opened our eyes and we are more aware of potential areas of fraud that we may not have thought about in great detail pre-Covid. Therefore, we are doing our best to be ahead of the fraudsters and calculate their next steps.

Q A

How do you imagine fraud to change and adapt the longer the pandemic lasts?

I am convinced that fraudsters will look into how to exploit the recent government schemes and solutions, and I think this is what has made this pandemic attractive to some fraudsters because it has given them new areas to explore.

The prediction is that there is going to be a rise in the amount of fraud and claims. We have seen an increase in the number of claims across the board but until this pandemic is over, we won’t fully understand and evaluate the damage and types of fraud that have surfaced as a result of the pandemic.

Lior Koskas

is the Chief Executive Officer at Digilog UK Ltd.

MODERN

INSURANCE

|

21

INTERVIEWS

Adapting to a

changing industry Ahead of DIA Prime Time in November 2020, Modern Insurance spoke to Reggy de Feniks, Founder, DIA, to discuss the four key post-Covid trends that insurers need to be aware of. Plus, he examines what impact the pandemic has had on customer engagement strategies and how companies need to adapt their digital strategies in order to move forward.

Q

Back in June you released a whitepaper detailing the four key post-Covid trends that insurers should tap into. Can you talk us through these trends, and how they will ‘set the stage’ for the industry post-Covid?

A

For the past few months, millions of people across the globe have been forced to stay at home, overnight. Measures were taken to make sure people stayed safe and healthy. But, because of these measures, the scale of changes in consumer behaviour, in such a short time, was gigantic and unprecedented. Although the pandemic will eventually wane, a significant part of our new behaviour will stick. We believe that, specifically for the insurance industry, the current crisis amplifies four consumer trends, which serve as inspiration to reimagine the future of insurance beyond covid.

Firstly, it has become clear that there is nothing of greater importance than your life and health. We also notice that in the behaviour of people. They started to exercise more and eat healthier. Health apps gained popularity. Furthermore, the pressure experienced on the health system has sped up adoption of digital health solutions.

The impact of Covid on the digital shift is evident in remote working, smart home technologies and changes in mobility.

The second trend is therefore ‘Connected Living’. After years of incremental change in small steps, digital routines were embraced, forced though, within a few weeks. Resulting in a fundamental shift in how people will live and work.

The third trend is about ‘Unprecedented uncertainty’. We’ve suddenly woken up to the reality that the world is more fragile than once believed. People find it hard trusting information.

The sense of control seems to be far away. At the same time, economic forecasts are bleak. Consumers will have a lower appetite for risks than before. Consequently, it is likely that they are more and more interested in protection.

Challenging times see people craving for institutions that care and they expect them to support customers who are facing difficulties. The fourth trend is therefore about ‘Empathy in Everything and Showing you care’, especially when customers experience moments of truth.

Q

There is no doubt that consumer behaviour has changed over the last few months. How would you advise insurers adapt their digital strategies to align with these changes in behaviour?

A

Leaders of insurers not only need to keep their business afloat on the short term, simultaneously, they also have to ensure the company remains relevant in the new market conditions once the dust has sort of settled. They need to fast forward digital transformation and reconsider not only processes, products, and services, but also distribution and operating models. Moreover, they should think of new business and revenue models, leverage the latest technologies and insurtech partnerships and seize new opportunities.

In health, think about pro-active and preventive services beyond traditional insurance, data driven health and wellness platforms, and new ecosystems with health providers.

With remote working and more connectivity at home, think about the opportunities for new services and cyber security.

Brokers play a pivotal role in relating to customers and showing empathy. The challenge is to use advanced technologies to empower them MODERN

INSURANCE

|

23

INTERVIEWS

INTERVIEWS

Leaders of insurers not only need to keep their business afloat on the short term, simultaneously, they also have to ensure the company remains relevant in the new market conditions

Being digital is paramount The unprecedented uncertainty that people experience, regarding the economic downturn, increases the demand for insurance solutions and price propositions which are simple, transparent, and cost-efficient.

Empathy is a pillar to differentiate yourself. The employees working at an insurance firm, as well as brokers and agents, are a valuable asset to do so. The challenge is to use advanced technologies to empower them.

Q A

Would you say that your personal experience of being a customer has changed over the last six months?

Interestingly, some things I used to buy online, like groceries and home improvement tools, I had to stop buying online during the first months of the strict lockdown. Simply because the fulfilment processes of many supermarkets and DIY stores were not ready for the sudden increase in online volumes. This forced me to companies that already had a streamlined and aligned end-to-end process in place, such as Amazon.

Although by now the supermarkets and DIY stores have stepped up their game, I still resort largely to my newly learned routines.

And I am not the only one, given the number of Amazon trucks driving through our streets daily.

The biggest impact obviously comes from people who previously bought offline and are now used to the convenience of newly found online alternatives. For years ecommerce has been growing but this has now accelerated significantly.

Q

Do you think it’s fair to say insurers have lost momentum with their digital strategies? If so, is this due to investment costs and the difficulty in accurately measuring their return? What advice can you give?

A

That insurance needs to become more digital is nothing new. But the coronavirus outbreak made it clear how slow the digital transformation of insurance has been so far; both

24

|

MODERN

INSURANCE

internally and externally. The traditional distribution model turned out not to be competitive and sustainable. And on top of that, it was insufficiently agile to quickly respond to changing conditions and a less physical world. Incumbents experienced significant issues dealing with remote business.

The digital models on the other hand, proved to be resilient and successful in these difficult times. It seems they are better protected against the crisis and are more future proof. Advanced technologies allowing for remote transactions lead over traditional models. Never have these differences become so clear.

Being digital is paramount. More and more insurance executives are realising this. The current crisis is a wake-up call to many.

They see the strategic importance and there is a clear sense of urgency. Simple digital products, online services and customer experiences, delivered at lower cost; becoming more connected and agile – they have become essential for continued growth or even survival. It is no longer an option to press the snooze button once again.

Q

You’ve written a number of books which discuss a winning business model and practical guiding principles for future banks and insurers to close the gap between ‘digital transformation to restore the past,’ and ‘digital transformation to create a future,’ how would you say those guidelines have changed as the pandemic has unfolded?

A

With ‘digital transformation to restore the past’ we referred to financial institutions’ focus on operational excellence and cost efficiency, digitalising processes and optimising operations.

Cost reduction is absolutely necessary, but these efforts are about bringing the basics up to date. Restoring the past, not creating the future.

‘Digital transformation to create a future’ is about deploying technology to not only reduce costs and solve basic frictions, but simultaneously lift customer engagement to a dramatically higher level. The current challenge for insurers is to avoid a kneejerk reaction and again focus on cutting costs, postponing investments, and putting digital transformation programs on hold.

Given the fundamental impact of the four trends we identified, it is more important than ever to look at which engagement strategies fit best with new customer behaviour, and how these new forms of customer engagement are enabled by new technologies. Now is the right time to seize the momentum, while so much change is already set in motion in such a short period. Fortunately, we see more and more insurers who agree, accelerate their digital transformation and acknowledge the importance of involving insurtechs in this journey.

Q

A concern for brokers could be that the increased use of technology in the customer’s journey reduces their interaction and could hinder relationship building, how can this be managed?

A

In many markets, brokers will still have a fair market share in the next decade. Neutral objective advise will still be valued but needs to be delivered differently.

Brokers play a pivotal role in relating to customers and showing empathy. The challenge is to use advanced technologies to empower them, e.g. by using AI to support human intelligence and making them even more effective and efficient. Creating the best of both worlds.

Digital tools allow for personal relations with more relevant and meaningful customer contacts. Especially when they empower brokers to deliver new added value driven by data. Use actionable insights out of their data sphere to give fitting advice to customers and help them enhance their lives.

Q A

How can the collaboration of insurance executives and insurtech leaders lead to accelerated innovation?

The current crisis highlights which insurtech solutions are more relevant than ever, and which insurtechs to work with to accelerate digital transformation in specific areas.

Now is the right time to seize the momentum, while so much change is already set in motion

Think of the limitations of traditional distribution models during the period when we had to stay at home. These have become most tangible at the front of the organisation, in virtually all stages and touch points of the customer journey.

Many insurtechs are helping incumbents with exactly that, bridging the physical distance with customers; from sales and onboarding to claims and service. For example, by enabling remote advice using video, online verification of the customer’s identity, digital signatures, digital onboarding of customers, virtual assistants, but also remote claims assessment.

Q A

Can you name exciting disruptors you expect to see making waves over the coming year?

Several fast growing insurtech solutions are tapping right into the four post-Covid trends and are enabling insurers to accelerate their digital transformation.

Virgin Pulse and Dacadoo provide insurers with a platform that combine coaching, data and all sorts of incentives to help people with healthier habits. CyberCube empowers brokers to understand cybersecurity profiles and estimate financial loss from cyber-attacks. ELEMENT is a full-stack insurtech supporting mobility ecosystems with contextual insurance solutions.

Tractable’s AI supports insurers to assess damage and estimates repair costs in real time, to settle claims faster. TietoEVRY’s open partner ecosystem enables insurers to create new future proof services and business models. Wakam creates white label “embedded” insurance solutions, for all types of distribution partners: brokers, insurtech, e-retailers.

These enabling solutions are already proving their impact and provide a key to the future of insurance beyond the current crisis.

Reggy De Feniks

is an Author and Speaker, Managing Partner of 9Senses and the CoFounder of the Digital Insurance Agenda: Insurtech and Innovation in Insurance (DIA).

MODERN

INSURANCE

|

25

EDITORIAL

BOARD

Rethinking recruitment To what extent is the general approach to recruitment in the insurance industry a hinderance to expanding the diversity within the market’s talent base?

When you look at the issue of social mobility, it is often the case that the opportunities exist for those considered to be from the right social background, have been to the right schools or universities, and also who often have the resources to throw their career net wider.

We must look at the fundamentals of the recruitment process itself.

Too often our standard approach is to employ like-for-like when we recruit people into a team. We have a very fixed idea of the requirements and the type of person we consider to be the ideal candidate for specific roles, and we tend not to look beyond those parameters during the recruitment process.

However, on that point, I think that COVID-19 may have provided an opportunity to reduce these regional variances. At Crawford, for example, we were able to transition seamless to remote working – and if we can absorb the lessons from operating this more mobile workforce then we can look more closely at how we create a more dispersed series of talent hubs across the country.

As an industry, we need to ensure we are recruiting for potential. We need to adopt an approach that perceives talent across a broader spectrum of people and allows us to explore potential outside of the talent pools we normally target. Once we adopt that approach, this will help create a more diverse workforce that is much more representative of the society we serve.

How do you then ensure that if you can tap these new pools of talent that you can help people build a career in the industry?

A big influencing factor here is often unconscious bias – the fact that we create these social stereotypes and are not even aware of it. This is a key challenge for our industry.

One key aspect of the D&I challenge is the issue of social mobility.

Recruitment is only one part of the process. You have to provide the right environment to ensure you can retain that talent once it comes through your door. For me, that’s about ensuring that the procedures and programs are in place to support people in whatever direction they are heading in – and given the diversity of roles within Crawford, there are so many possible routes available.

Lisa Bartlett, President, UK & Ireland, Crawford & Company.

Technology is key What has been the most important lesson learned over the last six months, and how has this prepared you should there be a future wave of COVID-19?

When lockdown first kicked in at the start of the year, we packed up our office, watered the plants, emptied the fridges and went home.

We lost about an hour that day before we were back up and running, as fortunately, the software we use, Swiftcase, is cloud based. It helped that about a third of our workforce have been home-based for the last two decades, with engineers dotted around the country, so we’re used to remote working and communications.

We’re a well-oiled machine, a tight team, so we found that the biggest challenge was not internal but getting access to garages, recovery and salvage agents’ facilities. It presented us with an ideal opportunity to propose our alternative solution, desk-top or virtual reports.

We have a diverse client base, from car rental companies and solicitors to insurance companies, police forces and motor dealerships. Some are incredibly high tech and cutting edge, whilst others are more pen and quill, “if it ain’t broke, don’t fix it” brigade.

Since 2000, we’ve been compiling desk-top reports for many clients, and indeed, during lockdown, we noted a tangible increase in the

proportion of instructions coming from the more tech savvy sector.

Not wanting to be left behind, the more traditional clients needed a solution. So they took the first tentative steps to desk-top reporting and found that actually, it’s more or less the same product as they’d been used to, but much quicker, cheaper and a lot better for the environment.

There were concerns; would the courts, solicitors, insurers accept them? Well, the vast majority of major insurers utilise desk-top reporting for the bulk of their claims. What if the images missed something? It’s in the garage’s interest to note every nut and bolt of damage, there would be no point in hiding anything, they want their estimate to be as high as possible. Surely a physical examination is better than photos? When there’s complicated damage, yes, but for the other 99% of cases, a dent in a door, a scraped wing, or a damaged bumper, there’s nothing to gain from a physical inspection if we have a set of HD comprehensive images. With desk-top reports turned around the same day, key-to-key times are reduced thus saving on the global cost of a claim.

So, the lesson: be aware of what technology is available and ensure that your client communication is brilliant on both a human front and that your systems communicate intelligently together.

Nik Ellis,

Managing Director, Laird Assessors.

MODERN

INSURANCE

|

27

EDITORIAL

BOARD

There’s a lesson in commitment Transacting business is a much more comfortable process when the future is reasonably predictable.

At the core of our business is an established model of insurer, fleet and roadside recovery solutions, loose enough to accommodate innovation and evolution without having to significantly change how things are done. *Cue Covid* Reflecting on the events of the last six months or so, we’ve adjusted and adapted the way we do things on an extraordinary scale and at pace. As a business, we prioritised taking quick and decisive actions that maintained an element of normality within our operations, whilst at the same time adopting the requisite level of flexibility to processes.

Our philosophy stemmed around ‘commitment’ - our commitment to each other, our customers, and crucially, for our client’s policy holders, to keep the show on the road!

A significant focus became the technology and infrastructure to support new ways of working; our IT department worked around the clock to roll out the technologies required to carry out the majority of elements of the various roles we have across the business, thus enabling 90% of colleagues to swiftly work safely and securely away from the office.

We placed great effort on the early and frequent communications with colleagues, customers and supply chain partners. Our communications followed a clear rhetoric based on the latest insight, very much focussing ‘in the moment’, but with the all-important view of recovery and long-term outlook.

In a time of adversity and crisis, we demonstrated boldness and speed, commitment and kindness, we cared less about limitations and more about mindsets; driving through innovations which yesterday seemed insurmountable. We adapted to new working environments, developed new processes, embraced virtual technologies, and displayed teamwork and ingenuity on another level. These actions and attitudes led to an immense resilience in remaining fully operational throughout the crisis, and within our recovery, as we continue to deliver across our service solutions.

As we navigate our business in today’s world of living with Covid, we will react to continued threats, embrace opportunity, build resilience and carve out our ‘new normal’. Our early actions have created strong foundations to build from, and our continued agility in thought and action will drive a culture shift within our business, shaping future thinking and influencing our evolution.

Andrew Chandler, Sales Director, FMG.

All hands on deck What has been the most important lesson learnt over the last six months, and how has this prepared you for the second wave of COVID-19?

Along with the rest of the country, when we hit the pause button back in March, we were facing the unknown. How long was this going to be for? How can we keep our staff motivated? There was no textbook response, but as captain of the ship, I had a responsibility to steer us into calmer waters.

As a service industry, our key asset is, and always will be, our employees and the most important thing to me was their wellbeing. Our hubs were temporarily closed and our contact centre and office staff transitioned to WFH. The shift was seamless and the challenge was then engagement.

In my experience, a happy workforce equals a good customer experience as they are our brand custodians. It was vital to keep our colleagues updated, feeling valued and part of the team. It was important not for staff to solely hear from senior management, but also from their own managers on a regular basis. So we encouraged and empowered them to come up with ways to keep morale high with their own team. Our culture fills me

with pride and we worked hard to ensure it remained intact. From a top line level, we adapted our staff communications instantly, not just using email but SMS too, and of course, we jumped on the Zoom train.

The service we offer is a distress purchase for most. At the beginning of the pandemic, our feedback and reviews continued to be positive, but we saw frustrations creep in, which weren’t unique to us. We needed to be even more understanding as customers were experiencing unprecedented pressure and anxiety. Our staff were incredible at guiding and reassuring customers through every step of the process, from the first interaction right through to job completion.

Now, as we get used to a ‘new normal’, I’m seeing a return to positive reviews, our hubs are open with covid-secure measures in place and job numbers are hitting pre-lockdown levels. Taking a moment to reflect, I am most proud of the resilience shown by our staff, and the knowledge that it is this quality that will get us through anything.

James MacBeth,

Managing Director, Auto Windscreens.

MODERN

INSURANCE

|

29

EDITORIAL

BOARD

How does increasing complexity of ADAS calibration impact the policyholder?

Connectivity innovations in modern vehicles bring a host of safety, infotainment, and comfort improvements for drivers, but occasionally pose risk in terms of tampering and unauthorised access. This has forced manufacturers to mitigate this risk by introducing security systems which restrict access to the on-board diagnostics (OBD) interface.

We’re not just embracing change, we’re leading it.

For the repair supply chain, ADAS (Advanced Driver Assistance Systems) have already brought about big changes to repair procedures and the time required. These latest security advances bring further change, with the need for over-the air diagnostics using a live internet connection with a licensed provider, to be able to access the vehicle ECU and carry out calibration of ADAS cameras for example.

For an increasing number of policyholders, such developments have meant a significantly changed repair experience. Repair times are increased due to this vehicle complexity and over 50% of the ADAS calibrations we undertake have to be completed in workshop conditions, rather than at the customer location, in order to meet vehicle manufacturer requirements.

A challenge faced by insurers and the repair supply chain is how to work together most effectively to help policyholders understand the value of this new journey and how it ensures the vehicle is returned with all of its safety systems working as intended.

We are now calibrating 13% of all vehicles requiring replacement windscreens, a percentage that has doubled over the past 18 months and is set to accelerate even more quickly to meet new vehicle type approval rules in 2022. For most fleet companies, where older vehicles are less common, the calibration requirement is already over 30%.

The number of policyholders affected by this new repair experience is therefore already significant and growing fast.

Thatcham’s latest Insurance Industry Requirements (IIR), released in July this year, will also mean more calibrations being undertaken - for cameras, lidar and radar. The IIR offer clear guidance for the repair supply chain on what they must deliver at each stage of the process and it provides a consistent approach to ensuring vehicle safety systems are working as intended after a repair.

This is a hugely positive step, allowing insurers to monitor their repair supply chain in the delivery of consistent standards of calibration according to the Thatcham IIR. However, with the Government progressing its consultation on driverless vehicles, more regulation will undoubtedly still be needed.

Over the next few years, most policyholders will experience this new repair journey. As we continually develop our technology and processes to meet these calibration requirements, we will work closely with our insurer partners to ensure that policyholders are not unhappy with the changes. We must make sure policyholders welcome the new journey, appreciating it is part of a total focus on their safety.

Sam Clements,

Assistant Manager, Technical & Training Department, National Windscreens.

Tackling the missing link in a ‘Covid-safe’ motor insurance supply chain Crawford® is bringing together innovative solutions to meet our customers’ needs today while anticipating the needs of tomorrow.

The motor insurance sector has adapted well to the challenges of the last six months, even while the ‘stay at home’ message impacted personal car usage. And, once people started getting back into the workplace, there was a need for insurers to be ready to do their job as traffic increased and so too did the number of accidents.

As customers needed support with mobility following an accident, claims teams faced a new challenge – how to manage vehicle repairs in a safe way that would give customers confidence that their wellbeing was front of mind. And that needed to include the provision of a replacement vehicle while repairs are undertaken.

How to deliver on that promise has, therefore, been something that insurers have had to address as a priority.

Garages and bodyshops, supported by their industry associations, responded well to the need for hygiene and social distancing for employees and customers. But the further down the supply chain, from the garage to the replacement vehicle, the more crucial that customer confidence remains front and centre.

Partner with Crawford crawco.com/civ Learn More 020 7265 4067 or information@crawco.co.uk

For that reason, a forensic examination of processes applied by every organisation in the supply chain has been crucial, including

replacement vehicle supply. And this is particularly important as a number of providers in the sector rely on insured customers collecting their replacement vehicle from a branch.

Home delivery of replacement vehicles for insurance customers has always been a core part of the Europcar proposition. Now that service has become crucially important – to customer confidence and retention for insurers in the long-term. A new partnership with Bureau Veritas, a global leader in testing, inspection and certification services means our facilities and vehicles comply with Health Authorities’ safety recommendations and follow best-in-class cleaning standards and protocols. Our 20 point cleaning and vehicle preparation process is central to that. And, delivery drivers wear PPE to give the customer receiving the vehicle reassurance that the risk of infection is limited.

Providing people with the support they need for their mobility is integral to the UK economy bouncing back from COVID-19, and the insurance sector, in partnership with a supply chain that is properly managed and audited, can play a crucial role.

James Roberts,

Business Development Director, Insurance, Europcar Mobility Group UK. MODERN

INSURANCE

|

31

EDITORIAL

BOARD

Customers need more In the midst of financial hardship, how can we ensure that insurance remains a top priority for consumers?

to concentrate on the basics, talk about fire, theft, storms, flooding etc., but also improve transparency, make sure customers know what is and isn’t covered, and that is where there undoubtedly have been failings in the past.

With the uncertainty of life after Covid, combined with suggestions of a Brexit fuelled recession, individuals and businesses will be looking very carefully at their expenditure. In addition, we have the reputational challenge, no matter how much we say that it was never the intention to provide Business Interruption cover for Pandemics, the stories that fill the press are of businesses saying their insurers have let them down, and that negative feeling will pervade the personal lines space as well, with hard pressed individuals wondering if they should bother with insurance. Further, we have the FCA report on General Insurance Pricing, suggesting that insurers actually penalise customers for loyalty, and will do their best to increase premiums not just based on cover and risk, but on how far they can push things without losing the customer.

Reputation is more difficult, we say we have been trying to improve it for years now, but we still rank far below where we need to be. For an industry that sells effectively a ‘promise’ (to pay), to not be fully and completely trusted is a terrible situation to be in. I do believe that in responding to challenges the spotlight is on us, but we do have the opportunity to show what we are really about.

So, to my mind, there are two things we have to do; stress the value of insurance products and do whatever we can to build trust and confidence in our industry.

The first action should be the easiest, those of us involved in the industry know the value insurance brings, and in seeing the terrible disasters that beset some customers, we know the consequences if an insurance policy hadn’t been there to pick up the pieces. We need

So, what am I calling for? A firm response to the FCA Pricing Report, showing what good work has already been done and how we will improve things further still. Much greater clarity of what is and isn’t covered, and clear examples of the consequences of uninsured losses; our documentation helping to understand rather than focussing on the legalities of a contract. Finally, working with those customers that have felt let down during the crisis, understand their concerns and if we can turn their opinions around, that advocacy could help us no end in making sure insurance does remain a top priority.

David Williams,

Managing Director, Underwriting & Technical Services, AXA Insurance (UK).

A positive effect on company culture Arguably, company culture is one of the most, if not the most, significant constituent in the success, or not, of a business. Certainly, at Coplus, our people and how we work together as a team, is recognised as a differentiating characteristic and something we work hard to sustain.

had to re-think how we all work together.

Everyone has a different experience of this situation too. For some, working from home has been welcomed, but for others it’s been difficult. Offices are neutral spaces where we all experience the same environment. Now we have a whole team of people in their homes and each person’s working day is quite different, and recognising those differences has been important.

At the beginning of this year, if you visited our city centre office, you would have seen a hive of industry. A building full of people, many of them working within our call centre, it was loud, sometimes a bit hot, and our breakout spaces were hosting meetings, colleagues eating lunch and post being boxed and bagged.

Video conferencing has become our normal, it’s saving hours of driving to meetings, improving productivity and reducing our carbon footprint. This will definitely change how all business is done, now and in the future.

Fortunately, just ahead of the lockdown we were able to move swiftly, putting our business continuity plan into action, and over a matter of days, moving to a 100% home working set up.

The long term affect will be positive I’m absolutely certain. This time has brought new innovations and ideas forward, it’s taught us new ways to collaborate and share information and perhaps made us more understanding as individuals and as a company.

What the pandemic experience has shown us is how committed our people are to making things work. Plucking everyone away from their usual surroundings, and in the midst of uncertainty and worry, we’ve kept going.

Now, we can’t chat to colleagues while making tea or overhear useful snippets from other teams whilst walking across the office, so we’ve

Whatever is around the corner, the most important thing is to be ready to change, and that has always been part of our culture. This experience has just proved that to be the case.

Jason Tripp,

Managing Director, Coplus.

MODERN

INSURANCE

|

33

EDITORIAL

BOARD

Collaboration is still the way forward What impact has the pandemic had on your company culture long-term?

Huge uncertainty still exists as we all grapple with a Covid-world and the delicate balancing act of getting about our usual business and health. There will be many long-term impacts, however, in terms of our business, the pandemic demonstrated the very best of our people and the corporate culture we have sought to develop over many years.

With fewer than 3% of our team remaining on site during the lockdown, the transition to home working was swift. Colleagues faced new challenges with childcare, became teachers and carers, all whilst ensuring our clients were looked after. It was important we quickly recognised these issues and provided the support and framework needed.

The lockdown has truly demonstrated the collective resilience and spirit of our Carpenters Family! Their support and compassion for each other and the wider community has been outstanding, but not surprising! Morale was boosted by great internal communication including WhatsApp groups, weekly updates and a dedicated area of the intranet, which included amongst other things, tips on WFH, social activities and wellbeing support. New colleagues joining since

Accidents are inconvenient.

We’re here to make sure car hire isn’t.

With an extensive fleet of vehicles from all manufacturers, plus a dedicated team of experts.

You can rest assured that your customers are in safe hands.

Email: business.support@europcar.com or call 0371 384 0140 to find out how we can help.

lockdown have been successfully welcomed into the team and, as I understand, quickly developed a sense of belonging.

Agile working was already under consideration; pandemic learnings have demonstrated its benefits for individuals, business and environment alike. Whilst recognising home working does not suit all, offices will evolve into hubs, facilitating collaboration, training and creative and innovative thinking.

Having long recognised that technology is the key to futureproofing the business, this investment paid off handsomely, allowing agility and flexibility to shine through. A collaborative approach has long been a defining characteristic of the company, and this has only been enhanced by Covid-19, where we have worked closely with insurers and brokers, increasing support for them and their clients wherever needed. For example, in providing necessary equipment to make remote communication easier for seriously injured clients and utilising our Resolver solution to ensure the claims settlement process continued. Our team has successfully on-boarded new clients, services and embraced new online methods of working.

The pandemic has only highlighted to us the importance and value of nurturing a positive company culture and we will continue to embrace it.

Donna Scully,

Director, Carpenters Group.

How has the need for real time data changed in catastrophic events?

We have recently launched enhancements to our LexisNexis Map View solution to create a broader Geospatial Solutions suite of services and I have noticed that the pandemic has accelerated many of the market conversations.

There is definitely an increased emphasis on looking at data and digitisation to be able to serve the end customer better in all situations, whether an existing or a new policy.

Whereas flood claims history used to be used as a major indicator of future losses, there is now a new frontier with GIS data, live perils information from external sources, location data and propertylevel data that can help insurers respond to any crisis event such as flood. Real time data – such as the ability to ingest the path of live storms and flash floods – can now be imported into an insurer’s infrastructure and using Map View this can be cross-interrogated in a number of ways to influence things like: live pricing and quoting, customer support and live weather warnings, as well as analysing accumulation risk, for expediting claims processing, and other BI data points.

GIS and mapping solutions specifically developed for the insurance sector are playing an increasingly valuable role in enabling property

insurance providers to understand perils and environmental risks, with a level of precision that goes right down to the building outline.

Where previously it might take days or weeks to assess the insurance market’s exposure to a climate event, today, geospatial data visualisation tools using real-time flood warning data, can quickly calculate the levels of exposure and export customer lists to help with mitigating damage from the upcoming event.

In the past, when extreme weather events were relatively rare, reinsurance stepped in to provide resilience against losses. However, with the increasing frequency and severity of windstorms, tidal surges and floods, the insurance market is undertaking a deeper level of assessment at point of quote. Historical flood events, windstorm and subsidence are now part of many providers across the market’s pricing models.

Solutions such as LexisNexis Map View offer visibility into risks such as flood, windstorms, fire, subsidence and crime across the whole of an insurance provider’s book of business to help price more accurately, plan resources for extreme weather events and manage claims. Through Map View, insurance providers typically see a 50% reduction in flood exposure and an 8% improvement in new business targeting.

Jonathan Guard,

Commercial Insurance Director, LexisNexis Risk Solutions.

MODERN

INSURANCE

|

35

EDITORIAL

BOARD

Law is our business

Navigating you through the ‘New Normal’

Rebuild, Revive and Recover

As a full service law firm, we are here to advise, support and prepare you in this time of transition. Our sector specific teams can give focused, practical and expert advice upon the return to the new normal, post-COVID phase and the concerns surrounding it for organisations and their employees, clients and service providers.

Whether it’s strategic advice at board level; help with operational or commercial challenges or assistance with insurance issues, our national team of experienced lawyers stands ready to help with the speed, empathy and clarity required in a crisis.

Refining our approach to the future What has been the most important lesson learnt over the last six months, and how has this prepared you for the second wave of COVID-19?

I am not going to use any of the stock phrases that have popped up over the last six months because, as a relative newcomer to the team at EDAM, the first 12 months of my tenure have been positive, very different to my original expectations. The stand out features have been the strength of our operation, the adaptability of our teams and the passion of our people.

We have seen respect for the business across the board; our people supported all the decisions which had to be made. Even prior to the furlough scheme being introduced, we secured 100% buy-in to an adapted working pattern which may have been necessary ahead of the lockdown imposed by the government. Following the introduction of the initiative, team members showed a true ‘one team’ ethos; in their ongoing enthusiasm to return to work and their appreciation for those who kept the wheels turning.

changes through to the successful navigation and implementation of the furlough scheme. Dealing with such complexities have enhanced our capability to deal with future obstacles the current environment may present.

Innovation, one of our core values, has been a key factor in our ability to deal with the unexpected. Collaboratively finding solutions to challenges faced and implementing all the necessary adjustments has safeguarded our customers and our people; sanitising vehicles, establishing contactless vehicle handover, rapid deployment of IT resources to support working from home and subsequent measures applied to create a ‘COVID-19 secure’ back-to-work office environment.

Finally, our vision afforded us the ’opportunity’ to enhance efficiency; using the time to upskill staff with additional training, refining processes further against a backdrop of restrictions on movement and working, and developing relationships internally and externally, particularly with insurers.

In addition, our strong supplier relationships let us flex our arrangements, which in turn allowed us to meet, or in many cases, exceed requirements of the ongoing changes and government directives.

These many learnings have culminated in a refined approach which will take us forward and allow us to provide a robust service, benefitting both our business partners and our people; a service which can withstand whatever the future throws at us!

Our resilience and adaptability has shown through every layer of the business; from our directors’ management of all the required

Lesley Jackson,

Chief Commercial Officer, EDAM Group.

Rob Williams, Head of Insurance

For further information please contact: Rob Williams on 0345 070 3852 or rob.williams@weightmans.com

www.weightmans.com/coronavirus MODERN

INSURANCE

|

37

SECTOR

Paul Nicholls, Chair of Motor Accident Solicitors Society (MASS) and Senior Partner at Nicholls Brimble Bhol Solicitors.

SOAPBOX

Further research needed in light of increasingly digital civil justice system With the continuing impacts of Covid-19, motor accident victims have had a tough time throughout the pandemic. Whilst the number of car journeys fell dramatically during the national lockdown, accidents still occurred, particularly amongst pedestrians and cyclists, and there was more speeding and dangerous driving. Motor accident victims have faced more limited police resources, traumatic conditions in hospitals for relatives and severe restrictions on bereaved families. They have been discharged as quickly as possible to free-up hospital capacity for dealing with Covid-19 patients, often with little or no support, increased waiting times for further surgery and access to only limited rehabilitation. With most courts closed during the coronavirus lockdown, civil claims are being pushed back even further in the growing backlog of cases.

There have been several measures introduced to mitigate the impacts of Covid-19, with an increased use of remote hearings, medical assessments, and rehabilitation. Whilst this has benefits in terms of time and travel savings, various practical issues need further improvement, such as ensuring that all parties having access to the right documents and sufficient access to digital communications for all.

Whilst remote hearings may work well when both sides are professionally represented, self-representing litigants may be at a distinct disadvantage. We also have lingering concerns that online/digital assessments and hearings may not meet the same standards as those conducted physically.

If a major move towards digital transformation is to continue across the court estate, we urge that sufficient time and resources are provided to thoroughly research its impact, gather evidence and engage with stakeholders to determine

where and how digitalisation is appropriate within PI. Ultimately, the accident victims must not be disadvantaged in any way by moving online, regardless of where they live, their financial circumstances or physical or mental capacity.

The Government’s whiplash reforms may have been pushed down the road to at least April 2021, but there are still substantial and fundamental aspects of the process about which little is known, or decisions have yet to be made. The new online process will actively encourage self-litigation and dramatically reduce professional representation. In these uncertain and difficult times, motor accident victims acting as self-litigants must be protected, with every effort taken to ensure that everyone is treated equally and has access to the new, increasingly digital, civil justice system.

How the insurance industry continues to respond to Covid-19 Like every sector of society, the Coronavirus global pandemic has brought unprecedented challenges for the insurance industry and its millions of customers.

Throughout this crisis, the insurance and long-term savings sector has sought, wherever it can, to provide extra help and support to its customers and wider society.

For example: Pledges of extra support Across a range of insurances, including motor, home and travel, the ABI committed to giving extra support to customers. For example, those using their vehicles to get to and from work are not required to inform their motor insurer; those office-based workers working from home remaining covered under their home insurance.

Dealing with claims In the face of significantly increased call volumes - up to 200% in some cases insurers have continued to pay out on claims as quickly as possible. For Covid-

related claims alone, £1.8 billion, comprising £900 million to firms under commercial insurance, £275 million in travel cancellation claims under travel insurance, and £25 million on weddings and events cover.

Helping business access trade credit insurance The industry worked intensively on developing with the government a £10 billion government-backed temporary reinsurance scheme to help businesses recover from the impacts of COVID-19. Having highlighted the urgent need to support businesses, we worked closely with the Government to develop a scheme that will help maintain cover, as far as possible, between suppliers and their clients. It reflects the pivotal role of trade credit insurance in helping businesses to recover from the unprecedented effects of the crisis.

Fund in May 2020 to help support some of the people hardest hit by the Covid-19 crisis.

The Fund has raised over £100m, including £84m in voluntary contributions from firms across the sector, and works in partnership with the Charities Aid Foundation, and a network of partners, including the National Emergencies Trust and Business In the Community.

Malcolm Tarling MCIPR, Chief Media Relations Officer, Association of British Insurers (ABI).

Supporting the most vulnerable in society The UK insurance and long-term savings industry launched the Covid-19 Support

MODERN

INSURANCE

|

39

SECTOR

SOAPBOX

SECTOR

Injury Prevention Week It is always a good thing when claimant law firms and insurers can come together and fight the same fight. Most of the time, of course, our adversarial litigation system means that we are arguing different sides of the coin.

But, where we can and often do agree, is on the issue of injury prevention. The fact that preventing unnecessary harm is a cornerstone of APIL’s work, and always has been, sometimes raises eyebrows. I suppose it seems like turkeys voting for Christmas, but APIL’s job is to promote the needs of injured people, but the best starting point is to try to ensure they are not injured in the first place.

This is an ongoing campaign for us, and every year we highlight its importance with our Injury Prevention Day, which, this year, was expanded from one day to a full week. This year, the campaign, which ran from 17-21 August, was backed by insurers, including the Association of British Insurers. The key theme was pedestrian safety, with a particular focus on children who were heading back to school for the first time since April. The campaign also raised awareness about a section of the Highway Code that is dedicated to pedestrians after a YouGov survey, commissioned by APIL, found that almost 75 per cent of non-driving adults had not read it. This gap in knowledge was further

Anthony Baker, is a Partner at PLEXUS and President of the Forum of Insurance Lawyers (FOIL).

MODERN

INSURANCE

Director, Policy and Public Affairs, Chartered Insurance Institute (CII).

Adapting to the rise in remote working

For years, we have been hearing about how remote working is on its way, and suddenly it is here: both late and premature.

The foundations for remote working were already here; cloud computing and video conferencing had already removed the need for people to come into an office to have access to filing systems or to have transactional meetings, and many organisations, my own, had moved to a working model where working from home was far more common before 2020.

By working together, lawyers and insurers are better able to spread campaign messages much further and help to educate the public about ways to avoid needless harm. That is what is really important here. This year we also gained support from charities, rehabilitation facilities, safety groups, and members of the public. MPs from across the country also backed the campaign and shared APIL’s key messages about child road safety on social media and directly with their constituents.

The experience during lockdown has shown that a very large number of insurance firms can operate with the vast majority of employees only coming into a physical office rarely, if at all. In addition, there can be significant benefits from remote working for employees in terms of being able to work more flexibly, manage disabilities more effectively and to fit caring commitments together with their work life more effectively.

Needless injury can shatter the lives of individuals and has a direct impact on society and the economy. The time for injury prevention to be taken seriously and treated as a public health priority is long overdue.

However, we have also realised that there are significant benefits to having a physical ‘hub’ where people can be creative and develop new ideas together and where colleagues can interact informally.

Liability in the time of Covid

As an industry, we are starting to see Covid related notifications, claims and risk issues. This brief article therefore addresses what defines the UK’s approach towards health and safety in the Covid era and therefore, how the Courts may interpret breach of duty issues in the context of both civil and criminal regulatory cases.

Ordinarily, an employer creates risks, or chooses to operate with such risks, and is therefore able to anticipate and control them. However, Covid is a community wide airborne virus, introduced invisible into the workplace and its prevalence is primarily linked to the rate of infection within the wider community. The reality is therefore that there is no absolute security against Covid (until an effective vaccination programme is universally established), and therefore the duty owed is to ensure that risks are reduced by following Government, industry and Public Health England guidance as far as possible in terms of social distancing, sanitisation and use of PPE, and documenting such steps via Covid risk assessments and specific policies.

|

Dr Matthew Connell,

President, Association of Personal Injury Lawyers (APIL).

highlighted when the survey also identified that fewer than half of the non-drivers asked knew how to tell if a car was about to start reversing.

In the UK, there is no strict liability in the context of an employer’s duty of care to employees and others. The duty is not to remove or eliminate all risks, but to reduce and mitigate such risks as far as is reasonably practicable. In the context of the unique Covid pandemic, the concept of “tolerable risk” is at the centre of duty of care issues.

40

Sam Elsby,

SOAPBOX

individuals, a return to the office or work environment is crucial for both financial viability and the mental wellbeing of staff. This will be an issue that will be appreciated by the Courts when assessing Covid liability claims.

In terms of Covid specific claims and risks, currently these are primarily emanating from the healthcare and food manufacturing sectors. However, with scientific evidence being regularly updated in terms of the long-term impact of the virus, then it can be anticipated that such claims will increase.

With Government guidance in England, Wales, Scotland and Northern Ireland being different and also changing on a frequent basis, then it is incumbent on employers to keep abreast of the current guidance and thus Covid Compliance Trackers have been prepared and are constantly updated to assist with risk management. The link to the privileged Covid Compliance Trackers is: https://plexuslaw. co.uk/covid-19-guidance-tracker-englandscotland-wales-and-northern-ireland/

In such circumstances, the “new normal” can be viewed in the context of an appreciation that in certain industry sectors, returning to work is so necessary for the UK’s economic survival and wellbeing, that we are involved in a damage limitation exercise and thus Covid risks need to be “tolerated”.

Finally, I consider that the Courts will take a sympathetic approach to Defendant employers in Covid related cases given the unique pandemic situation we are faced with, and only in clear cases of non-compliance with guidance will breach of duty be established.

Even in those cases though, causation will still be a hotly contested battleground.

In the insurance and legal sectors, organisations and staff have been working effectively from home since lockdown and many organisations will continue to work in this way. However, for some businesses and

[PS. Apologises for the shameless play on the classic novel

by Gabriel Garcia Marquez!]

We have also seen that working at home is a very different experience for different

The new normal

2020 has demonstrated the real resilience of people and businesses, insurance brokers and companies, that they are adept at adapting to changing risks and will cope with business being not quite as usual!

Long hailed as a people business, the day to day activities of underwriters, loss adjusters, brokers, and indeed trade associations, have now embraced regular contact via video tech most effectively. Meetings will continue but offices will be emptier, workmates will be distanced but teamwork will not stop.

Darwinian adaptability is more important than ever. The British Standards Institution has advised that firms may need to: “rethink of what was previously considered normal, and ensure plans are in place to respond rapidly if restrictions are introduced, changed or eased at short notice.”

However, the easier commute for many, means businesses have an increased reliance on both technology and good practice, and remote working may see an increased need to guard against cyberattacks. The Government Cyber Security, Cyber-Security-Breaches-Survey-2020, indicated that almost half (46%) of businesses had reported a cyber breach in the previous year (from end 2019m), but noted that there appears to be a move towards fraud in terms of attack, with a rise in phishing attacks from 72% to 86% in the last four years. Something both

people, depending on: who they are living with, the amount of space they have in their home (and the quality of the broadband in their area), and their own personality and preferences. For some, working at home has been a real threat to their mental wellbeing. In addition, it has been more difficult for client-facing staff to meet clients face to face, which has had the biggest impact on clients who are less comfortable with using technology.

Lockdown and social distancing have shown that we have the physical foundations for remote working. It shows that we don’t need to be in the same space to communicate, and the world will still go round without managers (who were often ensconced in all-day meetings anyway) breathing down the necks of their direct reports. What we still lack are the emotional foundations – the shared insights into when we need to come together and why. That’s the challenge for this winter and beyond.

Graeme Trudgill, Executive Director, British Insurance Brokers’ Association (BIBA).

insurance providers and their customers will have to combat. Cyber insurance is readily available - the survey also showed only 4% of businesses have a specific cyber policy. The new normal needs to see an uptick in cyber insurance protection.

Insurance has been in the headlines – not always positively. BIBA will continue to push for focus on providing customers with the cover they need, and more importantly, understand. In our access to insurance work, BIBA already called on providers to use plainer language in policies, we can now see evidence on why this should be adopted.

Finally, trust is one of the traits top employers will need to display while managing and developing remote employees. The extra autonomy this allows them can serve as a positive motivational factor, although good managers also need to focus on wellbeing and be able to spot nuances in behavior and react to signs of stress or mental ill health.

It’s safe to say 2021 will be different and we will adapt as our sector has for the last 400+ years.

MODERN

INSURANCE

|

41

F E AT U R E S

INTERVIEWS

Industry Innovators Interview:

A platform for success SSP Insurance Platform is our next generation, cloud-native insurance platform delivering insurance innovation through a suite of modules formed to shape industry-specific solutions.

Engage

Quote

Admin

Intuition

Apps

SSP Insurance Platform

API Layer

It’s a data-centric, no-code insurance platform which can be deployed rapidly, for low cost of ownership.

Metabiota Metabiota’s mission is to make the world more resilient to epidemics. Following the impact of Covid-19, change is on the horizon as the need to cover risk becomes ever more prevalent. Nita Madhav discusses Metabiota’s work and ability to mitigate against the outbreaks. Epidemic risk factors will only continue to escalate across the globe, and Metabiota is working hard to inform the industry of the data and tools available that could help them mitigate against future epidemic and pandemic risks and their consequences.

Q A Q A

How would you describe Metabiota in three words?

Creative. Committed. Optimistic.

Why Metabiota?

Hosted using the industry leading, AWS enterprise cloud platform

Capable of delivering powerful market and performance insight in near real-time

Easily integrated into a wider technology ecosystem

Whether you’re a global insurer or an MGA, a high street broker or a start-up with a smart new idea, our cutting-edge, next generation platform enables innovation in insurance at its best.

www.ssp-worldwide.com

Our mission is to build a world more resilient to epidemics. We’ve been working on this challenge for over a decade, partnering with both industry and governments to protect global public health. Much of this work has taken place in disease hot spots around the world, where we’ve focused on supporting preparedness and building health system capacity. Over the last five years, we’ve worked intensively in the insurance space to build data and computational tools, develop risk analytics, and support efforts to build financial protection tools to mitigate the economic impact of outbreaks. Epidemic and pandemic risk is our sole organisational focus, and we believe that it can be mitigated through the right combination of prevention, preparedness, and resilience.

Q A

What makes Metabiota different from other startup companies?

There aren’t that many technology start-ups that have team members trapping bats, searching for the next pandemic virus. But that type of basic

Epidemic and pandemic risk is our sole organisational focus, and we believe that it can be mitigated through the right combination of prevention, preparedness, and resilience MODERN

INSURANCE

|

43

INTERVIEWS

INTERVIEWS

Up until the COVID-19 pandemic, one of the biggest challenges was getting people to understand the full implications of pandemic risk

We think it’s critical for insurers to be grounded in the data and science

science is part of our history, and it still informs our current work focusing on modelling epidemic risk and supporting governments in high-risk areas to better prepare to deal with infectious disease threats.

Like a lot of start-ups, we leverage data and computational tools to do our work. But we use those tools in unusual ways, ranging from quantifying the probability of pandemics like COVID-19, and building insurance tools to protect against them.

Q A

What would you identify as the gap in the market that Metabiota aims to fill?

Until recently, it was challenging to assemble a historical view of pandemic risk, or to model future risk with sufficient precision. We’ve worked to fill this gap by providing data and risk analytic tools to quantify, underwrite and price pandemic risk products, as well as tools to monitor and forecast risks around the world. Ultimately, one of our key aims is to facilitate new insurance product development by ensuring the right tools are in place.

Q A

What were the main challenges on standing out and establishing yourself in a competitive market?

Up until the COVID-19 pandemic, one of the biggest challenges was getting people to understand the full implications of pandemic risk: what a pandemic would really mean for societies and economies, and why modelling and building tools for economic resilience is so incredibly important. Now, we’re working hard to raise awareness about the data and tools that can be brought to bear, to understand and mitigate pandemic risk and its consequences.

44

|

MODERN

INSURANCE

Q A

How is the wider industry responding to challenges in your area of the market, and how are you tackling these?

It’s probably fair to say that the industry is still forming its perspective. A lot of insurers have had significant losses from COVID-19. There is clearly demand, especially for Business Interruption insurance, but it will take time for carriers to build comfort writing and pricing the risk. We have been providing data and epidemiologic consulting to help support market development; not every epidemic becomes a pandemic, and not every pandemic is as severe and systemic as COVID-19. We think it’s critical for insurers to be grounded in the data and science, and so we are doing our best to provide those perspectives.

Q A

How are existing customer buying habits forcing change?

Pre-COVID-19, customers were interested in learning about pandemic insurance, but there wasn’t clear market demand for this type of coverage for an emerging risk class. Now, the world has seen the impact that infectious disease can have on societies and economies and the demand is no longer in question.

With the need to cover this risk, we see an industry that is in the midst of change.

Q A

together to solve problems that usually don’t have clear boundaries, let alone clear answers. And all of us are committed to finding new ways to make the world more resilient to precisely the kind of health catastrophe we see unfolding now, in COVID-19.

Q A Q A

Where do you see Metabiota this time next year?

Providing our best in-class risk tools to the industry that is out of crisis mode and looking to protect the insured against future pandemic risks.

What advice would you give to anyone else looking to disrupt the industry?

Have patience, tenacity, and build a team that strongly believes in the mission.

What’s unique about the culture at Metabiota?

Incredibly tenacious, deeply collaborative, and interdisciplinary. In our office, we have an epidemiologist sitting right next to an actuary, across from an anthropologist and a political scientist. As a team, we are committed to working

Nita Madhav MSPH

We see an industry that is in the midst of change Metabiota has over a decade of experience partnering with industry and governments worldwide to build resilience to epidemics and protect global public health. The company is headquartered in San Francisco, California, with additional offices in Washington DC, Cameroon, and the Democratic Republic of the Congo.

Metabiota’s team includes global leaders in epidemiology, veterinary medicine, laboratory science, data science, actuarial science, social science, and political economics, and serves some of the most respected customers in the corporate, insurance, government, and multilateral sectors.

Metabiota products provide insurance, pharmaceutical and other commercial customers with highly granular intelligence on the latest infectious disease risks and trends.

is the Chief Executive Officer at Metabiota.

MODERN

INSURANCE

|

45

F E AT U R E S

IN DISCUSSION There’s nothing more stimulating than a discussion forum. Over the page you will have access to several different opinions, experiences, and insights from some well-known specialists in the field. While we may not always agree with what we read, if it enables a platform to discuss, explore and engage with not only our colleagues but our fellow peers, then mission accomplished.

Specialist forensic investigation services for the global insurance, legal and risk management professions.

• Acoustics & Audiology • Civil & Structural Engineering • Contamination • Digital Forensics • Electrical • Engineering • Escape of Water, Gas & Fluids • Fire & Explosion

• • • • • • • • • •

Fraud Hydrology Materials Failure Personal Injury Power & Energy Process Engineering Railways Road Traffic Collisions Shipping & Marine Vehicle, Plant & Machinery

This month’s opinions are from:

Stuart Daws Head of Loss Control Engineering at Allianz.

Eddie Longworth Director at JEL Consulting.

Contact Hawkins 24 Hrs: UK Dubai

+44 207 481 4897 +971 4372 1262

Hong Kong Singapore

www.hawkins.biz

+852 2548 0577 +65 6202 9280

Nik Ellis

Managing Director of Laird Assessors.

MODERN

INSURANCE

|

47

F E AT U R E S

Q

How will the economic impact of Covid-19 be reflected in the conduct and amount of personal injury cases?

Eddie Longworth: The impact will most likely be reflected in a reduction in miles driven, accidents occurring, and so a decline in the number of claims. On the other hand, PI compensation can too easily be seen as ‘easy money’ and desperate times for many people driven into unemployment and poor prospects will see an upward push in claim numbers. So, what you may see is an increase in the ratio of claims to accidents but a decline in overall numbers as the inevitable recession strikes hard.

We have found over the years that the PI phenomenon is not just a function of genuine illness and the need for restorative action. We can therefore expect a seesaw in claims activity as the post Covid new normal unfolds. Paradoxically, whilst the new damages scale substantially lowers the levels of compensation payable for each claim this may in turn lead to an increase in the tendency towards ‘box ticking’ rather than genuine investigation, as the amounts of money per claim are relatively low.

The necessary introduction of online medical assessments during lockdown serves to make the claims submission barrier even easier to overcome and the original aim of proscribing pre-med offers in favour of thorough and maybe prohibitive inconvenience for claimants has been largely negated.

On the whole, therefore, the numbers seem likely to decline until the economy is fully restored to robust health (perhaps 2-3 years away) but the rate of decline may not be as great as simple economics would suggest.

48

|

MODERN

INSURANCE

Q

What peaks in risks do you anticipate in the coming months and what possible marketpatterns are you anticipating?

Stuart Daws: It’s likely the market will see a resurgence in risks typically associated with recessionary impacts. During hard times we tend to see more theft and malicious damage, plus potential for fraud and criminal activity. Covid related financial pressures on businesses, combined with lack of cash-flow could result in reduced expenditure on preventative maintenance, training, and proactive risk management.

Consequently, we anticipate increased machinery breakdown, fire, and personal injury through accidents at work. Inevitably, increases in frequency and the cost of claims leads to claims inflation across all lines of business.

With high volumes of vacant properties, there are risks of vandalism, theft of electrical cables and heating pipes, and the risk of significant secondary losses (e.g. arson or inadvertent fire starting). Escape of water claims are another issue, where water systems are

Q

Experts have transitioned towards virtual examinations through video calls and video conferencing rather than face to face appointments. What are both the positive and negative effects of virtual assessments?

Nik Ellis: We’ve been rattling on about virtual examinations since we helped BT trial their RVI (Remote Video Inspections) system back in 1995. We used to argue that there’s precious little that a physical examination would reveal over well-taken, high definition photographs. Today, with the range of filters available to us now, photographs can reveal subtle damage which would prove tricky to spot physically, so in some circumstances virtual inspections actually have the upper hand.

While not many cons, the pros are legion. For starters, the reports generated from a virtual inspection share the majority of their DNA with physical inspection reports, specifically the salient information needed by insurers.

left running for extended periods without the property owner’s knowledge. This becomes particularly relevant in colder months, with water systems susceptible to freezing and burst pipes.

Within the construction sector, we may see less new construction and mothballing of existing sites. Depending on the stage this happens, this presents increased risks of theft, malicious damage, arson, and general deterioration of the works completed until that point.

As much of the UK adapts to remote working, we anticipate a continued rise in cyberattacks. Reasons for this vary but include moving from relatively few Wi-Fi routers hosted in offices to thousands spread geographically in people’s homes, creating new access points and systems vulnerability.

Criminals can exploit these weaknesses during the pandemic for financial gain.

Lastly, Brexit presents significant risks and unknowns to some businesses, including potential skills shortages, restrictions on EU workers and travel. Businesses are already challenged, so having to contend with the changes needed for transitioning postBrexit means resources are stretched even further with less attention being paid to maintaining good standards of proactive risk management.

As we don’t have engineers driving to the vehicles, the time taken from FNOL to report completion is dramatically reduced. This in turn reduces the keyto-key times within bodyshops, reducing courtesy car, loss-of-use claims or storage charges. Driving all over the UK is costly to us in terms of time and fuel, so taking that out of the equation presents the additional benefit of being able to dramatically reduce our prices.

From an environmental point of view, desk top reporting diminishes our carbon footprint plus the lack of human contact helps us in our fight against Covid.

Overall, I would judge the positives of desktops outweighs the negatives 99 to 1, and it’s great to be able to take what we’ve learnt from VDARs (Vehicle Damage Assessment Reports) and apply the logic to many other areas of the business.

Stuart Daws:

As a business, we’ve been using remote survey and inspection techniques for several years already, albeit for a relatively small percentage of the inspections and claims investigations we conduct. This includes video and conference calls, sharing of site photos, plans and documentation.

Therefore, we were well placed to scale up this type of work when Covid-19 restrictions came into force.

In many instances a site visit continues to be entirely appropriate, such as a physical hands-on inspection of the site, plant, or machinery. However,

F E AT U R E S

Q

How has the new virtual way of working increased collaboration between personal injury claims and agents in terms of progressing claims?

Nik Ellis: Imagine if Covid had hit in the Eighties or Nineties, with the internet in its sluggish infancy, and with little uptake by the UK’s businesses? People would have been panic buying thermal paper rolls for fax machines, not loo roll! More importantly for the claims process, imagine how slow (and unreliable) everything would be with only human involvement.

Covid has hit at a time when we have super-fast broadband speeds, making it possible to share information and data, in real time, with any client, supplier or partner. API has allowed us to send and receive information between different software applications both internally and with partner companies, whilst automation allows us to process this information and make logic driven decisions.

Our human involvement has changed as these processes have evolved. There is now no need for humans to perform laborious tasks such as data entry, workflow processes, and in many cases, repetitive customer communications. The flip side of this tech is the overarching information available; from big data comes trends or patterns enabling us to predict outcomes better and produce amazing management information.

The key to collaboration is communication; we are now in a position where we can give partners the exact data required to allow them to do their core role to the maximum and vice versa. For example, an FNOL instruction coming into us would typically contain a mix of some, or all, of the data we need plus a fair few red herrings. Our humans would sift through the information, pick out the bits we needed, then find the missing data from any number of sources. In terms of API, we agree with our partners exactly with what we do and don’t need from the outset. This logical approach then allows us to automate by defining certain set-plays depending on the circumstances.

We have found that an authentically transparent attitude towards collaboration has allowed us to seamlessly integrate with over a dozen independent partners and hundreds of clients; they could be anywhere in the world but our information exchange is running, accurately, 24/7.

for less complex inspections or where the visit is more discussion- or documentation-based, a remote virtual approach can be highly effective.

There are potential benefits to all parties involved. Interaction can be more focused and take considerably less time. It also offers greater flexibility in coordinating participants’ diaries. Stakeholders based in various locations can participate without needing to have a physical presence on site. This can enable more frequent interaction with clients, thereby building stronger relationships. Virtual examinations have a part to play as a triage tool, to determine when physical site inspection will or will not be needed.

Whilst there are many positives to this way of working, there’s a risk of missing key points or deficiencies that would have been picked up by a physical inspection. Therefore, where life-safety relevant inspections of plant, machinery or fire risk assessments are concerned, a virtual examination is unlikely to be sufficient. This may change in the future, as both Building Information Modelling (BIM) and the Internet of Things (IOT) evolve, along with in-situ real time performance monitoring devices installed on critical plant.

Virtual inspections require new and additional skill-sets. Not everyone is comfortable interacting simply on the phone or video. Conducting a virtual inspection/discussion, whilst simultaneously managing multiple attendees to a conference call, requires not only IT skills but also patience and structure. Hence training of employees to conducted inspections in this manner is a key requirement.

MODERN

INSURANCE

|

49

F E AT U R E S

F E AT U R E S

Q

As lockdown restrictions eb and flow, do businesses need to be conducting risk assessments for people working from home (WFH) as remote working looks to be a more permanent fixture?

Eddie Longworth:

Q

What risks are involved with the increase of remote/ online/home working? What measures should be put in place to aid protection?

Stuart Daws:

The obvious answer is ‘yes’, and I am sure that responsible employers will seek to properly mitigate risk and secure the safety of employees. However, we must remember that in the UK there are 5.9m Small and Medium Sized Enterprises (SMEs) that have fewer than 250 employees per business but who pay the wages of nearly 17m people. Within this total there are 5.6m businesses that employ less than 10 people.

As mentioned, cyber presents significant financial and disruptive risk. In addition to ensuring adequate investment in IT systems, to maintain integrity and remove vulnerabilities, it’s recommended that businesses provide employee training on how cyber criminals operate, e.g. phishing to access systems and sensitive data, and the impact of this on their business. Not to be underestimated is the importance of strong and regularly changed passwords or use of two-factor authentication.

My point is that, in a time of economic recession, how many of those smaller enterprises will have the time, money or skillset to properly assess the increased WFH risk? Many of those businesses will be fighting for economic survival and, with the best will in the world, there will surely be more pressing priorities for hard-pressed management.

Regarding risks to health, safety and wellbeing, the usual physical risks that employees might be exposed to within an office environment remain, e.g. musculoskeletal, tripping cable hazards, injury or fire caused by faulty electrical appliances. In fact, these can increase, in the absence of usual office standards of supervision, maintenance and controls. Not least is the impact that remote, lone working and physical separation from colleagues can have on an employee’s mental health.

I know when I co-founded and grew a business and eventually employed c60 people, that I spent a lot of my time fighting fires and scrambling for income, and the luxury of home-based risk assessments for some of my employees might not have been at the top of my list!

None of this excuses the obligation on all employers to consider the safety of their personnel when adopting alternative working practices. Equally, they will need to have a fundamental reassessment of their liability insurance policies as the working environment changes.

Many risk management measures in place within an office environment remain relevant at home, such as checking employees’ homeworking arrangements are DSE (Display Screen Equipment) compliant. Checks should be in place to ensure safety of electrical appliances, such as purchasing new equipment for a temporary remote working arrangement or having a regular portable appliance inspection and testing programme in place for longer-term remote working. Other risk assessments include lone and remote working to help identify not just the physical risks but also risks to mental health and wellbeing. Companies can promote in-house and external wellbeing resources, employee helplines, and encourage employees to share experiences and participate in virtual social events.

So, to qualify my original answer I might now say ‘yes’, but what will the reality of the new economic and social environment be that facilitates all this happening?

Stuart Daws: In short, ‘yes’!

Whether in their usual place of work or working remotely from home, many traditional risks remain alongside new risks.

Employers have a duty of care under the ‘Health & Safety at Work etc. Act’ (HSWA) to provide a safe working environment, so conducting risk assessments for people working from home or other remote workers remains critical.

Among the most important things an employer can do is ensure they have a clear communications strategy in place for regular contact with all employees. This can help clarify expectations and reduce anxiety, which may be exacerbated when working in isolation for significant periods of time.

Nik Ellis: Luckily, we had a great advantage in home working as around a third of our staff have worked from home since our inception in 2000. When lockdown first kicked off at the start of Spring, we managed to mobilise the other two thirds of the team back to their homes within about an hour, predominantly due to the cloud connectivity of our software.

In terms of risk assessment, not a huge amount changed. For example, the way staff use a monitor (or Display Screen Equipment) at home is little different to how they would at work. The risks, suggested break times, posture, etc. are all pretty similar.

In my eyes there are two big changes; firstly, the onus falls greater on the worker to carry out their own risk assessments, of whom few have relevant training. So rather than HR or a risk-assessment team carrying out the assessments, the challenge is to remotely train someone to carry out their own assessments.

The second is a bigger issue, that of their mental health. Our company culture is relaxed, similar to Virgin or Netflix, so think jeans and t-shirts, dog friendly offices, pizza and beer, no fixed hours, etc. Once established it’s fairly easy to keep up at work but a different challenge when everyone is isolated in their homes. We’ve put a great deal of effort to adapt as best we can, with Discord, Zoom meetings, WhatsApp groups, social media, and encouraging teams to pick up the phone to each other now and again.

It’s not necessarily that people’s mental health has been suffering but keeping up the motivation and inspiration are just one of the challenges facing managers above all. I think, therefore, that outside the Health and Safety booklet, there is much that we need to consider for a new remote work force. Not simply monitoring for signs of stress or mental health issues but taking proactive steps to ensure their ongoing enthusiasm and positive involvement within the company and each other.

50

|

MODERN

INSURANCE

Q

Risk management and Covid-19 – Why is it important that businesses don’t just focus on crisis management during the pandemic but assess the longterm impacts of Covid-19 on their approach to risk management?

Stuart Daws: Covid-19 took almost everyone by surprise and even where mature risk management programmes were in place, these have been sorely tested with shortcomings becoming evident. There are many impressive case studies showing how businesses have successfully (to greater or lesser extents) managed their way through this crisis. However, it’s probably safe to say those businesses which had well-conceived and developed risk management programmes will have coped better during the crisis period. This reinforces the benefit of pre-planning robust risk management.

Even in a post-Covid world, there will always be crises for businesses to contend with. Whilst Covid has been an international catastrophe, a severe fire is no less of a crisis for any individual business to deal with. These types of events are still happening daily and will continue; businesses need to be prepared for when they do.

If businesses focus solely on the short term they’ll fail to effectively recognise or eliminate the shortcomings that Covid-19 has highlighted, e.g. supply chain disruption or inability to makes production or operational changes.

Businesses need to be looking at the new and changing risks brought about by Covid-19, including how their business will be structured the future, or staffed to enhance its resilience to withstand the next crisis it faces.

It’s unlikely we’ll ever return to office life as we knew it and Covid represents a significant shift for businesses and working models. Businesses can take advantage of the lessons learned, including what has gone well and what hasn’t, and use this to further develop and implement solid risk preventative measures and business continuity plans to kick in when the need arises.

MODERN

INSURANCE

|

51

F E AT U R E S

Q

With opportunistic fraud on the rise, what new innovations are you utilising to help fight against fraudulent claims?

Stuart Daws: It’s really important to ensure our genuine customers’ claims are settled as quickly as possible. This also means keeping a tight control on fraud.

Fraudsters can quickly change tack and are exploiting the Covid situation to their benefit.

Tough economic times invariably result in an uptick in insurance fraud.

Alongside more opportunistic fraud, such as policyholders faking claims or exaggerating the nature of a loss, we might expect to see an increase in malicious damage, theft and casualty claims fraud as individuals and businesses come under greater stress.

Even post-Covid, increased levels of homeworking are forecast to continue and so we’ll likely see more cyber fraud, which targets systems and user vulnerabilities.

Collaboration can help us beat the fraudsters. By working together with official bodies such as the Insurance Fraud Bureau (IFB), we’re able to identify criminals and protect genuine policyholders. Sharing intelligence ensures we learn from each other and are able to close down any new rackets quickly and efficiently.

Simple data checks can validate a policyholder’s identity and highlight those that might need further investigation. As well as sharing intelligence within the industry, it’s also essential to raise awareness of fraud with the public. Alerting them to the risks and the types of fraud they might encounter, will help prevent them falling victim to a scam.

Our aim is to ensure that prevention and detection happens as early in the journey as possible. We’ve strengthened our application fraud teams; we’re using in-house data scientists to identify fraud patterns and we’re also looking to use machine learning to build models which will spot suspicious claims. Our field-based Loss Control Engineering and skilled Fraud teams are key to investigations, validating legitimate policyholders and claims.

52

|

MODERN

INSURANCE

Q

How do you anticipate the role of CMCs evolving following Covid-19 and beyond?

Just as they seek to increase volumes on existing business they will also seek to diversify into new ‘product’ areas in different lines of insurance and/ or by expanding the types and heads of loss on any given claim.

As one door closes, another one opens.

All these core business drivers will not change because of Covid or the new economic environment over the next few years. If they are denied higher volumes of PI claims due to legislation, regulation, or other factors then they will simply seek to expand elsewhere. There could well be mergers to achieve so-called economies of scale and reduce overheads (rarely a successful tactic), but the CMCs are here to stay in one form or another.

Q

Eddie Longworth: CMCs can only thrive and prosper by increasing the number of claims coming through the door. I am sure (because I have read them in the past), that internal business planning for most CMCs will focus on increasing volumes and the value/earnings per claim.

F E AT U R E S

Doubtless, we will see an increase in their role as ‘McKenzie Friends’ in claims proceedings and any hopes that we might have had of the new claims portal pulling the rug from under the feet of this largely needless ‘service’ seem destined for disappointment. PI claims at the ‘volume’ end under the new menu-driven regime and scale damages are not complex but I am sure that a combination of lobbying by the claimant fraternity and over-engineered design will lead to a continuing role of the CMC business even in lower value claims.

The added fear is that even reputable lawyers who could, perhaps, be relied upon to smooth the way and obviate the need for CMCs under the new regime will find it pretty impossible to make real money from these new arrangements.

Paradoxically we could therefore see a growth in CMC activity and influence (though not necessarily numbers) as lawyers retreat to the larger value niche end of the PI market.

If you sense a note of regret and slight despair in my answer, then you would be right!

Q

There is some suggestion that the new regulations will simply see claims costs move from Personal Injury to other areas such as credit hire and repair. Do you see that happening?

Eddie Longworth: It’s already happening during the enforced lockdown as claims volumes have plummeted but this shortfall in volumes has been partially compensated for by an increase in the value of credit hire, repair, and associated charges.

One of the few disadvantages of the capitalist system of relatively liberal economic trading is that businesses will naturally flock to the areas of greatest (immediate) profit to themselves with little thought for the broader economic or social consequences. Not always true, of course, in these times of heightened environmental awareness but the claimant community is not slow to adapt their trading model as changing business circumstances dictate. Faced with a choice of accepting lower income and profit levels or, even, going out of business altogether, then we can expect an increasing propensity towards loading costs elsewhere into the system.

It would be interesting to study in future years (hint; there must be a consultancy programme in this somewhere!) the rate of decline in PI claims settlements and the corresponding rate of increase in other types of charges alongside the aggregated costs of settlements in all these associated categories.

This will show us the realised savings in PI claims against the upsurge in costs elsewhere and the net savings resulting (if any). Who knows, we may once again find that the law of unintended consequences wins the day and the long fought for reduction in PI claims costs will be offset by increased losses elsewhere with little by way of net gains to insurers and, ultimately, policyholders.

The ‘zero-sum’ game so often talked about in respect of claims may be true in broad economic theory but there are always individual winners who show sufficient agility to most often come out on top. Sadly, this description belongs more to the claimant community than it does to insurers.

Insurers will see reducing income streams from their current business model as a result of the reforms. How do you think that will affect their behaviours?

Eddie Longworth: Insurers are like any other business. If they see an income stream reducing then they may well take action to stem those losses (seeking higher commission rate elsewhere?), reduce costs (cutting claims processing overheads) or improve margins in other areas of the business (increase premiums).

None of this is new for insurers or the clamant community and insurers will certainly respond to any loss of income by taking the appropriate measures. What is ‘sauce for the goose is sauce for the gander’ and insurers will look to mitigate losses by acting elsewhere in the business.

However, the insurance community is a large, broad, and diverse community. Much of that community is now embracing additional business goals over and above the naked pursuit of profit. Investments in Corporate Social Responsibility have taken on real meaning, as have meaningful commitments to sustainability and understanding the impact that the business has on the lives of their employees and their families.

Perhaps it is time for leading insurers to set a new standard of corporate behaviour and declare that they will not seek to replace ‘lost’ income by shifts elsewhere in policies and practices. After all, it is the insurers who have fought for reductions in PI claims costs so should they now be seeking to ‘have their cake and eat it’ by benefitting from a reform that they demanded and still securing the income streams they are used to?

I think not. If there is to be no voluntary action taken then perhaps we can look to the ABI to set a new moral tone or, if absolutely necessary, the FCA to issue new guidance. There is more to corporate claims behaviour than simply scrambling for the nearest revenue source and this could well be the time to take the ethical high ground. Would be nice, wouldn’t it?

Q

Do you think we will see the fundamental shift in consumer, agent, and insurer behaviours that the reforms were partially designed to encourage?

Eddie Longworth: In the short term, I fear that not much will change.

Fundamental behaviours are driven by larger forces than the issuance of mere legislation and regulation. For sure, we will see a shift in the focus by CMCs to more lucrative areas.

Insurers will drive new process efficiency in managing lower value claims. Consumers may eschew the blandishments of TV advertising as they realise the monetary rewards available will not now be enough to buy the TV they promised themselves.

But introducing LASPO had little serious effect on the PI claims market, despite the high hopes of insurers and the Armageddon warnings of the claimant community. The same could well be true of these latest efforts once the dust has settled Introducing a Race Relations Act in 1976 did not prevent racism. Various Equality Acts have somehow still managed to

leave a gaping disparity between male and female rewards for the same role. Fining drivers for using a mobile phone whilst driving has not eliminated the practice.

However, it can be said that all these measures have facilitated some shift in behaviours and acceptable thought patterns.

Gradually, the population have changed the common culture to redefine what is acceptable and what is not.

There may come a day when fundamental behaviours change and every piece of legislation does help along the way but, for me, it is the morality and integrity of the insurer community that will lead the way. For so long as they are seen as being ‘fair game’ then public attitudes are unlikely to change that much and, too often, insurers are their own worst enemies.

Perhaps now is an opportunity for the insurer community to drive that necessary cultural change by examining their own practices in the PI world and using the new legislation as the springboard to a new regime of public trust and respect.

MODERN

INSURANCE

|

53

F E AT U R E S Congratulations to this year’s shortlist!

Best Customer Engagement Freedom Brokers QBE insurance in partnership with Digital FinePrint (DFP) Vantage Finance

Best Customer Retention and Loyalty Ansvar Insurance Addingstone Insurance Solutions (formerly Covered Insurance Solutions Ltd)

SmartSearch The Home Insurer Vetsure Pet Insurance World Wide Internet Insurance Services

Best Use of Customer Feedback CLS Property Insight (CLS) Healthy Pets Medical Travel Compared NFU Mutual Plantec Assist

Investment in Company Culture Aviva UK Lloyd & Whyte Ltd Minster Law Romero Group Vetsure Pet Insurance

Best Use of Customer Service Technology

THE SHORTLIST UKCSEA 2020

Introducing our shortlist for the UK Customer Service Excellence Awards 2020!

The UKCSEA, in association with Modern Insurance Magazine, is a unique event that focuses purely on customer service within the insurance industry, benchmarking success, innovation and positive change for the customer.

Now, while we won’t be able to have our usual celebration at Café De Paris in London, we are looking forward to crowning our winners and celebrating their successes in our Virtual Awards Ceremony in November. Keep your eyes peeled for more details to be announced soon!

Sponsored by

Aviva UK Claim Technology Ltd eviid NICE RightIndem SBS Insurance Services Limited

Best Customer Service Product for BUSINESS Adapt Ready Claim Technology Ltd DMR Collation Ltd RightIndem

Best Customer Service Product for CUSTOMER AutoProtect AX

By Miles Medical Travel Compared RightIndem

Outstanding Customer Journey

AX Countrywide Hearing FMG ICAB (Insurance Claims Accommodation Bureau) Kindertons Accident Management MyFirstUK

Above and Beyond

By Miles Cirencester Friendly Emerald Life Lifepoint Healthcare Sedgwick Vetsure Pet Insurance

Fight Against Fraud

Charles Taylor Technical Services NetWatch Global NICE Sedgwick SmartSearch VisionTrack

Best New Business Initiative

By Miles buzzvault Plastic Surgeon S&G Response Ltd SBS Insurance Services Limited Vetsure Pet Insurance

Giving it Back to Charity Ansvar Insurance Aviva UK Minster Law Ninety Consulting Plantec Assist S&G Response Ltd

www.customerserviceexcellenceawards.co.uk Event Enquiries Ellie Geldart | ellie@charltongrant.co.uk | 01765 600909

F E AT U R E S

AX: Pushing the boundaries in the accident aftercare sector Since rebranding in 2019, AX has experienced rapid and significant growth, partnering with some well-known names in the automotive and insurance industries, including The AA. Exceptional customer service has always been central to the AX philosophy; successfully maintaining these standards, is only possible through their innovative technology and agile QualityAssurance processes.

Lucy Woods, AX CEO, commented: “Our development is focused on the core values upon which AX is based, and has culminated in a series of award nominations and wins across the industry; including two recently for the UK Customer Excellence Awards, where we won the Silver award for “Customer Experience in the Crisis” and Gold for our “Employees experience in the Crisis.”

Recognition at this level only acts as a motivator for us to further change and improve the sector, for the benefit of all involved.”

The AX Customer Journey AX’s success is driven by an outstanding customer journey, ensuring customers receive the best first-time solution, supported by a highly motivated workforce from start to finish. AX services include full FNOL capability, the provision of replacement vehicles, management of vehicle damage and recovery of customer losses.

The end goal for AX is to make the process as straightforward, efficient, and stress-free as possible. Industry leading retention rates, alongside an ‘Excellent’ Trustpilot score, an NPS rating of 68 and considerable investment in technology, are evidence of their commitment to continuously improve their customer journey.

Bespoke Products – The AA In October 2019, AX partnered with the AA, to provide a full accident management solution for their policyholders, broker clients and members. AX designed, in partnership with the AA, a

The goal for us, is to make the post-accident process as easy and efficient for all involved and simply put, keep drivers driving

tailored accident aftercare product which has set new standards in the industry, by committing to groundbreaking delivery and collection service levels. To fulfil these commitments, AX had to make several adjustments, not only increasing colleague numbers but also expanding their depot infrastructure, developing new functionality, improved processes and introducing seven-day working for operational staff. AX has met each of its ambitious KPIs for the AA too, delivering a staggering 99% of replacement vehicles within just two hours from the first call and collecting 9% of vehicles within four hours from off hire. AX’s dedication and ability to adapt its business to provide the AA with a seamless offering has seen the partnership become a remarkable success, pushing the boundaries within the Accident management sector.

Building trust with insurers Credit hire providers and insurers have not always agreed, but as the industry requirements have changed, the nature of this relationship has evolved too. AX has transformed its philosophy; regarding insurers as valued stakeholders in the non-fault process and continues to work closely to deliver a frictionless environment and best customer outcome. AX has commercial agreements in place with many insurers to build trust and improve efficiencies, whilst reducing the need for litigation. Building these relationships not only benefits insurers, but customers too. Open communication lines between insurers and AX means a customer is back on the road faster, without feeling like they are stuck in the middle between two conflicting parties. Lucy Woods added: “Many factors have contributed to AX’s success, but the values and purpose that we have adopted has played its part. The goal for us, is to make the post-accident process as easy and efficient for all involved and simply put, keep drivers driving.

AX offers Accident and Innovation services for the Automotive and Insurance Industries and their customers. You can find out more on their website: www.ax-uk.com

MODERN

INSURANCE

|

57

F E AT U R E S

F E AT U R E S

Faster, better, happier: using video to transform claims processes

Over the last few years, we here at eviid, have become the hidden driving force behind the use of video in insurance, solving a major headache for the industry: how to use video effectively as part of claims processes to increase productivity, release capacity, reduce claims cost and improve customer satisfaction.

Insurers and claims management companies want to use video and images in their claims handling. Why? Because it can be faster and give a more accurate, complete – or, in the case of live video, more immediate and objective overview of circumstances as opposed to a written report.

There are a number of immediate applications: receive video or photo evidence from customers, allow loss adjusters to create video reports, and enable claims handlers to establish live and recorded video connections to a policyholder for triage.

Providing all this to insurers and the supply chain would be easy, if it weren’t for the specific requirements of our demanding industry: the solution has to be fast, seamless, secure, compliant, user-friendly, fraud-proof, live, plug and play, bookmarkable, easily deployable and instantly accessible.

Due to this long list of requirements, the industry has been trialling many, many solutions to integrate video naturally into its processes.

Consumer technology, while easy to use and familiar, doesn’t tick those boxes and neither do the many B2B solutions out there, which can be costly or fail to address the specific needs of the industry. eviid covers all these bases. It’s a flexible video technology that has been tried and tested in and for insurance. It unlocks capacity, shortens claims lifecycles, slashes claims cost and creates a positive, transparent, and pleasantly brief customer experience for policyholders.

The eviid system offers a complete, self-contained environment that can be deployed quickly – a plug-and-play solution for introducing

It unlocks capacity, shortens claims lifecycles, slashes claims cost and creates a positive, transparent, and pleasantly brief customer experience for policyholders

video evidence into claims handling in a secure, user-friendly way that is compatible with existing workflows.

But it also transforms those workflows, by allowing loss adjusters and inspectors to fill in digital forms on site, accept digital signatures, make cost calculations – and then send it all back to base, in a secure package. It also enables live, secure, and recorded video calls between field/policyholder and claims handlers via both app and app-less technology.

The core of eviid is a patented evidential technology that, as digital video, audio, or images are captured, applies a tamper-evident ‘wrapper’ to each media item. This wrapper includes contextual data such as time, GPS location, device data or case number, and makes it impossible to alter footage or metadata without leaving a trace. For insurers, this means bullet-proof visual evidence that can be searched and filed easily via metadata (which is more reliable and quicker than manually adding filenames or context).

The eviid media hub enables claims handlers to review and manage footage easily, along with all other relevant files and forms. It features built-in secure sharing functionality for controlled and compliant sharing with third parties, including the customer themselves if requested.

Following the introduction of eviid, insurers have significantly reduced claims lifecycles, repeat visits, and claims cost, whilst increasing customer engagement and retention.

One larger Tier 1 insurer has reduced the need for site visits by 80% for its property insurance claims. A major claims management company reduced repeat visits by 24%, reported a 46% lifecycle reduction for flooring claims, and slashed the number of complaints by 90%.

Due to the ease of quick visual verification, a claim can be routed to the optimum, most cost-effective investigation, which for one company resulted in savings of between £40 and £150 on an average claims handling cost of £500 per claim.

John Ridd

is the CEO of eviid.

MODERN

INSURANCE

|

59

F E AT U R E S

Great customer service doesn’t happen by accident

It’s safe to say, Kindertons started out from humbling beginnings.

Operating from a portacabin in the car park of The Kinderton in Middlewich, the originally family-run business was set up with one very simple and clear aim – to support customers following a road accident and expertly guide them through the claims process.

With a rich history spanning nearly 30 years, substantial yet strategic business growth and nearly 1.2 million claims under our belts, you’d be forgiven for assuming our original purpose may have somehow got lost in translation over time. But this couldn’t be further from the truth. In fact, it remains firmly part of our distinctive charm, as much now as it did back then – perhaps even more so.

Today, Kindertons stand tall as market-leaders in the industry, setting the bar for customer service excellence and proudly waving the flag for an impeccable claims journey. For every customer. Every time.

Recently re-accredited with the ServiceMark from the Institute of Customer Service, everyone at Kindertons proudly wears the accolade as a badge of honour – a glowing endorsement of our people, our deep-rooted service culture and our unique and refreshing approach to claims management.

It’s not a coincidence that exceptional customer service and Kindertons are often mentioned hand in hand. When asked why other businesses should partner with us, our response is simple – because great customer service doesn’t happen by accident.

Instrumental to our success is staying true to our core customercentric philosophy, values which have long stood the test of time.

Unquestionably, this is why some of the largest broker groups, insurers and prestigious automotive brands in the market have decided to partner with us. They have chosen to place their trust in us to deliver an unrivalled service to their customers, knowing we will always act in the customers’ best interests and continually fight their corner. And in return, we offer just that – as well as a

Instrumental to our success is staying true to our core customer-centric philosophy, values which have long stood the test of time

strong and sustainable market proposition and highly competitive commercial terms.

No one sets out in the morning thinking they are going to have an accident. The results are sometimes life-changing and almost always stressful. But reducing the stress and lessening the burden for customers is our ultimate goal. We’re here to offer our customers support, guidance and somewhere to turn to in their time of need. We understand the importance of getting this right and that’s why we work as hard as we do to quickly get our customers back out on the road again.

Our industry-leading Net Promoter Score demonstrates the positive impact our service consistently has on our customers. They are our ultimate brand advocates, with their voice acting as our true benchmark to affirm why we do what we do.

The world moves fast, and we never stand still on creating new solutions and technology for our customers. With the exciting introduction of a new claims and fleet management system on the horizon, the Kindertons claims process looks set to be slicker than ever. However, technology can only go so far in driving a good experience for our customers. For this, we entrust our people, our internal claims experts, to guide our customers through the process with efficiency, dedication, and empathy. This finelybalanced professional and supportive approach worked well for the very first claim we handled back in 1993 – and we’re confident it will for many more claims to come.

We’re always keen to speak with other likeminded brands who share the same core values and unwavering commitment to outstanding service delivery. To find out more about how partnering with Kindertons can greatly support you and your customers with their mobility and repair needs, contact sales@ kindertons.co.uk or call: 0343 506 4316

Paul Taylor

is the Managing Director of Kindertons Accident Management.

MODERN

INSURANCE

|

61

ICAB: We make it happen

F E AT U R E S

Ethical & Exceptional Customer Service:

ALWAYS

Exceeding Expectations

This isn’t just us singing our praises, it is what we hear from every organisation we work with.

ICAB are a specialist emergency decant supplier who can deal with all aspects of alternative accommodation as and when required by the tenant. This can range from planned refurbishment works to same day decants when a home emergency occurs.

Not only do we source hotel accommodation, rental accommodation, hire furniture and arrange storage and removals but we also own and manufacture ICAB PODS. We are a single source solution with over 20 years’ experience and a proven track record of saving our customers both time and money.

For more information on how we can help your organisation please call:

0208 421 8427

Proud to be shortlisted for the Customer Service Excellence Awards 2020 for Outstanding Customer Journey.

Insurance Claims Accommodation Bureau Ltd (ICAB) A Heronslea House › High Street › Bushey › Herts › WD23 3HH T 020 8421 8427 twitter.com/icab_team E info@icab.uk.com www.icab.uk.com

Since our inception in 1998, ICAB’s central ethos has always been to ensure we act ethically whilst offering exceptional customer service.

We encourage staff to show empathy and respect to customers, to show they care whilst doing the best possible job they can! With this in the forefront of their minds, there are occasions when our staff really do go above and beyond.

We once again found ourselves in awe of the work that our staff do in December 2019.

In the Borough of Hackney, East London, there was a major water outage that lead to tenants being without water for up to six days. The level of service ICAB provided was second to none and included; responding initially to requests on a Sunday afternoon, site visits on Monday morning and delivery of ICAB internal and external bathroom PODs by Monday afternoon ensuring a shower, flushing toilet and sinks for up to 1500 tenants!

It was this collaborative team effort that really made the difference. Together, the Out of Hours Manager, Managing Director, POD Coordinator, Operations Manager and the Installation Operatives worked to ensure that this huge number of people got the help they needed.

With a site this big, there was of course a variety of tenants including families with young children and elderly people.

It was extremely cold in December, so the situation was unacceptable with tenants citing, after a number of days, “third world conditions”.

One of the major problems was that this was not the first time this had happened and tenants felt as though they, once again, were going to be without water with little information

Customer service is the foundation on which our company is built as to when the situation was going to be resolved. They were talking to press and going on social media and there wasn’t deemed to be much help or advice, or solutions being offered but this was due to the housing group just not having that information.

ICAB wanted to ensure that the customers were helped before it turned into a media storm. It was down to us to “make it happen” and that we did!

We are so proud to be nominated for the Outstanding Customer Journey Award at the UK Customer Service Excellence Awards and believe that this demonstrates our customer service.

ICAB constantly monitors customer service standards through internal audit and has incredibly low numbers of expressions of dissatisfaction. There can be no doubt that customer service is the foundation on which our company is built. We have had to adapt our service to meet customers’ expectations over the years, advancing technology when needed without losing the personal touch. Moving forward, ICAB is currently working towards the Institute of Customer Service’s Customer Service Mark to ensure all staff can be benchmarked and we can maintain these high service levels.

ICAB, the Insurance Claims Accommodation Bureau, provides reliable and efficient alternative accommodation services.

You can find out more on their website: www.icab.uk.com

MODERN

INSURANCE

|

63

F E AT U R E S

Uniquely tailored service delivery Many service providers place the importance of customer feedback to help shape what they do and how they do it. You will often hear the term ‘voice of the customer’ or ‘listening post’ when businesses talk about their customer feedback strategies. Whilst these phrases are commonly used, what they practically mean can vary wildly between different companies.

Gathering customer feedback can offer significant benefits. It can help businesses to understand how well they are doing and how they can improve, providing them with useful insight to create specific actions that can contribute to a better customer experience.

It also helps customers feel their opinions are valued and their voices are heard.

It’s become increasingly common practice for businesses to encourage customers to share their opinion on a product or service so they can understand the experience the customer has with their own brand. However, we’re firm believers that simply asking for feedback once the service has been delivered isn’t enough – businesses need to collect this at the right time in the customer journey to make a positive difference whilst they still can and importantly, they need to ensure they then do something with it.

Here at Plantec Assist, one of the UK’s leading motorcycle hire and repair service providers, we like to do things a little differently.

Renowned in the market for offering a bespoke and specialised proposition, it’s perhaps no surprise our approach to service delivery is also uniquely tailored to each customer.

As a business, we have chosen to partner with Rant & Rave, an independent and impartial customer feedback solution. This gives us the ability to listen to the true and unbiased voice of our customers, with the quality of service we deliver being the only way to impact the results.

In our rich history, spanning nearly 20 years, it’s been our ethos to work hard for our customers to make their lives easier. If they are involved in a motorcycle accident, just one call into us and we expertly manage all aspects of their claim, from providing a hire motorcycle to arranging any bike repairs – and even liaising with any

third parties on the customers’ behalf. When it comes to customers sharing their views on the service we deliver, we also make this as easy as we can for them.

We appreciate that the expectations of customers are different for each claim and we recognise that we cannot adopt a ‘one size fits all’ approach. This is where the Rant & Rave tool provides our business with the greatest benefit.

Customers are sent text messages at different stages in the claims process asking open questions about our service and how well we are doing. To give us feedback, they simply reply to the message and a claims handler can see the responses in real-time. This allows us to ‘check in’ with the customer at regular intervals to make sure they remain happy with the service provided and gives us the opportunity to quickly react if needed, altering how we service their claim to ensure they receive the best possible experience from us.

Of course, this doesn’t just inform our approach on a case by case basis. Our internal customer experience champions routinely review all customer feedback to give us a holistic view and identify common themes that validate any service improvements we make to ensure we firmly remain the first-choice claims partner for bikers.

At Plantec Assist, we pride ourselves on delivering an exceptional claims service designed exclusively for motorcyclists.

To find out more about how partnering with Plantec Assist can greatly support you and your customers with their motorcycle hire and repair needs, visit www. plantecassist.co.uk or contact us at sales@ plantecassist.co.uk or 07917 135114.

Paul Taylor

is the Managing Director of Plantec Assist.

We’re firm believers that simply asking for feedback once the service has been delivered isn’t enough – businesses need to collect this at the right time in the customer journey […] and importantly, they need to ensure they then do something with it MODERN

INSURANCE

|

65

F E AT U R E S

F E AT U R E S

HOW TO DELIVER A

If you can’t be there for your customers in the bad times, don’t expect them to be there for you in the good times

CUSTOMER EXPERIENCE James Dodkins, the Customer Experience Rockstar, is a high energy, entertaining, and musical keynote speaker who uses his experience as a reallife rockstar to help companies understand and improve their customer experience and company culture.

The UK’s #1 CX Influencer, James shares his mindset and framework with Modern Insurance Magazine as he explains how to deliver a Rockstar Customer Experience.

A Rockstar Customer Experience is one that makes your customer feel like the person at the front row watching their favourite band play 66

|

MODERN

INSURANCE

Q

Firstly, how do you define customer experience?

A

A customer experience is the sum of the thoughts, feelings, and interactions a customer has about and with different products and services on the journey towards achieving a goal or outcome. This is a slightly different definition than you would usually see in the Customer Experience world, but I don’t look at the customer experience as just the interactions with one company, I see it as interactions with many different companies as that is what the customer actually experiences.

Q

Secondly, what is a Rockstar Customer Experience?

A

Rockstars do things differently. They stand out from the crowd. They don’t have customers, they have fans. They don’t follow convention, they don’t comply to the norm, and they don’t follow the rules. They don’t ask for permission, they thrill, they excite, and they inspire. They’re empowered, they’re confident and they are unforgettable.

A Rockstar Customer Experience is one that makes your customer feel like the person at the front row watching their favourite band play.

did you come up with QHow the concept?

A

I used to have a music career, playing guitar in a rock touring band, and when I entered the Customer Experience world I started to see how many similarities there are between putting on a show for your fans and delivering an experience to your customers.

Q

Due to the Coronavirus pandemic, many businesses have been forced to work remotely, meaning that

H James Dodkins H

there has been an increase in digital customer support and a decrease in face-toface appointments. How can companies continue to deliver a Rockstar Customer Experience through predominately digital platforms?

James used to be an actual, real-life, legitimate, award-winning rockstar. He played guitar in a heavy metal band, released albums and tore up stages all over the world. James uses this unique experience to energise, empower and inspire his clients and their teams as a ‘Customer Experience Rockstar’.

H Were you really in a band?

A

If you treat your employees like rockstars, that will turn your customers into fans. That doesn’t change just because there is a pandemic.

Do you think customer Q expectations have changed during the Covid-19 crisis?

Do companies now need to be more honest with their customers and set proactive expectations during such an uncertain time?

A

Most definitely. Customers’ expectations are constantly changing and evolving, and the pandemic has only sped this up. Making sure to set honest and realistic expectations with your customers is one of the best things a company can do right now.

Q

The last seven months has been testing, how can companies regain trust and loyalty that may have been lost during that time?

A

I think this will be a make or break period for a lot of companies, many have failed, and I don’t know if that can ever be repaired. If you can’t be there for your customers in the bad times, don’t expect them to be there for you in the good times.

How can companies Q ensure their employees feel empowered and valued,

Yes, I played guitar in a heavy metal band, I toured the world, was in magazines, released albums and had a video on TV.

H Are you a consultant?

A

The first step to making an employee feel empowered is to empower them. The first step to making an employee feel valued is to value them. It’s not about platitudes, it’s about actions.

Q

Can you explain what the 4 Step Framework to Proactive Experience Recovery is?

1. Identify the things that cause dissatisfaction in your experiences (you probably already know this).

2. Monitor the experience in real-time to notice when one of these things happens.

3. When you notice one of these things has happened - communicate to the customer that you know something isn’t right or something has gone wrong (even if they haven’t noticed it themself yet).

4. Compensate, or sometimes just correcting the mistake can be enough.

It doesn’t have to be a monetary compensation, but a gesture can go a long way to change how a customer feels about a situation, especially when they haven’t had to ask for it.

What are your top pieces Q of advice for the insurance industry when managing their

customer experience strategy?

A

Understand your customers, understand their needs, and design experiences that deliver them.

H What kind of people do you work with?

Understand your customers, understand their needs, and design experiences that deliver them

CX practitioners, Heads of CX, Directors of CX and CCOs that are serious about learning, evolving and growing as CX professionals.

H How do you work with these people?

James Dodkins is the Customer Experience Rockstar, the UK’s #1 CX Influencer, a Global Keynote Speaker, Host of Amazon Prime’s ‘This Week in CX’, an accidental #1 best-selling Author, and CX Trainer.

No. I’m an international keynote speaker, trainer and content creator. #notaconsultant

Through unique and inspiring musical keynote performances and powerful and energising nonmusical training and certification programs.

H Do you really play guitar in your keynotes?

Yes, my keynotes are all musically themed and I LOVE performing them, so if you’ve got a conference, event, birthday or Bar Mitzvah you’d like to go off with a bang, take a look at some videos at www.jamesdodkins.com and get in touch.

and is the significance of this sometimes underestimated?

MODERN

INSURANCE

|

67

F E AT U R E S

F E AT U R E S

Perserverance is the key Martin Weaver-Parker, Lockyer Insurance, outlines how Lockyers responded to the Covid-19 crisis as he details how the team facilitated the repatriation of a critically ill individual during the height of the pandemic, and how they went above and beyond to achieve the best possible outcome in such challenging times.

Q

As recent winners of The Covid-19 Response Award at this year’s Broker Awards, what enabled you to react so rapidly and with such efficiency to such a black swan event?

A

Teamwork! This situation arose at a time of uncertainty that is unprecedented – a virus with no known cure and countries going into a level of lockdown that has never been experienced before.

Lockyers facilitated the repatriation of an individual from Africa back to the UK in the most challenging of times. The individual in question became gravely ill with COVID-19 while working in Africa in March 2020. The situation was exacerbated by the fact that our client had been admitted to a centre with no appropriate medical care, unsanitary surroundings and racial prejudices. In short, our client’s mental health was deteriorating, and he feared for his life.

The major challenge was uniting the different parties to accommodate the urgent repatriation of the individual in a world with no rules to be guided by

There is a real opportunity for brokers to promote the services they can offer; bespoke cover, market access, affordable prices, personal communication, data security, claims support and expert guidance

Q

What were the key points that you were able to enhance and accelerate that set you apart?

A

Repatriation - the start of the journey to recovery - and possibly a life saved.

Perseverance was key in this case. There were several setbacks along the way. Commercial flights had stopped and, as a result of the virus, the individual would have to be isolated in a special infectious diseases pod for the return journey. The flight would also have to be direct, as other countries would not allow stops for refueling and the medical centre would not allow him to leave.

After four days and many conference calls, an agreement was reached to repatriate the individual back home to the UK. Just when we thought everything was in hand the flight was cancelled due to the safety of the individual. Four days and a clear flight path later, the staff member was able to return to the UK and be transported to his local hospital for treatment.

Another key point is not being frightened of asking for help.

Despite having very experienced people in the Lockyers team, in such an urgent situation, we had to identify and use expertise available from outside organisations.

The team at Lockyers were determined not to take no as an answer – there was possibly a life at risk. The process of

facilitation requires many skills, setting clear goals, flexibility, active listening, conflict resolution, clear communication to all parties and decision making. Knowing that they had the full support of Lockyers and Ethos Broking, gave the team involved in this case the confidence to really push hard to achieve the right outcome in the shortest possible time.

Q

What have been the implications of Covid-19 for brokers specifically, and how did the Lockyers’ team rise to the challenge?

A

The last few months have been incredibly challenging for the world. Clients, more than ever, need the reassurance that they don’t have to go it alone. Brokers must step up to the mark and justify the trust their clients place in them to provide affordable and effective cover options.

There is a real opportunity for brokers to promote the services they can offer; bespoke cover, market access, affordable prices, personal communication, data security, claims support and expert guidance.

The heart of Lockyers’ business is our team and our commitment to providing the highest level of personal service. With the need for remote working, local lockdowns and shielding requirements, people may be feeling isolated so personal contact via a phone or video call, rather than chat via a website or email, is invaluable.

Lockyers build relationships with our clients, who know we will go the extra mile for them, in this case it was over 4500 miles.

Martin Weaver-Parker is the Managing Director at Lockyer Insurance.

We had to deal with Government authorities, international organisations and UK insurers at the same time as lockdown and remote working came into force.

The major challenge was uniting the different parties to accommodate the urgent repatriation of the individual in a world with no rules to be guided by.

Lockyers supported the people working on this case by sharing their normal workload, giving them the space to focus on this critical case, and also expediting the requirement for the team to work from home as the UK national lockdown began.

Lockyers are an Ethos Broking regional partner and were supported throughout the process by their management team including intervention with the insurer to escalate this critical case.

“This story encapsulates everything that Lockyers and Ethos Broking aims to be – from protecting clients and going above and beyond working as a team, truly caring about the impact we can have on individuals and their businesses and maintaining community ties. It’s also emphasized the collective strength that Ethos Broking can have with insurer partners”.

Richard Tuplin, Managing Director, Ethos Broking.

68

|

MODERN

INSURANCE

MODERN

INSURANCE

|

69

F E AT U R E S

F E AT U R E S

A key time for change

What effect has the use of data analytics and Q intelligent risk modelling made to the industry’s battle against fraud? And more specifically, for BGL

Have you witnessed a change in customer Q behaviour in response to COVID-19? How do you think the pandemic has affected the

The counter fraud capability we have developed across BGL has already demonstrably reduced our insurers’ loss ratios. With over 10 million customers across the Group, the information we hold allows us to really deliver comprehensive and market-leading insight for our partners.

A

There have certainly been some behavioural changes from consumers but it’s difficult to imagine a scenario where motor, home and life insurance won’t continue to play an important role. Understandably though, customer needs during this period have changed and we saw a significant increase in calls to our Lending Support team during the early phase of lockdown as customers managed their finances whilst still ensuring they and their families were adequately covered.

70

|

MODERN

INSURANCE

I believe coronavirus will elevate the demand for product flexibility and personalisation across financial services, and as consumers’ belts tighten, there comes a requirement for a wider choice of products that meet the needs of individual lifestyles. It is in ‘stressed’ situations like this, that the way a business looks after its customers comes into sharp focus and there will be areas of the insurance industry that may never return to ‘normal’ again and it’s important to consider what this means, specifically, for our customers.

The industry is experiencing huge change and opportunities following the Covid-19 pandemic. Peter Thompson, BGL Group, discusses with Modern Insurance how customer behaviours have changed in response to the outbreak, but also how collaboration, data and technology is enabling growth and unlocking potential within the industry.

consumer’s perception of ‘risk’?

The power of data is often cited without any substance but being able to truly unlock the potential from it is one of the most important secret weapons we have

I’m confident that this period will bring real opportunity for those equipped and determined to harness the positives from it

The key for any customer-focused business right now is to take the time to listen. Every person has a different concern based on their own circumstances and a ‘one size approach’ will not fit all, and therefore, remaining empathetic is vital. The flexibility we have been able to offer customers during this period has been well-received at a time when many people simply want reassurance that the brands they use, have their best interests at heart.

Unfortunately, as a direct result of the pandemic, debt and affordability issues may well continue to increase in the coming months and so the insight and trends we receive from our specialist team is invaluable in helping us understand and shape our customers’ requirements post the pandemic.

Group?

A

It’s estimated that the average value of a detected motor insurance fraudulent claim is now in excess of £12,000, which significantly impacts on the price a genuine customer will pay for a policy. However, we’ve certainly come a long way in how we detect, capture and manage fraud, but so too have the criminals, which is why it’s vital to continue investing in counter-fraud capability.

The use of data analytics and more specifically, artificial intelligence, has the potential to propel the insurance industry into a truly digital arena, and its application in areas such as counter-fraud, demonstrates its ability to have a significant and positive impact on both customers and the market as a whole.

In short, there is no silver bullet when it comes to eradicating insurance fraud. However, because of our industry’s long history of operating at the forefront of data analytics – our pricing is all based on intelligent risk modelling that many could not even begin to understand – when it comes to using this expertise to crack down on fraud, we have certainly been able to make inroads that many other sectors have not. That being said, there would certainly be significant advantage in consumer-focused businesses from all industries sharing insight and data to deliver better counter-fraud outcomes and I believe the insurance market would credibly be at the head of the table on this.

‘Distribution as a Service’ has recently been Q launched, which is extremely timely in an era where partnerships and collaboration are key. How will this partnership model open new product lines for insurers?

A

We know from our years of working closely with numerous insurers across the market that a number of them aspire to expand their direct brand product offering. We also know this can be a difficult route for them to take due to a range of factors such as; the significant upfront investment required, the drain on already stretched change resource, and the know-how for distributing in these markets. Additionally, we know that customers’ needs and expectations are changing at unprecedented speed, and ensuring your product offering is able to adapt to those changes is complex and time/resource heavy.

Distribution as a Service is designed to give insurers the option to by-pass those blockers, calling on the significant investment BGL has made in our own infrastructure, people and product innovation capabilities, we can open up those new direct markets quickly and efficiently, and support those insurers with the desire to get the best return on the brand and underwriting investments they have made.

do you predict to be your division’s Q What biggest challenge in the next 12 months?

A

No one could have predicted the challenges we have all encountered this year, and therefore, the next 12 months will be about moving forward and using the key learnings we have taken from this period, particularly when it comes to the rapidly changing demands of our customers. For us as an industry, we should certainly take forward the lessons we have learnt about investing for speed of change and implementation; in addition, insurers need to embrace agile product development and ensure they are addressing the broadest range of consumer needs while arming their agents with tools to provide those products via digital channels. We will also be implementing the remedies from the Market Study, which will no doubt bring volatility to our market in the short term, which again means that increased agility will be hugely important. I’m confident that this period will bring real opportunity for those equipped and determined to harness the positives from it.

The power of data is often cited without any substance but being able to truly unlock the potential from it is one of the most important secret weapons we have.

The key for any customerfocused business right now is to take the time to listen

Peter Thompson is the Chief Executive Officer, Insurance, Distribution and Outsourcing at BGL Group.

MODERN

INSURANCE

|

71

F E AT U R E S

Maintaining Business Continuity in an age of pandemic

Craig Hartley, OPEX, reflects upon some challenges presented to different customers in both the private and commercial sectors who both needed to ensure continuity of workflow processes, explaining how OPEX were able to support them in challenging circumstances over UK lockdown to achieve their required outcomes.

Society in the UK has been deeply impacted and affected by Covid-19 during recent months. As Winter approaches, the news continues to focus on Covid matters like never before, and at the time of writing, the UK looks to be on the cusp of returning to heightened measures and further impact upon our daily lives, and with good reason.

Throughout the pandemic, OPEX’s team across UK and Ireland worked shoulder-to-shoulder with our customers, ensuring continuity of their operations. Ultimately this ‘behind the scenes’ service supports and enables NHS Medical Records teams to digitise and share patient information with NHS colleagues remotely and on the front line, to help save lives.

This article doesn’t seek to dwell upon the negative aspects within society associated with Covid, but rather offer insight around how organisations have re-thought their working practices, diversified, and ensured their continued operation whilst ensuring the continued safety of their workforces with OPEX’s support.

Over 30 NHS Trusts now rely upon the expertise of OPEX for handling the digitisation of their Medical Records, having adopted this model as their preferred solution.

In 2020, we all recognise that the NHS has faced the biggest challenge in a generation. Whilst it’s impossible for society to perform many of the lifesaving tasks undertaken by frontline NHS staff, the completions of many ‘behind-the-scenes’ administrative functions and non-patient facing tasks remain undiminished, and indeed arguably more important now than ever before.

It becomes a valid question to ask - but in all this current uncertainty, where does the topic of scanning and capture of patient’s medical records play a crucial part?

The country’s need to ‘Go Digital’ is greater now than ever before, with instantaneous access to patient information becoming crucial.

This scenario was exemplified by one NHS Trust, who were amidst the process of installing multiple OPEX Falcon machines to enable their ‘digital’ drive for clinicians and medical staff to access invaluable patient files and information, traditionally hand-delivered to clinics. The project continued relatively unabated over Spring 2020 seeing successful deployment of the newly installed machines, plus recruitment and training of a new workforce to deliver this new digital workflow. The Trust recognised the project was a priority, and aside from the countrywide pause to prioritise growing numbers of patients as pandemic numbers accelerated, the Trust’s background desire change working practices for the good, and forever, remained intact.

The country’s need to ‘Go Digital’ is greater now than ever before, with instantaneous access to patient information becoming crucial

Digital Mailroom

During the pandemic, the delivery of ‘Digital Mail’ to employees enterprise-wide has become an absolute requirement for business, whilst addressing risk management and mitigation concerns.

An international outsourcing company recently set up a new office serving their UK clients from offices near London, and their timely investment in OPEX’s Falcon V RED machine enabled their service provision to continue relatively unhindered, and indeed ensure they could remain at the forefront of service delivery for ‘digital mail’. The range of services provide required included diverting incoming business mail intended for employees who were all working from home remotely – yet still needs access to the mail.

Other workflows for the client included diverting and receiving incoming mail containing financial information, invoices and payments (AP) local-authority workflow documents, etc. – again all of which needed to be handled on behalf of their clients to ensure timely continuity for business workflows. Again the Falcon V RED machine proved invaluable in handling incoming mixed size unstructured mail envelopes, opening the mail automatically, and enabling an operative to categorize, scan and capture the images with inbuilt state of the art software solutions, ensuring items such as original and fragile documents were handled securely to complete the process. All being achieved against stringent SLA’s, in a timely and secure manner for their clients.

Craig Hartley is the Business Development Manager UK at OPEX Business Machines GmbH.

MODERN

INSURANCE

|

73

F E AT U R E S

Prosthetic technology: Impacting change during the past, present and future

The world of prosthetic rehabilitation is ever changing and ever evolving. With nearly twenty years of experience in the industry I have seen game changing moments that have truly altered the course and changed the lives of patients I have treated.

Technology can and will play a huge part in the outcome of these rehabilitation journeys but there are many factors not least the effort and motivation of the patient themselves, sheer belief and determination combined with a supportive family and friend’s network and a rehabilitation team that will listen is vital.

Technology can assist across many formats, from the science behind how a socket can fit to the functionality of a particular prosthetic component or the tools we utilise to rehabilitate that individual to optimum levels. However, we mustn’t become focused on technology for technology sake, and it is essential that we manufacture prosthetic devices and engage in rehabilitation that is appropriate and specific to each individual.

At the heart of good prosthetic rehabilitation, is the socket or interface between the patient and prosthesis. Without this being suitable and comfortable a patient will never be able to achieve their goals. The reality is we still use plaster of paris, but we can now also utilise scanners and 3D CAD software to capture and manipulate the shape of a residual limb. The possibility of Osteointegration to eliminate conventional sockets completely and anchor prosthetics directly to the remaining skeletal framework has become an everyday reality.

I recently saw one of my patients who four years ago made the decision to embark on the route of Osseo, and her words were that she could not imagine going back to conventional sockets and that for her, Osseo had changed her life and taken away the worry of mobility and independence as she grew older.

As prosthetists, we strive to give back to our patients as much as possible; we cannot replace lost limbs but with the aid of appropriate technology, we can strive to improve the functionality of prosthetic wearers and help patients achieve their mobility goals. We are currently working with an individual who as a result of an RTA became a left sided trans-femoral (TF) amputee and complete spinal injury (T11). His incredible resolve and strong will, has enabled him to become the first TF amputee with a spinal injury in Europe to walk with the aid of an appropriate prosthesis and Exo-skeleton, this is a great example of technology, team work and pure determination from the patient’s perspective.

We cannot replace lost limbs but with the aid of appropriate technology, we can strive to improve the functionality of prosthetic wearers and help patients achieve their mobility goals We are at a really interesting point in the way we deliver prosthetic products and rehabilitation, and as the world around us becomes more digitised so to do the opportunities within this industry. The thought of directly controlling a prosthetic foot using a patients remaining muscle was futuristic 20 years ago but is a reality now, in research if not clinically available.

Prosthetic manufacturers continue to innovate as do clinical providers like ourselves at Dorset Orthopaedic and by having this plethora of prosthetic options at our fingertips ultimately allows us to try to maximise each patient’s independence and functionality.

Matthew Hughes

is the Managing Director of Dorset Orthopaedic.

MODERN

INSURANCE

|

75

The

F E AT U R E S

New Eden Way

New Eden is changing the insurance world by bringing balance and reward to the forefront. Focused on making a difference to the market for underwriting Solicitor’s Professional Indemnity Insurance, Mark Langley-Sowter, New Eden, introduces us to the concept of rewarding insurance and the impact of cultural data on PII. How is New Eden re-imagining the market for Solicitors in Q the Professional Indemnity Insurance (PII) market, and why did you feel it was necessary to introduce the New Eden Way? The basis of insurance still works in Personal Lines where A consumers are usually in the millions. However, in Commercial Lines, numbers are significantly reduced, such as in the legal

Cultural analytics are the missing link and potential holy grail for making better-informed decisions on risks, not just in the here and now, but continuously in the future

sector, and so a different approach is necessary, yet insurers have resisted for decades, even now in our technology-driven and more-sophisticated-buyer environment.

firms do from a transaction perspective, not ‘how’ good firms manage their business on a day-to-day basis. ‘Bad-firm’ outcomes will produce exactly that: bad firm results.

In recent years, we found that the biggest complaint from law firms in respect of their Professional Indemnity Insurance has been a lack of fairness, acknowledgement or reward for being well-run, good or excellent risk. This is what informed the New Eden raison d’etre.

Instead, we believe that insurers would do better if they included a layer of rich data focusing on ‘how’ a firm works, not simply ‘what’ it does or did last year. This is where cultural analytics come in, since it is the culture of a service organisation more than anything else which determines the potential for risk, complaints and ultimately claims. Insurers already know this with 90% of claims not about the law, but human error, poor management of time, people and processes.

Collecting from the many to pay for the few works less well in the commercial world, especially when ‘the few’ can be negligent, careless or fraudulent. Why should a well-run, risk-averse and claims free practice keep paying more for bad firms over which they have no control? So, the idea of ‘Rewarding Insurance’ was born. The key for insurers was how do they spot, identify and quantify a well-run legal business?

I’ve spent the last 35 years working with all types of service organisations across the UK and Europe, analysing and assessing their cultures. Once we identified this critical demand for fairness, it was much easier to re-imagine and create a solution, particularly in a market where the product is undifferentiated.

Can you explain the concept of Rewarding Insurance, and Q how this concept is disrupting the traditional business model we are used to within Commercial Lines, especially the PII market?

The New Eden concept is simple for insurers and solicitors: A allow us to measure how good you are with our ‘Balance Insight Questionnaires’, and then stay claims free for an agreed period. Assuming you qualify, we’ll reward you with tangible savings along the way or a refund. Sometimes both.

We also recognise the insurer’s need to improve claims ratios and profit by choosing the right clients in the first place, so both sides win. As we say, it’s a no-brainer! can cultural analytics data better inform decisions and QHow improve claims ratios both for solicitors and insurers?

Until now, underwriters have used historical data to assess A future risk on broadly five criteria (Turnover, Number of Partners/Directors, Staff and Solicitors, Business Split and Claims History). Most will say they have many more data-points and myriad algorithms to calculate risk but are based on ‘what’ bad

Our rich data also helps the client firm to maintain their convergent culture and service risk management since we feedback these valuable insights to them, as well as to the insurer.

Effectively, cultural analytics are the missing link and potential holy grail for making better-informed decisions on risks, not just in the here and now, but continuously in the future. is your predication for the PII renewal process in the QWhat future?

Interestingly, with the advent of Covid-19, almost every A business journal one reads these days has a regular section on ‘culture’, so we know we are on the right track. Enlightened

insurers are embracing this approach while others remain rooted in conventional data hoping for different outcomes, if only they could find the right algorithm. Madness. Personal Lines insurers lead the way with voice pattern technology, and it won’t be long before online, video interview applications become ubiquitous.

Over the next two years, we believe it will be unthinkable that cultural data will not be included at your PII renewal process, because those service businesses who are the most successful will be those with the best cultures and will also be the better risks. Cultural analytics data is key to this paradigm shift in commercial underwriting.

Mark Langley-Sowter is the Founder and Services Director at New Eden.

MODERN

INSURANCE

|

77

F E AT U R E S

F E AT U R E S expected to use their intuition. This results in the international average truth/lie detection ability of 54% - no better than chance - as many use indicators that are unreliable. Trained people are hitting 90% accuracy after only a few days training. The key is to learn the basic skills, don’t guess with high stake claims and risks.

Finding Fraud

What specific areas of behavioural analysis Q would you recommend insurers focus their training on?

A

There is no one reliable indicator or channel – we need corroboration for accurate decisions, so multi-channel training in behaviour indicators is key. Also, training in elicitation and funnelling questioning frameworks that get you to the truth.

With so much technology available to reduce Q fraud, do you think the value of human detection is often overlooked by companies? What

through deceptive behaviour

can human detection offer that technology cannot?

A

The introduction of social distancing measures into our workplaces has required many businesses to offer remote and virtual services. In terms of the insurance industry, many companies have had to stop face-to-face meetings and conduct risk and claim assessments via video chat. But how has this effected their fraud detection rate? Cliff Lansley, Emotional Intelligence Academy, is known for his work in emotional intelligence, behavioural analysis, and high-stake deception detection contexts. He spoke to Modern Insurance about what to look out for when analysing body language through a screen and why staff training is essential for accurate detection.

There are […]

27 scientifically validated indicators of deception (the ‘SCAnR’ system) that can be learned and used to help us in the insurance industry

Have you witnessed a change in customer Q behaviour in response to COVID-19? How do you think the pandemic has affected the consumer’s perception of ‘risk’?

A

There have certainly been some behavioural changes from consumers but it’s difficult to imagine a scenario where motor, home and life insurance won’t continue to play an important role.

Understandably though, customer needs during this period have changed and we saw a significant increase in calls to our Lending Support team during the early phase of lockdown as customers managed their finances whilst still ensuring they and their families were adequately covered.

Q

Fraud examiners know that a suspect’s body language can reveal more than the subject realises, but now that many of our meetings are through video, how can fraud and deception be detected? And how should we be analysing body language and behaviour now that our customers tend to be seen through a screen?

A

Behaviour analysis is an essential tool in helping insurance professionals to get to the truth in risk and claim assessments, yet conversations I have had with insurance company staff reveal that much of the ‘body language’ judgements are from gut-feelings or from ‘myths’ they have picked up (e.g. eyes look away, they appeared nervous, too much detail, etc).

There are, however, 27 scientifically validated indicators of deception (the ‘SCAnR’ system) that can be learned and used to help us in the insurance industry. The key here is the 3-2-7 rule - we only pay attention when we notice 3 indicators from 2 or more channels within 7 seconds of a prompt/question.

78

|

MODERN

INSURANCE

These come from six communication channels, so we need to watch and listen attentively: 1. Facial expressions – universal movements (some less than 1/5th second duration [micro-expressions]) of 43 muscles on the face revealing true emotions others are feeling.

2. Body language – movements of the limbs, hands, shoulders, and head that leak what we are thinking.

3. Psychophysiology – visible signs such as changes in pupil size, sweating, breath rate, etc., that reveal our internal states, emotions, and anxieties.

4. Voice – changes in pitch, volume and tone can point to deception, fear, and anger.

5. Verbal Style – changes in flow, hesitations and pauses can point to cognitive load issues (i.e. when a client/claimant is thinking too hard about a question that should be no problem for a truth teller).

and they may react with behaviour that is about your style rather than their deception or truth). So the other 50% is about the quality of the questions you pose – good investigators use a funnel that engages, builds rapport, then explores and verifies aspects of the account where behaviour has raised red-flags – using elicitation methods.

Technology is unreliable because it is not dynamic... it cannot hypothesise and check out and eliminate hypotheses.

Polygraphs and voice analysis can play a part, but they are each only checking one channel – about 1/8th of the picture. The National Research Council has highlighted that polygraphs only detect stress – is that the stress of being disbelieved in a truth, stress of being caught in a lie, or the stress of knowing you are being monitored by a machine. There are protocols and laws surrounding use of overt and covert technology too – the subject has to be made aware of it, so this contaminates the interview.

Currently there are no laws for those we train to reveal that they are a lie-detector who operates at 90% reliability.

Given that there is a plethora of reasons behind Q deception, how can insurance businesses ensure their employees react correctly if they detect deceit?

A

When deception is suspected, the secret is to not ‘react’. Let the conversation flow past the ‘hotspots’ of deception and come back to them later to see if the same deceptive indicators emerge. You have to explore an account to work out why a person is leaking strange behaviour – they could be embarrassed, they could be unwell, they may be covering up for others, or they may simply be telling the truth but reacting to your interrogation approach.

The key here is that your six channels are showing too!

Video chat can be limiting as we can only see a Q portion of the customer – how does this restrict detection? And how can this be overcome?

A

Web based video meetings provide us with five and a half channels, so we only really lose the lower half of the torso, which makes video-based interviews really useful. The key is to set up your screen and camera so that you are looking at the person you are listening to... not the camera, yourself, or a PowerPoint slide.

6. Verbal content – the choice of language, tense use, and statement analysis combine to help us differentiate between an episode that has been genuinely experienced, and one that has been constructed.

Q

Fifty percent of the skill is noticing when these indicators are inconsistent with the story being told, the baseline of the individual, or the context of the discussion (high pressure accusatory style versus fact-finding curiosity – the former will be ‘felt’ by the client

A

Do we need to start training our staff differently in fraud detection now that remote home working looks to be here to stay?

Sadly, scientifically validated behaviour analysis training rarely features in professional insurance related training, so staff are

Cliff Lansley

is the Director of the Emotional Intelligence Academy. Find out more here: www.eiagroup.com

Scientifically validated behaviour analysis training rarely features in professional insurance related training, so staff are expected to use their intuition. This results in the international average truth/lie detection ability of 54% MODERN

INSURANCE

|

79

F E AT U R E S

Just a Thought from Eddie Longworth The post pandemic claims world needs a new vision.

I am not one of these ill-informed and often ignorant headline writers who argues that insurers should pay out on all claims at any time, simply because the paying public ‘deserves’ settlement.

Pandemic or not, every honest claimant has the same sense of entitlement at the time of their claim and woe betide the finances of an insurer who bows to policyholder pressure and is too lenient in managing claims ratios and costs. To adopt the stance regularly demanded of us by those who should know better is the road to financial ruin.

However, at the time of writing, it is the failure of insurers to pay out on Business Interruption claims that is making the news, and not just in the more obscure financial pages. Just a few days ago, the FCA largely won its argument in the courts against a representative sample of insurers and policy wordings, although, no doubt, the army of lawyers involved will be girding their loins for the appeal process. At some stage, the deserving policyholders will receive the monies they have always been due whilst many more will remain disappointed and, no doubt, the dust will eventually settle.

We deserve public distrust

Whatever the eventual financial outcome for insurers and policyholders alike, you can bet that the popular perception of the insurance industry as money-grabbing claims refuseniks will have been reinforced by this whole sorry process. Once more, we will be painted as the villains of the piece, and it seems to me that we have only ourselves to blame.

Firstly, we write policies and sell them to the unsuspecting public with little clarity on exactly what is covered and what isn’t. Nor do I restrict my comments to the BI space. My successful application for private health insurance ran to 73 pages of incomprehensible nonsense, which fell at the first hurdle when I tried to make a simple claim for referral to a medical specialist, and even the claims handler misunderstood the policy coverage!

Secondly, in almost every single claims department I have consulted with (and there have been a lot over the years!), one of the key measures of success is the ‘repudiation rate,’ followed closely by ‘cancellation/withdrawal’ ratios.

In other words, we measure a part of our success on what proportion of initial claims we manage to avoid paying! I have never, ever seen a monthly KPI that reports the other side of the coin - the percentage of claims that we actually do pay.

This usually only features in the annual reports of insurers when

It is beyond comprehension that in our race to the bottom of the pricing ladder we somehow seem to have lost our core values of integrity, honesty, and fairness along the way

Covea Insurance plc Registered Office: Norman Place, Reading, Berkshire, RG1 8DA Registered in England and Wales No. 613259 Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority No. 202277

COVEA INSURANCE Nº dossier : 20110324E

it suddenly becomes important to play the game of being a customer-centric organisation.

Thirdly, we have allowed ourselves to become a largely pricedriven commoditised industry in which notions of value, service, and fairness are too often left at the door when we arrive at the office. Why it should ever take a regulatory body to establish the imperative to ‘Treat Customers Fairly’ and to protect vulnerable customers is surely worthy of a Ph.D., thesis in self-inflicted pain.

Culture beats strategy

Don’t misunderstand me. Those whom I have worked with over the years know that I have little tolerance for the ‘softly softly’ school of claims management. But to me it is beyond comprehension that in our race to the bottom of the pricing ladder we somehow seem to have lost our core values of integrity, honesty, and fairness along the way.

If the pandemic achieves nothing else, let it be a time to pause, reflect, and consider a better way to establish our true value as an industry and as a claims profession amongst our policyholders and the public at large.

Eddie Longworth is a Director at JEL Consulting.

MODERN 0

95

80

0

0

50

100

0

INSURANCE

|

81

10

MINUTES

WITH...

10 mins with...

Suzanne Liversidge Q A

Do you think that the industry has changed since you started working in it? If so, how has it changed?

The industry has changed dramatically over the last 30 years.

Not only in terms of structure, market players and the global risks we all now face, but also in terms of how we have come together as a community.

I am particularly struck by how the Dive In Festival, which is run by Lloyd’s of London, has impacted the insurance market. 10 years ago, having a global diversity and inclusion festival would be unimaginable to me. As global festival partner, I’ve been able to see first-hand the messaging, connectivity and positive experiences it has created across the insurance industry. I believe that diversity in the sector has brought about not only positive change but also industry success.

That’s a reason to celebrate and I’m very proud to support it.

Q A

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

I’m pleased to see far more women in senior leadership positions in the industry. It’s still not good enough but the change is now tangible. I’m really proud to be part of the ISC Group and I’ve seen the positive influence it has had through its support of senior female role models in the insurance sector and how they’re looking to support the next generation of leaders.

Q A

Who inspires you and why?

For me, it’s all the unsung heroes who work hard in the background to support me, our people and our clients. I certainly couldn’t do my job without their help. They don’t always know it, but they genuinely do inspire me to do better and achieve more every day so that we all make a difference. I need to tell them more often what a positive impact they have!

Q A

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

My Dad has always been my mentor. Even as a small child he told me that I could do anything I wanted and that the only barrier I ever would face would be myself. When I was young, I had no concept of some of the prejudices I would face, but he taught me to be fearless, to care about others and to stretch myself. He taught me the value of supporting others and encouraging them to stretch themselves and grow too.

And to be kind, which is so important, particularly in challenging times.

|

MODERN

INSURANCE

I believe that diversity in the sector has brought about not only positive change but also industry success company. But if I had to choose it would probably need to be one in a completely different industry such as the arts, which is one of my passions. It would need to be something really different and special to make me want to work elsewhere… I think I’d rather retire!

Q A

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

I’d be a stand-up comedienne.

It was my dream when I was younger. I have dabbled over the years and I sometimes daydream about what might have been! Humour is a key part of my everyday work; it keeps me sane.

OUTSTANDING CUSTOMER JOURNEY Award winning motor, legal and property insurance distribution and claims handling.

Our 30 years of experience providing 24/7, white labelled solutions for brokers, insurers and MGAs means we know how to take care of your customers when it really matters.

Whether we are providing a complete outsourced service or components customised to your business model we work as an extension of your brand.

Looking for a fresh approach? Talk to us.

Q A

01603 729310 COPLUS.CO.UK

If you had to choose one other company to work for, who would it be any why?

It’s a hard question as I genuinely love what I do, and I love the firm that I work for so it would take wild horses to drag me to another

I’m really proud to be part of the ISC Group and I’ve seen the positive influence it has had through its support of senior female role models in the insurance sector and how they’re looking to support the next generation of leaders 82

WE ARE COPLUS

Suzanne Liversidge

SCHEMES

is the Global Managing Partner at Kennedys.

Delivering our promise. Keeping yours.

BROKERPLUS

CLAIMS HANDLING

RISK. MANAGED. New and emerging risks such as cyber and data management are fast becoming a worry for today’s businesses, while traditional risks like fire, flood and theft continue to challenge.

That’s why we’ve developed Allianz Risk Management – our new online service to help keep customers open for business.

ACOM8336 05.19

Visit allianz.co.uk/riskmanagement

Allianz Insurance plc. Registered in England number 84638. Registered office: 57 Ladymead, Guildford, Surrey, GU1 1DB, United Kingdom.

Allianz Insurance plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number 121849.