Modern Insurance Magazine Issue 36 by Charlton Grant

36 ISSUE

ISSN 2515-3803

ABOVE AND

BEYOND Services for changing customer expectation Dominic Clayden, MIB

Carpenters Group Roadshow Customer Service Excellence

Building a better relationship Jo Causon, The Institute of Customer Service

Working with

A CENTURY OF PROFESSIONALISM

A whole new world

Clive Nicholls, Crawford & Company

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MODERN INSURANCE

EDITORIAL CONTRIBUTORS Andrew Chandler Sales Director FMG

Paul Higham Property Account Manager, Technical Allianz

David Ovenden Global Director, Pricing Product Claims and Underwriting Willis Towers Watson

Paul Tasker Managing Director REG UK

David Williams Technical Director AXA Insurance (UK) Donna Scully Director Carpenters Group Jason Tripp Managing Director Coplus Keith Tracey Managing Director Aon Risk Solutions Marc Lafferty Chief Revenue Officer EDAM Group Michael Lewis CEO Claim Technology Ltd Michael Warmington Associate Director, HR Winns Solicitors Nik Ellis Managing Director Laird Assessors Pablo Liñares Director of Consulting and Innovation Services GT Motive

Paul Taylor Managing Director Operations Plantec Assist Peter Goodright General Manager Nationwide Vehicle Assistance Richard Pash UK Marketing Director Zurich Richard Taylor Sales and UK Business Director GT Motive Rob Cooper Co-Founder and Executive Director Me Group Holdings Rupert Armitage Managing Director Auto Windscreens Stephen Marshall ACII Managing Director Insure Apps Steve Thompson Director Industry Insights Trevor Lloyd-Jones Senior Marketing Manager, Insurance LexisNexis Risk Solutions

WELCOME ustomers now have more options than ever when it comes to choosing insurance, and they want the firm assurance that they are partnering with a company that will put them first and at the heart of their product offering. Now, insurance hasn’t always been renowned for being a customer’s favourite purchase, but it is on the rise in terms of customer satisfaction according the UK Customer Satisfaction Index (UKCSI), a survey put together by the Institute of Customer Service to measure customer service within every sector. You can read more about the industry’s score over on page ten as we interviewed Jo Causon, CEO of the Institute of Customer Service, all about how the industry can build a better relationship with its customers.

So, in this edition, we wanted to find out what factors attributed to the customer’s experience of insurance, what needs improving and how we can go above and beyond to ensure our customers are getting the service they need and want. In order to do that, we went on the road with Carpenters Group and held two roundtables focusing on customer service excellence. Each session brought up some interesting points and offered new insights about how we can raise the standard and drive performance within the industry. The discussion brought forward the fact that the insurance industry has a bit of an image problem as we are mostly defined as a ‘grudge’ purchase. That needs to change, and fast! Hopefully the roundtables deliver a progressive and insightful conversation that you can take back to your own businesses when examining your own customers’ journeys. As always, we have our fantastic panel of editorial board writers, starting from p.19, who are offering advice, tips and comments on all things insurance. We also have an interview with our newest member, Clive Nicholls, Crawford & Company’s UK President, about the growing world of risk and technology and how their business is having to adapt. Nominations closed for the UK Customer Service Excellence Awards on the 15th February – we have had a record number of nominations, and I would like thank everyone that took the time to nominate and wish you the best of luck! I hope you enjoy this issue, and if you have any comments or feedback, then please do get in touch via the details below.

ISSUE 36 ISSN 2515-3803 Co-Editor Poppy Green Project Manager & Events Sales Rachael Pearson

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

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Poppy Green, Co-Editor, Modern Insurance Magazine. 01765 600909 @Modern_Poppy poppy@charltongrant.co.uk

Modern Insurance 03

MODERN INSURANCE

ISSUE 36 | ISSN 2515-3803

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Issue 36

MODERN INSURANCE

NEWS 7 Services for changing customer expectation

Modern Insurance hears from Dominic Clayden, Chief Executive at the Motor Insurers’ Bureau (MIB), who reflects on the MIB’s services while focusing on their transformation programme.

INTERVIEWS 10 Building a better relationship

Speaking to Jo Causon, CEO at The Institute of Customer Service, ahead of their annual conference and awards, we dove into the facts and figures surrounding the UK Customer Satisfaction Index, published in January 2019. While the insurance industry is improving, there is still a long way to go in terms of improving our customers’ experiences and - along with it - our own business performance.

14 A whole new world

Modern Insurance spoke to Clive Nicholls, Crawford & Company’s UK President, about the evolving nature of the business in response to the new and growing world of risk and technology.

EDITORIAL BOARD 19 Staying ahead

David Williams, AXA Insurance (UK)

19 What do you expect to be the biggest challenge for the insurance industry in 2019?

Pablo Liñares, GT Motive

21 Define your company culture

Rob Cooper, ME Group

21 What can we learn from negative feedback?

Jason Tripp, Coplus

23 The modern workforce

Paul Taylor, Plantec Assist

25 Being equipped for nondamage business interruption

Paul Higham, Allianz Insurance plc

25 We must take advantage

Peter Goodright, Nationwide Vehicle Assistance (NWVA)

27 What do you expect to be the biggest challenge for the insurance industry in 2019?

FEATURES 38 Sector Soapbox

42 Industry Innovators Interview: buzzvault

Donna Scully, Carpenters Group

27 Getting the balance right

Richard Pash, Zurich

29 ‘Don’t think small, think agile’

Paul Tasker, REG UK

29 Making better use of data sources

Trevor Lloyd-Jones, LexisNexis Risk Solutions

31 Insight is key

Marc Lafferty, EDAM Group

Andrew Chandler, FMG

Michael Warmington, Winns Solicitors

35 What are the most important features of an effective website?

Nik Ellis, Laird Assessors

35 Choose wisely, invest smartly

Stephen Marshall ACII, Insure Apps

37 Learning and development

Steve Thompson, InduSTry Insights

37 Will 2019 be the year for ADAS resolutions?

Rupert Armitage, Auto Windscreens

Collaborating is becoming key to the insurance industry as technology continues to develop and change our work flows and customers’ expectations. Michael Lewis, Claims Technology, and Richard Taylor, GT Motive, have come together to discuss how artificial intelligence is changing the way we estimate claims, how chatbots are enhancing the claims process and why collaboration is the way forward.

51 Carpenters Group Roadshow: Customer Service Excellence 52 London 54 Liverpool 56 Marketing is taking responsibility for customer experience

23 What is the value of client feedback and how can it be done well?

Identifying risk needs a combination of top-notch technology and human interpretation as Tara Shelton, Chief Executive Officer of I-COG Claims Management, explains.

48 Connecting to conquer

33 Power to the people

Monica Savic-Jabrow, Barrister Direct, introduces Quick Costs and everything you need to know about the firm.

47 Emerging technology and fraud identification

David Ovenden, Willis Towers Watson

33 How should businesses create a positive company culture?

Launched in December of 2018, Becky Downing, CEO, has brought something unique to the market: buzzvault. The future of insurance is going to be ‘modern, hyper-personalised and game-changing’; read all about how buzzvault is going to redesign nextgeneration insurance cover.

45 Quick Costs

31 Getting to grips with new approaches

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

Leigh Hopwood, Managing Director of Redd Marketing, takes on the debate of who ‘owns’ the customer experience and backs the corner of the marketer.

Keith Tracey, Aon Risk Solutions

10 MINUTES WITH 58 10 minutes with…

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Penny Searles, SmartDriverClub

Modern Insurance 05

right people. right skills. right technology.

www.carpentersgroup.co.uk

END-TO-END COMPLETE CLAIMS & LEGAL SOLUTION

NEWS

Services for changing customer expectation Dominic Clayden TALKS NEWS Modern Insurance hears from Dominic Clayden, Chief Executive at the Motor Insurers’ Bureau (MIB), who reflects on the MIB’s services while focusing on their transformation programme. n my short time at the MIB, I’m still struck by the breadth and scope of what the Bureau now delivers, but it’s clear to me that our colleagues are deeply connected to our purpose and the services we provide to a diverse range of customers.

Our services are designed to benefit society and our reach has grown over the years as we’ve been asked to lead or provide essential support to industry and government initiatives. These requests reflect stakeholder groups’ confidence in our impartiality and our status as a not-for-profit, trusted organisation, which is here for the long haul and delivers on its promises. I’ve inherited an organisation built on solid foundations and from talking to our people, our Board members and our customers, I know that the MIB now has permission to further evolve our services and how we serve the public. We’re sitting on a bedrock of amazing assets, capability and talent, which we can take and translate into more value-added and value-driven services. 2019 will see us review and revise how we do what we do while we continue to deliver the key responsibilities that are expected of us.

Reflecting our society

It’s no secret that the world is digital, with increasing reliance on the smartphone. How we use technology and the resultant need and expectation of the public is ever-evolving, sometimes at a pace which seems breath-taking. Evolution is a fact of life and a necessity for every business and here at MIB we’re embarking

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We’re sitting on a bedrock of amazing assets, capability and talent, which we can take and translate into more value-added and value-driven services

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NEWS

We’re ambitious about the services we’ll provide as we play our role in helping to shape the future of the industry on our own programme to transform our systems to reflect the changing external environment. We want to keep up to date with what customers expect and so we’re rethinking the art of the possible. This will translate into improved ways in which our customers can interact with us. Our evolution will help the insurance and claimant representative industries to operate more effectively and will be underpinned by our belief to always be judicious and efficient in the use of our resources while bringing maximum benefit to those who we serve. But just as customer expectation is changing so too is the workplace. Increasingly, both men and women are looking at their relationship with their work, their employer and their families and community and evaluating how they can complement each other. We, as businesses, need to look again at how we accommodate these needs and embed them into the fabric of our organisations to ensure that we retain talent, capability and expertise. MIB is itself a diverse organisation and I’m interested in how we evolve our culture to support our business transformation – listening to colleagues and explaining what’s important to them is vital to this process.

It’s important to me that you share your insight with us as to how we can create services which are always valuable to you and your customers

Core responsibilities

I believe it’s important to highlight that our focus to transform MIB won’t detract from our core business as a utility for the insurance market. We’re already charged with dealing with the causes and consequences of uninsured and ‘hit and run’ driving and delivering secure and reliable services driven by data, but 2019 presents us with additional key areas, which we must honour as part of our social purpose. Like many other businesses, we’ll continue to deal with the complexity and impact of Brexit. For MIB, this relates specifically to the protection of the UK motorist in the EU, relating to Green Cards, the 4th Directive and the extent of the implementation of the Vnuk judgment. The recent change to our Articles means that we are now the insurance industry’s central expertise to handle claims for terrorism arising out of the use of a vehicle, while readers will be familiar with the pathway of the Civil Liabilities Bill and the responsibility that MIB has to deliver the Litigants in Person Portal in 2020. To support the development of the portal, I’ve been meeting with litigants in person, their representatives and the Ministry of Justice to listen carefully about what we need to build for public, insurer and solicitor users so that we don’t leave people feeling marginalised.

Services that matter to you and your customers

I hope that the changes you’ll start to experience through your interaction with MIB services really matter to you. These service changes matter to us – they’ll ensure that we can continue to evolve our ability to effectively serve society for the benefit of all our customers. This evolution will happen over time so do be patient. It’s important to me that you share your insight with us as to how we can create services which are always valuable to you and your customers. I know that sometimes we will need critical friends to help us realise our vision. I’m hugely excited about what lies ahead for the MIB and what we can achieve with our diverse, talented people. We’re ambitious about the services we’ll provide and what we have to do to get there – we know the public and our business customers expect nothing less as we play our role in helping to shape the future of the industry. DOMINIC CLAYDEN is the Chief Executive at the Motor Insurers’ Bureau.

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INTERVIEW

Those organisations with high customer satisfaction get a better outcome in terms of their financial performance 10 Modern Insurance

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INTERVIEW

Building a better relationship Speaking to Jo Causon, CEO at The Institute of Customer Service, ahead of their annual conference and awards, we dove into the facts and figures surrounding the UK Customer Satisfaction Index, published in January 2019. While the insurance industry is improving, there is still a long way to go in terms of improving our customers’ experiences and - along with it - our own business performance.

Q A

What is the definition of good customer service?

People often assume the challenges hindering customer engagement are around cost, but it isn’t just about cost

Customer service and the customer experience are critical to the performance of the UK. Nearly 80% of our GDP in the UK is services related and nearly 70% of our work force are in customer related roles. Furthermore, the cost of poor customer service to the UK is phenomenal – it is in the region of £128bn a year. That is the time that we are wasting as individuals trying to resolve our own problems during working hours, as organisations rectifying problems they have themselves created, and time spent on solving service issues caused by suppliers. The insurance sector has slightly improved compared to last year in the UK Customer Satisfaction Index (UKCSI). The sector now has a rating of 79.8, and ranks 6th out of 13. It is good to see some movement, but there are still many areas that the insurance industry needs to focus on, and those areas where improvement particularly needs to be driven is around the commitment and energy that insurers are putting into developing their people and the whole end-to-end experience.

Q A

How does the UKCSI rank each sector?

Twice a year we publish the UKCSI and it has over 40,000 responses. We have a range of panels and we ask consumers whether they have had an experience with an organisation within the last six months and what that experience was like against 35 different metrics. This is based on someone’s actual experience

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and it is the largest survey of its kind in the UK, making it statistically valid and robust because it covers all geographies and age groups among other factors in the UK. In the latest UKCSI, we have started not only to plot experience but to understand whether consumers believe the organisation has a solid customer ethos. We also examine whether there is an emotional connection and the notion of trust. Given the sector in hand, trust is really important. Finally, we ask about ethics. The combination of all these dimensions are important in terms of how organisations fare in the UKCSI.

Q A

How would you suggest insurers and claims professionals better engage with their customers?

There are 25 insurance companies within the UKCSI and what they need to be doing is making sure that their experience is effective. Looking at their scores, speed of resolving

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INTERVIEW

Use technology to enable but make sure the technology is drawn through the lens of the customer a complaint, the handling of the complaint and then the outcome of the complaint have attracted some of the largest range of scores. To improve management of a complaint or any issues or difficulties, insurers can make sure there are not too many “handoffs” throughout the experience. People often assume the challenges hindering customer engagement are around cost, but it isn’t just about cost. About 13% of customers are upset about cost. The actual experience is where the biggest challenges are: suitability of the service equals 31%, quality of the service equals 29% and staff competence is just under 22%. Insurers and claims professionals need to be focusing their time on their staff, the promises they make customers and making sure they are doing that consistently across the whole experience. The industry talks continually about price, and I understand in the areas of home and motor insurance that it is a very competitive industry, but it isn’t just about price. A significant number of us would pay much more for a better customer experience. There is a link between those organisations that have a higher level of customer satisfaction and higher trust scores. Those with high customer satisfaction get a better outcome in terms of their financial performance.

Our job is to help our members understand their customers and to be what we would term, ‘the critical friend’

Q A

Why is trust such an important aspect of customer service and retention?

Trust is a key differentiator. If I have a good customer experience and build a good relationship with an organisation, my trust for them increases. At some point all organisations drop the ball - it’s only normal, we’re human - but if I have had a good experience with that business it buys a degree of loyalty from me, and if the ball does drop and they apologise and rectify the issue, then I have a better affinity to that brand. Trust is also important when dealing with data, because if I don’t trust an organisation, I won’t give them my data. As we look into the future, the world will become a much more seamless and connected world, and if an insurance company doesn’t have my data then they can’t personalise that service for me, and if you can’t personalise that service, then you are going to become less relevant.

As technology is evolving, quite rapidly at that, will this have an effect on the customer journey and what can we expect to see as technology continues to evolve?

The advancement of AI has got to be a positive thing. From the research that we have done, it is very clear that the future will be about having a blended experience. Where something is generally transactional and you don’t need to speak to someone, then having an efficient technological base is much more effective. However, there are other matters that are much more complex where you will need to speak to a human being, and it is this blend that we will begin to see more of as we move forward. Firms should use technology to enable, but make sure it is viewed through the lens of the customer. It is about being customer centric, rather than product centred. Most of the technology we are seeing currently is in the back office and not proactively being used to drive things forward. The sector where technology is driving things forward is in banking. The banking sector is much more advanced in using apps and proactively using AI and predictive analytics to better serve customers. The insurance industry needs to be proactive rather than reactive.

As technology does develop, why is it important that we still have a human element in the process of customer service?

We are on the cusp of some quite interesting and exciting things, but because that will be the future, we need to be clear about what exactly we want artificial intelligence to do, because the point of it is that it learns. Our research shows that people are quite happy to use artificial intelligence for transactional aspects, when it is deployed tomake moral decisions, i.e. using algorithms to determine whether a person can drive given their past behaviour. Then we become less comfortable. We really need to think about that as we go forward.

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INTERVIEW

For every 1% increase in employee engagement, you get nearly a 0.5% increase in customer satisfaction

Q A

How does employee engagement effect the customer’s experience?

Hugely! For every 1% increase in employee engagement, you get nearly a 0.5% increase in customer satisfaction. There is a direct correlation. If you think about this in a simplistic way, then it becomes very obvious; if an employee is engaged and enjoys their work, they feel like they are adding value and making a difference. So, what does it look like to have an engaged workforce going forward? Engaged workforces really care about the direction of travel and the purpose of the organisation and they have clarity around objectives and shared goals.

Q A

What does 2019 hold for the Institute of Customer Service?

Our role is to help the UK plc get better at delivering better customer experiences, and that is because there is a hard-nosed, economic value to doing that, i.e. it drives up better performances for those organisations. We want to help navigate organisations in an increasing complex landscape, where customers are savvier. Our job is to help our members understand their customers and to be what we would term, ‘the critical friend’. We are not there to produce league tables for the sake of it, we are genuinely interested in helping these organisations get better, and that is by investing in their staff and through utilising the many benefits of the institute – that is our training, our insights, and our research. It is about driving that further, getting our message across and growing as an organisation – we are driven by our purpose and want to make a difference.

Jo Causon Jo joined The Institute as its CEO in 2009. Over the past nine years she has driven membership growth by 150% and established the UK Customer Satisfaction Index as the country’s premier indicator of consumer satisfaction, providing organisations with an indicator of the return on their service strategy investment. Jo brings a wealth of experience from the commercial sector, enabling her to put customer service at the heart of the Boardroom agenda. She has extensive experience in the financial services sector having recently been appointed as a non-executive director to Aegon UK’s independent governance committee and having previously spent more than eleven years working for organisations such as Aviva plc. She has also held director roles in brand and business consulting, policy development and research for City and Guilds and the Chartered Management Institute. Jo focuses on demonstrating a clear link between employee engagement, customer service strategies and organisational performance. Working across the public, private and voluntary sectors she provides strategic advice to Boardrooms to raise the standards of service provided by UK organisations and to provide evidence of the connection between customer satisfaction and operational efficiency and profitability. She has worked with politicians across all sides of the House focusing on the impact that service has on the UK economy and productivity. As a result she is a regular commentator on national media and has been called to give evidence at the Public Administration Select Committee inquiry into complaints handling. Away from work, Jo is a keen walker and traveller. She has travelled extensively around Europe and wider continents, using her experiences to draw parallels on service strategy which she believes UK organisations should adopt and adapt to enhance customer satisfaction in an increasingly global marketplace.

JO CAUSON is the CEO of The Institute of Customer Service.

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Modern Insurance 13

INTERVIEW IMAGES: the world, techy world(?), robotic/AI world, evolution of technology, growing business

A whole new world Modern Insurance spoke to Clive Nicholls, Crawford & Company’s UK President, about the evolving nature of the business in response to the new and growing world of risk and technology.

Q A

How has your past experience helped you during your role as UK President?

I have been involved in claims all of my working life, which gives me a good perspective on the market, and helps me understand the current business and all of its components. As long as you stay grounded, keep connected to the people and understand the clients and their changing needs, then you will stay connected to the business. My past experience has helped tremendously over the years and will continue to do so.

Q A

How has Crawford & Company® utilised technology in order to deliver value to the customer and the wider industry?

We are always looking to assist our clients and their customers to achieve a better outcome. Better technology enables us to respond quicker. For larger losses, we are now using 3D imaging to take the loss to the client. You can retrieve and virtually walk around the loss. We can also overlay a virtual tour with salient features, which is proving to be an invaluable training aid. The ability of voice activated tools and features, like Alexa, is going to change the market. For example, you could register your claim from your home and we could pick that up simply by you speaking to Alexa. It is also possible to check the current position of your claim by asking Alexa for an update.

14 Modern Insurance

Risk in the modern world has fundamentally changed. Everything is connected, and voice activation will be the thing of the future that will present a different risk than what we have been used to. We are adapting to help clients and their customers navigate these new systems and the changing world of risk.

Q A

Last year, WeGoLook® launched in the UK, how has this improved claims management as well as TruLook?

WeGoLook helps businesses and individuals gather and validate information, and TruLook can handle your claim from start to finish. By using these products, you are applying a far more effective triage at the front end and improving response and resolution times. We are working with underwriters in terms of pre-risk and preinception. When they are presented with a risk, is it what they think it is? Has it changed? It is not a formal risk inspection, but capturing visual imagery of the risk and feeding it back to an underwriter can ensure a more informed decision. It gives you contemporaneous information, which assists an underwriter in making a better decision – our WeGoLook proposition is not restricted to just claims.

Q A

What principles are embedded in Crawford’s culture? What makes the difference between one company and another is the people – the people you employ, train and grow.

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INTERVIEW

My plea is that we utilise the knowledge that we have amassed to create an impact before, not just during or after the event Our mission is to restore and enhance lives, businesses and communities. Our vision is to be the trusted expert who looks after people engaged in insurance. The vast majority of claims that are presented to us are by people and businesses who didn’t expect the event to happen. We want to help put people back in the position they were in before the accident or event, be that as a business or as an individual. Our culture is aimed and focused on doing that.

Q A

How does Crawford ensure that its customers are receiving the best possible care and support?

We work with customers in order to understand their needs better and then deliver superior service. We take Net Promoter Scores (NPS) very seriously. We use NPS to measure our performance and gauge where we need to improve. There is always room for improvement – our job is never done. Trust is earned and expertise is learned. In order to be a trusted expert, you need to learn the expertise, have the knowledge of insurance but also of the sectors that we are experiencing claims.

Q A

What can a loss adjuster offer an insurer and what can they add to the chain?

It is back to expertise. It takes a while to become a chartered loss adjuster for very good reason, you can’t do it all in a classroom. With that expertise comes experience. If you have never had a subsidence claim at your home, why would you be expected to know what that entails? If you have never had a fire in your business, why would you be expected to know what happens next? Having that guidance through a process means that things get done quicker and less money gets spent. That expertise is the reason why it takes so long to qualify and why there are relatively few qualified adjusters as opposed to other professions.

Q A

Are there ways that the relationship between loss adjusters and insurers can improve?

They’re not just claims. They’re people. They’re family. For over 75 years, Crawford has solved the world’s claims handling challenges and helped businesses keep their focus where it belongs – on people. • Loss Adjusting • Managed Repair • On-demand Services • Catastrophe Support • Third Party Administration Thoughtful experts with intelligent solutions From the industry’s first and largest gig economy platform to predictive analytics, virtual reality, artificial intelligence, and more – Crawford’s unique combination of technology with industry-leading expertise delivers value to our customers and our industry. www.crawco.co.uk

We restore and enhance lives, businesses and communities

My goal is that we utilise the knowledge that we have amassed to create an impact before, not just during or after the event. Most underwriters that I speak to are concerned about surge events, wide area damage, events having a massive impact in a short space of time, and customer service really matters to

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INTERVIEW

Technology is changing the nature of risk – the mundane will be dealt with by a machine people that have had their lives and businesses devastated. There is so much more that could be done by working with the carriers and their clients to understand potential impact before the event. I think we could work closer with our insurance clients and partners to do more work before the event rather than in the middle of a crisis. Being prepared before the event enables us to hit the ground running at the time of the event.

Q A

Crawford’s Innovative Ventures (CIV) looks to improve the overall industry; what projects are you currently working on?

We are partnering and collaborating with other organisations to research the newest innovations and start-ups, and discover the next technology solution. We want to bring those innovative ventures to the forefront and use them alongside our current technology and solutions. It is all about problem solving and we are doing that through collaborative investments.

Q A

What challenges and opportunities are currently facing the industry and how would you suggest we manage them?

It is all about the rise of the machines and our ability to use machine learning and artificial intelligence among other technologies. Two-thirds of bank branches in the UK have closed in the last 30 years – mobile banking apps have replaced the bank visit. Those changes in risk are utterly invasive and you don’t even realise that they are happening. Technology is changing the nature of risk – the mundane will be dealt with by a machine. Everyone involved in the world of risk needs to quicken the pace around understanding that risk and addressing it for the benefit of the people we serve as an industry. The world of risk has changed and that is the biggest challenge facing us at the moment.

Q A

What does 2019 hold for Crawford & Company?

We have a real desire to quicken the pace and grow. We are pursuing strategic opportunities and partnerships that diversify our service capabilities and enable us to be even more responsive to our clients. The expectation of 2019 is to continue to grow, not just in the UK but as a group all over the world.

Clive Nicholls, LLB (Hons), ACII, FCILA President, UK & Ireland Crawford & Company In March 2015, Clive was appointed President, UK & Ireland for Crawford. He had previously been Senior Vice President, Global Client Development for Europe, Middle East, Africa & Asia Pacific. Clive began his career in 1981 with Robins Davies & Little and moved to GAB Robins in 1983 where he worked in a variety of senior roles, leading to his appointment as CEO in 2000. He is ACILA and FCILA qualified. After leaving GAB, Clive joined Accidentcare, which, following a merger, became Aquilo. In 2006, Clive was instrumental in setting up a building repair network business, before transferring to Rok Plc as Business Development Director, Maintenance Division when the business was acquired in 2007.

Everyone involved in the world of risk needs to quicken the pace around understanding that risk and addressing it for the benefit of the people we serve as an industry

CLIVE NICHOLLS, LLB (HONS), ACII, FCILA, is the President, UK & Ireland, of Crawford & Company.

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Loss Adjusting

Managed Repair

On-Demand Field Services

Catastrophe Support

Third Party Administration

Thoughtful experts with intelligent solutions From the industry’s first and largest gig economy platform to predictive analytics, virtual reality, artificial intelligence, and more — Crawford’s unique combination of technology with industry-leading expertise delivers value to our customers and our industry.

Learn more at www.crawco.com

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EDITORIAL BOARD

STAYING AHEAD Is the feedback process important to the industry, and how can negative feedback be utilised effectively? ome people fear feedback and based on some of the historical problems of the insurance industry, you can possibly understand why! Feedback shouldn’t be an opportunity for asking people you know are friendly to tell you everything is great, it should be the time when you choose perhaps the most exacting of respondents to dissect what they have personally seen and experienced, and point out what went well but maybe more particularly, what didn’t.

If you are looking for exacting respondents, look no further than your average UK consumer these days, used to the Amazon’s and John Lewis’s of this world, their expectations are often much higher than they were only a couple of years ago, and that trend looks likely to continue. They will be comparing insurance services with truly class leading consumer experiences, and if we are prepared to listen and change, that has to be good news. The only problem is, we need to make sure we put the structures in place to not only gather feedback, but to also get the granularity and detail of our customer’s needs and wants. ‘Net Promoter Score’ (NPS) seems a firm favourite across many industries and is useful for benchmarking as well as measuring your own overall improvements (hopefully!) over time, but you need to be able to dig much deeper to be able to know what you are doing wrong rather than just an overall performance ‘score’. I am personally a big fan of freeform text comments from our customers, if channelled appropriately you can find out, in some detail, what you are doing well and what needs to be better. To get people to bother to respond though, you need to make sure they know it is important and will get attention. Sadly, some online feedback systems have been discredited, either by the ability to ‘buy’ good reviews, or worse still, the knowledge that the company can edit away any comments it doesn’t like, preventing further public view. For that reason, at AXA we have chosen Feefo, robust and beyond our own tampering, something that our customers recognise and do seem to appreciate. And a good job that is too, as with their positive experiences from the Amazon’s and others of this world constantly improving, we must make sure our service does the same. DAVID WILLIAMS, Technical Director, AXA Insurance (UK).

WHAT DO YOU EXPECT TO BE THE BIGGEST CHALLENGE FOR THE INSURANCE INDUSTRY IN 2019? T

here are a few challenges for the motor insurance industry and the repair business that have been growing in relevance in the last year or two.

If we have to highlight a few which we expect to be the most relevant during 2019, probably the most relevant one will be the increasing complexity in cars and the technology that is built into them. Having the right skills and equipment to properly diagnose, repair and calibrate all the high-tech parts and sensors in a car is a challenge for repairers, which translates to insurers as the final goal is to find a convenient repair solution for the shared customer. Vehicle manufacturer certification programs and having access to their data (repair methods, calibration data, etc.) will be key to being successful in this new landscape. Linked to this, and as a second challenge for this year, we do have an increasing skills shortage in the UK that likely will continue to be a major concern in the repair industry. Finding ways to make the repair business more attractive for youngsters and setting up accessible training and career paths is a key task for this year to keep the engines running. Last but not least, the evolution in IT and specifically areas like artificial intelligence, big data and self-service is bringing new opportunities in terms of efficiency in many different aspects of the insurance business (underwriting, claims, and fraud control). There are already experiences in the market where some insurers are applying artificial intelligence to recognise the pictures sent by the customers at FNOL to help improve the responsiveness and accuracy of their first assessment, which as we know is probably the most critical moment during the life of a claim. The companies that are capable of leveraging new IT technologies into their processes will be able to be more competitive, offer a better service and disrupt the market. One of the main challenges when it comes to IT is integration and keeping legacy systems and processes running. This is where there is good news as technology has also evolved and through the use of APIs, integrations can be built easily to link up systems easier than it has been in the past. In any case, when talking about challenges, we must keep in mind that a challenge is always an opportunity to improve and be more competitive, so let’s go for it, 2019! PABLO LIÑARES, Director of Consulting and Innovation Services, GT Motive.

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EDITORIAL BOARD

DEFINE YOUR COMPANY CULTURE

WHAT CAN WE LEARN FROM NEGATIVE FEEDBACK?

How should businesses create a positive company culture?

eing asked to give feedback is pretty common place these days and there are not many service providers who don’t proactively ask customers to evaluate their experience. Certainly almost everything we buy these days seems to come with a request to leave a review!

he starting point for a positive company culture is defining that culture. What is it that the company wants to be? That can’t be artificial. It’s no good coming up with nice fluffy words, rolling out the standard TCF phrases in hope of appeasing the regulator, or indeed trying to be all things to all people. I’m a firm believer that ‘bad culture’ is actually just the lack of a strong, focused culture, and simplistically, a lack of strong leadership. Conversely, a positive culture is one where everybody is aligned, and understands why they do what they do; in essence, commitment towards a common set of goals that everybody believes in are the right goals.

It’s the job of the leadership team to ensure that a company is targeting the right outcomes, and that those outcomes are all deliverable. Getting the strategy wrong, or more likely, having a conflicting strategy, will inevitably lead to cultural problems. Listening to the problems across the business at this stage, and acting on them, will prevent headaches later. By way of example, having a profit based target that is unrealistic and only becomes deliverable by short-changing the customer is quickly going to lead to problems. The leadership team can sing all day long about a customer focused culture, but if behind the scenes the operation is being pushed to deliver profit to the detriment of the customer then (a) rightly nobody believes in the leadership, and (b) there is an inconsistent culture not a positive one. With a clearly defined consistent and deliverable strategy in place, the rest becomes easy. It’s just about communication and enabling people to do their jobs. Communicate what you expect of every single person in the business, and do it regularly. That starts at the recruitment stage so people can decide if they believe in the same values before joining. When people are doing things right then tell them clearly that they are. If somebody is not performing then have an honest, direct and constructive conversation but do it promptly and listen to their feedback. If they are being prevented from delivering, then do what needs doing to remove the barriers for them. Most of all, be consistent and ensure that the leadership team sets the example. Lastly, if the strategy does need to change, then clearly communicate why. ROB COOPER, Co-Founder and Executive Director, ME Group.

Of course we service providers are hungry for our customers’ thoughts and opinions, it’s essential for ascertaining to what degree our plan for service delivery is actually meeting the needs of those we are assisting. All feedback, positive or negative, is useful. In fact, for someone to take the time to raise concerns with their insurance provider when they feel let down is very helpful. They could choose to say nothing and then the organisation doesn’t have the opportunity to make redress to that individual or to learn from their experience and improve. Being a regulated industry means insurance businesses are mandated to have a clear process to manage and report on complaints. However, there must be a mechanism which turns this data into insight that can be used to enhance the service provided, thus making negative feedback truly valuable. At Coplus we are both product manufacturer and claims handler, giving us the benefit of direct learnings from the claims process, which through a systematic process of investigation, assessment and evaluation creates a virtuous circle where learnings directly feed into product governance, benefiting product design, the sales process and claims handing. Through undertaking root cause analysis on all complaints, we can identify the factors that have contributed to the customer issue and also recognise any trends or patterns. As well as enabling the identification of any individual performance issues, it gives us confidence that we can identify if there are gaps in our own quality monitoring that has contributed to a customer concern. We undertake quality assurance through a process of internal audit to ensure a consistent, high quality service so the learnings we take from root cause analysis is really important in order to make sure our process identifies and addresses any potential issues, in order that we do it right first time. Being able to identify and act on negative feedback is essential to a culture of continuous improvement and in systematically raising standards and exceeding customer expectations. JASON TRIPP, Managing Director, Coplus.

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Modern Insurance 21

EDITORIAL BOARD

THE MODERN WORKFORCE ow long ago was it that employees were all happy with a formal salary letter and an annual pay rise to stay loyal alongside the expectation of a long and successful career with one employer? Perhaps it was never actually the case that salary and job security were any more stable factors than they are today, but there’s no doubt that our modern workforce in 2019 requires a much more creative, varied and engaging approach to encourage loyalty and trust in the organisation they have joined.

We live in a world where everything now happens in an instant and the latest generation of employees don’t know it to be any different in their lifetimes. Nobody expects to wait in line for the next progression opportunity and social media turns a simple thought of a new job into reality in just a few clicks of an app. So, what can the insurance industry do to retain the best people and create the next generation of insurance leaders and technicians? Of course, paying the right money is an important factor but what about making sure that work is a great place to be? For example, busy family lives require much more support than ever before, so remote working, flexible hours and provision of facilities for working parents can be a much more effective solution to create loyalty amongst that sector of employees. When I started out in 1992, I was greeted by the director who took the time to know all of their employees and make them feel welcome. Our team felt like we were all on a path to somewhere with daily briefings, regular secondments to new areas, mentors available at every turn. Training was geared towards developing new skills and professional qualifications and guess what, most of us stayed around for a long time to progress our careers. So, what if despite the major shift towards larger scale offices, mergers and acquisitions and the inevitable impact of social media on our workforce behaviours, our insurance leaders simply took more time out to connect with employees, create exciting places to work in and provided their employees with the support that was right for them and their home life needs? Could it be as simple as that? PAUL TAYLOR, Managing Director, Plantec Assist.

WHAT IS THE VALUE OF CLIENT FEEDBACK AND HOW CAN IT BE DONE WELL? aving a client feedback process is necessary if one is in the business of serving clients and wanting to improve. How can it be done well and what benefits can be derived? There are many challenges to make sure that it is a useful process for both parties. Here is some thinking based on experience.

Feedback can highlight failings and raise emerging issues in a positive manner. Coordinating responses and distilling lessons back into the organisation are vital parts of the process. This is rewarding if sometimes a little awkward. The client interview tests the basics. If practice management is working, you will have views on the client’s major issues that have been communicated. Adequate team and renewal processes are in place and the client can rate their quality and efficiency. Feedback can reveal important indicators here before it is too late. My approach to interviews is to state the objective and to request candour. This is an opportunity for the client to ask questions and improve the service. In some instances, clients are prepared and can talk about issues that are of concern. In most instances, however, it is valuable to have a checklist of issues and questions to guide the interview. There is a logical cascade of areas to explore. Team performance and results are good opening discussions. After the basics, a further category of issues can be addressed, did we add value outside of the contracted services? Sometimes, towards the end of the interview a left field issue emerges, “I am not sure whether I should mention this but”, moment. Feedback is variable in content and quality. One is never sure that the answers are totally candid. To those who question this, my response is that the skill of the interviewer is vital in discerning what is important, and the degree of candour being offered. The feedback can be assessed in that context. The management value is the opportunity to act on individual accounts and to consolidate and improve the overall offering. Feedback sessions on lost accounts and tender opportunities are extremely valuable. Insights are gained on performance and capability versus the competition. Feedback that is organised and well delivered is a great opportunity to build or improve relationships and knowledge of client priorities. It can also be a very enjoyable and rewarding experience where insights are shared, and new relationships built. KEITH TRACEY, Managing Director, Aon Risk Solutions.

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Modern Insurance 23

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BEING EQUIPPED FOR NONDAMAGE BUSINESS INTERRUPTION or the seventh consecutive year, business interruption (BI) has topped the Allianz Risk Barometer 20191 as the most important risk facing businesses globally. Business interruption is often thought of in physical terms – perhaps as damage to property resulting from extreme weather or due to accidental loss from events such as fire or flood. However, loss resulting from non-physical or non-damage BI (NDBI) can prove just as disruptive to a company and threaten to negatively impact its bottom line.

Non-damage business interruption events can manifest in various ways. In the tragic case of Grenfell, this resulted from denial of access, where access to neighbouring businesses was limited or prevented for safety reasons. Alternatively, a business may experience a loss of attraction and decline in custom due to a nearby physical interruption event, such as during the 2018 Novichok poisoning case, where many shops were unable to open or trade as usual during the investigations and subsequent clean-up activity. Another case in point was the surge in terrorist attacks in 2017, which highlighted a gap in cover for terrorism-related, non-businesses interruption losses in traditional policies. The Borough Market attack, for example, left many small outlets and neighbouring cafés unable to trade in the aftermath. Many are hoping that the Counter-Terrorism and Border Security Bill 2018, which received Royal Assent on 12th February, will close this gap in cover. Particularly small businesses can be hit hard by an NDBI event. According to a 2018 House of Commons briefing paper, there were 5.7 million SMEs in the UK in 2018 – or 99% of all businesses.2 These smaller enterprises are unlikely to match the sizeable cash reserves of their larger counterparts, meaning that sustaining cash flow during a prolonged period with limited or no trade will be difficult, if not impossible. All businesses, whether large or small should consider their exposure to both physical and non-physical BI events. Aside from considering insurance needs, it’s also prudent to undertake regular, thorough risk assessment activities and business continuity planning. This means that a business will be much better equipped, should an interruption event threaten normal operations.

WE MUST TAKE ADVANTAGE ollowing on from a first notification of loss, the vehicle recovery operator is often the first point of contact between an insurer and the insurer’s supply chain. It is essential that the information shared between the two parties is as comprehensive as possible in order to ensure the customer receives the best possible service and the ultimate cost of recovery is kept to a minimum. For example, knowing how many passengers are in the vehicle or where the keys are. Are the wheels damaged? Is the commercial vehicle loaded? All help to determine the type of recovery vehicle that is needed to complete the job efficiently. It is not an infrequent occurrence to arrive on scene to find out that the truck is not the correct vehicle to deal with what actually confronts the recovery driver.

Recovery operators generally work for a variety of different customers such as Breakdown Clubs, Police and Highway authorities and vehicle manufacturers, all of whom have differing requirements from the technology solutions and therefore we cannot operate in a one size fits all environment. The telephone remains the most frequently used tool to pass the jobs and information between the parties involved. The priority is always the safety of the customers and the passengers and so often the focus of an instruction is all based around the speed of gaining enough information to despatch a recovery driver, using the telephone is generally an efficient manner of instruction but is not always the best tool to obtain the most accurate or comprehensive information that may be available. Integrating systems, using electronic messaging, access through portals, live chat, apps ad social media are all good initiatives and used to varying degrees within the recovery industry but as with many suppliers, they generally tend to be available as offered and designed by the operator making assumptions about the customer’s requirements. We must take advantage of evolving technologies to advance the customer journey, control claims costs and reduce the number of contact points per claim. Developing integrated IT and communication platforms across the whole supply chain will enable us to share and allow access to live jobs providing the best and most accurate information driving the right decisions with minimal interactions between us. PETER GOODRIGHT, General Manager, Nationwide Vehicle Assistance (NWVA).

PAUL HIGHAM, Property Account Manager, Technical, Allianz. 1. Allianz Risk Barometer 2019. http://www.agcs.allianz.com/assets/PDFs/Reports/ Allianz_Risk_Barometer_2019.pdf 2. Rhodes, C. (2018). [online] Researchbriefings.files.parliament.uk. https:// researchbriefings.files.parliament.uk/documents/SN06152/SN06152.pdf

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EDITORIAL BOARD

WHAT DO YOU EXPECT TO BE THE BIGGEST CHALLENGE FOR THE INSURANCE INDUSTRY IN 2019? he Civil Liability Act may now be enshrined, but we have entered the crucial period of implementation, which presents a whole set of challenges for the motor insurance sector. With the reform agenda having gone further than even some advocates of reform thought possible, it is vital that we as a sector get it right. It is imperative that the new claims landscape functions as it is supposed to when it is fully operational in April 2020. If it is not ready, and there are many crucial decisions still to be decided about its structure and operation, then a delay until it is ready must not be ruled out. There are some real issues that cannot be ignored. If they are, there will be a long-term price to pay, both by genuine premium customers and the industry. We have been here before with the present Portal when it was introduced and, of course, Medco, so we know only too well the risks and costs of mistakes that could be avoided with time and full consideration.

I have expressed my reservations with how the reforms and the new LiP Portal will work on the ground on many previous occasions. These doubts that the path that has been chosen is the wrong one, have not gone away. However, the negatives could be somewhat mitigated providing there is action in other areas. We must ensure that the FCA’s new regulatory system for CMCs is functioning well and capturing the bulk of claims farmers. We cannot allow them to go underground and avoid regulation. We need Part 2 of the reforms urgently. Leaving the loopholes of rehabilitation and credit hire/repair outside of the new Portal will be a serious mistake. We need greater and genuine collaboration in fighting fraud as it constantly evolves. Embracing new technology is essential, but it must not be at the expense of human interaction and expertise. In these tumultuous and testing times, it would be remiss not to mention the continuing and deepening political uncertainty facing the UK. Business needs stability and predictability in its regulatory environment. Clearly clarity on what will be the outcome for Brexit is the biggest challenge for all of industry. As a major international sector, a negotiated and structured exit from the EU, if that is the only option available, is essential for the insurance industry and its customers.

GETTING THE BALANCE RIGHT What initiatives should businesses put in place in order to positively influence the customer journey and encourage retention and repeat business? ast year I was lucky enough to spend three days with CMOs and CCOs from a whole range of companies from Disney, Comcast, Google, Medallia and others. We talked about what made businesses successful, and what we had learnt about customer focus.

I took away four clear stories, and here they are: Firstly, at the very heart of a successful business is strong leadership, which understands that the customer must be central to the strategy of the company. Whilst it comes from the very top, with the CEO as the customers’ biggest champion, successful companies ensure that vision is shared across the company with everyone taking responsibility for putting the customer at the heart of the decision making process. It’s not true that customer focus comes just from customer-facing staff. We are proud to say that we pay 99% of claims and this only happens because a large number of employees work together to make this happen. Secondly is culture. It’s about driving a positive culture, with a passion, an obsession even, for getting it right for the customer. The customer has to be your “north-star”, the reason why you turn up to work every day. So being customer focused is not about making more money. With this it’s amazing what ideas, what ingenuity and innovation comes out. Thirdly is how much easier it is now to harness amazing new technology - whether ‘out of the box’ tech or partnerships with start-ups. A couple of weeks ago we launched SignLive, a new video interpreter service for deaf and hard of hearing customers. Our claims chatbot, Zara, has proved a big hit, with a quarter of direct Home and Motor losses now reported online. Finally, it’s important to get the mix right. Great customer journeys come from grounded and pragmatic discussions using common sense as much as any flashy digital tech. Something which we’ve achieved at Zurich with the recent launch of our new life protection platform, which has proved popular with advisers and their clients, resulting in a very high net promoter score. Ultimately, nothing beats reading your complaints, talking to customers and keeping your feet firmly on the ground. RICHARD PASH, UK Marketing Director, Zurich.

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Modern Insurance 27

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‘DON’T THINK SMALL, THINK AGILE’

MAKING BETTER USE OF DATA SOURCES

How can smaller firms keep up with the technological pace set by larger businesses?

How have the needs of consumers changed in recent years, and how has insurance responded to help meet those needs?

ne of the most positive by-products of the velocity of technological change for firms has been the increased production of niche solutions by emerging start-up tech businesses. This is very different from 10-15 years ago where those seeking to use technology to differentiate themselves from the competition often had to accept that they would have to outlay significant investments to achieve their objectives. This was because most of the solutions available were created with enterprise businesses in mind and were only available at great cost.

he dual demands of rising consumer expectation, and the technology challenges of digitisation, are a constant theme we hear at industry meetings. Our customers are interacting seamlessly on Amazon, Netflix or online banking, or even in their car, and have the same expectations for insurance, and yet in many aspects the industry is falling short.

Things have since progressed. There is now a wide selection of tools available through software as a service (SaaS) that are cost effective. Traditionally, firms had to purchase large, one size fits all solutions that anticipate future requirements whereas now they can effectively pick from a menu of apps and solutions, which can be provided by different businesses that can be effectively joined up through micro services and APIs. This has been facilitated by the improvement in connective technologies. Smaller businesses can now actually buy the utilities that they need rather than larger solutions, which can often offer many functions that the firm doesn’t need but would still be required to pay for. The reality is that larger organisations no longer have an advantage from a technology perspective. Many of the larger firms out there, whether it’s insurance or any other sector, have a myriad of legacy applications. It’s not unusual for a larger organisation to have 300-400 applications that they are supporting. So, when you consider that legacy estate and time and cost involved with integrating new elements into that, it’s a huge investment for these firms. Smaller businesses can be nimble because they haven’t got the legacy debt and can capitalise on the opportunities these new technologies offer. So, the question becomes, how do large enterprises engage technology to make sure that they keep up? The challenge these firms have created for themselves was by going first, next thing they knew, they’re twenty years down the line and the world has changed. The way firms are addressing this now is instead of overhauling legacy systems, they are acquiring agile tech startups or creating separate divisions in their business, run by their own CEOs, so that they can create agile applications and capitalise on the opportunity. Being small and having a limited budget is no longer the impediment it once was where technology is concerned because it’s now ‘don’t think small, think agile’. PAUL TASKER, Managing Director, REG UK.

Issue 36

Based on the most recent Insurance Nexus survey, insurance executives believe that customer experience is what is going to see the biggest impact from the implementation of AI. In that global survey, ‘data analytics’ and ‘AI’ are second placed only to ‘digital innovation’ in the investment priorities of insurance providers. And yet, on the road to AI and customisation of delivering the insurance service, there is still so much to do in the data ecosystem, cleaning data and making it available across different silos in the insurance business. Insurance is facing challenges about how to keep up with digitalisation, the ‘componentisation’ of certain insurance processes, with challenges also about how to interact with new data sources that are going to be important for delivering personalisation. There’s a sense that insurance is one of the slower business sectors to adapt to this connected world and digital delivery – especially with the rigours of the regulation – and yet when it does happen, the end destination is probably going to be much more truly transformative for insurance than any other industry (and more useful for the consumer). At LexisNexis® we believe that this year is going to be very much about greater collaboration for UK insurance. Our surveys of UK insurance execs have showed that policy history information, claims history, new types of property data as yet unused in the industry, smart home data and other new external data sources are going to be of value. In commercial insurance, business history and sector data, new data sources on properties and individuals are going to be what it takes to deliver a more responsive type of insurance service to SMEs, and the types of businesses just above SMEs in size. Automation, anticipating the needs and circumstances of the customer, are increasingly becoming points of competitive differentiation, not just price. Motor telematics bundled with insurance-related services, flexible, on-demand products, micro-insurance are going to be seen as examples where the fundamental delivery and pricing model of insurance changed, becoming responsive to customer behaviour. Fundamentally, the better the data, the better understanding we can have of customers and build propositions around them, using the right data and in the right way. TREVOR LLOYD-JONES, Senior Marketing Manager, Insurance, LexisNexis Risk Solutions.

Modern Insurance 29

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INSIGHT IS KEY Is the feedback process important to the industry, and how can negative feedback be utilised effectively? n a service-led industry such as ours, the companies who continue to thrive are ones who pay close attention to the customer experience and the feedback from it. At EDAM Group, we are a business shaped around customer service – supporting the policyholder is at the forefront of everything we do. As such, encouraging feedback and responding to it has cemented our position as the market leading service provider for credit hire and post-accident solutions.

A constant flow of feedback, whether it be good or bad, is essential to our learning and growth, not only as a company but as an industry. Acknowledging positive comments reminds us that we’re heading in the right direction but noting and acting upon negative feedback is vital. We can utilise unfavourable comments effectively to build better relationships and enhance the policyholder’s journey. At EDAM Group our customer feedback strategy provides a seamless customer journey, paying close attention to touch points to provide a high quality, no hassle service offering. We add value with quick, innovative solutions when handling claims, upholding our clients’ reputation. Our customer feedback strategy is made up of four cornerstones that our evolution – as a business – continues to build upon. 1) Net Promoter Score (NPS), including verbatim feedback Essential for our frontline staff to immediately respond to issues if and when they arise. NPS surveys are delivered at critical points of the policyholder’s journey so we can move quickly to improve where needed. Inviting verbatim feedback empowers policyholders to share their thoughts and experiences directly. 2) Complaint Data and Expressions of Dissatisfaction This means we can readily identify any expressions of dissatisfaction across the business, thanks to the FCA-compliant complaint handling process we have implemented. 3) Quality Assurance Feedback relating to quality assurance focusses largely on positive comment about our service provision. It allows us the opportunity to further enhance areas of the business policyholders appreciate. 4) Business Partner Feedback Through constant liaison with our business partners, we, are able to identify key areas for improvement from another angle. We aim to address the root cause of any issue which arises so we can learn, make changes and evolve. Maintaining an agile approach to feedback is important – embracing it is key as it provides the opportunity to make ongoing improvements. We use NPS to keep track of feedback and our metrics are consistently high. Ranking over 80 (scored between -100 to +100) for two months in a row, serves as an ongoing reminder of a job well done.

GETTING TO GRIPS WITH NEW APPROACHES How does education and training need to adapt in order to fulfil the needs of the current modern workforce? he ‘Analytics Arms Race’ has long been raging in Personal Lines pricing, where both risk and behavioural models are deployed across all channels. As we see more of these concepts and techniques move across insurance there will be a need for some roles within the commercial and claims environment to become more analytical.

Commercial Portfolio or Product Management is a case in point, these roles are at the centre of performance management and with the right training can become the source of a new proactive, agile and pacey approach. We talk about Active or Dynamic Portfolio Management, where the leadership has a very granular and segmented grip on the details of the business. This can only be achieved if there are the right mix of business, underwriting, legal, data, compliance and analytical skills within the team. The analytical skills and as critically the ability to know what questions can and should be asked of the analysists is becoming increasingly critical. In an environment where portfolio managers have come up through the ranks of case underwriting, we think insurers need to adapt their training to support great case underwriters’ transition to becoming great portfolio leaders. Bringing focus to the analytics in these roles will add value to the individuals and the organisations. We are witnessing a similar expansion in claims as companies begin to deploy more sophisticated models and broaden out from traditional fraud into wider routing, evaluation and prioritisation models. In this space, creating time for the teams to understand the art of the possible and embrace the opportunities to both lower costs, increase customer satisfaction and manage indemnity spend is a training investment worth making. Having claims teams that can proactively engage, develop and steer these types of models will be a vital team capability. The nature of the training is going to be critical to the success of the sessions and ultimately, the businesses. Role based, practical, interactive training sessions will ensure that the knowledge sticks and is executable rather than being purely academic. Setting up environments where people can safely engage with data, analytics and the related technologies will allow teams to get to grips with the new approaches and work out what it means for them. DAVID OVENDEN, Global Director, Pricing Product Claims and Underwriting, Willis Towers Watson.

MARC LAFFERTY, Chief Revenue Officer, EDAM Group.

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Modern Insurance 31

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Come and Come join and us atjoin theus Excel at the Centre Excelfor Centre the UK’s for the leading UK’s leading Come and join us at the Excel Centre for the UK’s leading event forevent business for business growth, professional growth, professional development development and and event for business growth, professional development and cyber security cyber security in the legal in the sector. legal sector. cyber security in the legal sector. This years This event years is bigger event isthan bigger everthan andever the ME andGroup the MEare Group are This years event is bigger than ever and the ME Group are proud toproud be thistoyears be this main years event main sponsor. event sponsor. proud to be this years main event sponsor. If you work If youin work the legal, in thefinancial, legal, financial, insurance insurance or cyberor cyber If you work in the legal, financial, insurance or cyber security security sectors this sectors event this is event not tois benot missed. to be missed. Come and Come and security sectors this event is not to be missed. Come and explore the explore latestthe advances latest advances in the legal in the sector, legalas sector, over 350 as over 350 explore the latest advances in the legal sector, as over 350 of the UK’s of the leading UK’ssuppliers leading suppliers and experts and offer experts their offer advice their advice of the UK’s leading suppliers and experts offer their advice and services and services across this across two this day two event. day event. and services across this two day event.

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EXECUTIVE DIRECTOR

QUANTA CAPITAL QUANTA CAPITAL MANAGING DIRECTOR QUANTA CAPITAL

THE UK’S THE UK’S THE UK’S

NUMBER NUMBER ONE ONE NUMBER ONE LEGAL LEGAL EXPOEXPO LEGAL EXPO

The ME The Group MEisGroup a LegalTech is a LegalTech provider provider of litigation of litigation The ME Group is a LegalTech provider of litigation funding, funding, insurance insurance and legal and representation legal representation for for funding, insurance and legal representation for consumers consumers facing complex facing complex legal problems. legal problems. consumers facing complex legal problems. Using our Using proprietary our proprietary technology, technology, we provide we fast provide andfast and Using our proprietary technology, we provide fast and efficient efficient dispute resolution dispute resolution that is revolutionising that is revolutionising the the efficient dispute resolution that is revolutionising the legal services legal services market for market the benefit for theofbenefit all stakeholders. of all stakeholders. legal services market for the benefit of all stakeholders. Our mission Our mission is to improve is to improve the quality, theand quality, reduce andthe reduce the Our mission is to improve the quality, and reduce the cost, of cost, dispute of resolution dispute resolution for all parties for all through parties through the the cost, of dispute resolution for all parties through the use of LegalTech. use of LegalTech. use of LegalTech. Our board Our directors board directors will be onwill hand be on across handthe across two day the two day Our board directors will be on hand across the two day event dicussing event dicussing the future theoffuture the legal of the sector legaland sector the and the event dicussing the future of the legal sector and the role LegalTech role LegalTech will play will in future play in litigation. future litigation. role LegalTech will play in future litigation.

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EDITORIAL BOARD

HOW SHOULD BUSINESSES CREATE A POSITIVE COMPANY CULTURE?

POWER TO THE PEOPLE

high-performing and engaged workforce is a priority for any business. Promoting a positive company culture, where our people feel happy, engaged and supported doesn’t result from one single action, rather a set of actions, which need to all be in fine balance.

Support, empower and appreciate your employees through employee engagement and they in turn will drive the efficiencies, service and delivery required to sustain customer satisfaction.

Fundamental to such an environment is a shared purpose, which is well understood with clear definition of each individual’s contribution. Expressing a clear narrative around our mission and vision creates a common goal - the ‘purpose’, and highlighting where each individual adds value within the chain creates a sense of ‘fit’. Overlaying the purpose with a clearly defined set of values, created and influenced by our people, provides a strong and transparent way of working. Organisational integrity leads to the values on the wall being reflected in day to day behaviours. Communication is critical, we place a huge emphasis on regular and timely communications, and in both how we craft messages and how we share them. Openness and transparency are essential throughout all our communications and are key to building trust. FMG use a wide range of channels to communicate, including a weekly newsletter, quarterly business update sessions, team briefings, a quarterly staff magazine and staff conferences. Identifying business strengths and areas for improvement is another key element, and who knows our business better than the people interacting with it? Customer feedback, whether positive or constructive, is shared with colleagues from across the business in our Voice of the Customer sessions. Involving colleagues in solution building and decision-making in this way inspires and empowers them, which boosts motivation. The importance and value within listening to our people should not be underestimated. The annual Sunday Times Best Companies employee engagement survey provides a formal mechanism of listening, and understanding the feedback. The insight gained is crafted into a set of actions, typically looking at what we can do more of, less of, stop, start or change in order to ensure we continue to have a fully engaged workforce. As a business going through a period of growth, keeping our people informed and engaged throughout has been a key activity. Employee engagement can’t be bought, but it can be created; and businesses that invest time, effort and commitment into having a happy and engaged workforce will reap the benefits.

n every business, customer service is king, without the high level support to your customer base you will flounder behind your competitors.

We have moved on; micromanagement rode out of town on the back of the dinosaurs, and a new breed of management who listen to ideas, trust judgement and empower people is serving our customer base well. Retention of engaged, capable and fully trained staff is the lifeblood of any business and we have achieved this through positive engagement. It is paramount to encourage a culture of participation and collaboration, ensuring staff are involved in decision-making processes that affect their role. Communication is key; ensure your people know your vision and understand how their job contributes to the business. A simple statement from a member of staff; “I understand what is expected of me in my role” is the first significant step prior to understanding the vision and objectives of any business. Increased recognition from colleagues and line managers has a significant and positive impact on improving levels of engagement and client service. They build trust relationships with customers and fellow employees based on the trust and belief you place in them. Education and training need to adapt to fulfil the needs of the current modern workforce. Variety is a big aspect of this need; the variety of methods for delivering a message has grown in recent years, giving businesses more avenues to explore and embrace. The introduction of eLearning to a business allows coverage of a range of subjects, access to a large group and monitoring training progress with ease. It also gives employees control over their learning. Face to face training enables questions and discussion in a group setting, allowing understanding of employees and relevant adaptation of future sessions while creating a better team dynamic. 1-2-1 coaching sessions help to identify individual training needs and the chance for in-depth feedback. Lose a good employee and lose part of your culture and company. Engage with your staff and customers in equal measure and breed a successful people culture and a successful business. MICHAEL WARMINGTON, Associate Director, HR, Winns Solicitors.

ANDREW CHANDLER, Sales Director, FMG.

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Modern Insurance 33

Expertise OUR PEOPLE

Integrity

We’re passionate about our people, our culture and our values.

OUR BUSINESS

Our colleagues are a pillar of our success, dedicated to bringing our values to life, demonstrating partnership, integrity, innovation, expertise and excellence with every customer interaction.

Operating in partnership with insurers, brokers, leasing providers, MGAs and direct customers, FMG is the UK’s leading, high quality provider of outsourced incident and claims management solutions. We’re consistently providing new and innovative ways to manage cost, claims leakage and delay from the claims life cycle.

Partnership

Excellence

Innovation

As we go through a continued period of growth we’re always on the look out for new talent. Contact us for more information by emailing us at careers@fmg.co.uk or call us on 0344 243 8888

EDITORIAL BOARD

WHAT ARE THE MOST IMPORTANT FEATURES OF AN EFFECTIVE WEBSITE? nce upon a time, at the dawn of the internet’s popularity, many enlightened firms envisioned the commercial opportunities that the web presented. Some business owners decided that they wanted a website and approached a developer to build one. When asked what they wanted to achieve from their site, they didn’t have a clue; they just wanted a website because it was the thing to do.

Roll forward to 2019 and many developers have simply stopped asking what a company is expecting to achieve from their website and will just build a generic, standardised site. However, a decent web builder will establish the expected results of a site right at the very start. Websites can be used for a variety of reasons; as a supplementary or stand-alone sales channel, as an online brochure for the company, sometimes as a recruitment tool demonstrating the benefits of working at a company or as an information board. There are loads of uses, and often multiple reasons to have a website, but it’s imperative that these are established early doors. The best websites contain a combination of three components. They must be technically competent, visually beautiful with effective marketing elements. Website visitors are fickle and expect an excellent user experience. Clear navigation with no jargon is essential and must be consistent throughout the pages. The site must flow logically from the initial landing page through to the final interaction. It must be fast and have no frustrating glitches. It is estimated that mobile is now used for online purchasing more than desktop, so a fully mobile responsive site is obligatory. Simple, clean visuals, nothing too cluttered, with two or three of the brand’s colours used in balance throughout. Pictures paint a thousand words and are really effective, often under-utilised asset. Great photography and meaningful subjects are key to a beautiful website. The site must be found, so a marketeer should work alongside a developer to ensure strong search engine optimisation. It’s all very well having a pretty looking website but if it’s lost in the depths of the web, then it doesn’t help a company make money. So, what makes an effective website is having these correct elements working in harmony to achieve the anticipated results. A blend of tech, marketing and aesthetics ensure an efficient and enjoyable user experience.

CHOOSE WISELY, INVEST SMARTLY How can smaller firms keep up with the technological pace set by larger businesses? t’s no secret that over the last decade the use of technology in businesses has grown exponentially. Increasingly, being seeing as “technology focused” is a key component to success. Looking at Aviva’s new personal lines “Driver App”, it’s clear larger businesses in the insurance space are looking to push their tech development into the marketplace. This raises the question, how can smaller firms possibly keep up?

Worryingly, statistics show that more than half of smaller firms haven’t set aside any resource to invest in tech next year (2019), compared to only 14% of medium sized and 8% of large firms. In a world dominated by ensuring customer satisfaction and winning new business, this is understandable, but it does raise concern about the competitiveness of smaller firms. So, what can be done to help smaller firms keep up with the technological pace set by larger businesses? Utilising the inherent benefits of being a smaller firm is key. What are their strengths and how do they maximise them? The key is really listening to your customers’ needs when investing in tech. Being nimble and able to change direction is useful and so is really knowing and understanding your customers. Large companies will potentially lose huge sums of money investing in technology nobody has actually asked for, and subsequently don’t use. By seeing the problems that your customers have, you’ll be able to provide tech solutions that solve their actual problems. Too many large firms look at technology and how they can use it to save money, e.g. an insurer creating a broker portal means the broker has to rekey information – helps the insurer, doesn’t help the broker! Target the technology spend so that the customer wins, the broker wins and the insurer wins. Customers feel valued when you’ve invested in something, which makes their life easier, so retention goes up too. Look at investing in technology that spreads the development costs. By pooling buying power, a group of smaller brokers can obtain technology that individually they can’t afford. When it comes to tech, choose wisely, invest smartly and reap the rewards. You are never too small to win. STEPHEN MARSHALL ACII, Managing Director, Insure Apps.

NIK ELLIS, Managing Director, Laird Assessors.

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Modern Insurance 35

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EDITORIAL BOARD

LEARNING AND DEVELOPMENT How can the industry best support young people during their entry into the profession? his is an interesting question and one that I am passionate about. There are several reasons for this, but not least because my eighteen year old son started an apprenticeship last year with a large commercial insurance broker and the work that I do as a Trustee with AutoRaise*.

I have spent many years in associated motor claims businesses and there has always been two opposing views when employing young people, one being, they are young and therefore a cheap usable and on occasions, abusable human resource. We might all squirm at this suggestion, but it’s the reality and a view held by many employers. What is the equivalent of being asked to get a tin of tartan paint in the Insurance industry out of interest?! The opposite view being that young people should not be treated as any of these things, but instead nurtured, trained, protected and educated to perform their tasks to the highest level. Clearly if I look at the scenario with my own son, I would want the latter for him, as I am sure all parents would. However, this is the real world, and everyone needs to also start from somewhere, so actually there is no harm in young people performing what might be deemed menial tasks (such as making tea, filing, post and the odd tidy up!). I worry that too clinical an approach makes the individual naïve to the real world and a general sense of team work and the role that people need to play within a team. That role within the team is, and should be, relative to your experience and there is nothing wrong with that. Therefore, we need to ensure that we do all we can to train, educate and focus young people on what they are doing, but they need to be cognitive of their stage of development too. It is incumbent on the employer to set objectives and goals for young people to achieve, this will ensure that their development progresses positively. It is also equally important that young people are exposed to the wider elements of the insurance industry, my personal view is that there are too many silos within the insurance industry and teaching young people to be more aware of the wider market and dynamics will serve them and the industry well for all our futures.

WILL 2019 BE THE YEAR FOR ADAS RESOLUTIONS? here is no doubt that Advanced Driver Assistance Systems (ADAS) presents one of the biggest challenges for the insurance industry this year, but my hope is that the sector finally reaches some agreed resolutions around best practice handling of recalibrations.

We‘ve seen a growth in excess of 1000% over the last two years in vehicles carrying the technology and requiring recalibration. No longer are insurers at the learning stage; 2019 needs to be about appreciating the complexities of ADAS and subsequently making clear decisions in regards to underwriting and claims processes. Safety remains the top priority and I think the most important thing to appreciate when coming to conclusions is that each vehicle manufacturers own intricate recalibration process can be akin to a car undergoing brain surgery. When you’re recalibrating a vehicle, you’re essentially recalibrating its brain and the central function which is in control of its safety features. I don’t know about you but I certainly wouldn’t feel comfortable with an unskilled technician doing a job this important. That’s why I stress the need for us to work with manufacturer trained experts. I believe policyholders deserve reassurance that every recalibration will be carried out by manufacturer approved technicians, in a manufacturer approved workshop environment, giving them – and insurers – peace of mind that safety systems are working as intended. Having said this, the use of aftermarket glass and recalibration tooling is preferred by some insurers, despite not one single manufacturer recommending either. Additionally, Volvo has previously stated that fitment of an aftermarket windscreen and not recalibrating using the Volvo VIDA system would switch off up to 28% of a vehicle’s safety features. Other manufacturers have said similar – it’s the reason why we only fit original manufacturer screens.

STEVE THOMPSON, Director, InduSTry Insights.

Safety must be the driver behind insurance providers’ ADAS underwriting and claims methodology. Of course cost is also a factor, but improved agreed discounts on OEM glass means there is now little difference in price between aftermarket and manufacturer parts. Fixed rates for recalibration are also available, regardless of vehicle make or model, creating clear-cut expenditure and predicted future spend management.

*AutoRaise is a charitable organisation committed to reversing the skills shortage in the Vehicle Repair industry.

ADAS and its costs aren’t going to go away so it’s in everyone’s interest to start making decisions to keep drivers safe. RUPERT ARMITAGE, Managing Director, Auto Windscreens.

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FEATURES

Sector Soapbox

Modern Insurance’s panel of resident associations outlines the burning issues

A change in attitude C

ustomer service used to be the poor relation in insurance, only playing a limited role in many companies’ decision making.

However, four things have changed that: new technology, new groups of consumers finding their voice, a change in emphasis from regulators and, most importantly, a change in culture. First, new technology has made service sexy: AI and improved access to data have helped to make key processes run far faster. This has made customer service something that investors are excited to hear about. However, technology only goes so far. Research completed for the CII’s Public Trust Index shows that while customers value efficient and reliable processes, they also want to be treated with respect, and have their loyalty recognised. This is particularly true of groups of vulnerable customers who are no longer willing to be put on the ‘too difficult pile’. For example, people with pre-existing medical conditions want cover at a price that reflects the risk that they believe they pose, especially if their doctor has confirmed their beliefs. If this isn’t possible, they want a proper conversation about why this is the case, and where they can go to find a more tailored solution.

By speaking out more forcefully, vulnerable customers have brought about a change in emphasis from regulators, away from rules prescribing standardised processes to an approach that is focussed on the need to treat people as individuals. For example, the FCA has talked about avoiding an ‘over-zealous’ approach to data protection when it comes to serving customers who are being assisted by carers. All this has paved the way for the most important change of all: a change in attitudes amongst people who work in insurance and other financial services. As people are given permission to talk about issues like disability, dementia and mental health, the more they think about experiences in their lives, and the lives of friends and family, in a work setting. Customer service, far from being the poor relation, is increasingly the area of insurance that is most meaningful and rewarding - both commercially and in terms of individual careers - which is exactly as it should be. DR MATTHEW CONNELL, Director, Policy and Public Affairs, Chartered Insurance Institute (CII).

Delivering the whiplash claims portal s many of you will be aware, the Civil Liability Bill has received Royal Assent and will now enter into force as the Civil Liability Act 2018. In the 22 months from the change to the Discount Rate in February 2017, the ABI has worked tirelessly with politicians, civil servants and wider stakeholders to see these reforms through and it is great to have ended the last year with Royal Assent.

While the Act will bring about a fairer system for claimants, insurance customers and taxpayers, there is, no room for complacency and several challenges lie ahead in 2019, particularly with regard to the whiplash provisions of the Act. As money is taken out of the system, there may be a shift in claims from the whiplash element to minor injuries that would continue to attract common law damages. Without robust advice to the judiciary on how to settle future claims of this nature, there is a real risk that we will see significant erosion of the costs benefits arising from the reforms as claimant lawyers adapt to the new environment. And while the Government should be commended for these far-reaching reforms, it is worrying that money remains in the system for repair, medical reports and credit hire. A lot of money is made from personal injury claims and firms active in this space will not simply disappear because the law has changed.

38 Modern Insurance

Claims management companies and unscrupulous lawyers have previously exploited the system and the MoJ and the FCA, which will take over regulation of CMCs from April onwards, will need to monitor behaviours closely to prevent claims farming and fraud. As we have said many times before, getting the implementation of these reforms right is absolutely critical if the system is to deliver fairer outcomes for claimants and millions of motorists. The ABI is therefore working closely on the ongoing development of the litigant-in-person portal build to ensure that claimants will receive the correct guidance and have access to appropriate alternative dispute resolution mechanisms. People want an insurance claims system that provides compensation and support to those who genuinely need it. We want to ensure that claimants can confidently use the new portal so that they do not feel that they have to rely on CMCs to pursue a legitimate claim. LAURENZ GERGER, Policy Adviser, Motor, Association of British Insurers (ABI).

Issue 36

FEATURES

The “alternative” topic to Brexit am sure that you appreciate that the text for articles such as this are presented well ahead of their publication date, so by the time that you are reading this, the situation surrounding Brexit may be clearer. I’m banking on the idea that this is unlikely to be the case and predicting the withdrawal agreement vote or what happened to Article 50 could prove embarrassing! On that basis let us consider another issue, though one with its own uncertainties.

We are now seeing insurers wrestling with this problem at the front end of the business, rather than dealing with the claims that emanate from these exceptional losses, and reviewing whether or not they can charge for this extension or somehow restrict their cover. This is something that will no doubt play out over the coming months but there is almost a game of brinkmanship occurring as to who amongst the insurance companies will blink first and make the first move.

The issue has emanated from a number of high profile property claims in recent years and has resulted in many insurers reviewing their position on a policy extension that was previously almost a throw away add in. That extension is “alternative residential accommodation”.

Additional problems can occur where cover is arranged by a freeholder, having sold off long leases and where lease holders have sublet their property to occupational tenants. A freeholder may suffer little or no loss from the circumstances mentioned earlier in this article, but gaps in cover could exist where the long leasehold tenant is left out of pocket due to inadequately arranged insurance cover when they do not receive rent payments following a loss.

Even before the Grenfell disaster highlighted the immense problems of relocating a large volume of people in a high-density city environment, the floods that occurred in Salford in 2015 had already provided a warning of the practical and social implications of trying to re-house people. The loss adjustors handling the Salford case not only provided an innovative way of re-housing people locally and accelerating reinstatement to mitigate cost, they were able to manage the social effects of temporary relocation by engineering it within the area that had already been affected by the flood.

So what on the face of it seems to be a relatively straight forward free extension in the past, is quickly becoming a complex issue that insurers need to price and account for appropriately and the claims handling community need to be aware of the large scale social impact that losses in high density areas can cause. ANDREW GIBBONS ACII, Mason Owen Financial Services Ltd, Chair of Industry Claims Initiative on Behalf of BIBA.

The alternative accommodation extension was almost a throw away extra to a property policy, but I am not sure that many truly envisaged the cost implications of a total burnout within a city or the floods that occurred in Salford and the fact that people, in some cases, needed to be rehoused for well in excess of 12 months and beyond, before a permanent solution to their housing problems could be found.

The devil is in the detail s the single most important political and economic decision in many decades, Brexit is rightly dominating the UK’s political discourse right now. Politicians can focus on little else as they grapple with complexities, contradictions, political pressures and their own consciences. Huge swathes of domestic policy making, from health to housing, struggle for attention whilst resources and energy are diverted to the most important issue of the day. Some government departments have been virtually paralysed as Ministers focus on little else and increasing numbers of their officials are commandeered to work on Brexit-related issues or legislation. The Ministry of Justice, and specifically, its intention to fundamentally change the landscape of motor accident claims is a relatively rare exception. The Civil Liability Act passed into law just before the debate on Brexit in Parliament exploded so spectacularly. The MoJ’s internal resources are undoubtedly stretched but have benefited from outsourcing much of the work on implementation to the insurance industry’s Motor Insurance Bureau. Work is continuing at a pace on the development of the new LiP Portal with the IT developers in place and intensive discussions taking place on the architecture of the new claims process.

Issue 36

Several MASS representatives sit at the heart of this process, forming a robust panel alongside colleagues from APIL and the Law Society, representing the interests of claimants. With continued involvement dependent on confidentiality; I am restricted about how much I can say about the discussions. However, it is clear that there are very many difficult and thorny issues to resolve that are fundamental to the operation of the envisioned new claims process. We will continue to work constructively with the MoJ and the insurers, but with the interests of claimants and accident victims always at the forefront of our approach. Whether the challenges still ahead can be overcome in time for the planned April 2020 launch remains to be seen. We are clear that if a delay is necessary to ensure that the new system is fit-for-purpose, then that is what must happen. It is in the interests of no-one to proceed with a poorly implemented, flawed and halfbaked process that will have lasting negative effects. So not so different from Brexit after all. PAUL NICHOLLS has been Chair of the Motor Accident Solicitors Society (MASS) since October 2018 and is a Senior Partner in Nicholls Brimble Bhol.

Modern Insurance 39

FEATURES

2019 Claims Landscape W

e’re over a month into 2019 and already it looks like this is going to be a fast-moving and eventful year, with the following items going head-to-head for industry focus.

Brexit Without a crystal ball, it is impossible to say just which way Brexit will go. However, what is certain is we are now at the stage of “planning for the worst, but hoping for the best”. To this extent the communications from the Association of British Insurers (ABI) and Department for Transport in January regarding the likely need for Green Cards post-Brexit was like going back in time. Perhaps the largest impact in terms of claims is the likely erosion or indeed loss of 4th Directive rights in the event of a disorderly Brexit. The ability to pursue a claim in your country and language against the local insurer representative of an overseas tortfeasor has dramatically simplified the management of cross-border claims. We will therefore inevitably see a litigation spike as claimant representatives seek to preserve those rights on pre-Brexit cross-border claims. The Discount Rate With the Civil Liability Bill receiving Royal Assent just before Christmas, the clock is now ticking for the Lord Chancellor’s initial review of the Discount Rate. That process must start by 20th March and conclude by 7th August. It remains to be seen whether the Claimant community will overcome its reluctance to reveal details of actual investment returns. The absence of any other distractions would have enabled the review to conclude by May or June, but I anticipate Brexit chaos will see the August back-stop come into play!

The Regulations required to support the Act will be key, as will the secondary legislation to increase the small claims track limit. In a Brexit-packed legislatory timetable, eagle eyes will be required to spot these items. In parallel, the Civil Procedure Rule Committee (CPRC) will need to draft a new protocol and rules, and the Motor Insurers Bureau’ (MIB) will be working hard to deliver a new portal, designed for litigants in person but also supporting represented Claimants. There is much to be done before implementation in April 2020. Automated Vehicles Looking further ahead, The Automated and Electric Vehicles Act received Royal Assent in July, and the Law Commission is now consulting on numerous issues. This closes on 8th February and will be followed by consultations on the regulation of automated vehicles in public transport, with final recommendations delivered by March 2021. Ultimately, there is still some way to go before these key reforms are implemented and, most importantly, start to deliver costs reductions which can be passed on to consumers. Given the Brexit paralysis infecting the political environment, it will be fascinating to be involved in the development of these initiatives in such fluid times. JAMES HEATH, President of the Forum of Insurance Lawyers (FOIL) and Partner at Keoghs.

Whiplash Reform Whilst the Civil Liability Act introduces tariff damages, a ban on pre-medical offers and a legislative definition of whiplash, the devil will be in the detail that must now follow.

HGV licencing our years ago, six people died and 17 were injured when Harry Clarke temporarily lost consciousness at the wheel of a city council bin lorry in Glasgow. It was not the first time pedestrians had been killed in similar circumstances, and we now know Clarke had previously lost consciousness while driving. Clarke deliberately deceived doctors following his earlier fainting incident, claiming it had happened in a hot canteen. Clarke did not take it upon himself to report it. The fundamental menace is that there is no system in place to ensure a driver only receives a heavy goods vehicle (HGV) licence if the DVLA has seen the applicant’s medical records. As such, Clarke was able simply to continue driving, despite knowing he had a medical problem.

generated vague and dismissive answers. What was made clear is that there is no political will to take legislative action. Further requests for information made direct to the DVLA have provided largely inconclusive results.

This loophole puts everyone in danger. A tragedy such as that in Glasgow could happen again, anywhere in the UK, any day now.

Sheriff John Beckett’s recommendation to consult was made with the intention of preventing more needless deaths. There is no valid excuse for it not to happen.

In the fatal accident inquiry, which followed the six tragic deaths, Sheriff John Beckett recommended that the Secretary of State for Transport should consult on the issue. Questions asked in Parliament on whether and what steps will be taken have

40 Modern Insurance

Instead, the Government and the DVLA are relying on increased guidance and awareness to compel HGV drivers to report medical conditions. But this is a flimsy safeguard against those who consciously drive when they know they should not, putting their livelihoods before public safety. Guidance and awareness are not enough. When the worst happens, prosecution should be standard when drivers lie about their health when applying for HGV licences.

BRETT DIXON, President of the Association of Personal Injury Lawyers (APIL).

Issue 36

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FEATURES

Industry Innovators Interview: buzzvault Launched in December of 2018, Becky Downing, CEO, has brought something unique to the market: buzzvault. The future of insurance is going to be ‘modern, hyper-personalised and game-changing’; read all about how buzzvault is going to redesign next-generation insurance cover.

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Q A

What makes buzzvault different from other start-up companies?

There are of course plenty of other Insurtechs out there, all offering a slicker, more customer-friendly take on an existing process. At buzzvault we’re taking this one step further and offering our customers a fundamentally new way to insure themselves. How do we do this? Well, for a start, we bring together two industries that have historically had little to do with one another: home removals and insurance. buzzmove, our online comparison and booking service for removals, has been helping homeowners with their moves since 2013. In 2016, we added our industry-leading video-surveying tool to the mix - allowing us to compile detailed household inventories for our home-move customers. This means we can reach customers at that point in time when home insurance is top of mind and offer them a hyper-personalised policy based on granular data about what they actually own.

Q A

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

There’s a gap in the market for a better kind of home insurance: personalised, transparent and seamless. Although we don’t believe this is really a gap per se - in reality, it has the potential to be the whole market, as no-one benefits from today’s one-size-fits-all approach.

42 Modern Insurance

More specifically, other insurance lines are benefitting from new sources of data, and we spotted an opportunity to do the same with home and contents insurance. Over the past couple of decades for instance, we’ve seen a steady uptake of telematics in auto insurance. Indeed, this data-driven, personalised approach to car cover has helped thousands of young drivers onto the road for the first time, and we want to do the same thing with a “telematics of the home”. Our detailed household inventories - courtesy of our video-surveying tool buzzsurvey - give us unprecedented insight into what people own and want protecting. This personalised approach won’t just benefit the millions of renters and students that currently lack any form of contents insurance. It will help average homeowners too, whose existing policies may not actually cover everything that they think is covered - an unfortunate and all-too-common revelation at the point of time.

Q A

What were the main challenges in standing out and establishing yourself in a competitive market? We only launched in December, so, while we may stand out, it’s probably fair to say that we’re not yet established.

We believe our home insurance concept is unique, so our challenges so far have been more around delivery. We are a small team that has had a lot of moving parts to manage: from claims and customer service to policy management and billing. And we’ve had to build for multiple customer journeys, as some insurance customers will come to us direct and others via our house-move platform buzzmove.

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FEATURES

The key to disrupting an industry is to bring an out-of-industry perspective This said, we are now up and running - so the challenge now is mainly to get the message out.

Q A

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

A big problem facing the home industry as a whole is that everyone is competing for the same customers with fairly similar offerings - and this leads to plenty of dissatisfied customers and a huge amount of competition on price. buzzvault escapes this market dynamic in three ways. Firstly, we give customers something that’s not simply more of the same. What we have built is a wholly new way to manage, understand and claim on your home and contents insurance. In a context where a whopping 1-in-5 home claims are rejected, we believe that the added transparency and peace of mind we’re offering will stand out over the noise. Secondly, we have a pre-existing acquisition channel in the form of our home-removals platform buzzmove. This gives us access to thousands of customers a year at precisely that moment in life when home and contents insurance is top of mind. Thirdly, our proposition is built on personalisation, transparency and ease of use - three things that are notoriously lacking in most, if not all, contemporary home insurance offers. What this means is that we can tap into the millions of people - in particular renters and students - who have never got round to getting themselves protected.

Issue 36

Q A

How are new consumer buying habits forcing change in the insurance industry?

Over the past 20 years, the Internet - first desktop and now mobile - has completely revolutionised the way that business gets done. A particular case in point is Amazon and the retail industry. Who would have thought 20 years ago that you’d be able to get pretty much anything you wanted delivered wherever you wanted it via a portable computer - without talking to a single human being? Services like Amazon, Google and Facebook have massively raised the bar for customer service and experience. Put simply, today’s consumers simply believe that anything and everything should be possible - 24/7 and on any device. And, in this context, what most insurers are offering seems pretty old-hat. A seamless online experience is now table stakes whether we’re talking buying insurance or claiming on it. People want self-service platforms; they expect to get insurance quotes in as near to real time as possible; they want to claim at the touch of a button. And, last but definitely not least, they don’t want to have to dig out paper documents at any point in the process. It’s not all about consumer preferences either - modern consumer needs play a part as well. In the past, insurers could rely on predictable “life moments” for customers buying insurance - for home and contents cover it was always getting on the housing ladder. Times are a-changing though, and the traditional path of buying a house in your 20s (along with marriage and 2.4 children) is no longer the norm. So, insurers need to adapt their products to how people live today and seek out new “life moments” to start the insurance conversation with customers - like moving flats or heading off to university.

Modern Insurance 43

FEATURES

This is the future of insurance. Modern. Personalised. Built around you. Insurance as it should be

Q A

How is technology influencing buzzvault’s service offering, and how will this be developed in the future? The technology at the heart of buzzvault is mobile video.

Our promise to customers is a personalised policy based on how they live and what they own. To do this, we need a fast, convenient and unobtrusive means to gather data. Our video tool buzzsurvey is trusted and deployed by some of the world’s largest removals companies - and now it’s making a difference in insurance as well. In as little as 15 minutes, and with the help of one of our accredited surveyors, you can create a detailed and lasting record or the things you own and their value. Within the space of a few hours, you’ll be able to review your personal buzzvault within our mobile app. This way you can add in anything that’s been missed, make any necessary corrections and most importantly - decide what you want to cover. And your buzzvault isn’t just good once, it’s good on an on-going basis. If you buy a shiny new item, you can add it to your vault and insurance policy - at the touch of a button. Same with claims. If an item’s in your vault and you’ve chosen to add it to your cover, you can claim it back - and we’ve got a record of its value and condition, plus a video to prove it. We are continually upgrading our video technology based on both B2C and B2B customer feedback, with the aim of empowering our customers with more and more granular data about what they own - which they can decide what to do with.

Q A

What’s unique about the culture at buzzvault?

A quick stroll around the buzzvault offices will uncover an eclectic mix of industry backgrounds all under one roof. Mobile product managers meet cyber experts meet removal men meet insurance veterans - which certainly makes for many an interesting conversation down at the pub.

Dig a little deeper and you will find six core values driving our work each day: One Team, Excellence, Epic Human, Change Maker, Proud to be You and Relentless Commitment. These core internal values give us true purpose in what we do, unifying us under one core vision: to enable more meaningful experiences for humans by using technology and data at moments that matter in life. Another unique aspect of our culture is our wider commitment to gender diversity in the workplace with our #buzzingfor50 campaign, as well as plenty of other CSR projects. After all, we’re not just here to make an app - we’re here to make a difference.

Q A

Where do you see buzzvault this time next year?

Where do we see ourselves? Well, buzzvault home insurance will be firmly established within the UK market, and we will have extended the coverage to solve more pain points in our customers’ lives. And, because the core of our solution is 100% transferable, we will be looking internationally at other markets where we could make a difference to customers. For the time being, we are focused only on home and contents insurance. But it’s perfectly conceivable that we could expand our offering to include other kinds of protection, like travel insurance and pet insurance. Currently, a customer’s buzzvault is a lasting digital record of their possessions - but there’s certainly scope for it to become a broader record of lifestyle as well. The same thought applies to global expansion as well. The core of our product is 100% transferable, so we will be looking towards international markets where we can help to deliver customers a better home-insurance experience.

Q A

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

The key to disrupting an industry is to bring an out-of-industry perspective. You can definitely improve things from within, making existing processes better, serving existing customers more effectively. But that’s incremental improvement rather than disruption. An out-of-industry perspective is what lets you truly reinvent something and give customers a product or service unlike anything they’ve seen before. Amazon didn’t launch a bookshop but better; Uber didn’t launch taxis but better. They took a totally new distribution channel to industries that had never known anything like it. And the proof is in the pudding: Amazon’s retail competitors can’t compete on their old terms - but on the new ones set by Amazon. The next most important thing you need as a would-be disrupter is... an in-industry perspective! This is particularly important to crack an industry as technical and heavily regulated as insurance. So, to complement our expertise within app-development and the moving industry, we also have a number of insurance veterans on board. This isn’t just about compliance and getting the product right. Our in-house insurance expertise has been key to connecting us with the underwriting, claims and policy-management partners we need in order to bring buzzvault to market.

BECKY DOWNING is the CEO of buzzvault.

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Issue 36

FEATURES

Monica Savic-Jabrow, Barrister Direct, introduces Quick Costs and everything you need to know about the firm. or any law firm operating in the current legal landscape, cash flow is a major priority and, for many, a major concern. As the lifespan of a matter increases, so does the time for any given firm to realise their work in progress on that file. Even when damages are successfully negotiated, costs become an unduly drawn out process littered with chaser e-mails, stand-offs during negotiations and lulls of silence. An idea designed to combat that? Quick Costs.

Quick Costs was established in late 2018 and will commence trading in January 2019. Formed by Andrew McKie, Monica SavicJabrow and Ian Sekate, with a combined experience of over 25 years, Quick Costs is a legal practice specialising in the law and practice of legal costs. Quick Costs was set up following a recognised and first-hand experienced need for change in the marketplace. Historically, firms have been slow to process bills, negotiate and chase costs. Similarly, there has often been a reluctance to commence proceedings or make applications for interim payments. This hesitation and delay causes law firms, operating within the modern day environment, significant cash flow problems, which no firm can afford. With the changes to LASPO and the Civil Liability Bill, there is now more pressure than ever on law firms to convert their work in progress into realised cash, in particular with interim payments, speedier costs settlements and the deployment of full armoury under CPR 36. The historic solution to such issues has been work in progress funding or costs advance funding. However, with the market shrinking and funders becoming nervous about the changes, there is a very real gap in the market for a costs outfit that puts speedy and strong recovery at the heart of its business model, and, as such, we are extremely proud to pioneer Quick Costs. At Quick Costs, we pride ourselves on not being a traditional costs firm, from your first point of contact, Quick Costs provide a new approach to costs putting our client’s needs first with a friendly, approachable and nationwide service. Our service is focussed purely on our clients, their needs and interests. Quick

For any law firm operating in the current legal landscape, cash flow is a major priority and, for many, a major concern Issue 36

Costs is driven by fast recoveries whilst retaining technical skills and experience at its focus to ensure maximum recovery. We pride ourselves on our attention to detail and consistent level of client-focussed service, ensuring that your costs are handled in an efficient, professional and effective manner, using our bespoke case management system, programmed with our service standards, available on our website, which provides for automated efficiency, whilst maintaining our technical expertise in both costs and practice. Quick Costs’ Expertise allows us to assist your firm with a range of services in personal injury, clinical negligence, housing, construction and commercial work, which includes: • Costs Drafting Services – on both an informal statement of costs and formal bill of costs, fixed and standard costs matters • Costs Negotiation Services – on both fixed and standard costs matters • Costs Budgeting and Management Services • Provisional Assessment and Detailed Assessment Services • Advocacy Services • Training and CPD Our unique position permits knowledge of the issues that arise, how to deal with them and how to achieve maximum recovery for you and your client. Our role as Directors of Barrister-Direct also allows us to understand the precise position, situation and needs of our clients and how to best achieve those needs, speedily and effectively. Quick Costs understand that our prospective clients want to meet us, understand us and understand our knowledge and capabilities, prior to instructing a new firm in the marketplace. Subsequently, as part of our newly formed firm, we will be travelling to see new and old contacts new and old, delivering free seminars on a range of issues from conditional fee agreements and qualified one way costs shifting to budgets, alternative funding models and the upcoming changes. Our seminars will be hosted on: Manchester: 14th January 2019 (10am – 1pm) Liverpool: 21st January 2019 (10am – 1pm) Leeds: 28th January 2019 (10am – 1pm) Places will be limited to 40 spaces and two per firm, so please book early to avoid disappointment. The seminars will last three hours and will be delivered by our Directors, Andrew, Monica and Ian. For more information about Quick Costs, please visit our website at www.quickcosts.co.uk or contact MISS MONICA SAVIC-JABROW on 07983 866132 or MR ANDREW MCKIE on 07739 964012.

Modern Insurance 45

Working Together Nationwide Assistance Group works with insurance companies to mitigate the cost of a claim by providing a complete collision recovery management service.Our high level of standards means that we know the importance of capturing the right details when completing FNOL’s through to deploying the correct recovery vehicle.We do not stop there, being your eyes on scene means we can advise if the vehicle should be taken to salvage rather than repair, reducing movement costs. Where a vehicle is in storage we ensure that we deliver that vehicle to a repairers or salvage company as quickly as possible to mitigate the storage costs and save you money. • • • • •

Fully tailored FNOL service API Link job notification—No more double entry or miscommunication One to one training provided for your call centre (day & night) Images within 24-48 hours of recovery Full UK & European audited network of recovery agents

24hr Contact Centre: 01621 730009 Email: mick @ nwva.co.uk

www.nwva.co.uk

Head Office: 14 Mapledean Works, Maldon Rd, Latchingdon, Essex CM3 6LG

For more Modern Insurance Magazine insights, news, trends, blogs, events news and stories FOLLOW US ON @ModInsuranceMag Modern Insurance Magazine

Send us over your news for our website moderninsurancemagazine.co.uk To get in touch and find out how you can be featured in the magazine call Rachael on 01765 694167

FEATURES

Emerging technology and fraud identification Identifying risk needs a combination of top-notch technology and human interpretation as Tara Shelton, Chief Executive Officer of I-COG Claims Management, explains.

o many clichés have been bandied around the UK insurer market concerning AI solutions for claim first notification processes. Silver-bullets; fully automated, hassle-free.

Like a box of detergent, it smells and looks good, but does it really remove that stain when in the washing machine? And like detergent, which brand is the best for my exact needs? Can my weekly shopping budget afford it? The truth is that whatever AI technology you choose, the rules within are written by humans. Those humans must appreciate your claims environment, corporate risk tolerance, aims, objectives and claims philosophy. Therefore, avoid off the shelf options. You may be taking on a total nightmare that will kill your business – and bank account. Think bespoke. Think customer. Think investment. I have reviewed most AI solutions in the market, and there is only one I believe is the best for many reasons, namely RiskShield, from INFORM. Why? Because it is the company that has been around for fifty years, runs most of the world already, puts the insurer in control, runs faster than any of its competitors, helps internal fraud detection and develops your business intelligence data. The benefits are too numerous to mention. But what if you detect potential risk and the volumes are too much to handle internally? Most tweak the rules to run at a lower output rate so they can manage – wrong behaviour again! Be accountable to your loyal customer base. Identify a partner that cannot only take this volume from first notification but also interpret the data and do something useful with it. This is what we do at I-COG and within 72 hours, 60% of that headache has gone, and monies saved. We then deal with the 40% left with customer service excellence without the insured ever knowing that they were in a very intelligent process. As a result, our average claims lifecycle is halved, and we have very happy customers that want to renew their policy with our insurer clients. Our i-Verify® product is based on emotionally connecting with policyholders positively – the fraud detection almost becomes a by-product, yet you save more with less complaints.

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Think bespoke. Think customer. Think investment. If you still think you do not encounter claims fraud, you are foolish and completely underestimate what people are capable of. And if you think you don’t need a solution and embedded supply chain yet, think Brexit. When the purse strings get tight, guess what human psychology drives people to instinctively do to feed their families? Find easy money from a source they already have inside the tent – their insurance policy. So think wider. Think smart. Think about creating a bespoke risk identification scoring model, RiskShield, that is received by the best human expertise at I-COG to interpret, develop and feed back into your business the intelligence that is meaningful. Spin offs are significant reductions in loss-ratios, complaint rates and migraines. The digital world is changing at a rapid pace, but never rush into a decision. Talk to industry experts, think about what is tangible and what is intangible in terms of scoring measurements and test, test, test. Consider your moral obligation to do the right thing in the right way and open your mind to big data and collaboration. Technology in the risk identification game can never, ever be a sole solution. You will be heading for a car-crash if you believe this misnomer. There needs to be expert human interpretation to take the claim to a conclusion and that is where our value is undisputable. Use a trusted industry-level partner like I-COG to support your claims work-flow and make you shine. You will save a huge amount of time, effort and money and a result! TARA SHELTON is the Chief Executive Officer at I-COG Claims Management.

If you wish to know more about anything in this article, please contact Tara Shelton on tara.shelton@i-cogservices.com or 01386 426262.

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FEATURES

Connecting to conquer Collaborating is becoming key to the insurance industry as technology continues to develop and change our work flows and customers’ expectations. Michael Lewis, Claims Technology, and Richard Taylor, GT Motive, have come together to discuss how artificial intelligence is changing the way we estimate claims, how chatbots are enhancing the claims process and why collaboration is the way forward. Michael Lewis

Q A

Tell us more about Robin, Claim Technology’s AI chatbot and how you have introduced Robin into the customer’s journey?

There is a significant gap between the claims journey that the customer now expects and the ability of insurers to meet those expectations. Customers want to be able to choose the appropriate channel for a particular need at a particular point in time and to seamlessly switch between channels. Existing claims management systems are neither designed to support rich, digital customer journeys or intelligently automate end to end claims processes. Our claims-as-a-service platform is the first platform to provide the insurance market with an end-to-end set of digital claims capabilities that transforms a handler-led process to a customer self-serve process (that can be handler-enabled) where the customer can self-serve their claim via our touchless call centre or by interacting with our web-based chatbot, Robin. The customer is typically brought into the chatbot when they visit a website or are sent a text message from their insurer with a link to use Robin. The link opens a webpage in their browser, without the need from them to download anything. The customer can report their claim, self-serve tasks or be notified on the progression of their claim.

Q A

How could chatbots change the way claims are estimated?

Chatbots can have a big impact in the way claims are estimated. Our chatbot enables customers to upload photos or videos as evidence in support of their claim. Through partnerships with other supply chain providers and insurtech companies, our chatbot in able to certify that these images are genuine. On a motor claim, AI can make a decision on whether a vehicle is a total loss and either enable the customer to self-serve their repair into an approved repairer/ replacement vehicle via the chatbot, route the claim to an engineer for further inspection or manage a digital total loss process. Likewise with property claims, the customer can self-serve an inspection, with the ability to automate a payout or fulfilment process.

Q A

What is the strategic direction of AI in the insurance industry?

At present, claims are claims handler led. By developing artificial intelligence we move towards replacing responses or decisions made by humans with decisions made by a machine. At present, AI solutions, such as natural language processing, can be used to understand the intent of a customer’s question and either

48 Modern Insurance

offer an answer or lead the customer into an automated self-serve process. This is a practical example of how Claim Technology’s chatbot, Robin, currently uses AI in order to improve the customer journey. AI can also provide claims handlers with more effective decision support, by predicting a decision to a certain level of confidence, where the machine’s decision is then validated by a claims handler. As machines are trained, their ability to match the accuracy of a human-made decision is increased until such time as the machine is able to make more accurate decisions, more of the time and faster than their human counterparts, for example, making a decision on liability or quantum. This eliminates the variability that is currently present when the same facts are presented to different handlers. There is much concern about the impact this will have to jobs. As a general rule, machines excel at tasks that humans do not and vice versa. AI allows us to create more varied and interesting insurance roles such as developing new business models, innovating and creating great customer experiences.

Q A

Where is there room for collaboration within the insurance industry?

Historically, the insurance industry has been slow to embrace collaboration but that is changing and companies are looking to work together to enhance their respective propositions or bring these to market faster. Aviva and Munich Re have launched incubators to help foster technology. With different lines of business facing similar challenges and tech companies filling in the gaps in service left by existing business models, there has been no better time for insurance companies to work with agile start-ups to help innovate their processes and improve their customer journeys. There is also room for more collaboration between tech companies. Start-ups can often be over-protective towards their product for fear of their ideas being used by other companies, and this can get in the way of collaboration. More often than not, this fear is unjustified; the value of the best products is in execution not ideation. In my view, start-ups and existing suppliers can find interesting new products by working together. This is where Claim Technology’s digital platform is key. Our platform is open to all participants in the insurance claims ecosystem to connect to each other so the platform acts as a market to help connect technology buyers (insurers, TPAs) with technology vendors (traditional supply chain or insurtechs/fintechs).

MICHAEL LEWIS is the CEO of Claims Technology.

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FEATURES

Richard Taylor

Q A

How would the integration of a claims chatbot enhance the claims process?

We firmly believe Artificial Intelligence (AI) is going to revolutionise the world as we know it and chatbots are one of the many and early signs of this change. If we could say that we can have a system with the same level of understanding, empathy and interaction capabilities a person can have, but also powered by all the data and algorithmic information a computer can manage it would be incredible, right? This is the concept behind chatbots and why we think that even if the technology is still in early stages and chatbots cannot replace human interaction in the claims process, there are simple interactions where a chatbot can deliver great value; like getting information updates about the status of a repair and understanding policy coverages. Beyond the cost and scalability benefits for the service provider, chatbots also provide benefits to the end user, 24/7 availability for service and a consistent experience.

Q A

How is technology changing the way we estimate claims?

Technology is impacting nearly every single aspects of our lives rapidly and claims estimating is not an exception. I would identify two main aspects:

1) Vehicle Technology. Cars are becoming more complex to understand and repair because of all the technology involved (sensors, computers, electric powertrain, exotic construction materials etc). This has an impact on Estimatics as the Engineer/ VDA needs to be up to date of all the impacts of this technology in their work and use the right estimating tools which includes extensive, accurate and up to date information. What are the limitations of repair in new materials? Processes for handling hybrid/ electric cars, Recalibration of sensors just to mention a few of the aspects to be considered. 2) The second aspect is the technology involved in the Estimatic process itself and the integration in the body repair ecosystem. Today’s Engineer/VDA needs to be capable and ready to work online using mobile devices that connect to the cloud to upload their assessments in real time collaboration with bodyshops, bringing greater efficiencies to the whole claim process thanks to technology.

Issue 36

Q A

How can digital solutions be used to improve the customer journey?

If you think about it, the claim’s customer journey, in many cases, has not changed a lot in the last ten years, which is odd looking at how fast and how disruptive has been the change in other industries thanks to all the advance in mobile and digital experiences. We see quite often services or sectors being disrupted by full mobile – digital newcomers. Insurance is no exception with examples like Lemonade in the US that is preparing to come to Europe. Because of their upfront digital processes and lack of legacy, they claim to have the fastest and easiest claim resolution/payment process in the industry. This is a clear example where digital can take us from the onset, there are many ways how current players can embrace and benefit their customers from digitalisation, without being a Lemonade.

Q A

How is GT Motive’s innovative solutions bringing value to the vehicle repair industry?

All of our solutions are about improving productivity and efficiency (and profitability). GT Motive brings a fresh approach to the industry, by putting together state of the art technology (full cloud based, mobile), a truly real-time updated OE database and an open approach to integrations with partners/ services that can add to the value chain of the repairer.

Q A

Where is there room for collaboration within the insurance industry?

We already work in an industry where generally collaboration is in place and this is one of the key philosophies that GT Motive has. What does need to improve is the way in which collaboration is achieved and allowing the process to run smoothly and effectively no matter which insurer it is, which repairer is repairing the car, which supplier is used etc.; I can go on and on. Collaboration should be about providing the best solution to the get the person who has been affected the most, normally the car owner, back into a positive position. However, we live in a dog eat dog world where, unfortunately in some cases, the person most affected is the last one to get considered.

RICHARD TAYLOR is the Sales Director and UK Business Director at GT Motive.

Modern Insurance 49

Actively Managing Commercial Insurance Portfolios Whether trading a portfolio of small or medium enterprise or multinational risks, itâ&#x20AC;&#x2122;s vital to have an appropriately granular grip over the portfolioâ&#x20AC;&#x2122;s performance and mix levers. The Radar suite allows portfolio and product leaders to actively manage their portfolios, delivering interactive scenario monitoring and impact analysis. Our market leading real-time rating engine Radar Live, delivers: Active portfolio management Radar allows portfolio owners to understand trends, challenges and opportunities, test assumptions, visualise strategies, model alternatives and monitor the strategies they choose to deploy. Active renewal management Radar enables granular segmentation across many dimensions of performance and exposure, allowing the creation and deployment of more sophisticated rate planning. Intelligent intervention and automation The Radar suite can run a range of operational models for routing, prioritisation, risk evaluation and scoring, all to help ensure the underwriters get to see the risks they have the best chance of winning. To find out how you can take advantage of sophisticated analytics across the commercial value chain, contact softwaresolutions@willistowerswatson.com

willistowerswatson.com/ICT

ROADSHOW

Customer Service Excellence Roadshow The UK Customer Service Excellence Awards are returning for a second year in April 2019, and in the run up to the event, Modern Insurance took to the road in partnership with Carpenters Group to hear from a range of individuals about the factors concerning customer service in the insurance industry and how we can continue to ensure that the customer is at the heart of everything we do. Customer service is an important part of the overall customer experience, and as we all know, this needs serious attention in the insurance industry. Usually, a customer’s only interaction with an insurer is either by renewing a policy or at a point of crisis when making a claim. As a result, it is difficult for insurers to build and maintain a positive dialogue with their customers. Finding a solution is a challenge, so in order to improve the customer experience, the industry needs a fresh approach. With now more options than ever, customer’s need firm assurance that the company they choose puts the customer first and at the heart of their product offering. Throughout these sessions we explored new ways of improving the customer’s experience of insurance,

more specifically the customer journey; and we examined what aspects of the industry might be affecting their experience, either positively or negatively. Consumer buying habits and the influx of new technology were certainly on the agenda, as well as the important aspects of trust and loyalty. The conversation brought up some interesting points and new insights about how we can raise the standards and drive performance within the industry. It is clear that customer representatives of insurance companies need to focus on the customer’s experience throughout their claims journey; and by improving the entire customer experience this should mean businesses have happy customers as well as a competitive edge.

Poppy Green is the Co-Editor of Modern Insurance Magazine. poppy@charltongrant.co.uk | 01765600909

At Carpenters Group, people are at the heart of what we do. Our vision is “having the right people with the right skills, using the right technology; whenever and however the customer chooses to interact” Carpenters Group is one of the UK’s leading providers of insurance and legal services. We work in partnership with a number of insurers, brokers and MGA’s to deliver a variety of fully outsourced claims solutions. Our team has grown to approximately 1000 staff across seven locations throughout the UK. We have sites in Liverpool, Leeds, Birkenhead, Haywards Heath and Glasgow. Our team’s insurance experience combined with our legal expertise gives us the size, scale and strength to successfully work in partnership with any insurer or broker. Our longstanding relationships are testament to the quality of our service. Our focus is always on the customer and ensuring their claims journey consistently exceeds expectation.

www.carpentersgroup.co.uk

Issue 36

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ROADSHOW

London

When it comes to engaging with customers, insurers are at something of a disadvantage. Unlike retailers, insurance companies have traditionally been limited with their interactions with customers, as Rob Hamblett explained, “insurance is a product that you only use when you have to, and that’s usually at a point of crisis; however, when you get into the claims process it becomes excessively transactional.” During our first discussion, it became clear that insurance companies need to focus on improving the customer journey and the fluidity of the process, eliminating various cross-overs in order to make the journey simpler and easier to understand and navigate, and to quote Hamblett, they need to remember that there is “a human at the other end of the phone.” Alan Hayes kicked off the conversation with: “What areas within the customer journey can be improved? Are there different levels of service within different areas of the insurance service?” It became clear that call centre representatives were not addressing customer’s emotion first and foremost but rather asking customers for their policy number, and Gerry Brown believes that that needs to change; “it should all come down to one word; emotion.” Brown explained that the industry needs to make a major change, firstly by introducing the use of emotion into an employee’s approach to a claim and secondly, scripts should be removed as they restrict the freedom of conversation and the building of a relationship. Donna Richards agreed, stating that the claims conversation needs to be fluid and that perhaps artificial intelligence will be able to help us achieve that in the future through personal identification. Jo Causon agreed that emotion was integral to the customer experience, she stressed that great customer experiences we borne out of a focus on getting the basics right, doing what you said you would, but also having board commitment with a focus on customer ethos, emotional connection, and building trust and an ethically driven approach. Trust became a major talking point for all attendees. Matthew Connell thought it was fantastic that the group were talking about trust in the context of

52 Modern Insurance

insurance and taking it seriously. He explained that the elements the industry tends to measure in order to calculate customer satisfaction and engagement aren’t the things that promote trust in our customers, and this needs to change. Trust is a key differentiator for customers and needs to be at the top of the board’s list going forward. Jeremy Hyams agreed that emotional connection and trust are key to the equation but how do we drive that within the industry? He suggested that the way you get your employee to care and understand your customers is not by training but how you lead from the top down. “If people are proud to work for you then they will take pride in their work and take care of the customer.” Vicky Smith agreed with Hyams but suggested that organisations need to understand the different goals that customers are trying to achieve with them and the extent to which the business is delivering against these goals. By doing so, businesses will be able to tailor the experience and align to customer needs, thus allowing employees to build a stronger emotional connection.”

Organisations need to understand the different goals that customers are trying to achieve with them and the extent to which the business is delivering against these goals

Vicky Smith, lens

Issue 36

ROADSHOW

Attendees: Insurers have tended to disengage with customers because it is expensive, but not engaging with customers is even more expensive. Any form of engagement and communication with customers leads to higher level of retention. It is simple maths

Alan Hayes (Chair)

Donna Richards

Anthony Wright

Gerry Brown

Chief Legal Officer Carpenters Group

Head of Communications ABI

CEO Carpenters Group

Chief Customer Rescue Officer The Customer Lifeguard

Ian Hughes, Consumer Intelligence

The conversation soon turned to the supply chain with Hayes asking if there is an issue with passing the customer service message down to the supply chain. Hyams said that “the most obvious thing that is wrong with the industry is that we have all these suppliers involved in the claim but no one talks to each other. If we can create a communication system between those supply chains and the insurer and remove the duplication of processes, everything should move much more smoothly.” Jonathan White echoed this, explaining that there are serious disconnects between different entities in the process, and this needs to change. It became obvious that collaboration needs to be high on people’s agendas for the coming year and that the links between insurers and the supply chain needs to be even stronger. Recruitment and selection is critical as is the further training and development of employees if we want to create an industry that is proactive and customer-centric. The table was asked whether they thought part of the problem in delivering the customer journey is due to a lack of resource? Richard Beevers explained that a lack of resource is not the root cause. “The root cause is the people around the top table. They don’t understand the link between customer satisfaction and business performance.” Ian Hughes suggested that retention is a big problem for British insurers in the future; “we as a country have boiled this down to a bunch of numbers about renewal and retention. Customers have no emotional connections with their insurers, it is all about getting the cheapest price – and that is caused by the insurance industry not by customers.” The bottom line is the more you engage with customers, the higher the retention rate. Hughes went on to say that “insurers have tended to disengage with customers because it is expensive, but not engaging with customers is even more expensive. Any form of engagement and communication with customers leads to higher level of retention. It is simple maths.” Anthony Wright also suggested that reputation is a problem in the industry and that public perception and education needs to be better in order to improve the insurer’s image. The biggest issue to come from this roundtable was the problem around communication. Richards emphasised that communication is key and certainly within the claims process. She thought that one person should be taking control of communication with the customer. Leigh Hopwood asked if this means that the market needs disrupting – could a new entrant implement a new process that transforms customer service? But is there anyone brave enough to tackle that?

Issue 36

Ian Hughes

Jeremy Hyams

CEO Consumer Intelligence

CEO Claims Consortium Group

Jo Causon

Jonathan White

Leigh Hopwood

Matthew Connell

Rob Hamblett

Richard Beevers

Richard Taylor

Vicky Smith

CEO Institute of Customer Service

Strategic Marketing Consultant Redd Marketing

Client Services Director Brand Biology

Sales Director and UK Business Director GT Motive

Legal Director National Accident Helpline

Director of Policy and Public Affairs CII

Director CustomerPlus

Co-Founder lens

Modern Insurance 53

ROADSHOW

Liverpool

The insurance industry has an image problem. That may not be breaking news to some, but it is an important topic that needs to be addressed and resolved. As previously stated during the discussion in London, insurance is seen as a grudge purchase, or as Andy Thornley suggested, “an investment.” “The public’s mindset needs to change and the industry needs to become a partner to people rather than an entity that just sells products and services to them”. So in order to change that perception, we need to start with the customer and what they want from their experience with insurance. It was suggested that customers don’t understand the benefits of insurance and therefore they don’t appreciate the process, causing them to not want to engage with insurers. Sam Nicholson reiterated the point, explaining that customers aren’t looking at the cover but at the price. Is this mindset down to price comparison websites? Thornley thought so, suggesting that they have hollowed out the insurers’ policies in order to achieve the best possible price, therefore the policy will never stand up to the expectation of the customer when it comes to claiming. “It is a never ending cycle with constant downward pressure on premiums. As an industry, we need to start talking more about the benefits of the policies rather than the price”, and make sure customers are informed and understand what they are buying. We then moved onto the topic of the supply chain. Paul Taylor felt that there is a lack of focus from insurers on the fulfilment piece in terms of making that part of their control structure. “In the motor world, insurers want the business but they are prepared to allow the broker to dictate the route of the claim instead”. Andy Whatmough said that “if you were to do a comparison between a broker based underwriter and a direct seller, the customer journey would be fundamentally different because it works differently for its customers.” The direct sellers who don’t have a broker in the chain will choose a more collaborative panel who will make the supply chain experience better. Dan Chesney said that insurers are not engaging with their customers throughout their relationship

54 Modern Insurance

together, whereas the broker market are happy to have face to face meetings and get to know their customers. Thornley explained that during a piece of research, it was found that there was a significant uplift in pay-out when using a broker. “The broker is an agent for the customer and goes into bat for them. That is why a broker distribution channel works. The broker is adding value for the customer.” The conclusion to this part of the discussion was that there needs to be fewer channels available in order to create a smoother process and that communication from the insurer needs to be pinnacle to the customer’s journey. Technology and devices were next on the agenda. There has been an increase in technology and connectedness from devices such as Alexa, and when companies have all your data from those devices it is so easy for them to say they will sort out your insurance as well. Those companies such as Hive, have got so many more touch points and those devices have so much more utility in the customer’s eyes rather than insurance products. It is becoming clear that the insurance industry needs to keep an eye on technology as it continues

In the motor world, insurers want the business but they are prepared to allow the broker to dictate the route of the claim instead Paul Taylor, Plantec Assist

Issue 36

ROADSHOW

Attendees: The public’s mindset needs to change and the industry needs to become a partner to people rather than an entity that just sells products and services to them Andy Thornley, BIBA to develop. Thornley suggested that others are already eyeing up and wanting to disrupt and reinvent the industry’s customer journey and the industry needs to be careful and ahead so they don’t take the opportunity. “Any significant brand that has control over their customer can easily drive behaviour, so the industry needs to be aware of those potential disruptors. Therefore, the industry can be seen as lagging behind in terms of technology, as Thorney commented: “we are subject to software hubs based on 90s architecture.” There are a whole new suite of tools out there such as machine learning, chatbots and artificial intelligence, among others, and it is not too late as an industry to filter more of this into our processes. John Ridd suggested that there was initially a lot of resistance behind adopting new technologies, although insurers have begun to adapt technology now, they are still behind the supply chain, especially the motor sector.

Alan Hayes (Chair)

Sam Nicholson

Andy Thornley

Andy Whatmough

Chief Legal Officer Carpenters Group

Head of Corporate Affairs BIBA

Dan Chesney Commercial Director S&G Response

John Ridd CEO eviid

We circled back to the image of insurance and the public’s perception. Murphy and Taylor both shared an example of going into schools and bringing case studies to life for students. They felt that by educating students around money and risk that could only help to change perceptions and encourage more people to engage with insurance. Alan Hayes summarised the discussion by stating that there are going to be lots of challenges that insurers face in terms of the customer journey: economic challenges, getting the customer through the door, pressure in terms of technology and the impact on communication. The future will bring lots of changes, including the reforms where there will be new entrants and different ways of funding cases. Collaboration is going to be extremely important between insurers and supplies in order to create a better experience.

Head of Insurance Services Carpenters Group

Director S&G Response

Dominic Murphy

Regional Claims Manager Gallagher

Nik Ellis

Group Director Laird Assessors/ Revolution Four

Paul Taylor

Managing Director Plantec Assist

If you were to do a comparison between a broker based underwriter and a direct seller, the customer journey would be fundamentally different because it works differently for its customers Andy Whatmough, S&G Response

Issue 36

Modern Insurance 55

FEATURES

Marketing is taking responsibility for customer experience Leigh Hopwood, Managing Director of Redd Marketing, takes on the debate of who ‘owns’ the customer experience and backs the corner of the marketer. ho ‘owns’ the customer experience is a debate that has been raging for some time. As getting the customer experience right has become more prevalent in creating profit, growth and a sustainable business, organisations have established roles responsible for it. The Chief Customer Officer, the Director of Customer Experience and the Head of CX working within the operations function have all become commonplace.

These roles are founded on marketing principles. These people are marketers. Marketing is all about creating and articulating value to a customer. They do this through customer engagement – the more engaged someone is with the brand, the more likely they are to buy. For marketers to do this, they need deep customer and market insights to be able to anticipate and satisfy customer needs profitably. The actual customer experience delivered impacts on reputation, customer retention and sales. It is an opportunity to demonstrate the brand promise. This may be through the website, or the contact centre at the point of sale, insurance documentation, dealing with a claim or a complaint, or through third parties that participate in a claim process. Defined by marketing, the brand promise is what customers can expect from a business such as the product quality, service experience and value add. Once stated, it is the role of marketing to ensure it is delivered every time. Gaining access to customer feedback and customer satisfaction metrics enables marketing to continue to finetune the customer experience to align it even closer to the brand promise. With customer experience so crucial to business survivability, and with marketing playing such a key role in defining and monitoring the customer experience, it’s no surprise that 80% of

56 Modern Insurance

What they are starting to recognise is that they need marketers in the boardroom – people who truly understand the customer and are innovative in creating propositions that deliver profit marketers want to take control of it. However, still only 45% of them have total ownership. Why doesn’t marketing have this responsibility in all businesses? In my view, marketing has been misunderstood. It has had a reputation for being tactical, working in isolation and being a cost to the business. So giving something as strategically important as the customer experience to marketing may not have been obvious. But things are changing, and they are changing fast. There is so much evidence of businesses failing to keep up with their demanding customers. When facing financial woes, Board members look around the boardroom to see who is responsible. Finance blamed sales, sales blamed the product, and operations blamed finance for lack of investment. Boards are starting to realise that marketing is key to sustainability, but marketing has seldom been in the boardroom… until now.

Issue 36

FEATURES

In my view, marketing has been misunderstood. It has had a reputation for being tactical, working in isolation and being a cost to the business cover once a year and price being central to the decision will soon be over. Is it time for insurance companies to start considering more than just the customer experience at the point of purchase or claim? How can an insurance company deliver real value to every customer, not just those that make a claim? Can an insurance provider implement a true end-to-end customer experience to seek a competitive advantage that removes the focus on price? And will the insurance industry experience total disruption over the next few years?

CEOs have realised that they cannot be the Board member responsible for the customer experience. They are having to focus on the impact of Brexit and creating a sustainable business in a fast-changing world. What they are starting to recognise is that they need marketers in the boardroom – people who truly understand the customer and are innovative in creating propositions that deliver profit. There is no doubt that the trend for marketers to take ownership of the customer experience is growing. Marketers are building strong strategic relationships across the business, using deep insights to understand customer behaviour and working collaboratively to better communicate the brand promise that they advocate. As this trend gathers momentum in the insurance industry it is driving a need for a proposition rethink. It is widely accepted that buying an insurance policy is not something people willingly do – if they didn’t have to have car insurance then they wouldn’t buy it. The emotions connected to this reluctant purchase are generally not positive. When customers are considering which insurance policy to purchase and are faced with legalese and complexity, they turn to price to support their decision making. A business cannot be sustainable in this environment; a price war, lack of loyalty and increasing costs to the business. The days of buying insurance

Marketing is all about creating and articulating value to a customer Issue 36

Let’s take Vitality for example. Since 2014 Vitality has been redefining the health and life insurance market by rewarding healthy customers. As well as having a great customer experience when contacting Vitality through the contact centre, they are delivering a valued digital experience such as giving access to GP consultations and offer an Apple Watch incentive programme that has resulted in a sustained 34% increase in people’s physical activity. In 2018, the company adopted a marketing approach to a supplier review that enabled them to improve the supplier experience which has had a positive impact on the customer experience. Combined all this with a striking marketing campaign with Stanley the dachshund, they have seen requests for quotes increase by 27% year on year and profits balloon. Vitality has defined its target market, conducts in-depth analysis of its customers and has a clear purpose. Through the experience they deliver every day they are demonstrating that they understand their customers and are providing a service experience that keeps them front of mind. This in turn will increase loyalty and removes the factor of price because customers experience the value. So, the question is not ‘who owns the customer experience’. The world has moved on to recognise that marketing is responsible for defining the customer experience and everyone in the business is responsible for conveying it. Now businesses should be focusing on a more strategic view, considering how to innovate the customer experience to add value, clearly differentiate and build loyalty. LEIGH HOPWOOD is the Managing Director of Redd Marketing.

Modern Insurance 57

10 MINUTES WITH

Penny Searles Q A

I feel passionately that telematics empowers motorists in so many ways but the industry has done a poor job of demystifying the concept of usage based insurance and so it’s remained an insurance product that’s almost solely focused on young drivers

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

In short, yes! That’s thanks to a small number of innovators who have made big changes to how insurance is priced based on actual rather than presumed risk and who have used this knowledge as a force for good to help drive down road casualties, particularly amongst young motorists. It has also become more automated and price-driven with aggregators now dominating the scene, making it very difficult for smaller brokers to make a profit on a standard policy. Motor insurance has certainly become a much harder industry to work in. Increasing regulation brings its own unique set of challenges. For example, in what other shopping experience are you given the price you paid last year and told to shop around before buying the same item again? This is simply creating a price driven market, which is unsustainable. It will ultimately be to the detriment of consumers as smaller operators simply won’t be able to survive, leading to less choice and less competition.

Q A

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

I am obviously going to say telematics in terms of positive change. I feel passionately that telematics empowers motorists in so many ways but the industry has done a poor job of demystifying the concept of usage based insurance and so it’s remained an insurance product that’s almost solely focused on young drivers. When I launched Smartdriverclub Insurance, I wanted my proposition to appeal to all demographics – they just needed to be good drivers. Simply offering insurance wouldn’t be enough, I needed to make my proposition stand out and provide benefits that would appeal to motorists of all age groups. I was only able to do that through the telematics data and technology. I am a broker so my customers are also my insurer partners. Through telematics I can offer them the opportunity to underwrite and reward safer drivers. I can also give them the insights to help manage claims efficiently and reduce fraud. Unfortunately not all insurers are quite geared up to use telematics data at claims stage. It’s a source of great frustration given the huge cost of fraud, which impacts every premium and every policyholder.

Q A

Who inspires you and why?

My family inspires me – it’s that simple! I am lucky enough to work with my sisters – you can’t get better loyalty and commitment than that, and that’s not to underplay the fantastic team I work with – some of whom I have known for over fifteen years and are therefore part of my extended family.

58 Modern Insurance

Outside of my family, Mike Brockman is a key source of inspiration for me. Mike started insurethebox when everyone said black boxes in cars would never work. He has a gritty determination that I admire. Apparently we’re Mr and Mrs Telematics! Being a great believer in equality, Sam White of Pukka also hits the list because of her strength in the face of adversity and absolute drive to achieve for herself, her family, her team and she is a great champion of women in FS.

Q A

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

I have had a lot of mentors along the way and I try to do the same for others and help other businesses where I can. I find when you give in this way you get it back tenfold. Sandy Dunn is a long-time friend, colleague and mentor, the most valuable advice he has ever given me is to listen and think before you speak. Although I’m not always very good at following his advice!

Q A

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

I would like to find a way to encourage the government to change the curriculum to help young people learn the realities of working life, how to manage money, and the different roles available and what they entail. I think there is very little focus on preparing school/university leavers for work. Expectations are so high of how their career will unfold and what their days will be like and it’s not an ‘INSTA’ world out here, it’s real.

PENNY SEARLES is the CEO of Smartdriverclub.

Issue 36

We keep your promises

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THINK BIG We do

From manually operated plant and machinery, to computer-aided manufacturing and renewable energy installations, the engineering industry is changing and there’s never been a more important time to protect the insurance and inspection needs of your engineering customers. At Allianz Engineering, Construction & Power, we offer a range of insurance products, including our new Renewables proposition and dedicated specialist underwriting teams across all sectors to help you manage the changing profile of these industries. With over 100 years’ insurance experience, we have proven technical excellence and expert market knowledge, and together with our market-leading engineering inspection and consultancy services, we’re confident we can meet the needs of your customers in these important and growing sectors.

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