37 ISSUE
ISSN 2515-3803
Connecting Insurers, Brokers, Lawyers & Claims Professionals
UK Customer Service Excellence Awards -
Winners’ Edition
Why insurance? Sam White, Pukka Insure
The digital revolution Gionata Tedeschi, Octo Telematics
Technology is An industry of driving the customer journey opportunity James MacBeth, Auto Windscreens
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EDITORIAL CONTRIBUTORS Andrew Chandler Sales Director FMG
Neil Marcus Marketing Director Selsia
Clive Nicholls President, UK & Ireland Crawford & Company
Nik Ellis Managing Director Laird Assessors
David Ovenden Global Director, Pricing Product Claims and Underwriting Willis Towers Watson
Paul Tasker Managing Director REG UK Paul Taylor Managing Director, Operations Plantec Assist
David Williams Managing Director, Underwriting & Technical Services AXA Insurance (UK)
Peter Goodright General Manager Nationwide Vehicle Assistance
Donna Scully Director Carpenters Group
Verity Ross Motor Expert Claims Handler Zurich UK
Gionata Tedeschi Chief Product Portfolio and Ecosystem Office Octo Telematics
Richard Taylor Sales and UK Business Director GT Motive
Prof. Hugh Koch Managing Director Hugh Koch Associates
Rob Cooper Co-Founder and Executive Director Me Group Holdings
Jason Tripp Managing Director Coplus
Rupert Armitage Managing Director Auto Windscreens
Jeff Winn Managing Director Winns Solicitors
Stephen Marshall ACII Managing Director Insure Apps
Marc Lafferty Chief Revenue Officer EDAM Group
Steve Thompson Director InduSTry Insights
Michael Lewis CEO Claim Technology Ltd Mike Brown National Insurance Sales Manager On Insurance
Trevor Lloyd-Jones Senior Marketing Manager, Insurance LexisNexis Risk Solutions
Margaret Scott Head of Claims Strategy and Customer Experience Allianz Insurance
WELCOME eople inspire us in many different ways. There are those who strive to reach for the stars and change the world for the better, some who are inspired by others achievements, attitudes and values, or those that overcome challenges to succeed when the odds are against them. The insurance industry is full of these people and we need to celebrate that more! Some individuals are inspirational for their skills and talents, while offers are recognised for their encouragement and impact. Inspirational people motivate and empower and can be found in all walks of life. This edition is all about sharing and celebrating stories across and outside of the industry and the effect they have had on the people around them. My question to you this issue is: who has inspired you? And what would you do to say thank you?
P
I remember sitting down with Rachael, Modern Insurance Magazine’s Project Manager, and discussing this issue. My first question to her was: who inspires you in this industry? Her answer was immediately Donna Scully. Donna is a fantastic contributor to the magazine but also to the whole industry. “Everyone listens to Donna, everyone knows her and her values. She is all about empowering her staff and making a change for the better. She’s also a massive football fan (although for the wrong team – Manchester United all the way!), so down-to-earth and loves a good boogie! She is a real asset to our industry.” Rachael also said that her Mum and Dad have been great supporters throughout her life and that she can go to them for anything or everything. “My Mum is my best friend, she really is. My Dad was the one that took me to football every weekend and I really cherish those memories. He was my coach and he always pushed me to be the best I could be. Being the only girl in an all boys team I really needed to prove that I deserved to be there, and I did!” Then it was my turn. In terms of within the industry, Debbie Cannon has definitely inspired me. I did an interview with Debbie last year as part of a diversity and inclusion supplement with Sam White and Pukka Insure. It was one of the most interesting and informative interviews I have done as part of my job at Modern Insurance Magazine – I really came away knowing that I had learned something. I then had the pleasure of meeting Debbie at the Dive In festival in Manchester last September! I just found her to be one of the most honest, direct and funny people I had met and such a wonderful ambassador for the LGBTQ+ community both within and outside of insurance. She made and is making a difference and I really admire her for that. My Mum is probably my main inspiration though. She is incredibly caring and wickedly funny and has taught me to be the independent woman I am today. She has also taught me how important it is to have time for yourself, and while work is important, family should always be at the top of the list! This edition is packed full of interviews and features from some important figures across the industry, and of course our wonderful panel of editorial board members, offering their advice for young people looking to enter the industry but also celebrating why insurance is such a fantastic industry to work for and be a part of. We also have our write-up of the Customer Service Excellence Awards 2019 – a true celebration of all those businesses that are excelling! Congratulations to all our winners!
Poppy Green, Co-Editor, Modern Insurance Magazine. 01765 600909 | @Modern_Poppy | poppy@charltongrant.co.uk ISSUE 37 ISSN 2515-3803
(Left) Poppy Green, Editor, (Right) Rachael Pearson, Project Manager
Co-Editor Poppy Green Project Manager & Events Sales Rachael Pearson
Modern Insurance Magazine is published by Charlton Grant Ltd ©2019 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.
Issue 37
Modern Insurance 03
MODERN INSURANCE
ISSUE 37 | ISSN 2515-3803
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Issue 37
MODERN INSURANCE
NEWS 07 Why insurance?
Sam White, CEO and Founder of Freedom Services Group, Freedom Brokers, Action365 and Pukka Insure, lays out her journey with insurance and offers some much needed advice to those looking to enter the industry.
INTERVIEWS 10 An industry of opportunity
Speaking to Modern Insurance Magazine, Amanda Blanc, CEO EMEA & Global Banking Partnerships at Zurich Insurance Group and Chair of the Association of British Insurers (ABI), discusses the progress we have made as a collective and why she is proud to be part of such an exciting industry.
12 The changing nature of insurance
David Hertzell, Chair of the Insurance Fraud Taskforce, discusses the insurance industry of his past and how it has adapted and evolved to become the industry that we know today.
13 Start-ups: the future of insurance
Sabine VanderLinden, CEO at Startupbootcamp InsurTech and Partner at Rainmaking, discusses the power of technology and innovation and how start-ups are changing the insurance game.
14 Promoting insurance
Sian Fisher, CEO of the Chartered Insurance Institute, talks about her experience in insurance. She discusses the industry’s potential image problem and why we need to continue to work to promote this interesting, viable and dynamic industry.
18 The digital revolution
Modern Insurance Magazine spoke to Gionata Tedeschi, Chief Product Portfolio and Ecosystem Officer at Octo Telematics, about digital transformation. With the right platform, the industry will be able to provide a number of functions and support capabilities for the customer, pushing insurance into the future and beyond.
25 How can a diverse workforce drive a progressive and collaborative business?
25 What does it take to succeed in this competitive market?
22 Who inspires you?
As part of this edition, some of our editorial board members shared with us who they find inspiring. Whether within or outside of the industry, they chose a range of individuals, all who have made a positive impact on their lives.
Issue 37
Steve Thompson, InduSTry Insights
FEATURES
Paul Taylor, Plantec Assist
29 Investing internally
46 Sector Soapbox
Jason Tripp, Coplus
29 The recipe for a leader
Clive Nicholls, Crawford & Company
Margaret Scott, Allianz Insurance
31 You’ve got to be in it to win it
Peter Goodright, Nationwide Vehicle Assistance (NWVA)
33 Are there ways we can collaborate better as an industry?
Donna Scully, Carpenters Group
Verity Ross, Zurich UK
35 Striving to keep ahead
Paul Tasker, REG UK
Trevor Lloyd-Jones, LexisNexis Risk Solutions
37 What does it take to succeed in this competitive market?
Nik Ellis, Laird Assessors
37 Invest in data tools
David Ovenden, Willis Towers Watson
39 Preparing for the future
41 The right tools for a happy team? Prof. Hugh Koch, Hugh Koch Associates
Stephen Marshall ACII, Insure Apps
43 Digital strategies
Marc Lafferty, EDAM Group
Lisa Pugh, Business Development Director at National Windscreens, talks driver and vehicle safety as she explains why calibration is essential.
10 MINUTES WITH
Michael Lewis, Claim Technology Ltd
43 Investing in people is crucial
Marc Shickell, Financial Crime Manager at Covéa Insurance, discusses the rising trend of cybercrime against the young and how insurers can help.
65 The one stop service essential for driver safety
41 Unlocking the potential
What a night to remember!
63 Taking candy from a baby cyber criminals who target the young
Andrew Chandler, FMG
Mike Brown, On Insurance
Alan O’Loughlin, Statistical Modelling Lead Europe, Insurance, at Lexis Nexis Risk Solutions, discusses the role of the data scientist and how they can solve all of our problems.
58 The UK Customer Service Excellence Awards 2019
39 How effective are your ideas?
James MacBeth, Operations Director at Auto Windscreens, discusses self-service and how technology is changing the expectations of our customers.
57 Advanced analytics: what do data scientists do all day?
35 Are there ways we can collaborate better as an industry?
Fast-moving and dynamic businesses are looking for flexible insurance, and that is what Digital Risks can offer – insurance for digital businesses. We heard from Cameron Shearer, the CEO and Co-Founder of Digital Risks, about why his product offering is different and bringing something new to the industry.
55 Technology is driving the customer journey
33 What can we learn from millennials?
Modern Insurance’s panel of resident associations outline the burning issues facing the claims sector.
50 Industry Innovators Interview: Digital Risks
31 Digital claims and the modern insurer
Neil Marcus, Selsia
Richard Taylor, GT Motive
27 Essential employee engagement
Rob Cooper, ME Group
45 What skills and behaviours are needed when leading a team?
27 The vital role of technology
EDITORIAL BOARD
David Williams, AXA Insurance (UK)
45 Enabling the full potential in others
66 10 minutes with…
Steve Gargano, Sedgwick
Modern Insurance 05
right people. right skills. right technology.
www.carpentersgroup.co.uk
END-TO-END COMPLETE CLAIMS & LEGAL SOLUTION
NEWS
WHY INSURANCE? Sam White TALKS NEWS Sam White, CEO and Founder of Freedom Services Group, Freedom Brokers, Action365 and Pukka Insure, lays out her journey with insurance and offers some much needed advice to those looking to enter the industry. eople often look startled when I tell them what I do for a living. I try not to take offence. I know only too well that I don’t fit the typical mould for an insurance entrepreneur. Thank god. I like to think I’m doing my bit to encourage people to be more open minded about the insurance industry, and one question I often get asked is: why insurance?
P
Well, I started my fledgling relationship with the insurance industry at the tender age of twenty, working in sales for the now rather infamous Motor Law. At that time, the business offered claims management services to the insurance broking community and I started my job in telesales attempting to get said brokers to try Motor Law’s services. As it happens I was really rather good at it. I relish a good natter on the phone and I love a challenge, this role provided me with a nifty way of monetising my talents.
Life is short, we have to grab it and make it count
I quickly progressed to field work and then the all-important national accounts and I remember thinking how warm and inclusive the brokers were. A good number of them became friends and if they could help me out, I often found that they did, they made me feel very welcome. Work life was good - the money was coming in and I felt genuinely talented at something and appreciated.
Issue 37
Modern Insurance 07
NEWS
So many of us recognise the need for fundamental changes within the industry, especially if we want to continue to attract and retain the best talent out there And then at the tender age of 24, following a series of fundamentally life changing and challenging events (broken leg, relationship breakdown, and the death of a parent), I decided that I no longer wanted to work for someone else. In truth, I wanted autonomy and I could see a way of doing things differently, so to cut a long story short, I trusted my instincts, I took a massive leap and, with the help of some of my nearest and dearest (and longest serving team members), I set up Action365. In the early years, I felt the warm support of the broking community once again and I can’t tell you how grateful I continue to be for this. I still recall my first ever claim: it was faxed over (yes I am that old) by the delightful Athol from Bruce Burke Insurance and I immediately set to work to show him that I would take care of his customers just as he would. It was such an important moment for me and the start of something very special. Whenever I feel like I’m getting too big for my boots, I think back to that moment. Looking back, there weren’t many female role models for me in the beginning; female entrepreneurs in insurance were like hen’s teeth. I do remember hearing about Carole Nash though and her endeavours and I thought she sounded utterly awesome. But most of my day to day business opportunities came from the network of male brokers I had built up, so my focus remained very much on maintaining and strengthening those connections rather than networking with the entrepreneurial sisterhood. And the broking community was largely supportive of my ambitions. My first big account was DNA Insurance and I remember feeling distinctly like my customers were willing me on to do well. Many of them were fathers with daughters and I remember Alf from DNA saying that my dad ‘must be very proud’ (he is by the way, if any of you are wondering, ridiculously so, which is incredibly sweet). I have continued to be supported and celebrated by influencers in the industry like Ian Donaldson, who’s business I’ve also had the pleasure of watching grow and evolve to the powerhouse it is today. It really feels like I’ve grown up with some of these guys, we are an eclectic group, but we have a comradeship that transcends gender, religion, sexual preference, drinking capacity or any other normal group dynamic you may find. Over time as my business grew, my customer base began to include insurers and the likes of David Williams at AXA and James Reader at Covea, who helped enormously and supported us through some particularly difficult times. It’s true what they say, that you find out who your friends are when the going gets tough, and these two chaps, amongst several other key people, have been with me through thick and thin.
We can and should do better to allow new concepts and different people into our world or I genuinely believe that we will suffer in a vastly and rapidly changing landscape. We can all recognise the need to evolve, but we absolutely should also not lose what makes the industry special. And we shouldn’t forget the basic principle of insurance: the community protects the individual - there’s so much we can learn from this. If I could, I would urge all new entrants to carefully spend time building their networks, to listen as much as they teach and, most importantly, to keep an open mind. The perfect answer (if there is such a thing) to the problem will probably arrive with an alchemy of experience and innovation, so don’t be frightened to ask for help. People often think that there’s something special about self-made entrepreneurs like me, but I promise you, there isn’t. The biggest difference between me and someone who doesn’t make it is that I don’t give up. I just keep on going. And, I’m not frightened to fail, it’s sometimes the only way we learn. Life is short, we have to grab it and make it count. SAM WHITE is the CEO and Founder of Freedom Services Group, Freedom Brokers, Action365 and Pukka Insure.
I wanted autonomy and I could see a way of doing things differently, so to cut a long story short, I trusted my instincts, I took a massive leap and, with the help of some of my nearest and dearest (and longest serving team members), I set up Action365
The insurance industry gets a hard time and it should, let’s face it, I’m often highlighting our flaws myself, stomping my size fives on a soap box, chuffing on about one injustice or another. And I’m not alone, I think so many of us recognise the need for fundamental changes within the industry, especially if we want to continue to attract and retain the best talent out there. But, the one hugely significant and beautiful characteristic that I have always found is that it’s a people and relationships based business, so for all the advancement in tech, we still heavily rely on these human networks and support to drive us forward in business.
08 Modern Insurance
Issue 37
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INTERVIEW
An industry of opportunity Speaking to Modern Insurance Magazine, Amanda Blanc, CEO EMEA & Global Banking Partnerships at Zurich Insurance Group and Chair of the Association of British Insurers (ABI), discusses the progress we have made as a collective and why she is proud to be part of such an exciting industry.
Q
As the first woman in 100 years to open the ABI conference this year as Chair, how have we improved as an industry to increase the awareness of the need to address diversity, inclusion and equality?
A
I have been in this industry for thirty years and I would say, certainly in the last few years, that this has become increasingly high on the agenda for EXCOMs, executive boards and CEOs. I have been a CEO since 2006 and I can’t remember a time when there has been such a constant conversation about D&I in meetings and in companies as there is now. On the 8th March 2019 it was international Women’s Day and it has never been so high profile as it was this year. Honestly, I think we have moved in leaps and bounds in terms of our discussion of it and our awareness of it. Have we moved in leaps and bounds in terms of the outcomes? No, clearly not. There is still a huge amount of work to do but everyone is aware that we need to do something and that is the first step in a very long journey.
Q A
The really important thing is how we move forward. The ABI stats have shown that there is a 5% improvement of females in EXCOMs. However, we are not seeing the improvement of diversity and inclusion that we would expect to see and that is because we have this ten year pause in a woman’s career, whether that is to care for children or for elderly parents. When a woman re-enters the working environment, they want to come in at the level they left at and maybe job share or go part-time, but that isn’t happening. Women come back but into a much lower paid and flexible role. Businesses need to give women the opportunity to come back at a senior position in a more flexible way. It is perceived as a risk and it shouldn’t be.
Q A
So often people ask ‘why insurance?’ and my answer is always ‘why wouldn’t you want to join insurance?’
What is it that needs to be done?
As a current representative of the industry, how would you say it has changed and what lies in store for the future?
We have seen the industry evolve enormously – we have seen lots of consolidation both in broking and in insurance. When I first started, it was stuffy and old fashioned – you didn’t even call each other by your first name! When I was working for Commercial Union in London in the mid-1990s, people still smoked in the office! Things that like are completely unheard of today. Today, in insurance companies, everything is now much more focused on the transformations that need to take place: the digital transformation, the cultural transformation, the way that we look and underwrite, the way that we handle claims, how we manage people and how we partner with insurtech. It is much more fastpaced, agile and digital. We don’t sit in offices anymore, offices are open planned and people are working multi-functional teams; it has massively transformed.
10 Modern Insurance
Do we have a lot more to do? Of course, because in the future we are facing a world of massive disruption with AI potentially taking huge proportions of peoples’ jobs. We have to be much better at managing the customers’ perception of insurance and putting the customer at the heart of what we do. If we don’t deal with that then I think we will become lifeless. We have such a lot of work to do, but I don’t think we should ever forget the big changes that we have already been through and we should use those as examples that we can do this.
Q A
Who are your big inspirations either within or outside of the industry and why?
There are people that have always been big inspirations to me – my family, my children and my parents. My grandfather who was a miner and is still kicking at 98 – he worked underground his whole life, from the time he was twelve to the time he retired. My husband is an inspiration to me. He put his career on pause to look after the children in order to allow me to carry on my career and I admire him greatly for doing that. One mentor I have had my whole career is Andy Homer, I have worked with him in a number of organisations and he has always been a great inspiration to me.
Issue 37
INTERVIEW
I am inspired everyday by different people. The women that I meet, the men that I meet, people who have been in business a long time but also the new generation of talent that is coming through – every day is a school day and you have to go into the office every morning thinking what I am going to learn and be inspired by. I am fortunate enough to interact with people now in Germany, Italy, Spain, Portugal and Switzerland that are giving me even more inspiration from a cultural perspective and in the different ways that the industry operates across EMEA – it’s really exciting for me.
Q A
What advice would you give to the next generation who are hoping to enter the market and make a difference?
This is a good question because so often people ask ‘why insurance?’ and my answer is always ‘why wouldn’t you want to join insurance?’ You can join insurance and be a sales person, an underwriter, an actuary, an accountant, a marketer, a data analysis, a claims handler, a leader… what is it that you can’t do within this fantastic industry? Be inspired to look at the range of things you can do within this industry. Without this industry the world simply doesn’t function and therefore you are making a massive difference every day – you repair buildings when they get damaged, you repair people when they are hurt, you can give protection to families when there is a crisis and you can revitalise businesses when they have had a bad event happen to them – there is so much that you can do that you should feel massively inspired by. I think if we stopped calling it insurance and started calling it risk then people might be more excited by it but whatever you call it, it is a phenomenal industry and I am extremely proud to be in it.
Q A
What are you hoping to achieve as Chair of the ABI?
I have taken over from Andy Briggs who was an excellent Chair of the ABI – I have a good opportunity to do something special. The ABI’s agenda is always packed full of things but I think at the top of the agenda we have the imminent issues around Brexit and how do we navigate ourselves through that uncertainty, but we also have more fundamental issues around reputation, transparency, clarity of communication for customers and ensuring people are protected when they retire – these are things that are all high on the ABI’s agenda as well as, of course, the important topic of diversity and inclusion, which I think overarches absolutely everything.
AMANDA BLANC, CEO EMEA & Global Banking Partnerships and EXCOM Member at Zurich Insurance Group and Chair of the Association of British Insurers (ABI).
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Modern Insurance 11
INTERVIEW
The changing nature of insurance David Hertzell, Chair of the Insurance Fraud Taskforce, discusses the insurance industry of his past and how it has adapted and evolved to become the industry that we know today.
Q A
How would you say the insurance industry has changed since you first started working in the sector?
Fraud won’t disappear so we have to learn how to adapt and be one step ahead
During my time working in insurance there has been a massive amount of consolidation right across the market, insurers themselves, the brokers, the lawyers, anyone and everyone has been involved. Household names have either merged or gone, which has been quite eye-opening to see. It is also a much more professional industry than it was when I first joined. Because it is an incremental thing you don’t notice it as much until you stop and look back, but it has changed for the better. The other thing I think has had an impact, but is still playing out, is the impact of technology. The average person now buys most of their personal lines insurance online. Who knows where IT is going to go in the future but it is certainly something that would have been unrecognisable twenty years ago.
Q A
As Chair of the Insurance Fraud Taskforce, how would you say the fraud landscape has evolved and adapted over the years?
Fraud has always been with us in insurance I’m afraid, but what has changed is organised fraud – there is much more organised fraud nowadays and that is down to the whole claims sector and its associated cost structures which have driven those changes. Most claims are honest but there are incentives not to be. There has been growth around whiplash and RTA fraud and around holiday sickness, who knows what area fraudulent claims will move into. There are good ways to limit fraud, but unfortunately we will never be able to fully prevent it. Communication is key as well as data use and data sharing. There needs to be much more education around fraud in order to keep the public informed. Fraud won’t disappear so we have to learn how to adapt and be one step ahead.
Q A
What advice would you give to the generation looking to be a part of the industry and make a change?
Insurance is generally regarded as quite dull unfortunately, and I know that when people go out to talk about insurance they get an audience of three but if they talk about risk, then they get an audience of thirty, even though it is more than likely the same talk! It is a shame because insurance is a fascinating sector which has something for everyone. You have customer service at one end and the big and complicated actuarial risk assessments at the other – it is able to cover all skills and talents. It is a very interesting business. I would encourage people to approach it with more of an open mind.
12 Modern Insurance
Q A
What recommendations would you suggest the industry makes in order be more effective and customer-centric?
I think it needs to think quite hard about its relationships with its customers. In terms of commercial insurance, people spend their money on something and they expect it to do what they have paid for. Insurers need to think more about the core product that they are actually selling and being more up-front about what it does and doesn’t cover; I think this would be incredibly helpful for our customers. In the consumer space, there is a lack of understanding. Everybody in the sector understands the terminology used but the general public doesn’t. Everything needs more clarity and explanation.
Q A
Who has inspired you the most within the insurance industry?
There were many underwriters back in the day who were quite colourful and larger than life, but for me, there are a lot of people in the industry who are just wanting to do their best. I have met lots of interesting people in my line of work but the people I admire the most are the ones who are prepared to stand up for what they believe in.
Q A
What is one of the best memories you have of working within insurance?
I have very rarely met anyone whom I have disliked and you can’t say that of the many business sectors I have worked for! The people in our sector are genuinely nice and willing to help people. That is what our industry is all about – people. It is a great sector and it has a habit of underselling itself – there is a lot to be proud of and we need to be recognising that more!
DAVID HERTZELL is the Chair of the Insurance Fraud Taskforce.
Issue 37
INTERVIEW
Start-ups: the future of insurance
Sabine VanderLinden, CEO at Startupbootcamp InsurTech and Partner at Rainmaking, discusses the power of technology and innovation and how start-ups are changing the insurance game.
Q A
How does Startupbootcamp work?
Founded in 2010, startupbootcamp’s core mission is to support the world’s best entrepreneurs through all stages of their growth. Our first start-up accelerator involved mobile technologies but by 2013 we were working on going into verticals with fintech and insurtech. We now have 24 programs in 17 different locations around the world. The goal is to give start-ups the opportunity to work with the industry and its partners, for example, insurance companies. We aim to identify innovation and start-ups that are able to solve problems. We usually deliver one start-up acceleration program during the year for each industry and locations where we are established. The process starts by identifying start-ups that would be the most relevant to the corporate partners involved. We then end up with at least twenty to thirty start-ups that are evaluated ahead of our acceleration program. After that process, ten are selected and welcomed into the acceleration program. The program lasts for three months and we provide the start-ups with the resources they need to succeed – we teach them about the industry, help them to understand how the industry operators work and how to interact with the stakeholders. We help them to refine their solution. Start-ups tend to be more tech savvy than insurance savvy, so they need to understand the language, how the industry operates, the sale cycle and how to be successful working with an ecosystem of market players. We give them the tools and techniques, so they understand how to pivot their proposition, pitch their messages effectively and grow their business and brand further. After the three months, we deliver Demo-Day, which is the yearly event where we celebrate the start-ups, the transformation they have gone through and their successes. After the program we continue to help our start-ups get the traction and the first pilots they need, as once they have those projects under their belt, they can go on to seek investment.
Q A
There is a lot of work being done on AI and blockchain. Many of those technologies are not insurance focused. We are trying to encourage more of those start-ups to look at insurance and adapt their propositions to fit the insurance market. Before we can go any further, we need to understand where we want to go and therefore which partners we need to collaborate with. I am also very interested in eco-system play and I think there will be more and more embedded eco-systems where the only way one can succeed is through partnership with InsurTechs and other market players.
Q
Who has mentored and/or inspired you throughout your career and what advice would you give to those looking to pursue a similar line of work?
A
I have been mentored by really interesting and knowledgeable people within the insurance industry. A lot of my skills today have come from those people that I have worked with previously. I recommend to anyone to find mentors within and outside of the industry. Inspiring women that come into the tech sector. Amazing gentlemen that love learning from InsurTechs. This is really important for our future and an area I would like to strive to continue to push for. In terms of those looking to pursue their business dreams – you need to be curious and maverick. Learn who you want to be and align yourself against that ideal. Don’t be afraid to go and ask questions.
SABINE VANDERLINDEN, CEO at Startupbootcamp Insurtech, Partner at Rainmaking and Co-Editor of the InsurTECHBook. SBC InsurTech will gradually be moving under the Rainmaking InsurTech in order to give an end to end perspective around change, innovation and execution (from acceleration to internal culture change programs).
How have start-ups changed the insurance game?
Insurance is ripe for innovation. 2018 was the year that received the largest amount of investment with $5 billion invested in InsurTechs. 2015 was the second largest year, where $2.9 billion was invested. What InsurTech has done is help insurers to realise that they can’t continue working in the same way. InsurTech is forcing insurers to rethink their proposition and processes, as well as enhance their business model to be more effective and relevant for the customers they are serving. InsurTech has forced insurers to realise that innovation is coming to insurance and while most solutions are focused on innovation, there will also be disruptors.
Q A
What does the future of insurance look like to you?
I think there are waves. A lot of insurers have gone through the first wave of observing and dabbling with InsurTech. Now I think we are going to go back to the drawing board and design innovation strategies and look at how we can make the business of insurance more relevant to the future and then start again with a second wave of thinking and delivery.
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Modern Insurance 13
INTERVIEW
Promoting insurance Sian Fisher, CEO of the Chartered Insurance Institute (CII), talks about her experience in insurance. She discusses the industry’s potential image problem and why we need to continue to work to promote this interesting, viable and dynamic industry.
Q A
What first attracted you to the role of CEO?
When I was young, my favourite novel was Vanity Fair, by William Makepeace Thackeray. I remember feeling terribly sorry for the misfortunes of Amelia Sedley as she fell deeper and deeper into poverty due to, firstly, market volatility, and then the death of her husband. Upon reflection, much later, I remember thinking how all of her troubles would have been completely solved if only she had taken out insurance. Before joining the CII, I’d worked in the insurance profession for over 30 years. The reason why I stayed within insurance for so long is because I care about it, and the role it plays in society. This is why the role with the CII was so appealing to me; it was a way through which I could play a part in shaping the conversations around the insurance profession. In this role, I can construct the understanding of how the profession fits into the larger picture of people’s lives. I was eager to take on the establishment with new questions, questions which are focused on how the profession can build on trust from the public.
It is important to stand out by maximising on those qualities which distinguish you as an individual. Focus on what you personally do well and build on that talent
Also, it’s an exciting time for the CII specifically - the organisation is committed to transformation, to diversity, and to modernisation. I was eager to get along with this journey and help those changes ripple outward into the broader profession, for the benefit of everyone.
Q A
What do you think it takes to run a successful business?
The most important thing to cultivate at any business is a clear understanding of that business’s purpose, and what it should seek to accomplish. When I first arrived at the CII, I set into motion a programme of evolution designed to clarify what the CII does, and what it believes in. It is through this evolution which we were able to come up with our ethos: Standards, Professionalism, and Trust. These three important words now guide the CII, providing a distinct waypoint for the organisation to follow. This also helps me act effectively as the CEO, leading on that journey.
Q A
How would you summarise working in the insurance industry today as opposed to when you first started out?
When I joined the workforce in the early 80’s, it wasn’t illegal to fire a woman who got pregnant. We’ve certainly made leaps and strides since these times, but there is of course still more to do. It’s important to remember that when women came into the work environment, they came into an establishment which already existed, and women then had to squeeze in. It’s still so recent
14 Modern Insurance
Issue 37
INTERVIEW
Whilst none of us can accurately predict the future, there is no other profession I can think of that is better prepared to ascertain and quantify the risks of the coming decades than the insurance profession that this environment began to recognise the need to change in keeping with the changes within society. Unequal pay is a battle which has been won, but the gender pay-gap is an ongoing uphill struggle, and the reason why this problem remains is because the corporate institution did not change when society did. As for the profession, I would characterise it as being eager, and optimistic. We realise now that for the insurance profession to serve society as well as possible, it absolutely must reflect society as well as possible, and, after all, women are 51% of the world’s population.
Q
The insurance industry is continuing to transform and evolve, what areas would you suggest need more work than others in order to adjust?
A
The value that diversity will play in the insurance profession, or indeed any profession, cannot be overestimated. It is now so well evidenced that the better the balance of diversity in a workplace, the better that workplace performs. This is not speculative, or ideological; this is a concrete fact. Factors such as that a broader range of ideas results in greater innovation should be motivation enough to get on board. As a sector, insurance is improving, but it can’t be denied that the profession is still lagging behind others. This may be because the profession is made up largely by centuries old players and
Issue 37
changing something which already stands can sometimes be more difficult than building something entirely new. That said, the profession is invested in the need to change and diversify, and in fact, the benefits are already being enjoyed at the CII - and so the profession on the whole will soon follow suit.
Q A
What advice would you give to the next generation wanting to stand out in their careers?
Everyone wants to stand out, and contrary to expectations, everyone can. It is important to stand out by maximising on those qualities which distinguish you as an individual. Focus on what you personally do well and build on that talent. Also, no matter how hard you work, and how well you do, you will always do better when you are doing something which you care about. The classic ikigai concept may be a cliché, but it’s also true: firstly, of course, understanding what you can be paid for, combine what you do well with what you love, and what the world needs. Where those three elements intersect is the key to shining in your purpose and your career.
Q A
How can we encourage more people, especially women, to consider a career in insurance?
Promoting insurance as an interesting, viable and dynamic career for young people is a cause close to my heart. In 2016, the CII launched Discover Risk, a pro-bono initiative whereby
Modern Insurance 15
INTERVIEW
The most inspirational feat which someone can accomplish is one which changes the landscape for everyone else professional insurers visit schools to discuss the many facets and rewards of a career in insurance. It’s possible that the idea of working in insurance is impacted by an image problem; but I think that the key to fixing this is in framing insurance back into the effects it has on the lives of individuals. Where would those who lost their homes to floods and fires be without insurance? Let’s not forget that insurance actually saves people’s lives!
Q A
What’s on the agenda of the Insuring Women’s Future Committee this year?
Until recently, the IWF programme has been gathering evidence of the ‘perils and pitfalls’ that women face. These are key dangers that can place their long-term financial resilience at risk, something which is especially evident in retirement, where a woman’s savings can on average be worth just one fifth of a man’s. Startling statistics were unearthed by the committee’s research, which were then explored in detail in two seminal reports – available on the IWF website. For 2019, the focus is moving towards building solutions. Workstreams led by senior figures from the profession are currently exploring policy changes, voluntary new practices, tools, partnerships and new standards which can make the greatest market-wide impact to the benefit of women’s financial lives. In the second half of the year we’ll be announcing specific proposals, and challenging government and employers to make some necessary changes. Over 800 people have signed up as IWF ambassadors so far, and a priority in the second half of 2019 will be to mobilise their energies so that the benefits are magnified.
Q A
How has diversity, inclusion and equality improved in the industry but what more is there to do?
Leading financial services firms are signing up to the Women in Finance Charter, which was designed to improve gender diversity in senior positions in the sector.
The CII was one of the first signatories of the Charter, which required us to commit to a number of actions to promote gender diversity and inclusion. You may think that because the organisation is run by a woman, this doesn’t seem like such an imperative, but complacency during a time of transformation is an easy mistake to make. The profession must remain proactive if it is to keep up with the pace of cultural change. One thing we do at the CII is that we anonymise CV’s when recruiting for our organisation. This is a good step, but we must remember that this is also not the panacea to inequality in the work place, as inequality begins with access to opportunities. We do have to be willing to employ people on the basis of potential and skills, recognising that all sectors of our diverse community have not had the same opportunity to fulfil senior roles in the past.
Q A
Who inspires you, both within and outside of the industry?
The most inspirational feat which someone can accomplish is one which changes the landscape for everyone else. Inga Beale, who is a board member of the CII, and a respected friend of mine, became the first female CEO of Lloyd’s insurance market in its more than 300 year history. Inga took on this role with admirable courage; it is always difficult to be the first of, in anything, but Inga used this as an opportunity to embed modernisation and lasting cultural change into one of the world’s oldest financial institutions. As well as succeeding despite her womanhood, something which one cannot hide, even if they wanted to, Inga has also been a vocal advocate for the LGBT+ community, helping to launch Pride at Lloyds, an internal resource group for LGBT persons. In acknowledgement of this, and much more, Inga was selected to top the OUTstanding list of LGBT executives. It is her conviction to openness within circumstances which may not have always welcomed it, which is why I regard Inga so well. The doors she has opened will now welcome the generations who follow.
Q A
What is exciting you about the industry at the moment?
Technological developments are undeniably going to be the most significant factor of change within the insurance profession, and that is probably going to be true forever more. Interestingly, statistics seem to imply that the initial fear that AI will make the role of the human irrelevant was premature. Whilst it seems evident that automation is leading the way with processes, it is unavoidably true that the nuances of human interaction play a pivotal role in growing trust and empowerment during, for example the claims journey; robots can’t replace this. Though the role that people play in the insurance cycle may evolve, if we welcome that, and work with it with pragmatism, that doesn’t need to signify a disaster for the insurance professional who is trying to carve their own path. On the contrary, this presents a real potential for opportunity to innovate, which brings us full circle, back to the benefits that better diversity will produce within the profession.
Q A Let’s not forget that insurance actually saves people’s lives! 16 Modern Insurance
What do you think the future holds for insurance?
The profession has a remarkable ability to adapt to challenges across the globe, whether that is cyber security or geopolitical terrorism. Whilst none of us can accurately predict the future, there is no other profession I can think of that is better prepared to ascertain and quantify the risks of the coming decades than the insurance profession. We have, after all, had more than a century of practice.
SIAN FISHER is the CEO at the Chartered Insurance Institute (CII).
Issue 37
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INTERVIEW
The digital revolution Modern Insurance Magazine spoke to Gionata Tedeschi, Chief Product Portfolio and Ecosystem Officer at Octo Telematics, about digital transformation. With the right platform, the industry will be able to provide a number of functions and support capabilities for the customer, pushing insurance into the future and beyond.
Q A
What does the role of a Chief Product Portfolio and Ecosystem Officer at Octo Telematics involve?
My role is to ensure we continue to deliver solutions which create value for our partners, insurance and otherwise. A key part of this involves future proofing our products and services as well as creating a win-win ecosystem. This is how we can not only innovate but better service our customers around the world, but also grow together as new opportunities present themselves.
Q A
How are digital ecosystems and platforms redefining the industry?
Digital transformation is happening all around us, and with this, consumers are expecting more from their user experience, whether this be from online shopping, booking a place to stay or sharing a taxi ride. The insurance industry cannot afford to be left behind. With the right platform that provides relevant functional breadth, device support and integration capabilities, insurers are able to accelerate their digital transformation, process digitisation and positively redefine the consumer’s experience.
Q A
Why do organisations seeking to transform value and outcomes need a framework driven by an ecosystem perspective?
In the digital era, the new value comes from smart data sharing and usage, across wider value-chains than the
18 Modern Insurance
As we enter a new era, connected car services are becoming more intrinsic to the user experience traditional one. This data sharing aggregate multiple players into new ecosystems. Without an ecosystem, there will always be limitations on the value generated and possible positive outcomes from a company working in silo. For example, with an ecosystem that encompasses a number of relevant parties, in the case of auto insurance, this can be vehicle manufacturers, breakdown assistance operators or repair shops, the value and outcomes generated for the consumer can be exponential. In this case, the insurer will be able to price policies based on dynamic data coming directly from the vehicle, provide seamless breakdown assistance and process claims more efficiently, all for the benefit of their policyholder. This is just a simple framework of how the usage of data in an ecosystem is able to transform the industry, provide greater opportunities for value generation from additional services and offer better, smarter outcomes.
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INTERVIEW
Q A
How is Octo powering revolution through innovation in the insurance industry?
Driving innovation has always been part of the Octo DNA. We started to do this back in 2002 and today it remains the chosen innovation partner of many insurers around the world. With some insurers, we are close to home, helping them better manage their exposure to risk, and should the worst happen, we find more and more innovative ways to support them on an operational level. For example, crash and claims services are not only able to provide a detailed dossier, but reconstruct the incident with 3D graphics and even estimate the cost of the claims, all within minutes after an accident. As a consequence, our insurance partners are able to reduce the settlement time by up to 50 percent, not to mention a reduction of 32 percent in whiplash claims and a 50 percent reduction in fraud. Other innovations on an operational level include our digital propositions that allow insurers to on-board and off-board consumers seamlessly via a smartphone. This is truly changing the experience of buying and adapting the insurance needs of individuals. Of course, innovation should not be constrained to ‘business as usual’, this is where our IoT platform and ecosystem present new opportunities for insurers to coin new dynamic and diverse products for up-sell and cross-sell.
Q
Do you think it should be a priority for insurers to be experimenting with IoT and telematics as technology continues to develop and evolve?
A Insurers that are not prioritising IoT and telematics risk losing their market position and more so, relevance in the changing connected world
Absolutely. Insurers that are not prioritising IoT and telematics risk losing their market position and more so, relevance in the changing connected world. Working with over 70 insurance companies around the world, we are very much aware that each insurer has very different maturity levels when it comes to IoT and telematics. But every single insurer shares the same pain-points when it comes to improving their combined ratios, and technology is the solution. At Octo, we have the most comprehensive product and service portfolio on the market, with this, we are able to provide insurers with the right environment for experimentation. IoT is not just an additional stream to innovation, it is the game changer for the entire insurance industry: it mitigates risks, makes it possible to have data-driven risk assessment instead of proxy, allows customised services, enables digitisation, and changes the entire customer experience.
Q A
How does data drive Octo Telematics’ products and solutions?
If we share the opinion that data is the most important currency used in commerce today, helping companies forge relationships and offering tailored user experiences to consumers - then it is very easy to see why our solutions are among the strongest in the world. We currently have more than 5.6 million connected users, generating more than 228 billion miles of driving data and 456 thousand analysed crashes. This data is at the core of our business, and thanks to our continuously improved, analytical, machine learning and artificial intelligence capabilities, we can continuously lead the telematics insurance innovation edge.
Q A
How is telematics enabling the connected car?
Quite simply, telematics is a key enabler of the connected car market. For more than two decades, telematics has played a major role in building a number of use cases for the connected car, this includes usage-based insurance, but also stolen vehicle recovery, fleet management systems, etc. As we enter a new era, connected car services are becoming more intrinsic to the user experience. This is why Octo has partnerships with Tier 1 and leading vehicle manufacturers.
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Modern Insurance 19
INTERVIEW
The usage of data in an ecosystem is able to transform the industry, provide greater opportunities for value generation from additional services and offer better, smarter outcomes
Q A
What does the future of mobility look like and will the role of humanity remain an important aspect?
We have already witnessed the growth of on-demand mobility services like ride hailing and carsharing successfully operate alongside more traditional modes of transport. The future will see a greater convergence between all the options available to commuters. For example, commuters will focus on how to get from point A to point B in the most efficient and cost effective way, not being confined to a single mode of transport like driving a car. With such a need that can have many possible forms of mobility, like driving to the station, using a train before arriving at your destination where you then use a carshare, humanity and more so their mobility data will very much remain in the centre of the business models. This of course includes insurance related needs, from traditional car insurance to travel insurance, and insurance as part of the commuters’ carshare membership. When all said and done, success will then be measured by the ability to satisfy the human need for smart mobility.
Q A
What is your favourite part of working with Octo?
Having held the status of market leader since the beginning of the UBI market, Octo has had the responsibility of spearheading the growth of telematics throughout the insurance industry. At the same time, Octo, which has now become a full data platform company, has had to remain at the forefront of technology and innovation, and this has not changed today. Octo is successful by win-win design with our partners, we are thought leaders and act as an innovation partner, and this is the specific environment that favours my role as Chief Product Portfolio and Ecosystem Officer.
Q A
What are Octo’s plans for 2019?
Our portfolio has never been so relevant in helping insurers meet their goals for 2019. This will be a year of accelerated digital transformation for many, and for others already considered mature in telematics, they will find new areas of differentiation and operational efficiencies. With our market leading IoT and telematics products and services, we will continue to be part of this journey with each of our insurance partners. At the same time, we will continue to forge new and closer relationships with our ecosystem partners, and enter new geographical markets. We will continue to accelerate our focus on applicable solutions for telematics: it is about entering with new technologies and digitised products into the core of the insurer’s and car maker’s processes, to leverage the value which is generated by data.
Gionata Tedeschi Gionata Tedeschi joined Octo in 2018 as Chief Product Portfolio and Ecosystem Officer. Over the years, from 1990 to 2017, Gionata supported global organisations (including automotive, banking, insurance, media, retail and utilities) in their digital, value-creation strategies and their transformation journeys. During his career, he has worked at McKinsey, Dun&Bradstreet and Accenture, and was Founder - acting as Manging Director/or President - of three companies: Affinion Italy (previously CIMS), Born4shop-Saldi Privati and Buongiorno (B2B division). After graduating cum laude in 1987 at Bocconi University, Gionata spent most of his professional career across Italy, UK, France and Israel.
GIONATA TEDESCHI is the Chief Product Portfolio and Ecosystem Officer at Octo Telematics.
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Issue 37
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AI is already moving into our lives, everywhere, in the home, on the web, on the road, in the office, and into insurance. The best public speaker I’ve ever heard addressing the subject of artificial intelligence is Professor Stuart Russell from the University of California, Berkeley. He talks about a “golden age” of productivity, a step change whereby AI will be making better and faster decisions than humans in a whole range of areas, destroying some jobs but creating others. For insurance and risk it is going to be transformational too, deciding precisely what purpose we’re going to give the machines up front. Exactly what questions, and what human problems, do we want them to solve?
Trevor Lloyd-Jones, Senior Marketing Manager, Insurance, LexisNexis Risk Solutions.
I’ll split opinion here, but I love Elon Musk’s energy and tenacity, driving forward in the face of adversity. He’s not afraid to develop new ideas and businesses, even if some of them fail, he bounces back stronger. His combination of entrepreneurship and engineering acumen has led to a world-changing and diverse selection of companies such as PayPal, Tesla, SpaceX and even the Boring Company.
I’m inspired by not one individual but a whole economy; Emerging Nations. The term groups a collection of countries as diverse as China and Tunisia. These countries are filled with enriched cultures, play an increasingly important role in innovation, and challenge the status-quo. Many of the 23 countries [currently listed as emerging markets] are attracting a significant increase in foreign attention and investment, building confidence in their local economies, as highlighted in the prediction that these countries will account for 62% of total growth in the global economic system by 2030.
Andrew Chandler, Sales Director, FMG.
Who inspires you?
As part of this edition, some of our editorial board members shared with us who they find inspiring. Whether within or I believe that he’s genuinely trying to help mankind by evolving electric outside of the industry, they chose a range of individuals, all powered cars and homes, and successfully who have made a positive impact on their lives. deploying considerably advanced and reusable spacecraft. He’s working on making us an interplanetary species with his Mars mission. He’s also pretty entertaining on Twitter!
to y moving inin I’m inspired by not AI is alreadve , re e h w ry e s, ve li our one individual but on the web, oan me, hoEllis, theNik d n e, Managing offic Laird Assessors. a whole economy; e Director, the road, in th e. c n ra Emerging Nations. into insu er heard
I guess like a lo t of sons, the biggest in my life was myfluence on er, I guess like a lot of sons, fa theth biggest desp ite lo si n g h imfather, influence life was my relativonemy lyhim earelatively rly wheearly despite nI was losing th ir ty earsold. when I was thirtyyyears o ld . My key streng
The term groups a collection of speaker I’ve ev The best public t of artificial ec bj countries as diverse as China su e th g sin addres ssell and Tunisia. These countries are ofessor Stuart Ru rkeley. ths in busines s are to intelligence is Pr Be trein ia, atbusiness others in are My key strengths others filled with enriched cultures, ity of Californ exacto rs ive tlytreat Un e the sa th m fro me way as of I e” w ou ag n ld de exIpe “gol play an increasingly important in exactly the same why as would expect them ct them to tre He talks about a at me and to undert whereby AI ge an ch p role in innovation, and challenge ak ste to treat me and to undertake a work hard, play e a , a work hard, play productivity hard attitude, r decisions ste fa d an My professional inspiration comes r tte the status-quo. Many of the attitude, 23 fundamdrilled hard fundamental values into ental va s, will be making be from area lues drilled e of we ngway the work at Octo: countries [currently listed a whole ra me atasan early age. into me at an early age. than humans in g tin ea cr t bu bs jo a multi-disciplinary approach emerging markets] are attracting e m Fortunately fo ing destroying so r me, values th risk it is go andbusiness, foreign ance (tech, analytics and a significant increase inFortunately at forbe me, that can be adhered advalues hered to others. For insur ing cid regardless of in can de o, to l na io attention and investment, at products) which proves on a day-to-day basis rm m du fo y to regardless of industry, my challenge biggest chalbiggest to to be trans ing go lenge in the fu stry, we’re e qualified team rposa building confidence in their local pu t to ture is that the results of can lead ha en w in the future, is to ensure that my own children ly su t ise re ha ec w th pr at my own ch tly front. Exac ildren don’t economies, as highlighted in copy the everything copy ever results, much bigger than don’t I do! do the machines up s, yt giveto outstanding innovative hi lem ng ob pr I do an ! t humcomponents. prediction that these countries wha the ofdthe single ns, an tiosum ques lve? will account for 62% of total so to Miles Keeble, Managing Director, MAK5 em th nt MileLimited. we wa s Keeble, s, andgrowth in the global economic ne M Gionata Tedeschi,ev Chief Product Portfolio Jo anaging DireVehicle dWritten on behalf of Nationwide Assistance. oy Ll or ct or, MAK Tr 5 Lim system by 2030. Ecosystem Officer, Octo Telematics. Manager, Written on behaited. Senior Marketing Solutions. lf of Na tio nw id e k Vehicle Assistanc xis Ris Andrew Chandler, e. Insurance, LexisNe Sales Director, FMG.
22 Modern Insurance
Issue 37
My p inspirraofessional from th tion come I’ll split opinion here, but I love Who is my biggest inspiration? s emost wainspirational workThe y w e a t person in my life has Elon Musk’s tenacity, My biggestenergy inspiration byand a mile will discip Octo: a m linarydoubt been ultinot be very happy to be named by ( tech,without appErnest driving forward the face of adversity. my Grandpa, b r o me but I willin take my chances! u ach s iness, He analytiGray Thompson. c s a whic had a n He’s notwho afraid develop new ideas d proand He is the person saw moreto in me than I saw in provwarmth ducts) to-dah e humility sthat myself. He told me there was nothing I could not on was y a and businesses, even if some of them b a s ayr i captivating. This esults s that t dwas achieve if I wanted it. When I doubted myself, he gave o h f e a despite significant t me confidence and belief to fight on. He respected e q am n u lifie fail, he bounces back stronger. indhis my opinions and he backed my vision even though it lead ato outstacnaachievements Hissometimes combination of entrepreneurship engineering acumen has led to a worldd life, such as being seemed like pie in the and sky and certainly i n resu g inno changing diverse selection companies such as that PayPal, Tesla, SpaceX and vonatthe an outsideand his comfort zone. Youofhear the expression ive uengineer than ltths, m c h bigg even the Boring Company. development of the somebody ‘gives you wings’ well I think that would e e s r u s m injet glengine oSir f tFrank world’s first Whittle e comwith describe what has given me very well indeed.by evolving electric powered h I believe that he’s he genuinely trying to help mankind e oneRoyce and latterly working forp Rolls in cars and homes, and successfully deploying considerably advanced and reusable nts. He is the most professional, honorable I have species with his Mars Chie special projects. He G was spacecraft. He’s working on making us an person interplanetary io probably the most ever met. His mission. word is his He listens more than He’sbond. also pretty entertaining on Twitter! he talks. He has no ego. He laughs at my jokes and he Nik Ellis, always makes sure I get home when ‘tipsy’’! He set Managing Director, Laird Assessors. the bar very high in terms of how you should be as a human being and I thank him for that.
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The most inspirational For me it’s a perso n in my life case of what has witho ut doubt been my Grandpa, He is, of course, John Carpenter. inspires me, Ernest Gray ThomDirector, pson. InduSTry Insights. Donna Scully, Director, Carpenters Group. not who... Steve Thompson, When you reach a goal, he moves the goalposts but he knows you can achieve more. He is hugely intelligent, funny and utterly passionate about everything he does. It has been a total pleasure to know and work with him.
Who is my biggest inspiration?
He had a warmth and It would be easy to pick individuals, humility that was captivating. This was either in general, with people like He is the person who saw more despite significant achievements in his Richard Branson or a person that I life, such as being an engineer on the in me than I saw in myself. He have worked for; Pepe Castelo and Angel Martinez toldAs me part there was ofnothing this edition, some of ourwho I work for now are development of the world’s first jet engine I could with Sir Frank Whittle and latterly working great and I previously had the not achieve if I wanted it. When editorial board members shared usfor Sukhpal Singh, for Rolls Royce in special projects. He was pleasure with of working I doubted myself, he gave me all truly inspirational people. probably the most talented engineer of confide nce and beliefinspiring, to fight on. who they find whether within Professor Derek Mowbray is an inspirational his era. He taught me algebra when none He respected my opinions and he However, for me, the kind of people chartered psychologist who specialises in the of my teacher s could, he taught me that or outside of the industry. They chose a backed my vision even though that inspire me are those people that you get of primary psychological distress more in life with sugar than you have faced adversity in their lives but noprevention it sometimes seemed like pie in do with range ofcertainl individuals, all whomatter have made in sat theat workplace via salt the and development of get on by that you only what keep going. I have the sky and y outside solving problem s and Resilience. His approach and interventions being positive. He numerous events and listened to his comfor t zone. You hear a positive impact on their lives. the was a liberal man, who ex-army veterans who have lost once said to me arelimbs well recognised and adopted throughout expression that somebody ‘gives that you need toHe and not seen that as a disabler, but underst and all points the UK and internationally. is a Director of you wings’ well I think that would view before more as an enabler. The National of you can dismiss them or Centre for Applied Psychology, describe what he has given me argue against. He certainl y left an indelible WellBeing and Performance In life you get one go, no matterChairman who you of The very well indeed. impress ion on my life and the in way I Group, a group of companies specialising are or what has happened to that point; attempt to live it today. Health and He is the most professional, prevention including Organisation that’s what inspires me every day. honorable person I have ever met. The Management Advisory Service. Steve Thompson, Richard Taylor, His word is his For me bond. it’s a case of what inspires me, not who... He listens Director , InduSTry Insights. Sales Director and UK Business Passionate Director, about his subject, he has written more than he talks. He has no GT Motive. extensively about it, and has published Guides wouldatbe easy to pick ego. He It laughs my jokes and individuals, either in to The Wellbeing and Performance Agenda, general, like Richard Branson or a he always makeswith sure people I get home Corporate Resilience, Adaptive Leadership and person have when ‘tipsy’’! Hethat set Ithe barworked very for; Pepe Castelo and Personal Reslience. Angelof Martinez who I work for now are great high in terms how you should and I previously the pleasure of working for be as a human being andhad I thank He is very approachable and an effective Sukhpal Singh, all truly inspirational people. him for that.
Professor Derek Mowbray is an inspirational chartered psychologist who specialises in the primary prevention of psychological distress in the workplace via the development Resilience. communicator and of organisational expert. I
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Prof. Hugh Koch, Managing Director of Hugh Koch has happened to that point;Leadership that’s what and Personal Reslience. He is, of what course, John Carpenter. inspires me every day.
Associates and visiting Professor to Birmingham
He is very approachable and an effective communicator andPsychology. organisational expert. I City University in Law and have known Derek for many years and found him to be a knowledgeable and likeable Richard, Carpent Taylor, ers Sales Director and UK Business Director Group. expert in this important field, hence his being appointed as a visiting professor to two Director, GT Motive. UK Universities and being widely recognised in the UK and elsewhere.
Donna Scully,
Prof. Hugh Koch, Managing Director of Hugh Koch Associates and visiting Professor to Birmingham City University in Law and Psychology. Issue 37
Modern Insurance 23
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EDITORIAL BOARD
HOW CAN A DIVERSE WORKFORCE DRIVE A PROGRESSIVE AND COLLABORATIVE BUSINESS? remember back when I was responsible for our claims team, someone suggested we would never get the correct focus for each individual customer unless we employed people who could relate to the people on the phone, people with their own homes on household, and people familiar with driving and the UK’s roads for our motor claims. We need staff that can relate to our customers and staff that our customers can relate to was the simple mantra. We have a massively diverse customer base, but how does the profile of our employees compare? Back in the day, I would suggest they were like chalk and cheese.
I
The good news now is that the world has moved on, and companies in all industries, whether looking to reflect and work better with our increasing ethnicity, target the ‘Pink Pound’ or a greying population, have massively changed their recruitment approach to get in a better position. All so far so good, but that’s not what appeals to me most about a diverse workforce. Back in 2005 I went on a study tour of high performing companies in the US. It was great, I learnt a lot but initially it was one middle aged white man in a grey suit after another, all highly educated but not really reflecting their customer or employee base. Then came the epiphany, a black female HR director from one of the big Las Vegas Hotel/Casino groups talking about diversity. Not the politically correct, moral or customer alignment from her however, her analogy was the human brain. We all use ours differently, don’t think the same way, or use the same parts of the brain necessarily. Her goal was to bring the input from all parts of her workforce, from those men in grey suits, to the minimum wage, non-English speaking teams at the other end. That way, she said, was the equivalent of having a ‘Super Brain’ working for the company, making the right decisions, driving the right strategy and truly representing the progression that was needed to be leaders in their area. That has always stuck with me, and massively reinforced my view that there are so many reasons to ensure we have as diverse a work force as possible, straight, gay, old, young, black, white or whatever (maybe even claims and underwriting?!), all working together to drive the business forward and deliver a better result for our shareholders and our customers.
WHAT DOES IT TAKE TO SUCCEED IN THIS COMPETITIVE MARKET? W
hat a great question… there are so many answers to this question.
From a personal perspective, it takes a lot of hours, a lot of hard work and the kind of relationship skills needed to support partners’ and customers’ needs. From a business perspective, you need to be easy to do business with. This requires a flexible approach, a forward thinking attitude, the ability to listen to what business partners and customers are demanding and more importantly, the desire to support and develop further to ensure that they and the industry moves forward more effectively. The industry in which we specialise in is extremely mature but one that is ready for change. The market has developed at a pace and current technology is struggling to keep up; its demanding more and more from the various suppliers within it and unless you can show a flexible approach, you’re in danger of missing the point. This is where it gets exciting though, as we know, technology is never going to stop developing. Every day there is a new app, device or gadget and this is and will continue to be the norm; in any market, but particularly in this market, people are looking for partners who can keep up with the demand for change and the pace in which it is being demanded, that is why it’s hugely important to listen and understand each customer in terms of their processes but also their needs. The industry also needs far more people to come together and talk, it’s very easy to only see things from your own perspective or from your company’s perspective, but we believe as a business that partnerships should be open and have the right tools to allow all the elements to come together for the good of the customer. Finally, I’m a great believer that to succeed you need to be straight and honest, a very wise former boss of mine shared some words with me on day one and I’ll never forget them; those words were: “always deliver on your promises, if you fail to do that, you won’t succeed.” RICHARD TAYLOR, Sales Director and UK Business Director, GT Motive.
DAVID WILLIAMS, Managing Director, Underwriting and Technical Services, AXA Insurance (UK).
Issue 37
Modern Insurance 25
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EDITORIAL BOARD
THE VITAL ROLE OF TECHNOLOGY Who or what is leading the way in terms of technology in the industry? t has been my view for a year or so now that never has technology played such a vital role in my specific area of insurance, namely motor claims. This ranges from rapidly evolving vehicle technology (ADAS, RADAR, LIDAR, autonomy functions and telematics etc.) and the complexity (and costs) involved in repairing vehicles and this is before we even enter the claims journey… We now have a plethora of technology solutions from FNOL, image capture, claims triage, engineering and management platforms. It does not stop there, we also now have several ways of connecting all of the various elements of technology via industry recognised connectivity solutions, for example CAPS, which has successfully created an industry standard for communicating motor claims information.
I
As with most solutions, there will be a varying degree of quality and effectiveness with each of them. You also run the risk of buying a beta max and not a VHS, which is without doubt the biggest fear I candidly have when investing in technology. It is therefore a case of edging your bets and ensuring that you take all necessary precautions and due diligence to ensure you are engaging with a sustainable, customer centric solution, that contributes towards increasing your efficiency, reducing operating expense, whilst also improving the customer journey. The work that we do at InduSTry Insights has given me the fortunate position to have carried out all of the aforementioned diligence and as a result I have been involved in some very innovative technology solutions. The most progressive solutions for image capture and triage is without doubt, Service Certainty, who have pioneered crowd sourcing with their pro camera service. Control €xpert’s entry to the UK market with their blended solution for vehicle engineering, combining the very best of technology (via AI) and skilled human intervention to efficiently process and authorise vehicle repair estimates for insurers and fleets. For ten years now there has been a lot of activity in telematics, but has it really taken off? Or is it the preserve of young/high risk drivers? I understand the economics of why this might be, as insurers struggle to make this a compelling and profitable proposition. ThingCo (founded by Mike Brockman of ITB), for me, may well be on the verge of launching the solution to this conundrum with their Theo device, which enables policyholders to own their own driving data and also have the benefits of the very latest in ADAS, camera, video and Alexa voice technology. Panel insurers will be able to avoid the cost of their own telematics devices, yet still derive the benefits of mitigating claims frequency by the use of the Theo device. This could well be the proverbial Betamax, but I am going with it being a direct jump to the DVD and bypassing the VHS!
ESSENTIAL EMPLOYEE ENGAGEMENT How important is the investment in people, and what forms should this take? here aren’t many businesses these days that would not agree that investing in its people is important. Insurance is a people business. No matter what type of risk is being insured, the very nature of the service is to support, fix or restore one’s person, business or property. In the claims space this is especially important; the moment of truth as it is known.
T
Claims, like all other areas of business and life, is becoming increasingly digital but that certainly doesn’t lessen the need for investment in people. Firstly, of course, is customer service. Using an app or website for customer communication won’t entirely replace talking with a claims handler and in more complex claim situations, the reassurance and understanding provided by customer service people is essential. However, the benefits of a structured approach to engaging with employees and investing in their training and development reaps benefits beyond front line customer service. At Coplus, we have chosen the Investors In People (IIP) framework as a means of ensuring we adopt best practice and have a mechanism to measure how we are doing. There are other types of accreditation that companies can practise but whichever is chosen, I believe having an external framework to provide a benchmark is very valuable. It is a way of ensuring the business ‘looks at the big picture’ rather than being too inward facing. IIP audit every two years and having just completed our review recently, retaining our Gold standard, this is very front of mind. However, it’s impossible to maintain the standard simply by being ready to audit every two years, it is about the ongoing work we do every day. Being consistent is so important. A big party once a year is great but it doesn’t sustain. That’s not to say that parties aren’t appreciated but doing the most important things well and continuing to do them is where the long term benefit is created. People need a clear structure, to understand how their role contributes to the business, to see where they can develop their skills and where that can take them. Essentially, the aim is for a workforce that feels supported, trusted and has confidence; this creates engagement and commitment to help the business achieve its goals. JASON TRIPP, Managing Director, Coplus.
STEVE THOMPSON, Director, InduSTry Insights.
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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. • • • • •
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EDITORIAL BOARD
THE RECIPE FOR A LEADER
INVESTING INTERNALLY
ou could write a novel just listing the different leadership quotes and advice from all of history, but what are the basic ingredients of role model behaviour for someone leading a team?
How important is the investment in people, and what forms should this take?
X Y
Well, I am certainly no academic on the subject but have learned a lot from observing many of my own managers and have also made plenty of mistakes over the years on my journey of leading teams. Some common traits seem to have served me well over time. Start by focusing on the positives, which can be very difficult for a leader as there is always a problem to deal with and something that needs fixing. However, if you look at what happens to a group of people when the leader concentrates on the good things and the strengths of their team, it can be no coincidence that positive direction and focus on “what’s working well” is a fantastic influence on the performance of a team. Being honest with each other (even when it feels awkward), will ultimately build trust within the team you are leading and that can breed a culture of open, transparent dialogue throughout the business to deliver some brilliant results. Remember, mix the honesty with plenty of support for your team members though. Painting a picture of where you are heading and making sure everyone knows their part in the story so they can excel in their own jobs and celebrate their role in any success is another key behaviour that many leaders don’t find the time to do. My final ingredient would be to show humility as a leader. Be ready to share your own faults and surround yourself with people who are better at their jobs than you are at yours. In my experience, that keeps you all on top of your game with the constant challenge to perform and collaborate through playing to each other’s strengths. Pick up any leadership book today and you will learn something different and there are indeed many different ways to lead teams well but hey, there aren’t any black and white rules - these are the things that make a difference for me – try it sometime and surprise yourself with the results! PAUL TAYLOR, Managing Director, Plantec Assist.
nvesting in people is a strategic imperative – particularly in an industry reliant upon such an expansive range of expertise. That investment is not only targeted at bolstering existing talent but also extending our skills base to meet rapidly evolving client needs.
I
The loss adjusting sector has, in the past, suffered from a period of underinvestment in people. That has been recognised and there is now a concerted effort to build back up the diversity and level of talent our industry demands. For some companies, that means targeting experts in the marketplace and encouraging them to ‘jump ship’ – this may in some instances be effective, but is not sustainable. To build a truly sustainable talent base you must focus investment internally, creating an environment that attracts new talent, fosters potential, promotes development and ensures commitment. To introduce new people, we must ensure the workplace we offer is attractive. That means recognising the changing aspirations and demands of the younger generation. No one is looking for a job for life at the outset anymore. We must therefore promote an environment in which new entrants can see the career potential we offer and our commitment to their long-term progression. At Crawford, that commitment to employees starts from day one and is maintained throughout their careers at the organisation. Our graduate trainees, for example, are given the opportunity to experience the full diversity of opportunities available across the company, working with experts and mentors to help them map out the most relevant career path. However, investing in people is not just about bringing in talent, but also ensuring that talent stays. Why make a huge investment in bringing employees up through the ranks if they then move on? At Crawford, we have set clear targets for internal promotion. Our aim is to grow from within wherever possible. That means constantly giving people the opportunity to move forward, enabling them to develop their skills base through regular training, and recognising their investment in progressing by helping them take the next step up rather than out. In our view, investment in people provides the best possible rate of return. CLIVE NICHOLLS, President, UK & Ireland, Crawford & Company.
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Modern Insurance 29
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EDITORIAL BOARD
DIGITAL CLAIMS AND THE MODERN INSURER ustomer expectations have changed. We (as insurance companies) have to face facts. Pioneered by companies like Amazon – a positive, simple and digital journey has become essential for consumers. As younger, more digitally savvy and technologically-aware consumers become decision makers, insurers can’t stand still.
C
Why would these customers expect anything less from the claims service they receive? Expectation Consumers today demand instant 24/7 services, delivered through the channel of their choice, combined with the ability to self-serve, while also being kept informed. Insurance lags behind other industries for digital mastery – the majority (56%) rank as ‘beginners’1. If insurers want to stay relevant going forward, we must not just meet but rather do our best to exceed these expectations, while moving beyond a culture of incremental improvements2. Technology Technology is creating a perfect set of circumstances that lets insurer’s fast-track honest customers and give them a great experience, while looking more precisely at potentially false claims and devoting resources to investigate further. It’s about finding the right balance between being more operationally efficient (which digitalisation offers in abundance), while also improving the customer experience. It’s the combination of Chatbots, analytics, machine learning, better user experience and access to digital profiles of claimants – making the technology work for insurance companies and customers. If artificial intelligence can digitally process a perfectly straightforward claim that is painless, fast and simple for the customer, a claims handler has been freed up to offer a more personal service to customers when a digital solution is not appropriate. Imagine this effect multiplied and the overall impact is a best outcome solution for insurance companies and the customer. The opportunity A claim is the exact moment an insurance company gets to shine for their customers. A truly customer-focused company shouldn’t hold up their customers in long-winded processes. Insurers need to decisively transform their claims function, equip themselves to deliver against the new, higher customer expectation3 – while increasing efficiency and improving claims handling accuracy in the process. MARGARET SCOTT, Head of Claims Strategy and Customer Experience, Allianz Insurance.
YOU’VE GOT TO BE IN IT TO WIN IT How can successful branding set you apart from the rest of the competition?
S
uccessful branding is easy, right? You just need a shiny, new and expensive logo and the customers will come..?
Hardly, a brand is so much more and creating one is so much more difficult. A strong brand reflects the true culture of the business. The promises it makes, its values, personality, character and tone of voice. Crucially, it’s the emotional engagement the business has with customers and employees alike. Rational factors like price and product are important, but the emotional resonance of a brand is what makes the difference between success and failure. You would be able to name ten global B2C brands without too much difficulty. It is more difficult to think of B2B branding, which is hugely important and arguably more challenging, within a fraction of the budget. The challenge of creating a brand becomes even harder in a B2B2C relationship, where the brand has to resonate with the business customer as well as the “end user” who, in most cases, is unlikely to have any knowledge of the brand in question. The insurance supply chain is a great example of this. The customer has the relationship with the insurer, but especially in the case of Nationwide Assistance, the moment of truth, that face to face meeting with the customer when service is key, falls to the supplier. So, you’ve got to be in it to win it. Successful branding in this case means that you actually get to be the face of that insurer to align each other’s brand values in order to provide the level of service that the customer expects. Once you are in it, great branding will continue to evolve. A brand alignment with a multi-million pound global organisation can’t fail to teach you a few things. Be prepared to make tweaks, move when the customers change direction, but stay strong to your core values and your brand will continue to be successful. The reputation of service, ethical values, and going that extra mile whilst maintaining commercial competitiveness is the brand that Nationwide Assistance have built up over the last ten years. It sets them apart from the competition and gives them the platform to be the crucial extension of the insurer brand at a time when the customer needs it most. PETER GOODRIGHT, General Manager, Nationwide Vehicle Assistance (NWVA).
1. Insurance is behind on digital transformation – study – Insurance Business 2. Claims in a digital era: Data, analytics and AI transform the customer experience – EY 3. Claims in the digital age: How insurers can get started – McKinsey
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Modern Insurance 31
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The Science So how do we establish if a person is telling the truth? All people lie differently, some are more sophisticated than others, so there is no one constant to apply, is there? Some look up to the left when lying and some don’t‌.so how to know? As the leader in this ďŹ eld, we DO have the one constant applicable to all and this well-founded and tested application was developed after years of psychological research. Now our secret sauce is easily deployed in the Insurance sector for the ďŹ rst time ever, no longer just compelling academia. Our leading UK product is successfully operating overseas. Our Intellectual Property is presently wowing the US market as a new to market innovation for the first time in history. i-VerifyÂŽ is implented on both a DA and non-DA basis and is an interwoven ingredient in our claims DNA. i-VerifyÂŽ is best deployed as soon after claims notification as possible and can stop a large percentage of your non-genuine claims within 72 hours, whilst fast-tracking the genuine - who will love your brand and you for it.
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EDITORIAL BOARD
ARE THERE WAYS WE CAN COLLABORATE BETTER AS AN INDUSTRY?
WHAT WE CAN LEARN FROM MILLENNIALS?
etter collaboration across the sector is not a nice-to-have, but a must if we are to combat the evolving threat of fraud. The deeply flawed whiplash reforms have sowed anger, disagreement and mistrust between those on the defendant and claimant side. It is difficult to genuinely work in partnership when one side is effectively seeking to lay waste to the other. Yet from the wreckage that will emerge, we will have a new claims system and a whole host of both new and amplified challenges.
hy are millennials an essential part of today’s workforce? As an industry, we can’t afford to miss out an entire generation and the skills they bring to the workplace. Some would argue that millennials are typically impatient, expect everything immediately, spoilt, rely on technology, feel they are special, have low self-esteem, and want free food and bean bags in the workplace.
B
The sector is going to look very different in the future, with many more CMCs and fewer lawyers. With the gathering pace of cross-ownership and joint ventures, the market will function very differently to the one we have now and the ‘baddies’ will be less easy to spot. The wave of new fraudsters that I believe is speeding towards us, will crash into the new Portal with considerable force and we can only prevent being engulfed by a co-ordinated approach between industry, government, regulators and others. It has long been crystal clear that there will be both seen and unseen weak points in the new system which fraudsters will only be too happy to exploit, developing loopholes and workarounds, as they identify gaps in the regulatory structure. We are working with our insurance and claimant clients on strategies to combat fraud at every stage in the claims process. Carpenters Group now has affiliate membership of the ABI and the Insurance Fraud Bureau. This will enable us to collaborate ever closer, share data and intelligence and more actively contribute to the industry fight to stay ahead of the fraudsters. The Insurance Fraud Taskforce desperately needs resurrecting in some more permanent form to pull together concerned parties in a co-ordinated manner. Fraud is not an area that you can look at as a snapshot, and then say, we’ve fixed it and move on to other things. It requires constant vigilance and action. The industry has done the best it can through forums such as the Fraud Charter meetings, but there is a limit to how much industry and regulators can achieve without the leadership of government. Future collaboration is essential and must be taken seriously. DONNA SCULLY, Director, Carpenters Group.
New entrants are essential for survival; what can we learn from millennials who are only just entering the insurance game?
W
I see millennials in a different way. We have come from a more culturally diverse world than our parents, we have travelled in a world which technology has made smaller, which makes us much better change advocates. That’s why the world is changing quicker than it ever has. Ultimately, it’s people that drive change, but millennials can drive change with greater passion and thought than others. For us, making a positive difference in the world is more rewarding than traditional employee benefits like subsidised car parking. We are individuals, and as young people we value others investing time in us, we thrive around people who care, who watch us succeed, and take pride in helping us build relationships and job satisfaction over time. We do, however, want to be an essential part of the future of the businesses we work within by challenging the norm and working hard. It’s often said that what we want is more choice, more holidays, less pressure, less commitment, more freedom, and more time. That may be the case for some, I suspect, however, what most millennials really want is: a feeling of belonging, fair opportunities, experienced people passing their legacy to us, encouraging us to contribute, sprinkled with faith and trust from our employers. Why do we need millennials? The world is changing fast but we have seen similar changes in generations gone by. We have young people with the ambition to make positive change, travel and experience culture and build a business who cares for its people and does the right thing. We crave for success in a balanced way. The future is worth investing in. We will soon be the ones passing on the legacy. Build the industry on fresh ideas, ambition and varied strengths as, after all, strength lies in celebrating differences not in similarities. The message is we are just like previous generations. Treat us as individuals and watch us bloom. VERITY ROSS, Motor Expert Claims Handler, Zurich UK.
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Modern Insurance 33
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EDITORIAL BOARD
STRIVING TO KEEP AHEAD There is an increase of innovative new entrants into the insurance space; what effect will these disruptors have on the industry? nnovation in the insurance industry is not a new thing. Cuthbert Heath is widely viewed as a pioneer and an innovator, credited with creating the market’s first burglary, earthquake and hurricane insurance well over a century ago. But the term disruption is relatively new, and within insurance circles, nearly always involves the use of new digital technologies. It’s probably fair to say that the evolution of these technologies has outpaced the inventiveness of the insurance market but now insurers are able to use technology to truly disrupt, which is creating new markets to replace incumbent firms, products and processes.
I
As customers’ expectations of tech delivered services has increased, so has the requirement of insurance to provide frequently updated and tangible benefits. Until recently, most policyholders interact with insurers just once a year, but disruptive services now allow continual pricing reviews (via telematics) and to amend policy coverage and limits at any time (via customer portals). Looking forward, Peer-to-Peer insurance and Social Brokers are using technology to group customers with similar needs together and then leverage these economies of scale to drive better deals for them from insurers, or in some cases, sharing risks between themselves. Artificial Intelligence is now seen as the key to future insurance disruption. The somewhat daunting prospect of self-driving cars will no doubt stretch insurers’ provisions to consider new risks, whilst initial tests suggest these cars are safer than human drivers and have the potential to reduce accidents, but with new risks attached, such as hacking, terrorism and computer breakdown. Industry participants that will be negatively affected will be those that do not keep up with new technology and consider how this can aid them to produce products for the emerging risks of tomorrow. It could be said that email disrupted the fax machine market, but it could also be said that this was just an evolution of communication technology. One thing in the insurance market is for sure, continual evolution is no longer enough to stay contemporary. Technological strides are huge and to keep pace, so must be the strides of insurance innovation, and there is no shortage of businesses fighting to be on the podium. PAUL TASKER, Managing Director, REG UK.
ARE THERE WAYS WE CAN COLLABORATE BETTER AS AN INDUSTRY? n today’s world, consumers, employees and companies are much more interconnected and this is changing the way we do business. For insurance, it means greater readiness to connect to insurtechs, consumer apps and new data sources outside of an insurer’s own book of business.
I
Consumers are increasingly seeking anywhere/anytime options. In motor insurance, with telematics and usage-based policies generally, we’re seeing the origins of new product models such as try-before-you-buy, short-term or pay-as-you-go models. Consumers are seeking greater flexibility to buy insurance on their own terms, while insurance providers are increasingly dealing with multiple quoting platforms and online or cloud-based processes. A key enabler for the greater collaboration at the heart of all of this is the device-agnostic or data-agnostic insurance platform, call it data exchange or data marketplace, or the use of standardised APIs: it is going to be an important technology for better pricing, underwriting and delivery of insurance in the future. Data platforms and exchanges are going to be hugely important in defining a consumer’s usage and their safety and satisfaction with their car. With insurance being a significant part of the value chain for the connected vehicle, there are going to be some interesting new partnerships in the future between the world of insurance and the vehicle OEMs, two giant and traditionally disconnected industries. Insurance providers of all shapes and sizes tend to face some cultural or organisational barriers to sharing data in this collaborative way. But the principle of a contributory data platform is based on the fact that whilst no single insurance provider can have a complete understanding of a potential customer, there is always going to be a need for the pooling of customer data. For insurance providers, we believe the opportunity for greater collaboration lies in gaining access to as-yet untapped data sources. Ultimately, it’s about greater digitisation and collaboration tools to: • enhance the customer experience, for example with personalisation and cross-selling delivered by greater data availability; • prepare for new, added-value services, gamification such as driver coaching, risk alerts and other active/predictive technologies coming into the industry; • empower employees to work more efficiently; • improve industry benchmarking and BI; • improve organisational collaboration and communication; • and enhance relationships between the insurer and broker, software houses, insurtechs or other distributors. Better use of the existing data for insurance is going to be one of the big competitive differentiators of the future. TREVOR LLOYD-JONES, Senior Marketing Manager, Insurance, LexisNexis Risk Solutions.
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EDITORIAL BOARD
WHAT DOES IT TAKE TO SUCCEED IN THIS COMPETITIVE MARKET? 019 is all about technology. The companies who have embraced tech, integrated it to help their staff, enhanced their customer journey and used their data strategically are already pulling ahead of their competition.
2
Consider relatively young companies like Uber, JustEat and Netflix; we’ve used taxis, takeaways and film rentals for years, but thanks to these tech companies the experience and execution is leagues better than their historical competition. The legal world has been reluctant to take up new technology. Laird was founded two years after Google and welcomed the benefits of using tech to enhance and speed up our services. However, we regularly came across bottle necks at the solicitor end; some still didn’t have email and those that did had little training to take full advantage. We could compile a report within an hour of instruction, but then the solicitor would want it printing out and posting! No doubt some farmers thought their horse was irreplaceable and couldn’t see the point of new-fangled tractors. Today we see a different problem with the same effect. Legacy systems installed in the Noughties heavily integrated into companies making them highly inflexible monoliths. Tech that is so outdated and un-evolved that it becomes a ball and chain around the firm. As an example, API has been a huge benefit to a plethora of firms over the last few years. With us our system, SwiftCase, links easily to the DVLA, HPI, Glass’s, Audatex, Xero, etc. - anyone who has software designed this side of 2015. We’ve found that the CMS’s used by many law firms is simply too old to cope with this widespread and accepted method of communication. Whilst some firms are scratching their heads frustrated with antiquated tech, others are leapfrogging ahead by incorporating artificial intelligence into their work flows, chatbots to provide better user experiences 24/7, seamless API integration with the courts, suppliers and clients, robo-lawyers and mediators; the list of ideas reshaping the legal landscape is endless. It’s not even about how much is spent, it’s about whether that tech is genuinely useful, time saving, client impressing, data giving and ultimately enables a company to beat its competitors.
INVEST IN DATA TOOLS he list of mistakes, oversights and operational failures that cause costly losses is extensive; insurance is an unforgiving sector. Areas that have hurt insurers in recent years include: failure to understand the nature of a risks, failure to have a firm grip on a portfolio, systemic under-pricing, misidentified claims and many more. However, the availability of data and analytic tools are significantly helping insurers to understand and avoid these costly shock losses.
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Looking at claims, and specifically liability losses, allows us to unpick both a specific cause of shocks and examine some generic lessons in how to avoid them. Claims teams face a difficult challenge whenever there is a possible personal injury element to a claim. How to identify claims with significant injury early enough to both deploy appropriate intervention (i.e. specialist support and rehab etc.) and to adequately reserve the loss and thereby avoid the shock reserve movement later. Claims where these substantial injury components are not identified are often known as “Jumper” losses as they can seem innocuous or their potential has not been recognised, they then leap in value at some future point when additional information is provided or an experienced handler reviews the claim. Increasingly, advanced analytics, external data and predictive models are being used to identify these claims before they become shocks later. The models review all the structured and critically unstructured data (e.g. policy reports, claims notes, medical notes and photos) to try and predict whether there are injured parties, the severity of that injury and the potential case value. These models can be run effectively in the background in real time, against every new piece of information and flag any indicators to the handler or management team. This is one of many evaluative claims models that can be run simultaneously with manual technical claims handling to provide decision support to expert claims handlers. The key to running these models is having a culture that is constantly looking at ways to get the most from the data assets available and importantly having an environment where multiple models can be run in parallel to identify “Jumpers” and any other claims that could either be used to support handlers or even automate less technical decisions (intelligent automation). DAVID OVENDEN, Global Director, Pricing Product Claims and Underwriting, Willis Towers Watson.
At the dawn of the forth industrial revolution, I would urge those who want to stay competitive this year to take a serious and honest look at their IT and decide whether to stick with their horse or upgrade to a tractor. NIK ELLIS, Managing Director, Laird Assessors.
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PREPARING FOR THE FUTURE How should businesses embrace the principles of business sustainability within their operations? o matter how much we pursue control and predictability within our business operations, change and ambiguity are inevitable and can’t be avoided. Business sustainability is about maintaining broad principles in everyday business decisions, and those decisions should be broadly aimed at building longterm value, creating competitive advantage and improving overall service and financial performance.
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In a world where sustainability can make or break an organisation, preparing for the unforeseeable could be the differentiator that may just determine survival… 1. Focus on core operations For a business to be truly sustainable and remain at the forefront of a given market, they must retain a specialist status and avoid becoming a generalist. Sustainable businesses do not allow uncertainty to result in paralysis. Strengthen core activities by maximising efficiencies at every stage in the customer journey. Remain true to the core strategy as this will lead to increases in efficiency and performance, and staying true to the values and culture of a business will ensure customers, employers and suppliers know what the organisation stands for. 2. Invest in the passion of people A passionate, engaged and motivated workforce is a differentiator beyond compare. Investment in employee development, empowerment and training coupled with a robust employee engagement strategy vastly increases the resilience of a workforce which expertly delivers exceptional levels of service as standard. 3. Understand what customers truly want Increasingly-discerning customers are no longer motivated by cost-cutting alone. They need true added value and exceptional levels of service. Take time to understand what customers truly want. Understand their business objectives and motivators. Ask questions, listen carefully and be sure to deliver a solution which truly befits their business needs. Consider customers as strategic partners. Working collaboratively with a shared vision, an open and transparent approach and delivery of true added value leaves little reason for customers to go elsewhere. 4. Nurture strong partnerships In any service industry suppliers are a key asset to a business. Invest time, resource and expertise in nurturing supplier partnerships, communicate openly and support their operational efficiency. Such holistic integration with suppliers who share your vision and values is one of the best investments a business can make. It all translates into customer satisfaction.
HOW EFFECTIVE ARE YOUR IDEAS? There is an increase of innovative new entrants into the insurance space; what effect will these disruptors have on the industry? he increase in new innovative products and suppliers into the insurance market place will increase competition, but I suppose we should ask ourselves how effective are some of these ideas? New technology, such as telematics, is very popular with insurers these days and helps them accurately measure policyholder usage which results in accurate rating of risks. Indeed, calculation of risk is quite a science which is a good thing nowadays; gone are the days when business was written for volume sales and not profitability.
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The aggregators are driving the prices of insurance and clients invariably look for the cheapest price, which is not always the best option. A number of these innovators are producing these socalled new products, but you have to ask the question, are they really new ideas? Having been in the industry for longer than I care to remember, none of these ideas are particularly new, some of them were ‘’invented‘’ many years ago but never really took off. New ideas in insurance tend to go around in circles. The big advantage that these new entrants into the market have is the power of the internet to advertise their products. This is a very effective advertising tool which will attract the upwardly mobile younger market. It is true that new ideas, innovation, social media and the internet will attract many customers, but some of this innovation could be relatively short-lived, in that a new scheme or new product will be unproven with no previous claims history for an underwriter to rate accurately. The market is crowded, everyone is fighting for business and this will continue for the foreseeable future. This, in turn, may force some companies out of the market if they are unable to compete. New schemes and ideas will force the older more established companies to review their products and schemes and the service they offer their policyholders; a number of companies are promoting their claims services. The market is price based with aggregators making it easy to switch insurers but how a claim is handled really does count when it is time to renew a policy. MIKE BROWN, Sales, On Insurance.
There’s no magic formula for sustainability, but at the heart of a successful business lies an ability to innovate, evolve and adapt, riding the storms and living to tell the tale, each storm brings insight and learnings, strengthening the capacity to endure the unknown. ANDREW CHANDLER, Sales Director, FMG.
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THE RIGHT TOOLS FOR A HAPPY TEAM? or your team to be effective and feel as if it’s “going places”, it needs to know how to solve problems. This may mean solving day-to-day problems or addressing wider more strategic problems over a period of time.
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Resilient and healthy businesses draw together those people with the skills, knowledge and experience to help each other solve specific problems – the adage “achieve a result that is greater than the sum of its parts” is so often true. A resilient business needs its team members to have good problem solving skills which address both technical/legal and psychological issues. In my inaugural professional talk at Birmingham City University recently (link to come), I gave an overview of how resilience aids this problem solving process by ensuring lawyers have excellent time and paper management skills, effective interpersonal skills and the advantage of clear, logical and creative thinking. In addition, businesses can embrace the Total Quality Management (TQM) practice of having Quality Improvement Teams (QIT). These are either informal “lets meet to discuss X” or formal teams regularly meeting to discuss any pertinent service quality issue. The advantage of these teams is the ability to solve problems, especially cross functional/cross-disciplinary ones and boost satisfaction, morale and empowerment through their involvement. They are mandated by senior legal managers to feedback recommendations which are typically accepted and implemented. The main tools a ‘happy team’ needs are to be valued and have their ideas to innovate, either as individuals or in teams, recognised – let a small number of staff develop ‘continuous quality improvement’ ideas, and encourage corrective action – whether this be in the areas of standards, processes, customer excellence or staff satisfaction. Allocating regular time to this actually pays off on the ‘shop floor’. Ideas and good practices involving quality improvement activity have been around in the media and literature for decades. I have referred regularly to the practical work of John Oakland and Derek Mowbray for many years and continue to do so. It is surprising how often I find firms who have not addressed these ideas. Staff membership changes and the culture of a firm changes with this. It needs renewal on a regular basis.
UNLOCKING THE POTENTIAL There is an increase of innovative new entrants into the insurance space; what effect will these disruptors have on the industry? s we’ve talked about many times here in Modern Insurance Magazine, tech savvy disrupters have been entering the insurance space over the last two years and making quite an impact. The basic principle remains the same, take historic problems that an industry has suffered from and use technology to solve them. But there is more to it than that, look at the majority of fintech success stories - they do two things. They make things easier and give you more.
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To briefly jump to a well-known banking “disrupter”, Monzo, we can see that in order to be effective they have had to offer something that traditional banks didn’t. The way they allowed users to reap usage benefits and track spending easily, handle their money and bills with only a few clicks and swipes was pretty revolutionary in 2015. And now the chances are your “traditional” bank has since seriously upgraded their app, allowing you to do more, such as depositing cheques and more? So, what can we take from this lesson in the banking industry? Well in much the same way, banks have reacted positively to new entrants into the market, we can expect insurers and brokers to as well. In fact, we can see brokers seeking out new technology to help with brand and processes. Insurance has moved online with “click and buy” and thanks to some people, claims… but there is greater scope for improvement. How about greater flexibility over your policy with access via your app? Want to drive to Morocco – a few updates and a payment from your app and you’re away. Want a breakdown of your commercial risk claims history instantly? Tap the button and expect to have it in the palm of your hand in a few moments. The industry knows that disrupters have changed the landscape, expectations will keep rising and more and more insurers, brokers and customers will align. With aligned needs met comes transformation, the technology is the easy bit, it’s the mindset and culture change that will unlock the big advancements. STEPHEN MARSHALL ACII, Managing Director, Insure Apps.
Ask your staff “how can we do things in a smarter way?” – offer a small (or large!) prize for the best ideaIwill give a prize for the first “good suggestion” emailed to me. PROF. HUGH KOCH, Managing Director of Hugh Koch Associates and visiting Professor in Law and Psychology at Birmingham City University. Author of “Implementing and Sustaining Total Quality Management”.
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EDITORIAL BOARD
DIGITAL STRATEGIES Digital transformation can be challenging, how can the insurance industry make a digital strategy a reality?
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here are two reasons why a digital strategy is of critical importance:
• Customers are increasingly basing their purchasing decisions on the ease of doing business (Uber, anyone?). • Businesses need to achieve more, with less and at lower cost to remain competitive. Luckily, with the right strategy, improving the customer journey, whilst cutting costs, is an achievable goal. 1. Leadership is key to designing digital experiences that are built around the needs of the customer. If you are merely automating an existing offering, you might create faster insurance agents, but you are unlikely to deliver the customer experience and lower costs that you could achieve with customer-centric design. 2. Focus – where does digital add the most value? Is this on increasing distribution capability, lowering acquisition costs, increasing customer value, or reducing the cost of claims? 3. Targets. Are you clear on what ‘good’ initially looks like? Questions to ask include: • What is the initial target for the number of customers that are prepared to use digital rather than a call centre for an insurance process? • What % of customers do you hope will complete that process? • What will the internal cost be? • How much more might you be prepared to pay for a digital capability that achieves a valuable business outcome, such as repudiating fraudulent claims or reducing indemnity spend on non-fault 3rd party claimants? Without establishing clear targets up-front, you can’t expect to measure success. 4. Partnership –insurers want to experiment, innovate, learn and improve skills that are readily available by partnering with insurtechs, but the relationship goes both ways. Insurtechs need insurer partners to act with speed and provide financial support. How much is your organisation doing to support insurtechs and develop an eco-system that enables all parties to thrive? 5. Measure. Going digital provides businesses with unprecedented insight into customer behaviour. Using tools such as analytics, heatmaps and recorded user sessions, insurers can see how their customers are interacting with their digital processes. These can then be optimised, enabling businesses to achieve their initial targets and set the next, more challenging goals for success. MICHAEL LEWIS, CEO, Claim Technology Ltd.
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INVESTING IN PEOPLE IS CRUCIAL How important is the investment in people, and what forms should this take? here are numerous ways to ensure your business continues to grow and thrive during these somewhat uncertain times. At EDAM, we work from the inside out, focusing on developing our strengths, alongside our business strategy.
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We measure our progress consistently against our core values of innovative, integrity, respectful, passionate and fun, whilst working as one team, meaning positive employee engagement is a priority. Our GTi (Grow, Thrive, Improve) Personal Development programme places 50% emphasis on these values. Investing in people is crucial. Your team is what keeps your company’s lifeblood pumping. They help you to stand out from the crowd, increase your bottom line and gain recognition for your efforts from both customers and outside organisations. At EDAM, we have initiated a number of coaching and development schemes to underpin the company’s intentions for strategic growth and keep our people at the centre of all we do. Our commitment to investing in our team is at the heart of our culture, resulting in an inspiring work environment. Providing new and exciting opportunities for growth and development ensures team members are fully supported in their work and truly passionate about the business. I can’t stress enough how important it is to invest in your team. For us, this means creating a culture focused on working collectively, coupled with nurturing and valuing our people, which is vital to maintaining our market-leading levels of customer service. In turn, supports our 2020 Vision for the business and maintains EDAM’s position as the UK’s market leading service provider of credit-hire and post-accident services. At EDAM, investing in our people means implementing initiatives such as award-winning Project Phoenix and Top Right Leadership Development programme. These seek to cement our commitment to a performance-coaching culture that not only supports our team with their personal goals and ambitions within the business, but also works in line with EDAM’s plans for further growth. The results speak for themselves – we boast a happy, engaged workforce and have enjoyed vast improvements in business performance. One indicator of this is our Net Promoter Score (NPS), which reflects customer satisfaction and has steadily increased from 56 points to over 80 points in just two years. We were recently named one of the top 100 UK companies to work for by the Sunday Times 100 Best Companies Scheme, achieving a coveted two stars. Acknowledgement of the outstanding levels of employee engagement within our team. Is investing in your people important? Yes, most definitely. MARC LAFFERTY, Chief Revenue Officer, EDAM Group.
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At HK Associates we provide a comprehensive and independent psychological and orthopaedic reporting service throughout the UK as well as access to a psychological treatment service. Services are provided within the context of personal injury, employment injury, stress and chronic absence management, clinical negligence, Neuropsychology and chronic pain. Adults and children are seen within four to six weeks of instruction at any of our 158 clinics across the UK and the report provided within two weeks. The ‘Find an Expert’ facility on our website allows three experts to be located immediately.
GROUND FLOOR, FESTIVAL HOUSE, JESSOP AVENUE, CHELTENHAM GL50 3SH Phone: 01242 263715 email: enquiries @hughkochassociates.co.uk Web: www.hughkochassociates.co.uk
EDITORIAL BOARD
ENABLING THE FULL POTENTIAL IN OTHERS How important is the investment in people, and what forms should this take? ’m regularly asked to talk about ME Group’s LegalTech and the benefits that it brings to dispute resolution. In a tech focused business it’s easy to think that the endgame is an operation that is entirely machine dependent with very little human resource requirement. Indeed, we’re often accused of ‘doing lawyers out of a job’. If that were true then arguably as a business there would be no point in investing in our people at all. Yet in practice, nothing could be further from the truth.
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It’s true that our LegalTech replaces many hours of work traditionally done by people but it doesn’t remove the need for our people, nor the need for us to invest heavily in those people. That means equipping people with the right knowledge, together with the soft skills to facilitate the best application of that knowledge to our business. It also means having an enabling environment for people to work in, and removing the barriers that prevent people from delivering. Like many other firms, we have a training and competency scheme, with competencies linked to roles and a defined training programme to enable people to progress to competency. However, I’m not a fan of one to ones, periodic reviews, or standard form performance reviews. Leaders should know and understand the people they lead, and practice the principles of dynamic leadership; in doing so it is implicit that a leader develops capability in the team that they lead, and acts instantly where there is a need to invest in somebody to support their wellbeing and performance in the business. In a former life as a regulatory consultant, I met many businesses that saw ‘investment in people’ as a potential award they might receive, or some regulatory obligation from a T&C perspective. I think the moment you do that as a business you’ve missed the point. It’s far more valuable to consistently ask ‘what else can be done to help people achieve their best?’ ROB COOPER, Co-Founder and Executive Director, ME Group.
WHAT SKILLS AND BEHAVIOURS ARE NEEDED WHEN LEADING A TEAM? eading teams doesn’t come naturally to everyone. Quite often, the skills and behaviours required can only be built up over many years of experience and having to cope with a variety of commercial situations and the characters of team members.
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According to Douglas McGregor, there are X and Y type managers where X revolves around the importance of heightened supervision, external rewards, and penalties (autocratic or dictatorial) while Y highlights the motivating role of job satisfaction and encourages workers to approach tasks without direct supervision (democratic). In my experience, leading teams often requires a combination of the two approaches. Having had a long career in the corporate and SME sectors, I have found that leading teams requires particular skills and behaviours. New team members must have a comprehensive induction into the company, are shown what’s expected of them, given clear goals and receive good coaching. Also, don’t ask your team to take on tasks which you are not prepared to do yourself and always treat people the way you expect to be treated. Do bear in mind that team members may have particular skills which you don’t possess yourself so you must harness these, help develop them and put them together in a way that achieves your business objectives. A good humoured but professional approach in the work place brings out the best in people as well as making yourself available for both business related and sometimes personal issues. Rule by example, not by fear, as the latter is considered as an excuse for your own skills shortages or an inability to relinquish control. Involve team members in problems and solutions and allow them to make mistakes as long as they learn from them. Listen carefully to your team, always be prepared to make a commercial decision and bear in mind that they are likely to model their own future leadership traits on your example. Also, back them up in public even if you have to take them aside in private for reprimand or to impart some sound advice. Team members should be well rewarded for the work they do and this can be a combination of salary levels, benefits, promotion or taking on more responsibility. But never forget, sometimes the best way of rewarding team members is to simply thank them for the work they have done and showing them how their contribution is helping the company to grow its business and provide security for them and their families. NEIL MARCUS, Marketing Director, Selsia.
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FEATURES
Sector Soapbox
Modern Insurance’s panel of resident associations outlines the burning issues
Building trust ften, the most meaningful advances in innovation are not the most spectacular. For all the talk of augmented reality, blockchain and smart contracts, some things that encourage the greatest increase in trust are simple advances that help consumers to manage risk more effectively.
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Take home insurance – one difficult issue here is the grey area between damage that comes about as part of an insured event, and damage that comes about through poor maintenance. For example, if my front door is destroyed by a flood, I am covered for the cost of repairs. If it rots away because I could never be bothered to repaint it, there is clearly no reason why the insurer should reward my laziness by paying a claim. However, what happens when a pipe that is hidden under the floor of my house bursts? How was I supposed to know that is was in a poor state of repair? And why is it common practice to repair the damage caused by a faulty or poorly-designed pipe, but not to pay for the repair of the pipe itself?
we are only interested in these questions when it happens to us, and by then our own circumstances, not logic, dictate how we are going to react. What will help to build trust is technology that helps people manage risk more effectively in the first place. In the case of the burst pipe, this will take the form of sensors that are able to detect leaks and shut off the water supply before serious damage occurs - something that is already a reality. Once insurers start to help consumers to manage risks by rewarding practical and effective ways of monitoring them, issues like maintenance will no longer erode trust, but will help to build it. This is where innovation makes the biggest difference – not by producing breath-taking displays of digital virtuosity, but by putting people in control of their lives. DR MATTHEW CONNELL, Director, Policy and Public Affairs, Chartered Insurance Institute (CII).
These kind of grey areas erode trust in insurance, even though the logic behind where the line is drawn is often sound and necessary. No amount of consumer education on the logic and reality of claims management will overcome this, because as consumers
Extreme weather othing highlights the value of property insurance more than extreme weather. And there was plenty of it in 2018. From the so-called Beast from the East to the summer heatwave, 2018 will be remembered as the year when the UK’s weather became even more unpredictable than usual. These two events alone led to insurers paying out the equivalent of over £1 million every day to householders who suffered property damage. Overall, last year property insurers paid out £4.3 billion to domestic and commercial property policyholders. Yet despite these figures, 2018 saw average domestic property premiums fall – a sure sign that the market remains in rude health. “2018 highlighted the range of unexpected, unwelcome and costly events that all property owners can face, and why insurance is so important to protect homes and businesses. Despite risks ranging from extreme weather to large scale fires, property insurance remains very competitively priced. On the domestic side, the average cost of home contents insurance is at its lowest ever level of £127 a year, while the average price of an annual combined buildings and contents policy, at £307, is the second lowest since ABI stated collecting this data back in 2012.” The ABI’s annual property claims 2018 figures show that last year:
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Overall, the total cost of domestic and commercial property claims, at £4.3 billion, rose by 14% on 2017. This reflects increases in the costs of weather-related escape of water, fire and explosion, subsidence and business interruption claims. The average domestic property claim paid was just over £3,000, with the average pay-out on commercial policies being £13,000. The Beast from the East led to £225 million being paid to homeowners in damage caused by frozen and burst pipes, the highest amount for this type of damage in seven years. During the year, 21,000 claims for burst pipe damage were made, compared to 2,000 in 2017. The summer heatwave - the UK’s hottest ever - led to £144 million being paid out in domestic subsidence claims. This was up 95% on 2017 to its highest figure in seven years, with 23,000 claims made. The average claim cost was £6,500 Business interruption claims, at £276 million, were up 38% on the previous year, reflecting several large fires. MARK SHEPHERD, Assistant Director and Head of General Insurance Policy, Association of British Insurers (ABI).
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FEATURES
What does the future look like? o-one can have been surprised that the Ministry of Justice should have given Part 2 of its LASPO reforms a clean bill of health. The conclusions follow the government’s myopic view of the claims system, focusing on costs above fairness and justice, as seen only through the prism of the insurance industry.
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Like its successor, the Civil Liability Act, LASPO reduced justice for claimants and contributed to the incremental shift in favour of the defendant. It cannot be claimed as a success for its own narrow objectives of reducing costs and fraud when further dramatic change is deemed necessary within years. Even the supposed success of reducing costs is plain wrong. The fall in premiums after LASPO didn’t last and have steadily risen again, sometimes hitting pre-LASPO levels, with a myriad of creative excuses for the increases. Insurers have once again successfully duped the Government that costs are still too high, despite falling claims and costs. This should have confined the current reforms at an embryonic stage to the deleted items folder.
Fundamental Dishonesty and QOCS are fine if used as intended, but there is a clear imbalance in the absence of a similar sanction for defendants, with some using fundamental dishonesty as a weapon. QOCS have generally worked well, although making the process uncertain and more complex, not less so. Referral fee payments have been either rephrased or by-passed by Alternative Business Structures. Some of the review would be laughable if the future was not so grim. Applauding LASPO for creating a “period of stability” and warning that Government should be “exercising caution to avoid creating unintended consequences” is almost beyond parody. MoJ have embarked on a path that will largely remove claimant lawyers and likely irreparably damage the prospects of accessing justice. The future Civil Liability Act review will undoubtedly be as divorced from reality. By then it will too late and the damage will be done. PAUL NICHOLLS is Chair of the Motor Accident Solicitors Society (MASS) and a Senior Partner in Nicholls Brimble Bhol.
LASPO was too wedded to the ‘one size fits all’ concept, with a detrimental impact on the rights of vulnerable people such as children and protected parties. Many judges do not allow deductions for ATE and success fees, which renders some crucial work simply uneconomical, with whole areas fast becoming a legal desert.
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ollowing the Civil Liability Act, there is no doubt that technology will play an ever increasing role in the future handling of low value personal injury claims.
Within low-value third party motor claims, which are central to the reforms, there are many handling and legal processes that are ‘ripe’ for digitisation and automation. These processes currently ‘bog down’ insurers’ claims teams, detracting from rather than adding to the customer journey. Moreover, a typical insurer claims handler is further burdened with legacy systems designed for human orchestration, having to administer ‘handoffs’ to suppliers, double-keying data and juggling the ever-increasing regulatory demands incumbent with financial services organisations in the 21st century. However, with a new claims portal to embrace from April 2020, following an entirely new claims process, a streamlined model will be necessary. Change will be crucial, not merely inevitable, and technology must play a pivotal role in delivering that change successfully. Whilst the industry debates the impact that artificial intelligence, analytics, automation and blockchain will have in a utopian future, the challenge here and now is how to use the technologies available to deliver true end-to-end claims automation solutions.
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And be in no doubt that these technologies are here now. It’s never been easier to integrate systems – a key component in reducing handoff cost on claims processing. Let’s add to this the ability to machine learn standardised forms of unstructured documents and you have the beginnings of being able to contextualise ‘paper’. Finally, add the ability of process and workflow systems to deliver true automation and you have the key components to create an end-to-end journey. These are some of the core background technologies behind Keoghs’ launch of Lauri in the low value motor space. It’s not a technical flight of fancy with data scientists in dark rooms trying to find the magic algorithm, it’s about using data science to extract and automate, dovetailing into a claims process that is designed around ‘digital first’. All with a single goal – to remove process waste, automate what’s safe to automate and help claims teams deliver efficiencies and better outcomes. In essence, it’s about delivering the AI jam today – not tomorrow – and being ready to embrace the reformed landscape, not fear it. JAMES HEATH, President of the Forum of Insurance Lawyers (FOIL) and Partner at Keoghs.
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FEATURES
Tomorrow’s World… n my very early years, I grew up watching the likes of Michael Rodd and Judith Hann, who, as presenters of Tomorrow’s World on BBC One, tried to predict, for the benefit of viewers, just what the future would look like.
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Seemingly unachievable feats that were nothing more than pipe dreams or the fictional gadgets on shows like Star Trek were apparently still light years away. But here we are, that same generation who watched Tomorrow’s World in the early 70’s, now take Facetime for granted! But whilst the insurance world leaps forward a pace with vocabulary now including terms like Blockchain, AI, data harvesting and disruptors bringing us new technology and products, what does that mean for our most important resource… people!? The technical skills needed within our industry are changing markedly and the resourcing of our businesses in terms of employees will need to change to enable us not only to use and get the benefit from the advances in technology, but to enable business to continue to respond to the inevitable change that will continue.
Professional bodies such as the CII and trade organisations like our own, BIBA, will also need to recognise the changing abilities required. Through BIBA’s support for the insurance apprenticeship scheme, the continued advancement of its Young Broker Ambassadors initiative and the further expansion of the Young Broker Day at the 2019 BIBA conference, we recognise the need to continue to attract new and vibrant young talent into our industry. The conference continues to recognise emerging risks with the return of the hackathon this year and the work of BIBA’s crossindustry innovation working group resulting in specialist training by Google amongst others available for all BIBA members. Tomorrow’s world will retain one consistent factor - the ability of brokers to provide good quality independent and rational advice however so it is delivered. ANDREW GIBBONS ACII, is the Managing Director of Mason Owen Financial Services Ltd and Chair of Industry Claims Initiative on behalf of BIBA.
Recruitment into our business has in recent times sought skills other than those required in an insurance broking environment, whether that be through local apprenticeship programmes or other sectors. The underlying issue here is the next generation of insurance brokers will need to have a range of skills wholly different to those required 10-15 years ago.
Strengthening our position he UK regulator has previously set out its stall in relation to “competency” and what that means. In today’s world where MGAs are seen as an increasingly important route to market for regional brokers, it is right that MGAs must demonstrate competency when arranging insurance policies for their brokers’ clients, the policyholder.
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But how can competency be achieved? Learning alone does not demonstrate competency, it needs to be evidenced by examination that truly reflects the needs of the market and the activities of the individual. We have a long standing partnership with the Chartered Insurance Institute (CII), and were involved, from the beginning, in their examination paper ‘P66 – Delegated Authority’. We wanted to assist in the development of the paper to make sure it is fit for today’s underwriting specialists; not just MGAs but insurance companies and brokers holding binders.
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As we go through 2019, we are also focused on other educational tools like MGA Assess. Again, we are working with the CII to build a dedicated program that complements their broker and insurance assess systems. As a result, the three key pillars of the UK general insurance industry will all be catered for. We are also driving forward to establish the pathway for individuals and, ultimately, businesses to achieve Chartered status, again to reflect the competency of MGAs. We already know, from our day to day interactions with MGAs, that they are experts in their chosen fields. By continuing to follow the path of professional accreditation and continuous learning they themselves will strengthen their position in the market. PETER STADDON, Managing Director, MGAA.
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FEATURES
Industry Innovators Interview: DIGITAL RISKS Fast-moving and dynamic businesses are looking for flexible insurance, and that is what Digital Risks can offer – insurance for digital businesses. We heard from Cameron Shearer, the CEO and Co-Founder of Digital Risks, about why his product offering is different and bringing something new to the industry.
Q A Q A
How would you describe Digital Risks in three words?
Establishing the delegated authorities you need as a startup can be tricky, so we had to tread a fine line between challenging the status quo and accommodating the established, traditional way of doing things
Digital first insurance. What makes Digital Risks different from other start-up companies?
Digital Risks is an insurance provider for the digital age, with pay-monthly cover, proprietary technology and service that reflects small and medium-sized businesses today – digital first. We’ve built an insurance brand to serve the innovative, digital businesses that are a rapidly growing part of the UK economy. Our range of covers has been specially designed to incorporate the new threats they face, such as cyber-attacks, social engineering and IP infringement. Our technology delivers a customer-centric, digital-first experience and our policies are sold via a monthly subscription, so customers can cancel or change their cover as their businesses grow.
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What would you identify as the gap in the market that Digital Risks aims to fill?
The UK’s digital start-up and SME market is growing faster than any other part of the economy, yet the commercial insurance industry has been slow to cater to its needs. Traditional insurers haven’t adapted to changes in how businesses want to buy insurance, with many traditional brokers still operating purely offline. For today’s digitally-native, millennial-run businesses, this approach just doesn’t work. There’s also a lack of understanding of emerging technologies, the risks involved and how to cover them, particularly with the rise in new risks such as cyber-attacks and data breaches. More than two fifths (42%) of micro-small and two thirds (65%) of medium-sized businesses have been hit by a cyber breach in the last year. We set out to build an insurance brand and range of policies that catered to the needs of these upcoming, innovative businesses, delivering the right protection for their needs and sold in a way that suits how they operate.
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What were the main challenges in standing out and establishing yourself in a competitive market?
Finding the right investment partners was critical to our growth plans. It was important to find investors who understood both the technical aspects of the business and the complexities that come with operating in a highly regulated environment. To find the right balance, we ensured that one of our investment partners came from within the sector - our partner, Beazley. This has also been vital to adding credibility to our innovations to date, and future plans. We also had to strike a balance in how we positioned ourselves with existing operators in the market. The insurance sector relies on relationships - you can’t succeed by going it alone. Establishing the delegated authorities you need as a startup can be tricky, so we had to tread a fine line between challenging the status quo and accommodating the established, traditional way of doing things. Our experience in the industry gave us the edge, so we knew how and where to negotiate, ensuring we were seen as a quality outfit. As a result, we were able to secure delegated authorities quickly and win the confidence and respect of the industry.
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Insurance is complex and confusing and as result has a negative stigma attached. To overcome this, the industry needs to start delivering in a modern, non-corporate fashion, while educating and communicating with the audience in an appropriate way On the flipside, we knew from the outset that, in order to make game-changing improvements to the customer experience, we didn’t want our technology and operations to be tied to existing legacy systems and processes. That’s why we became FCA authorised from the outset, so that we would have full control over our processes.
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How is the wider industry responding to challenges in your area of the market, and how are you tackling these?
The commercial sector has struggled to address the needs and wants of today’s new breed of businesses. For a start, insurers have traditionally packaged up products in an attempt to simplify them. But businesses today want personalised cover specific to their business activities and risks, not to pay for components that they don’t need. We have responded to this by unbundling insurance products to give the choice back to the policyholder, and ensure they don’t pay any more than they have to. Business insurance is also famously behind the times when it comes to incorporating tech and all things digital into its products
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and services, hindered by legacy systems that make rapid innovation almost impossible. The industry is gradually improving, however, we’ve been able to get there much more quickly as our technology is built in a way that allows us to respond much faster to customer expectations and behaviours. This is particularly true with customer-facing UI and UX innovations. Another area is flexibility. In a fast-moving world, where situations can change on a month-by-month basis, longterm contracts just don’t cut it anymore. Risk is something to consider throughout the year, not just every twelve months. With traditional annual policies, there’s no opportunity for ongoing engagement and risk management. With our monthly subscription style policies, customers can cancel or change their cover at any time, and don’t need to project their requirements annually. Businesses are more accurately covered and only pay for what they need, plus it provides more opportunities for customer engagement and building risk awareness. We interact twelve times more with customers than the typical provider.
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FEATURES
We aimed to make working with Digital Risks as easy as possible from the word ‘go’, by being super prepared with our strategy and technology, and always looking for ways to collaborate with existing players, rather than working against them
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How are new consumer buying habits forcing change in the insurance industry?
Consumers and businesses today expect services that are quick, convenient and have a faultless user-experience – this is the Uber and Airbnb generation after all. And the same goes for insurance. A study by CapGemini found that 23% of Generation Y consumers globally are very likely to buy insurance from technology companies, compared to 14% of other consumers. The insurance ‘brand’ and delivery model also needs a reboot to appeal to this new generation of businesses. Insurance is complex and confusing and as result has a negative stigma attached. To overcome this, the industry needs to start delivering in a modern, non-corporate fashion, while educating and communicating with the audience in an appropriate way. That means, keeping it simple and cutting out the jargon.
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How is technology influencing Digital Risk’s service offering, and how will this be developed in the future?
Technology has been integral to our offering from day one. In fact, we often describe ourselves as a hybrid technology and insurance business, as it is such as big part of what we offer. When developing our business model, we quickly decided that we wanted to build our own technology from scratch. This enabled us to avoid being held back by legacy systems, allowing us to innovate from the word go, while also preparing for the future. Our end-to-end system means we are in control of everything, from setting the prices, to creating all the documentation, so the customer has a seamless experience. Having our own proprietary tech means we can also easily integrate with third party systems, enabling our customers to buy their insurance at the point of risk generation, e.g. cyber insurance with anti-virus software or an online backup solution. There is also huge potential for the collection and use of data in the future, to better understand the behaviours and risk profiles of our customers, and ultimately provide an even better service. We’re constantly updating our technology to move with the times and ensure we are continuously delivering the ultimate user experience. For example, we have just launched our new Quote & Bind (Q&B) process, which draws on lessons from customer behaviour and feedback, putting a greater focus on educating the customer and delivering a tailored user journey.
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What’s unique about the culture at Digital Risks?
We aren’t a traditional insurance company, that’s for sure. Because we’re a digital business, serving digital businesses, we are fully immersed in the world of tech. We believe that we can only deliver a winning service when our people are authentically involved in what we do. That’s why we’ve built a team that is passionate about the latest tech trends and what our innovative customers are doing - blockchain, AI, you name it. We’re on the same wavelength as our customers, which means we understand what they need in terms of cover and services. Happy people, happy customers.
Q A
Where do you see Digital Risks this time next year?
With the help of our recent funding raise, we are firmly focused on growth, through scaling our marketing, building our team and developing new online insurance products. We also have plans to expand internationally, starting with initial moves into Europe in the next two years.
Q A
What advice would you give to anyone else looking to disrupt an industry?
Disrupting an industry as old and complex as insurance was never going to be straightforward. With lots of different players involved, from underwriters to brokers, insurers to reinsurers - relationships are everything. The fact that it’s such a close-knit, interconnected community is one of the key reasons why disruption has taken so long. We, therefore, had to strike a balance between challenging the old ways of doing things and respecting the years’ old networks and processes that are so ingrained in the industry. It helped enormously that my co-founder, Ben, has a background in the insurance industry so we knew how to frame our pitch to the big insurers to maximise our chances of success. We also focused on getting in front of senior people as much as possible to try to initiate change from the top down. Another vital piece of advice is to do as much research as possible to back-up your ideas and show that you understand your customer. We had to demonstrate that the way customers want to do business has changed and make the case for a new way of doing things. We aimed to make working with Digital Risks as easy as possible from the word ‘go’, by being super prepared with our strategy and technology, and always looking for ways to collaborate with existing players, rather than working against them.
CAMERON SHEARER is the CEO and Co-Founder of Digital Risks.
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FEATURES
Technology is driving the customer journey James MacBeth, Operations Director at Auto Windscreens, discusses self-service and how technology is changing the expectations of our customers. echnology is ever-accelerating, bringing with it rapid change for service businesses regardless of the industry within which they operate. Auto Windscreens, a UK automotive glass repair company, is no exception and has focused on introducing new solutions to aid the customer journey.
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“Technology is incredibly powerful, impacting every part of our lives, including our expectations of service providers,” says James MacBeth, Auto Windscreens’ Operations Director. “Mobile phone capabilities in particular have paved the way for our desire to receive quick resolutions to any problem, to be kept updated on progress and to have convenience.”
We’re utilising technology to add value to our business
Customers now expect ease of access to all services and for engagement routes to be provided in a simple way that suits them. Increasingly, self-service is becoming the preferred option according to customer engagement expert, Martin Hill-Wilson, of Brainfood. People between the ages of 16 to 30 now use social media or text messaging as their prime contact methods, whereas 30 to 44 year olds opt for web chat or email. “Alongside a new online booking service, we have introduced web chat functionality and an Intelligent Voice Response system,” comments James. “We are gradually removing the need for contact with our agents, beneficially allowing them to handle more complex cases where in-person conversations are required and wanted. We’ve seen a big shift in customers wanting to communicate with us through non-verbal means.” While customers require speed during initial interactions, James maintains technology in vehicles is also changing drivers’ attitudes to job scheduling. “Yes, they want a quick service but this is predominantly around the repair booking process, rather than when the work is arranged to take place,” he comments. “People want their vehicle fixed but don’t want to feel their car is being rushed and prefer to wait longer times if needed, opting for standards over timeframes.” There is more at stake when it comes to a glass repair or replacement; it’s no longer a case of simply refitting a windscreen, possibly with rain or/and heat sensors. Cars now come with a multitude of Advanced Driver Assistance Systems (ADAS) connected to a vehicle’s screen. Auto Windscreens has given its customers reassurance of an excellent service through the development of a unique manufacturer-approved ADAS recalibration solution, whereby every vehicle featuring the technology is recalibrated at a manufacturer-approved dealership or bodyshop. James remarks: “Customers believe they should be protected, as do we, and what we’ve developed is a recalibration process that delivers this. We are future proofed through this from emerging vehicle technologies, allowing us to focus more on advancing our own customer-centric technology-led innovations.” Last year Auto Windscreens adopted CitNOW technology to enhance transparency for customers. It allows technicians to video a customer’s vehicle prior to and after any repair work. “All involved have peace of mind, not only drivers who are entrusting us with their cars but our partners too,” comments James. “There is no ambiguity, just complete honesty, which is vital in today’s world.”
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Auto Windscreens is also the first windscreen repairer in the UK to have introduced a ‘technician tracker’. Available to all customers through a text message link, it’s been implemented to keep people informed on their scheduled appointments, from booking to completion, negating any need for verbal reassurances. The key element to the platform, is that customers can track the technician’s journey for their booking once they are ‘en route’, ensuring they are kept informed. “Both TechTracker and CitNOW are examples of how we’re utilising technology to add value to our business,” says James. “We’re using it to our and the customer’s advantage. There are only positives to be had within the customer journey.” JAMES MACBETH is the Operations Director at Auto Windscreens.
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FEATURES
Advanced analytics:
what do data scientists do all day? Alan O’Loughlin, Statistical Modelling Lead Europe, Insurance, at Lexis Nexis Risk Solutions, discusses the role of the data scientist and how they can solve all of our problems. hanks to some Box-Office smashing films, Artificial Intelligence (AI) is often seen as a catalyst for global disaster. Media hype also plays a part reinforcing the apocalyptic images, from the likes of Terminator, Ex-Machina, 2001: A Space Odyssey, one of the poorer Marvel movies… if it only lasted a weekend it was hardly an “Age of Ultron?”, and of course The Matrix. However, actuaries - arguably the original Data Scientists - having been working with the advanced statistical algorithms that “artificial intelligence” is based on for decades, without their computers ever attempting to destroy or rule humankind. Sorry, Hollywood.
This requires human involvement: the highly trained Data Scientist.
Whilst actuarial science may have been one of the first applications of learning algorithms, it has changed almost beyond recognition since. Across insurance, advanced analytics is changing in profound ways. Think, for example, of how test cycles are speeding up and the continuous deployment of models based on improving data. AI is going to become a key area of competition around speed of deployment, efficiency, improved customer journey and targeted pricing and customisation.
The next step is working out how to mine that data to deliver the best value. What data do you need to accurately inform claims or underwriting? How do you clean and pipeline the data into the right structure and database? Based on our collective years of experience in data modelling, my data analytics team at LexisNexis Risk Solutions would advocate applying the following principles:
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The role of the Data Scientist
You may wonder why we even need Data Scientists if machine learning, can solve all our problems. The truth is artificial intelligence alone is not the answer for insurance. The algorithms may be able to learn about our shopping habits, use traffic data to suggest alternative map routes, or deliver relevant advertisements when we are shopping online. However, it cannot cleanse insurance data or use its business acumen, while keeping in mind regulatory requirements as it models to the loss curve.
The most important element of data science and analytics is preparation. 80% of a data scientist’s time is spent in data cleansing, normalising and preparing the data, looking at code that doesn’t work as it should across about four different programing and modelling languages and subsequently questioning their career choice. Filtering and modifying make it easier to explore, understand and model. The building of Predictive models forms only about 20% of the job.
Principles of successful Analytics Projects
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Start small, but not trivial. The first proof on concept project should be relatively small, with a timescale of less than six to eight weeks, but tackling an issue that will encourage buy-in from stakeholders as well as end-users. They must be able to see the potential benefits. Diving straight in and taking on the firm’s biggest issue is too great a risk and investment. 2. Get the requirements right. It is essential to take enough time to fully appreciate the project requirements. The analyst needs wide engagement to understand the business problem and how best to tackle it. 3. Understand the limitations. It is not necessarily helpful to assume that data science and machine learning is going to solve every problem. Remember, 80% of the job is cleansing and normalising the data and while machine learning can help with some of this, getting it right will require human intervention. 4. Focus on processes. It can be expensive to implement robust procedures for coding and development standards, managing access keys, testing routines, Q&A documentation and review, but getting it wrong can be far costlier. 5. Maintain perspective. It is common to come up against dead ends, but any possible error or failure provides invaluable opportunities for learning. Intelligence gained in these situations should be shared across the team, helping to improve widespread productivity. FAIL FAST if you can. With human involvement playing such a fundamental role in data and analytics for insurance, ‘Applied or Machine Augmented Intelligence’ is a better description than full AI. Augmented intelligence describes the application of automation within the insurance workflow, alongside the essential human intelligence and business acumen, rather than a fully automated process. LexisNexis Risk Solutions has been undertaking data science for more than 40 years globally. While today AI is increasingly helping with data structuring, cleansing and preparing, some of the biggest successes are with applications of simple machine learning, alongside a team of expert data scientists. ALAN O’LOUGHLIN is the Statistical Modelling Lead Europe, Insurance, at Lexis Nexis Risk Solutions.
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What a night to remember!
On Wednesday 10th April 2019, the UK Customer Service Excellence Awards got under way. Open to the insurance and broker markets, the awards is purely focused on customer service and celebrating the successes, innovations and positive business changes the industry is making for its customers. Poppy Green, Editor of Modern Insurance Magazine, picks out her highlights of the night and showcases those all important winners.
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ack for a second year, and back with a bang! Held at the unique and very glamorous CafĂŠ de Paris, London, the event was attended by 240 cross-industry individuals, teams and businesses, all hoping to take home a trophy, or two! With a phenomenal amount of nominations this year, the industry really does need to take a bow for the excellent strides it is taking to improve and better its products, services and processes for the customer. This intimate event is all about celebrating the industry and recognising businesses, teams and individuals for their hard work and dedication to their customers. Our host for the evening, Sally Phillips, produced an incredibly witty sketch dedicated to the industry before handing out our awards to our 12 winners. We would like to thank our five incredible sponsors, Carpenters Group, GT Motive, Plantec Assist, Doctors Chambers and Thorneycroft Solicitors, for their involvement this year, and we hope they agree that this year was even bigger and better. We also had our fantastic panel of judges, who had the hard but also rewarding job of picking our winners: Chaired by Donna Scully, Director, Carpenters Group; Gerry Brown, CEO, The Customer Lifeguard; Anthony Wright, Assistant Director, Head of Communications, Association of British Insurers (ABI); Ian Golding, Global Customer Expert, Customer Experience Consultancy Ltd; Ian Sadler, Customer Experience Director, insight6; Leigh Hopwood, Managing Director, Redd Marketing and Chair of Chartered Institute of Marketing; Aimee Shortman, Managing Director, Brand Biology; Dr Matthew Connell, Director of Policy and Public Affairs, Chartered Insurance Institute (CII); Andrew Gibbons, Managing Director, Mason Owen Financial Services (BIBA); Vicky Smith, Co-Founder, lens; Emma Wardle, Director, Customer Service & Complaints, UK Operations, Capitalone; Ian Hughes, CEO, Consumer Intelligence Ltd; Rachel Stow, Managing Director, Thorneycroft Solicitors.
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“Why is it so good? I think there are a list of reasons. I love that it is about the customer because the customer is what makes the world go round. I love that it is cross-industry, so anyone can apply - there is no lawyer/insurer divide – we are bridging that gap. I also love how you have kept it bijou, atmospheric and great fun. It’s new, innovative and brave and it’s working.” Donna Scully, Carpenters Group C E L E B R AT I N G E X C E L L E N C E
Our first winner of the evening was Zurich Insurance plc for Best Customer Engagement due to their demonstration, through various platforms, of excellent customer engagement and a successful brand strategy. Our next winner was SmartSearch for Best Customer Retention and Loyalty, while EDAM Group won Best Use of Customer Feedback for their ability to utilise feedback in order to improve their service offering for their customers and subsequently improve customer retention. NFU Mutual were awarded Investment in Company Culture while Covéa picked up the award for Best Use of Customer Service Technology. eviid won the Best Customer Service Product for BUSINESS for demonstrating innovative service delivery and successfully identifying and addressing a market gap and a customer need. ARAG plc were the winners of Best Customer Service Product for CUSTOMER, for improving and simplifying customer interactions and ensuring their customer care goes above and beyond. CEGA Group were awarded Outstanding Customer Journey for showing exceptional customer care throughout the entire customer journey, from enquiry through to conclusion of business, and showing how their business has responded to changing customer needs and expectations. By Miles were presented with the Above and Beyond award and Sedgwick were the winners of the Fight Against Fraud. Sedgwick were the big winners of the night as they also won Best New Business Initiative. Our final award, Giving it Back to Charity, went to Ninety Consulting, who were also defending champs!
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Garry King, Head of Sales and Development and Lucy Ashmore, of Plantec Assist said of the evening: “What I have enjoyed is what an amazing representation of customer service this is and how passionate everyone is about it.” “The key for me is bringing the industry together to deliver what we talk about continuously: customer service!” said Garry. Lucy continued and said “Insurance and customer service is such an integral part of everybody’s lives. Everyone thinks insurance is dull but we need to embrace it more because we need and want everyone to understand it and get the most from it.” Dr Bippon Vinayak, Executive Chairman at Doctors Chambers Group, said that they had had a brilliant time at the event. “The most enjoyable part has been meeting up with all of the great people in the industry in such a wonderful and unique location.” As the awards presentation came to a close, the drinks were flowing and everyone hit the dancefloor alongside our DJ and mirror men dancers! Overall it was a fantastic event with some very worthy winners! POPPY GREEN is Co-Editor at Charlton Grant.
Modern Insurance Magazine would like to congratulate all the winners, and thank the sponsors of the event. For information about how to get involved with next year’s awards, please visit www.customerserviceexcellenceawards.co.uk
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BEST CUSTOMER ENGAGEMENT WINNER - Zurich Insurance plc HIGHLY COMMENDED - Bollington Wilson & Marmalade
BEST CUSTOMER RETENTION A N D L OY A LT Y WINNER - SmartSearch HIGHLY COMMENDED - World Wide Internet Insurance Services & AX
BEST USE OF CUSTOMER FEEDBACK WINNER - EDAM Group HIGHLY COMMENDED - Bollington Wilson & Booking Protect
I N V E S T M E N T I N C O M P A N Y C U LT U R E WINNER - NFU Mutual HIGHLY COMMENDED - Domestic & General & EDAM Group
Best Use of Customer Service Technology went to Covéa Insurance
Above and Beyond went to By Miles
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BEST USE OF CUSTOMER SERVICE TECHNOLOGY WINNER - Covéa Insurance plc HIGHLY COMMENDED - eviid
BEST CUSTOMER SERVICE PRODUCT FOR BUSINESS WINNER - eviid HIGHLY COMMENDED - inCase
BEST CUSTOMER SERVICE PRODUCT FOR CUSTOMER WINNER - ARAG plc HIGHLY COMMENDED - Auger
O U T S TA N D I N G C U S TO M E R J O U R N E Y WINNER - CEGA Group HIGHLY COMMENDED - Auto Windscreens
Donna Scully, Chair of the Judges
Guests on the dance floor
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A B OV E A N D B E YO N D WINNER - By Miles HIGHLY COMMENDED - Lifepoint Healthcare
FIGHT AGAINST FRAUD WINNER - Sedgwick HIGHLY COMMENDED - LV General Insurance Group Ltd
B E S T N E W B U S I N E S S I N I T I AT I V E WINNER - Sedgwick HIGHLY COMMENDED - Auger
“We have had such a fantastic night. The fact that it is about the whole industry is so important. Everyone is here from brokers, insurers, claimants and personal injury – amazing! We are very proud to support and we have had a lovely evening.” Rachel Stow, Thorneycroft Solicitors
GIVING IT BACK TO CHARITY WINNER - Ninety Consulting HIGHLY COMMENDED - Freedom Group Services
SmartSearch took home Best Customer Retention & Loyalty
“I have loved giving out the awards tonight to our deserving winners. It is hugely important to have awards ceremonies like this because it represents a range of companies who are involved in all aspects of claims. Modern Insurance Magazine has been superb as we are able to promote GT Motive to the industry and it is great exposure for our business. And the team are also fabulous!” Richard Taylor, GT Motive
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eviid won Best Customer Service Product for Business
K I N D LY S P O N S O R S E D B Y
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FEATURES
Taking candy from a baby
- cyber criminals who target the young Marc Shickell, Financial Crime Manager at Covéa Insurance, discusses the rising trend of cybercrime against the young and how insurers can help. t was recently revealed that criminals had sent fake HMRC emails to hundreds of thousands of UK university students offering a tax refund. All they had to do was click on the link and enter their bank details, allowing the fraudster to empty their account. It’s not known how many fell victim to this scam, or how much money was lost, but the warnings will have arrived too late for some.
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It isn’t the first time young people have been targeted by criminals; the Insurance Fraud Enforcement Department (IFED) also recently reported that 17-24 year olds were the most likely to fall victim to being sold fake insurance by online ghost brokers. The extent to which criminals ruthlessly target young people isn’t really surprising when you think about it. Many will be short of money, perhaps taking control of their own finances for the first time. They have relatively limited life experience and are generally comfortable and familiar with sharing personal information online. It all adds up to a fraudster’s dream. The reality is cybercrime is growing at an alarming rate and inevitably young people are at greater risk. Online lives are hidden from sight from a young age, making it difficult for parents and others to monitor. This issue was investigated by Covéa Insurance who ran child focus groups with 11-14 year olds. These aimed to identify the level of exposure children had to online risks and whether they had the knowledge and skills to protect themselves. As you might expect, children in the focus group had access to several connected devices and their online knowledge and activity was considerable. They used a host of social media platforms, YouTube and Instagram being their favourites. They shopped, listened to music, played games and chatted to family and friends through WhatsApp, Snapchat and Instagram. They also displayed impressive understanding of the risks yet, despite this, they took a worryingly relaxed approach to online safety. Some admitted sharing passwords, using the same password across several accounts, and using public wi-fi networks when inputting passwords.
Issue 37
No-one wants to be alarmist, but if you spotted someone lurking near a school trying to offer children lifts, you’d take action. The unsettling truth is there are thousands of criminals in cyberspace looking for an easy target, the only difference is you can’t see them. According to Get Safe Online, there are 21 people every minute defrauded as a result of ‘oversharing’ on social media. Similarly, Action Fraud says hacking of social media and email accounts were the primary reasons for people reporting cybercrime to them. In the six months to July 2018, 12,372 incidents were reported with losses of £28million. The insurance industry is responding to the growing threat of cybercrime. Companies are increasingly offering cyber cover with commercial products and also some home insurance products. At Covéa Insurance we’re not alone in having witnessed a dramatic increase in attempted fraud arising from identity theft and ghost broking. Over the last couple of years, the number of car insurance policies we have removed from cover for suspected fraud has doubled. We’ve produced an advice leaflet providing guidance for anyone who may have been a victim of identity theft. Additionally, we now provide home insurance customers with an emergency 24 hour cyber support helpline. But the best defence is knowledge. Being informed about the risks is the best way to avoid falling victim to cybercrime, after all, the more information and awareness people have about phishing scams, the harder it becomes for the fraudster, and we’re all in favour of that! MARC SHICKELL is the Financial Crime Manager at Covéa Insurance.
Modern Insurance 63
FEATURES
The one stop service essential for driver safety Lisa Pugh, Business Development Director at National Windscreens, talks driver and vehicle safety as she explains why calibration is essential. hen a windscreen is replaced, it is essential that any windscreen mounted Advanced Driver Assistance Systems (ADAS) camera is then calibrated immediately. Many vehicle safety systems, such as autonomous emergency breaking (AEB) and lane departure warning (LDW), rely on an accurately calibrated camera in order to function correctly. Failure to calibrate the ADAS camera may mean the vehicle safety systems are not working as intended.
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Amongst insurers, we see more awareness of ADAS and the issue of calibration, but there is still a lack of detailed understanding of its implications. This is in relation to issues such as one-stop calibration and replacement, particularly the safety implications and inconvenience to drivers if these are not done at the same time and location. One stop at one location is the only way to minimise risk, avoiding a car being on the road without the safety systems working as intended, and the only way to deliver the fastest possible service. With over 75% of vehicle manufacturers requiring ADAS calibration in workshop conditions, it is clear that it is only possible to deliver a one-stop replacement and calibration service with a national network of purpose-designed workshops, backed by specialist technology at every location and professionally qualified ADAS calibration technicians. This fact drives the investment strategy at National Windscreens, where we have invested more than £3 million in ADAS calibration technology and training. Our priority is to make sure all parties realise the maximum benefit from ADAS technology, improving driver safety whilst reducing claims. This means making it easier for the policyholder at every stage. From the first point of contact, we make sure we identify exactly the right piece of glass for the individual vehicle and establish whether an ADAS camera is fitted. This has to be done in a simple way, in our case just by using the VRN, to avoid the need for many technical questions for the driver and the inconvenience of a wasted appointment due to selecting the wrong glass for a vehicle.
For insurers, one of the key challenges is appreciating the speed of its introduction, now that ADAS is being seen in mainstream vehicles and not just premium marques, and the necessity to be able to react effectively to this For insurers, one of the key challenges is appreciating the speed of its introduction, now that ADAS is being seen in mainstream vehicles and not just premium marques, and the necessity to be able to react effectively to this. We are working closely with fleets and insurers to educate at all levels. We are undertaking training courses with insurers’ claims handlers, those dealing with complaints, team leaders, supply chain managers and engineers. Major insurers have attended calibration demonstrations at our workshops around the country and we have sent ADAS technicians to insurers’ premises to provide training. National Windscreens is also working with training and accreditation providers to ensure the windscreen fitting industry and those working within it can keep pace with technological advancements. We developed the ADAS Code of Practice with Thatcham to help safeguard industry standards on ADAS calibration and continue to sit on influential steering committees at both Thatcham and SMMT (Society of Motor Manufacturers and Traders) as we look to guide even higher quality standards in the industry. Our role is already evolving into a technology leader in this sector. Our “innovating together” programme involves long term partnerships with world-leading brands such as DuPont, Hella, Pilkington and Saint Gobain, designed to deliver solutions and insight in the face of increasingly complex vehicle safety technology. LISA PUGH is the Business Development Director at National Windscreens.
Issue 37
Modern Insurance 65
10 MINUTES WITH
Steve Gargano Q A
What has been the key positive or negative impact of change in your area of the market?
The emergence of technologies like end-to-end digital business solutions have been the key positive impacts of change to our part of the market. Many legacy forms of written communication, such as the dreaded claim form, are long gone. The introduction of on-site apps, client and customer portals, digital scoping tools, AI and real-time video technology has enabled us to reach the best decision on all claims, while retaining the irreplaceable technical input of our qualified adjusters.
Q A
Has the industry changed since you started working in it?
The industry has changed dramatically during my career. For example, indemnity spend was key in my early days as an adjuster, but this has changed with the introduction of TCF (FCA’s Treating Customers Fairly Initiative). Today, an adjuster is expected to improve the customer’s claim journey as well as continue to control costs in accordance with the cover provided. Another important and positive change to the industry is the increased focus on diversity and inclusion. This is especially important to our values here at Sedgwick and it has been very encouraging to see that such principles are now being increasingly widely accepted across the industry.
Q A
Who inspires you and why?
My professional role model would be Jenson Button, whose determination to follow his dream began at a very young age and continued throughout his racing career. Despite his success, he’s managed to remain humble and focused, traits which I have tried to emulate throughout my career. My personal role model would be my father, who taught me patience and the importance of listening – two very important skills for any adjuster.
The emergence of technologies like end-to-end digital business solutions have been the key positive impacts of change to our part of the market 66 Modern Insurance
“Do the right thing by the client.”
Q A
Who would you consider your mentor? What was the most valuable piece of advice they gave you?
Neil Baldwin, head of UK retail CRM at Sedgwick, gave me the most valuable professional advice I’ve received: “Do the right thing by the client.” It might sound simple but it is so important for businesses across all sectors, and remains a core ethos at Sedgwick.
Q A
If you were not in your current position, what would you be doing?
I’ve always been a people person and take great satisfaction knowing that I’ve made a positive difference to people’s lives. So if it weren’t for the opportunity that I’ve had at Sedgwick, I’d probably be involved in something like the World Wide Catastrophe Response’s work.
STEVE GARGANO is the Business Development Director at Sedgwick.
Issue 37
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