Summer 2011 - CILA/The Chartered Institute of Loss Adjusters

THE CHARTERED INSTITUTE OF LOSS ADJUSTERS – ‘THE CLAIMS INSTITUTE’ SUMMER 2011
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The programme for the forthcoming CILA Technical
Conference at the Holiday Inn, Coventry on 14th & 15th
September is now available to download from the website
at:
http://www.cila.co.uk/files/ConferenceProgramme2011.pdf
This will be fifth CILA annual conference, and promises
to be an even bigger event that last year's, when record
numbers attended. Highlights this year will include an
interactive major loss seminar, designed to engage adjusters
of all levels, plus sessions on 'Negotiation: Know
and use the Powers you Possess' and 'Cloud Computing -
The Changing Nature of Risk in the 21st Century'.
There will also be a number of sessions focussing on
Business Interruption, Property, Liability and Anti-Fraud
topics, including an update on the BI Wording Review,
sessions on Contribution and Ogden 6 tables, and a discussion
of the proposed Insurance Fraud Register.
Delegates are advised to book as soon as possible if they
wish to attend both days and require a room at the hotel,
in order to ensure getting a room.
This is an every increasingly popular event and is open
to Institute members, their guests and anyone else who
recognises the benefit of attending this top end quality
event.
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FORTHCOMING EVENTS
14TH SEPTEMBER
CILA ANNUAL GENERAL MEETING
Holiday Inn, Coventry
20TH SEPTEMBER
MANCHESTER EXAMINATION SEMINAR
21ST SEPTEMBER
BIRMINGHAM EXAMINATION SEMINAR
14TH OCTOBER
CILA ANNUAL LUNCH
Intercontinental Hotel London W1
CONTENTS
2
Anti-Fraud SIG
Event: Question
Time with the
Data Commissioner
3 - 4
Subsidence
Surge
Prediction
2011
5
PKL Group
6
Subsidence
Book
Launch
7
Edwin Coe
8-10
Technical
Conference
2011
11 -12
Interview:
Russell
Crewe
13
Obituary:
Victor
William
Morgan
1

Anti-Fraud SIG and Synergy Committee Event:
Question Time with the Data Commissioner
A full programme of SIG events in June included a
presentation by Alastair Barter, Senior Policy Officer,
Business and Industry, Information Commissioner‟s
Office on the Data Protection Act and it‟s implications
for loss adjusters.
Alastair started by outlining the ICO‟s role as
regulator, provider of guidance, and adjudicator on
complaints. He drew attention to the fact that the
protection of personal information was listed as a
social concern by 94% of the public, second only to
the prevention of crime.
Next he described the subject access request,
whereby an individual can make a written request to
find out about any of their personal data that is being
held by an organisation. He explained that the data
controller has a statutory duty to respond to the
request, although he has 40 days to do so and a fee of
£10 may be charged.
The issue of who is held to be the data controller is an
important one and Alastair went on to define the
terms „data controller‟ and „data processor‟. He
explained that when deciding who is a data
controller, the ICO places greatest weight on purpose
– identifying whose decision to achieve a “business”
purpose has led to personal data being processed.
However, the question of who takes ultimate
responsibility for ensuring that personal information is
processed in accordance with the law is often unclear.
Finally, the Commissioner looked at the impact of the
DPA on fraud investigation. He stated that the act is
not a barrier where sharing is justified, necessary and
proportionate, and the ICO recognises that
information sharing can help to achieve a legitimate
objective. The law should be seen as a framework for
sharing in a secure, lawful and reasonable way.
He ended with a list of recommendations for getting it
right. Full details can be found in the presentation
which is available on the website at:
http://www.cila.co.uk/publication/presentations/
data-protection-update-ico
2

Morecs Figure
SUBSIDENCE SURGE PREDICTION 2011
Since the very dry March and April of 2011 there have
been numerous reports from various suppliers trying
to predict whether there will be a surge in subsidence
claims. In some parts of the UK between 30 % and 5 %
of the normal rainfall for the months of March and
April has been recorded.
If we look at the ABI figures over the last few years
we can see the fluctuation in claim numbers.
GROSS
INCURRED
CLAIMS
NUMBER OF
CLAIMS
NOTIFIED
YEAR
£m
2002 213 36,500
2003 408 55,400
2004 199 37,200
2005 225 37,100
2006 301 48,100
2007 162 31,900
2008 137 27,700
2009 175 29,700
2010 172 32,400
2006 was predicted to be one of the largest
subsidence events, and but for the rain in August of
that year, which was one of the wettest for nearly 100
years, it would have been the case.
In 2007 we all remember the widespread flooding in
June and July which reduced the number of
subsidence claims.
There are three key things which are looked at in all
predictions reports: the anomalies in rainfall,
anomalies in temperature and the MORECS data, the
Met Office Rainfall and Evaporation Calculation
System. This is a real-time assessment of rainfall,
evaporation and soil moisture. Analysis covers
different soil, crops and topography and amongst
other things can be used to plan and understand
drainage, subsidence and drought issues.
Much emphasis seems to be placed on the MORECS
data and it is a really good indicator of what happens
in relation to subsidence claims. Looking back at
whether a surge occurs appears to relate to the
temperature and the amount of rain in August/
September. However, since 1996 there has been only
one summer in which July and August were both dry
and hot, and this was 2003.
A sustained burst of high temperatures and low
rainfall in August/September will still create a
significant uplift in subsidence.
350
300
250
200
150
100
50
0
MORECS TABLE Square 161
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52
2011 Week No.
However, the Met Office outlook for early August is
that high pressure should retreat from the southwest
of the country with low pressure expected to lie in
the vicinity of the North Sea. This should mean that
unsettled conditions are increasingly likely to develop
in the east, perhaps extending westwards in time.
Rainfall amounts are likely to be around or slightly
above average, with sunshine fairly limited, and this
in turn will lead to generally below average
temperatures. Therefore if this is accurate we may
not see the upturn.
Results of early movements on crack and level
monitoring tend to heighten expectancy. The use of
remote monitoring can be an early warning of matters
changing as the results are received immediately.
The threat of a subsidence surge appears to have
significantly reduced. However if a surge or upturn
occurs, is the industry ready?
Loss Adjusters have a proven track record in times of
surges but there can always be debate as to whether
the surge plans produced by adjusters will be
effective as, for instance, many utilise the same
suppliers and outsource resources. There has also
been a decline in the number of specialists,which is a
reflection on the fact that during the last three years
claims have averaged around 30,000. This represents
a 27% reduction on the previous 6 year average (2002
to 2007) and is a 44% reduction on the 2003 surge
when claims peaked at 54,100.
From these figures, it is clear that a significant surge
event in the future could test the industry like never
before, hence Loss Adjuster attention to surge plans.
The management of customer expectations is key if
any event or significant uplift occurs.
Since the last surge there has been a move towards
more remote working and the use of paperless files
2002
2003
2005
2006
2009
2010
2011
3

SUBSIDENCE SURGE PREDICTION 2011
which allows work to be transferred around the
country in a much quicker and easier fashion. This
may be seen as an advantage. If any upturn occurs on
a regional basis then the industry will have a better
opportunity to cope.
The other area which may assist is better triaging of
claims utilising databases of existing information on
soil types, utilisation of tools such as aerial
photographs and street view, to make a more
informed decision on when and how to proceed.
Arguably, to be successful it is important that there is
a high quality first inspection with the correct initial
diagnosis.
Site investigation where required could still be an
area with a bottleneck together with the need to
carry out effective vegetation management in a
timely manner.
The key will be good and effective communication
and abide by the spirit of the Subsidence Forum
Customer charter. That is to treat each customer as
an individual, and in all aspects fairly, with respect
and integrity. It is important that the following is
provided:
Guidance on payment of the policy excess, to
whom it is payable and when.
Explanation of the various stages of the process
such as site investigations, monitoring and mitigation.
Provision of a likely timescale. (Updated if
changes occur).
Provision of a contact name and number.
Competent professionals to diagnose and
recommend the best technical solution for the home,
and outline advice on damage not covered by the
insurance policy.
Help with questions and concerns.
Information about the progress of the claim and
every effort made to keep to mutually agreed
timescales.
Advice of all reasonable options for the repair and
settlement of the claim.
Compliance with regulations and legislation.
John Parvin
4

PKL Group - New BI SIG Sponsors
PKL Group is the UK‟s leading supplier of temporary
kitchens and catering equipment for hire.
We have over 900 Portable Kitchen units and
9,000 items of catering equipment available for
hire at short-term notice.
We specialise in business continuation services
and our temporary kitchens can be used by companies
who have planned refurbishments to catering
and restaurant facilities, or those that
have suffered a sudden loss of catering facilities
due to factors such as fire or flood.
Our wide range of temporary kitchens are available
in a number of different sizes and can be
used to provide meals from just a few, to a few
hundred thousand at one time. We can supply
temporary dining and WC facilities that can be
linked to temporary kitchens to create larger
style open plan temporary restaurant / café facilities.
Due to the size of our hire fleet, our own inhouse
engineers and owned and operated transport
fleet, we are able to provide temporary catering
facilities at short notice, and can usually
deliver emergency facilities within hours of receiving
an order, meaning that businesses are
able to continue their foodservice provision with
a minimum of interruption.
PKL also operates a 24-hour emergency response
line, meaning that we are on hand to help in
emergency situations, no matter what time of
day.
PKL Group (UK) ltd, Stella Way, Bishops Cleeve,
Cheltenham, Glos GL52 7DQ
P: 0845 840 42 42 F: 01242 677 819
As well as supplying temporary kitchens and catering
equipment for hire, PKL offer a free contingency
planning service, to ensure that clients
or consultants are best placed to receive, or organise
the supply of temporary catering facilities
in an emergency.
Contingency planning is vital for any catering
operation and a contingency plan helps to minimise
the adverse effects of sudden closure or
disruption, so that in the event of an emergency,
appropriate actions can be implemented
quickly and efficiently to restore foodservice
provision as soon as possible.
PKL‟s Contingency Planning Guide builds on the
company‟s 20+ years experience of delivering
emergency kitchens and catering equipment at
short notice. It provides a contingency planning
checklist, outlining key considerations and highlights
factors that are often unanticipated. For
example, if you need an emergency kitchen, will
it be necessary to close roads or lift it over
other buildings? Or do you know what items of
equipment you would need to maintain service
to customers? The guide also provides information
regarding the types of temporary catering
facilities that PKL can supply at short notice.
http://www.pkl.co.uk
postbox@pkl.co.uk
5

SUBSIDENCE BOOK LAUNCH
The RICS are inviting CILA members to the
launch of CILA Subsidence SIG Chairman John
Parvin‟s book „Subsidence in relation to Insurance
Claims‟.
The event is being held on 28th September, details
as follows:
Venue: Council Chamber, RICS HQ, Parliament
Square, London, SW1P 3AD
Speakers: Introduction by Richard Ayton-
Robinson (Chair of the RICS Insurance Forum)
John Parvin, Subsidence guidance note author
(Zurich Insurance / CILA)
Programme
17:30 Registration and light refreshments
18:00 Seminar & Questions
19:00 Close and handout of Guidance Note
publication
If you wish to attend please contact Sophie Mason
at the RICS:
sophiemason@rics.org
Please confirm your place by Friday 16th September
2011.
Graeme Phipps, Innovative monitoring (Smithers
Purslow / Moniteye )
Cost of Entry: Free
Exercise Watermark
Exercise Watermark tested the country‟s
preparedness to deal with severe wide-area
flooding along with a number of other key
recommendations from the Pitt Review carried
out after the 2007 floods.
It has now been agreed that the emergency flood
scenario will be re-run, in conjunction with the
Cabinet Office, specifically for the insurance
industry. Members of the ABI Property
Committee Working Group on Surge, including
the CILA and the BDMA will be involved in this
exercise.
It will use the same scenarios and the original
briefing material provided to the government
emergency response committee, allowing the
insurance sector to test its role in incidents of
this scale.
6

Edwin Coe
As the primary sponsor of the Claims Consultancy
Special Interest Group, I‟m delighted to
have this opportunity to introduce Edwin Coe‟s
Insurance Litigation services.
We have been prominent in the field of insurance
litigation for over thirty years, specialising
in representing claimants in the pursuit of insured
and uninsured losses. We have acted for
commercial clients on major claims all over the
country and have been involved in some of the
leading cases on broker's negligence, including
JW Bollom Ltd v Byas Moseley & Co Ltd and Environcom
Ltd v Miles Smith Plc, and on coverage
issues such as material non-disclosure and inducement
- Synergy Healthcare Plc v CGU Insurance
Plc & Others and Meisels v Norwich Union.
We have particular expertise in the assessment
of damages and coverage claims resulting from
fires, floods and burglaries; claims where stock
and hardware have been lost; claims for business
interruption; claims against intermediaries;
third party claims for uninsured losses; and
claims involving allegations of breach of warranty
or policy conditions. We‟re always happy
to undertake, without charge, a preliminary review
of any liability or quantum issues in relation
to any claims with which SIG members may
be involved, and in appropriate cases we will
act on a „no win no fee‟ basis.
Edwin Coe is acknowledged as a leading insurance
litigation firm in Chambers and the Legal
500 directories. Our insurance team comprises
of four dedicated lawyers, each of whom has
considerable experience in dealing with all aspects
of insurance litigation. If we can be of any
assistance or you would like to find out more
about our services, please get in touch or visit
our website: www.edwincoe.com.
Michael Whitton, Partner
7

Technical Conference
8

Technical Conference
9

Technical Conference
10

PROFILE: RUSSELL CREWE
For our latest Adjuster Profile we speak to
Russell Crewe, Director of Loss Adjusting
Services at Merlin Claims Limited.
After studying civil engineering at university,
Russell Crewe began his working life with a firm
of stuctural engineers. His first contact with a
loss adjuster came during the subsidence surge
that began in 1989, when he was engaged
perparing the initial drawings and sketching
cracks. At the time he didn‟t even know what a
loss adjuster was, but it turned out to be quite
an eye-opener: “it was fantastic, because you
met this guy who had ultimate control of the
job”. As he came to meet other adjusters, he
became more and more impressed by the fact
they controlled jobs from start to finish, feeling
in comparison that he was just “a cog in the
machine”.
After some research into whether the profession
was worth entering, he answered an advert for a
position with GAB Robins dealing with
subsidence claims. Successful with his
application, 6 weeks later he found himself with
a £500 salary increase and an Escort Popular
Plus, working for Robins at their Stoke-on-Trent
office, and has never looked back since. “I think
the big plus for me was Robins gave me a
fantastic footing insofar as I‟d gone in there
primarily to deal with subsidence work, but
what happened was they allowed me to diversify
into general adjusting, and I really really
enjoyed getting into general”. In 1993 he
moved to the Birmingham office to work as a
commercial adjuster, where he was to work
alongside some of the people he most respected
in the profession, which he describes as “just
fantastic”.
After 3 years working as a commercial adjuster,
he took a job dealing with a mix of personal and
commerical lines with Ashworth Mairs Group, a
company with a “fearsome reputation” for hard
work and being service focussed, becoming their
youngest regional manager in 1998. What he
calls “the ultimate opportunity” came in 2004
when he was made a unit partner, working
alongside Helen Wareham, who was chief
operations officer. In 2005 the business was put
up for sale, and he was charged, along with
others, with finding a buyer. This was an
experience that was:
“the most diverse, time consuming , life
changing event ever. I was selling the business
between 7am and 7pm and doing my day job
between 7pm and whatever time I finished”.
It was an unbelievable process, but in
September the business was acquired by an
equity house in a management buyout that saw
Russell become Director of Operations. In 2007
he spent a year working on their contractor
network, bringing it inline with the
professionalism, transparency and integrity that
a loss adjuster requires, before moving back to
an operational role with what was now Merlin as
Director of Loss Adjusting Services.
When I ask Russell about what is important in
adjusting, and what is important to Merlin, his
message is clear: “it‟s expertise”. “The simple
fact of the matter is that loss adjusters have to
add value, it‟s as simple as that” he says, “If we
do not add value, we will not continue to grow
as a profession... it‟s basically making sure that
11

PROFILE: RUSSELL CREWE
commercial loss adjuster, you can have commercial
loss adjuster, if you want a major and
complex loss adjuster you can have one… so it‟s
not trying to be all things to all men, not saying
you can do everything. It‟s making sure you have
the right people, the right place, the right time,
the right job.”
He is also keen to stress the importance of engaging
the policyholder from day one, whether
it is advising of measures that can help mitigate
claims, such as lagging pipes and fitting water
stop devices, or managing expectations about
how long a claim should take: “It‟s about educating,
managing expectations, and sharing
what we learn. And we‟ll be a stronger industry
– i.e. Insurance – if we do that”.
Outside of adjusting Russell is a huge Stoke City
fan and season ticket holder: “I absolutely adore
Stoke City football club and we‟ve had a great
season [the club reached its first FA Cup final in
its 148 year history earlier this year]. He is also
a keen golfer, something he has taken up more
seriously again recently now his son has started
to play.
I finish by asking Russell what his predictions are
for the future if adjusting. His view is that adjusters
will require the ability to go into a
niche:
“it will go more and more niche, more specialised.
And I think the limits before adjusters are
engaged will be higher, which will mean you‟ll
need a higher skill set. So that‟s my prediction.”
Rob Didcock
CILA LAGS GOLF DAY
This year‟s Technical Conference will once again
feature a golf day, to be held on Tuesday 13th
September, the day before the conference
begins.
The venue will be:
The Warwickshire Golf & Country Club
Leek Wooton
Warwick
Warwickshire
CV35 7QT
Tee Time: 18 Holes on the Earls Course, 1st tee
from 1.40pm
Sandwches & Fries will be provided at 12.30pm
The cost is £35.00 per golfer.
Those interested in attending should contact
Andrew King at andrew.king57@btinternet.com
12

OBITUARY - Victor William Morgan - 1917 - 2011
Born in Handsworth, Birmingham, he moved to
Sutton Coldfield and was educated at Wylde
Green School for Boys. Victor quickly demonstrated
a natural ability in all subjects, particularly
in his understanding of figures. Upon completion
of these studies, he joined, at the age of
15 years, the firm of Thomas Howell & Co. (then
called Assessors) in Birmingham as a junior assistant
to the sole partners, Walter Morris and Alfred
E. Martin, where he soon made his mark.
In 1951 he married Patricia Povey with whom he
subsequently enjoyed a long and fruitful life until
2010 when his dear Patricia died.
Following Army service in WW2 and the death of
the senior partner, Morris, Victor was invited by
Martin into the partnership. Thereon, in recognition
of his established abilities, he was formally
admitted as a Fellow of the CILA.
Victor spent the rest of his professional career
with the Howell Group of companies, as a partner
and as a senior director. In a period extending
over a period of three decades, he played a
significant role in the development of the Group
worldwide. He was recognized by all his colleagues
as an ideal partner and mentor; also
held in the highest esteem by the many people
he met in industry during his long stint as an adjuster.
In private, Victor was a venerated member of
Moor Hall Golf Club. Final retirement in 1987
gave him the opportunity to concentrate on his
game but, as a perfectionist, he became frustrated
in his latter years due to failing eyesight.
He leaves two daughters, Gillian and Jane and a
son, Nicholas.
Aubrey L. Beechey
Examinations Support
One of the most pleasant duties of the Executive Director
of the Institute is to advise successful candidates that
they have completed their exams successfully or, even
better, that they have been successful in their ACS. To
achieve these milestones takes considerable effort and
determination. We will not lower the bar but we are
determined to help our members succeed. With this in
mind, we have held several workshops covering the
Associate examinations and the ACS.
If you have missed the seminars, you will be delighted to
hear that two more are already planned for September
20th and 21 st in Manchester and Birmingham respectively.
The first of these two seminars will cover the examination
question setting process, the marking and moderation
processes and will review questions from previous papers.
The second seminar will be focussed on the ACS process.
What is more the Institute is planning an event for new
entrants to our profession, this will be held in April in
London. The Institute will release details shortly but you
can be assured that this will be interactive, fun and
rewarding. Keep a look out on the web site for further
information and of course via Twitter!
Malcolm Hyde
13