Modern Insurance Magazine Issue 60

This issue features... Insight: Every Cloud Has A Silver Lining, by Tim Yeates, Co-Founder, Carbon1 Ltd. Interview: Modelling Modern Risk with Dr Kirsten Mitchell-Wallace, Director of Portfolio Risk Management, Lloyd’s of London Interview: Searching for Answers with Iain Willis, Research Director, Gallagher Research Centre Editorial Board: Find out what our editorial board panel of experts have to say in this edition of Modern Insurance Magazine A Final Word with Steve White, Chief Executive, British Insurance Brokers' Association (BIBA) Is it time for Risk Managers to rethink their role in the Climate Crisis? by François Lanavère, Head of Strategic Partnerships, AXA Climate Associations Assemble: Modern Insurance’s panel of resident associations outline the burning issues in insurance Just a Thought with Eddie Longworth - Building Trust through Responsible AI in Claims: Championing a Voluntary Code of Conduct Making Efficiency Gains in Subsidence Claims, by Chris Carlton MRICS, New Business & Key Account Director, Geobear Chemistry for a Sustainable Future: Q&A with Grant Dempsey, Sales Manager - Distribution, BASF Automotive Refinish UK & Ireland Industry Collaboration: Working together to provide the best mobility solution, with James Roberts, Business Development Director, Insurance, Europcar Mobility Group UK Thinking Upside Down: Mind the Protection Gap, by Ashley Preece, Product Owner, Claim Technology In Conversation with… Neil Garrett, UK, South Africa & Nordics Sales Director, Solera | Audatex A New Climate for Claims, from I Love Claims / ARC 360 10 Mins with… Ola Jacob, Independent Insurance Advisor In Celebration: Modern Claims Awards 2023 Insur.Tech.Talk - Interviews with Stephen Weinstein, Former Chair of the Bermuda Business Development Agency; Bill Churney, President, Extreme Event Solutions, Verisk; Jacqui LeGrand, CEO, Maptycs; Heather H. Wilson, Chief Executive Officer, CLARA Analytics Insur.Tech.Talk Editorial Board - Experts from within the insurtech sector and beyond join us once more to share their unique insights!

This issue features...

Insight: Every Cloud Has A Silver Lining, by Tim Yeates, Co-Founder, Carbon1 Ltd.
Interview: Modelling Modern Risk with Dr Kirsten Mitchell-Wallace, Director of Portfolio Risk Management, Lloyd’s of London
Interview: Searching for Answers with Iain Willis, Research Director, Gallagher Research Centre
Editorial Board: Find out what our editorial board panel of experts have to say in this edition of Modern Insurance Magazine
A Final Word with Steve White, Chief Executive, British Insurance Brokers' Association (BIBA)
Is it time for Risk Managers to rethink their role in the Climate Crisis? by François Lanavère, Head of Strategic Partnerships, AXA Climate
Associations Assemble: Modern Insurance’s panel of resident associations outline the burning issues in insurance
Just a Thought with Eddie Longworth - Building Trust through Responsible AI in Claims: Championing a Voluntary Code of Conduct
Making Efficiency Gains in Subsidence Claims, by Chris Carlton MRICS, New Business & Key Account Director, Geobear
Chemistry for a Sustainable Future: Q&A with Grant Dempsey, Sales Manager - Distribution, BASF Automotive Refinish UK & Ireland
Industry Collaboration: Working together to provide the best mobility solution, with James Roberts, Business Development Director, Insurance, Europcar Mobility Group UK
Thinking Upside Down: Mind the Protection Gap, by Ashley Preece, Product Owner, Claim Technology
In Conversation with… Neil Garrett, UK, South Africa & Nordics Sales Director, Solera | Audatex
A New Climate for Claims, from I Love Claims / ARC 360
10 Mins with… Ola Jacob, Independent Insurance Advisor
In Celebration: Modern Claims Awards 2023
Insur.Tech.Talk - Interviews with Stephen Weinstein, Former Chair of the Bermuda Business Development Agency; Bill Churney, President, Extreme Event Solutions, Verisk; Jacqui LeGrand, CEO, Maptycs; Heather H. Wilson, Chief Executive Officer, CLARA Analytics
Insur.Tech.Talk Editorial Board - Experts from within the insurtech sector and beyond join us once more to share their unique insights!


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ISSUE<br />

<strong>60</strong><br />

ISSN 2515-3803<br />

Risky<br />

Business<br />

Searching for<br />

Answers<br />

with Iain Willis,<br />

Gallagher Research Centre<br />

Europcar:<br />

Industry Collaboration<br />

Modelling<br />

<strong>Modern</strong> Risk<br />

with Dr Kirsten Mitchell-Wallace,<br />

Lloyds of London<br />


TALK<br />

Insurtech Insights<br />

<strong>Modern</strong> Claims<br />

Awards 2023<br />

Winners Edition<br />

2023 Contributors Media Partners<br />

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Hello readers,<br />

Welcome to <strong>Issue</strong> <strong>60</strong> of <strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong>, where we’re<br />

looking into the nature of catastrophic events, modelling risk, and<br />

resilience.<br />

We live in a heightened risk landscape. There’s an ever-present threat in terms of<br />

global natural catastrophe risk - made even more turbulent by climate change -<br />

alongside that of anthropogenic (man-made) peril such as Terrorism and Cyber.<br />

How has the insurance industry responded and evolved to this myriad of systemic<br />

risks? Are we doing enough to shield our assets? What steps can we take to<br />

minimise the protection gap, and how can the industry do more to seize the<br />

opportunity for preparedness and protection in the months and years to come?<br />

Amelia Barlow, Editor<br />

To introduce our key theme, I’m delighted to have been joined by Tim Yeates, Co-<br />

Founder of Carbon1 Ltd, on p.8. I also spent time with Iain Willis, Research Director<br />

at Gallagher Research Centre (p.14) and Dr Kirsten Mitchell-Wallace, Director of<br />

Portfolio Risk Management at Lloyd’s of London (p.12) to challenge and celebrate<br />

industry action in this niche but vital corner of the sector.<br />

As always, there’s a vast selection of thought leadership contributions from our<br />

in-house editorial board of experts, starting with Carpenters Group on p.17. You’ll<br />

also find several articles from our group of esteemed industry associations from<br />

p.33 onwards!<br />

In addition, we’re celebrating the valued winners and shortlisted finalists of this<br />

year’s <strong>Modern</strong> Claims Awards in this issue, a full event write up of which you can<br />

read from p.59.<br />

Finally, let’s not forget the return of INSUR.TECH.TALK, in partnership with<br />

Insurtech Insights, bringing you the very latest updates from the world of insurtech<br />

through a series of highly astute interviews and thought leadership features.<br />

I’ve wanted to delve further into this aspect of the insurance industry for a really<br />

long time. For me, this edition has been a real labour of love to put together, and I<br />

sincerely hope you enjoy.<br />

Until next time,<br />

Rachael Pearson, Project Manager<br />

Amelia Day Barlow,<br />

Editor,<br />

<strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong>.<br />

amelia@charltongrant.co.uk<br />

ISSUE <strong>60</strong><br />

ISSN 2515-3803<br />

Editor<br />

Amelia Barlow<br />

Project Manager & Events Sales<br />

Rachael Pearson<br />

<strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong><br />

is published by Charlton Grant Ltd ©2023<br />

All material is copyrighted both written and illustrated. Reproduction in part or whole is strictly<br />

forbidden without the written permission of the publisher. All images and information is collated<br />

from extensive research and along with advertisements is published in good faith. Although the<br />

author and publisher have made every effort to ensure that the information in this publication<br />

was correct at press time, the author and publisher do not assume and hereby disclaim any<br />

liability to any party for any loss, damage, or disruption caused by errors or omissions, whether<br />

such errors or omissions result from negligence, accident, or any other cause.<br />


8<br />

12<br />

Contents<br />

48<br />

59<br />

14<br />

66<br />


8<br />

12<br />

14<br />

17<br />

33<br />

30<br />

32<br />

43<br />

45<br />

47<br />

48<br />

Insight<br />

Every Cloud has a Silver Lining, by<br />

Tim Yeates, Co-Founder, Carbon1<br />

Ltd<br />

Interview<br />

Modelling <strong>Modern</strong> Risk with<br />

Dr Kirsten Mitchell-Wallace, Lloyds<br />

of London<br />

Searching for Answers with Iain<br />

Willis, Gallagher Research Centre<br />

Editorial Board<br />

Find out what our editorial board<br />

panel of experts have to say in<br />

this edition of <strong>Modern</strong> <strong>Insurance</strong><br />

<strong>Magazine</strong>.<br />

Associations<br />

Assemble<br />

<strong>Modern</strong> <strong>Insurance</strong>’s panel of resident<br />

associations outline the burning<br />

issues in insurance.<br />

Features<br />

A Final Word with Steve White,<br />

British <strong>Insurance</strong> Brokers’<br />

Association (BIBA)<br />

Is it time for Risk Managers to<br />

rethink their role in the Climate<br />

Crisis? by François Lanavère, Head<br />

of Strategic Partnerships, AXA<br />

Climate<br />

Just a Thought with Eddie<br />

Longworth…<br />

Building Trust through Responsible<br />

AI in Claims: Championing a<br />

Voluntary Code of Conduct<br />

Making Efficiency Gains in<br />

Subsidence Claims, by Chris Carlton<br />

MRICS, New Business & Key Account<br />

Director, Geobear<br />

Chemistry for a Sustainable Future:<br />

Q&A with Grant Dempsey, Sales<br />

Manager - Distribution, BASF<br />

Automotive Refinish UK & Ireland<br />

Industry Collaboration: Working<br />

together to provide the best<br />

mobility solution, with James<br />

Roberts, Europcar<br />

51<br />

53<br />

55<br />

57<br />

59<br />

Thinking Upside Down: Mind the<br />

Protection Gap, by Ashley Preece,<br />

Product Owner, Claim Technology<br />

In Conversation with… Neil Garrett,<br />

UK, South Africa & Nordics Sales<br />

Director, Solera | Audatex<br />

I Love Claims / ARC 3<strong>60</strong>: A New<br />

Climate for Claims<br />

10 Mins with...<br />

10 minutes with...Ola Jacob,<br />

Independent <strong>Insurance</strong> Advisor<br />

In Celebration<br />

<strong>Modern</strong> Claims Awards 2023<br />

Insur.Tech.Talk<br />

Interviews<br />

66 Welcome<br />

Megan Kuczynski, President,<br />

Insurtech Insights<br />

67<br />

68<br />

CLARA Analytics<br />

Heather H. Wilson, CEO, CLARA<br />

Analytics<br />

Climate Risk and Resilience<br />

with Stephen Weinstein, Former<br />

Chair of the Bermuda Business<br />

Development Agency<br />

70 Maptycs<br />

Jacqui LeGrand, CEO, Maptycs<br />

71<br />

73<br />

Verisk<br />

Bill Churney, President, Extreme<br />

Event Solutions, Verisk<br />

Insur.Tech.Talk<br />

Editorial Board<br />

Experts from within the Insurtech<br />

sector and beyond join us once more<br />

to share their unique insights!<br />


Disclaimer: Our publications contain advertising material submitted by third parties. Each individual advertiser is solely responsible for the content of its advertising<br />

material. We accept no responsibility for the content of advertising material, including, without limitation, any error, omission or inaccuracy therein. We do not endorse,<br />

and are not responsible or liable for, any advertising or products in such advertising, nor for any any damage, loss or offence caused or alleged to be caused by, or in<br />

connection with, the use of or reliance on any such advertising or products in such advertising.<br />


Editorial Board<br />





CLAIMS<br />

19<br />

21<br />

Carol Hopwood, Head of<br />

Serious and Catastrophic Injury,<br />

Carpenters Group<br />



Chris McKie, Managing Director,<br />

Vizion Network Limited<br />



Caroline Elliott-Grey, product<br />

manager, LexisNexis Risk<br />

Solutions, <strong>Insurance</strong>, U.K. and<br />

Ireland<br />



FUTURE<br />

Simon Hunt, Commercial &<br />

Services Director, National<br />

Windscreens<br />



Tom Rumboll, Chief Executive<br />

Officer, Synetiq Solutions<br />

23<br />

25<br />


Clare Charity, Group Learning and<br />

Development Manager, EDAM<br />

Group<br />


RISK<br />

Lior Koskas, CEO, Diglog UK Ltd<br />



MODEL<br />

Jim Loughran, CEO, e2e Total Loss<br />

Vehicle Management<br />





Natalie Wong, Marketing &<br />

Portfolio Management Lead, BASF<br />

Automotive Refinish UK & Ireland<br />




Jim Gordon, Operations Director,<br />

Activate Accident Repair<br />

Editorial Board Contributors<br />




Color gradient background<br />

File: 20151645E<br />

Date: 7/10/2015<br />

AC/DC validation :<br />

Client validation :<br />

Insur.tech. talk and<br />

Editorial Board<br />

27<br />

29<br />

31<br />




Andrew Chandler, Sales Director,<br />

FMG<br />


TO RISK<br />

Will Prest, Project Manager,<br />

Paracode Agile <strong>Insurance</strong><br />

Software<br />



CLAIMS<br />

Mick Jennings, Managing<br />

Director, Nationwide Vehicle<br />

Recovery Assistance<br />



Dave Sargeant, Managing<br />

Director, Gemini Accident Repair<br />

Solutions<br />



Lisa Bartlett, President, UK &<br />

Ireland, Crawford & Co.<br />



Sarah Glenn, Commercial<br />

Director, RGI Solutions<br />

66<br />

67<br />

68<br />

69<br />

70<br />

71<br />

72<br />

Welcome - Bradley Collins, Chief<br />

Commercial Officer, Insurtech<br />

Insights<br />

AXA Retail - Tara Foley, CEO of AXA<br />

Retail<br />

Munich Re - Dr. Fabian Winter, Group<br />

Chief Data Officer at Munich Re<br />

EIS - Anthony Grosso, CMO of EIS<br />

35 MASS<br />

Zego - Sten Saar, CEO of Zego<br />

Transparency with E-Scooter<br />

Aon Regulations - Marguerite Soeteman-Reijnen,<br />

Chairman Sue Brown, Executive Chair, Board, Motor Accident Aon<br />

Holdings Solicitors Society (MASS)<br />

CHO<br />

Arma Catastrophic Karma - Ben Events, Smyth, Climate CEO, & Loss<br />

Arma Anthony Karma Hughes, Chair and CEO, Credit<br />

Revolut<br />

Hire Organisation<br />

- Balázs Gáti,<br />

(CHO)<br />

Global Head of<br />

<strong>Insurance</strong>, Revolut<br />

37 APIL<br />

An Overdue Reform to Bereavement<br />

BIMA Damages - Mathilda Strom, Co-Founder<br />

73 & Deputy Jonathan CEO, Scarsbrook, BIMA President,<br />

Association of Personal Injury Lawyers<br />

WTW (APIL) - Pardeep Bassi, Global<br />

Proposition Leader – Data Science,<br />

WTW FOIL<br />

Collaboration is Key<br />

Laurence Besemer, Chief Executive<br />

Insur.Tech.Talk<br />

Officer of FOIL (Forum of <strong>Insurance</strong><br />

Lawyers)<br />

Editorial Heather Sanderson, Board Sanderson Law,<br />

Vice-President of CDL (Canadian<br />

Experts Defence from Lawyers) within the Insurtech<br />

75 sector and beyond share their unique<br />

insights. In this issue, we look at<br />

39 BIBA<br />

balancing <strong>Insurance</strong> automation and the Weather with customer<br />

satisfaction, Graeme Trudgill, the concept Executive of ‘digital Director,<br />

transformation’,<br />

British <strong>Insurance</strong><br />

and<br />

Brokers’<br />

how new<br />

Associations<br />

(BIBA)<br />

signals<br />

point to technology as a solution to<br />

address MGAA economic concerns.<br />

Markets Unlocked through the Power<br />


Mike Keating, CEO, Managing General<br />

Agents’ Association (MGAA)<br />

41<br />

CII<br />

Industry Influences on Climate<br />

Dr Matthew Connell, Director, Policy<br />

and Public Affairs, Chartered <strong>Insurance</strong><br />

Institute (CII)<br />

BDMA<br />

Collaboration in the Climate Crisis<br />

Adrian Jolly, Head of Strategic<br />

Development, British Damage<br />

Management Association (BDMA)<br />



Catastrophes are extreme<br />

events. Almost by definition,<br />

they overturn every sense<br />

of normality in our human<br />

environment, exceeding the<br />

normal capacity of society’s<br />

risk management stratagems.<br />



These events openly challenge any<br />

tendency that society may have towards<br />

complacency. Our human disposition to<br />

believe that disasters can be ignored until<br />

they happen – or, indeed, that they only<br />

happen to others - has never been helpful<br />

in terms of protection and preparedness.<br />

On an increasingly regular basis, nature<br />

has the remarkable ability to remind us<br />

who’s boss on ‘our’ planet. Climate change<br />

is today’s ultimate reminder of this, with<br />

rising sea levels, extreme temperatures<br />

and unpredictable weather events<br />

causing chaos across all aspects of our<br />

contemporary society.<br />

Historically, populations and economies<br />

have been exposed to the full impact of<br />

many natural disasters: floods, droughts,<br />

hurricanes, pandemics, earthquakes,<br />

eruptions, forest fires, and so on. But even<br />

with sophisticated protection measures<br />

such as vaccinations, flood defences,<br />

building codes and forest management all<br />

at our disposal, natural catastrophes still<br />

lead to millions of deaths and possess the<br />

power to reverse decades of economic<br />

development.<br />

The list is long and tragic. In recent years,<br />

we’ve seen a global pandemic, earthquakes<br />

in Turkey/Syria, floods in Pakistan, drought<br />

in the Horn of Africa, wildfires in North<br />

America – to name but a few devastating<br />

natural losses. Many of these ‘once-ina-lifetime’<br />

disasters are happening at an<br />

alarming rate, destabilising our ability<br />

to review historic data to model the<br />

likelihood of future perils.<br />


The (re)insurance market has been<br />

forced to adapt quickly to much higher<br />

values of economic exposure. In some<br />

cases, spreading the risk has become<br />

almost impossible for even the largest<br />

(re)insurers. This in turn has led to many<br />

insurers withdrawing from developed and<br />

established markets in the US, such as<br />

those in California and Florida, alongside<br />

the avoidance of entering large swathes<br />

of emerging markets in countries such<br />

as Africa and Asia. These are sure-fire<br />

warning signs; insurance is in danger<br />

of reducing its future relevance in the<br />

financial services arena, and increasing its<br />

reliance on taxpayer-funded state support<br />

instead.<br />

Major catastrophe losses have always<br />

been a wake-up call for (re)insurers.<br />

Post-loss strides are generally made in<br />

the short term - ‘Cat Pools’ are set up,<br />

supplementary capital is raised, and<br />

insurance taxes are levied.<br />

These solutions seem to be increasing<br />

geographically, both in size and<br />

sophistication. However, even these<br />

positive changes can be too limited in<br />

scope. Whether these measures are<br />

compulsory or voluntary, national or<br />

multilateral, they tend to focus heavily on<br />

post-loss financing. This means that the<br />

funds available can easily fall behind the<br />

growing loss costs of the catastrophes<br />

themselves.<br />

THE<br />



<strong>Insurance</strong> cannot work sustainably in a<br />

market where losses are essentially out<br />

of control. Finding ways to control efforts<br />

and improve risk prevention is the only<br />

logical response.<br />

Many countries around the world do not<br />

even have a strategic risk plan in place.<br />

Their economies are weak and insurance<br />

penetration is low, demanding systemwide<br />

intervention with foundations in<br />

education, collaboration, communication,<br />

and well-informed long-term investment.<br />

Such investment has to demonstrate<br />

valuable returns, so we need to measure<br />

benefits not just in financial terms,<br />

but in broader environmental, social,<br />

and economic ways too. Incidentally,<br />

significant work has been ongoing for<br />

some years now, encouraging (re)insurers<br />

to use their own balance sheet assets for<br />

the purpose of such gains.<br />

We all share in our experience of the climate<br />

problem, albeit to varying degrees. As a<br />

consequence, we’re going to have to find<br />

ways to share in the solution, much as we<br />

did with vaccination development at the<br />

start of the COVID-19 pandemic. Yes, the<br />

well-publicised commitment to worldwide<br />

Net Zero forms part of the solution, but<br />

this needs to be implemented globally<br />

to be of real use – a challenge that must<br />

be addressed sooner rather than later<br />

if we are to make any significant strides<br />

towards this goal.<br />




Take charge at europcar.co.uk/business<br />

or call 0371 384 0140


THE<br />


ROLE OF<br />


<strong>Insurance</strong> has a vital role to play in<br />

many aspects of these risk solutions. As<br />

an industry, we belong to organisations<br />

such as the <strong>Insurance</strong> Development<br />

Forum (IDF) - a global partnership<br />

between the United Nations, World<br />

Bank and the insurance industry - which<br />

aims to push hard for establishing<br />

concrete change.<br />

Many of the tools that we require are<br />

data and knowledge-based, so it is<br />

fortunate that the technology sector has<br />

never been stronger. AI, data gathering,<br />

analysis and risk modelling can all be<br />

harnessed to tackle systemic perils,<br />

and our industry continues to possess<br />

a definitive advantage in this space. We<br />

are developing and utilising such risk<br />

management tools already, so more<br />

intensive cross-sector partnerships<br />

and collaboration across multiple<br />

disciplines would certainly make sense<br />

if we are ever going to effectively grasp<br />

solutions for positive transformation.<br />

Our industry also knows how to raise<br />

capital, price risk, and design prevention<br />

and protection solutions. We even know<br />

how to regulate these activities around<br />

the globe. However, we are going to<br />

have to make fundamental changes and<br />

unbundle our most valuable forwardlooking<br />

services from premiums written<br />

if we are ever going to sustain the<br />

healthy operations of our well-oiled<br />

machine.<br />

effectively against the perceived<br />

remote threats of the future. Insurers<br />

need to be at the heart of these<br />

tough discussions to create a greater<br />

consensus around the gravity of the<br />

catastrophe problems we face as a<br />

society, demanding more practical<br />

collaboration across all aspects of the<br />

solution.<br />

Too many lessons are easily forgotten<br />

over time. Much-needed houses<br />

continue to be built on flood plains,<br />

or reconstructed out of wood in<br />

hurricane zones. Buildings, towns,<br />

and even cities known to be exposed<br />

to seismic shocks are not earthquake<br />

resilient, even though we have the<br />

knowledge and means to make them<br />

so. Since insurance is a long-term<br />

system, surely we can find a way<br />

to help with the improvement of<br />

resilience - perhaps by ‘building back<br />

better’ and collaborating further with<br />

planning authorities?<br />

Perhaps my inclination to identify<br />

opportunity wherever there is risk<br />

could be interpreted as professional<br />

bias. Regardless, I am convinced<br />

that this is a time of huge prospect<br />

for our industry if only we can<br />

recognise our strengths, seize the<br />

day and act decisively. Changing fast,<br />

fundamentally and all together is our<br />

biggest hurdle.<br />



The overall catastrophe management<br />

challenge for policy and decision<br />

makers has always been considerable,<br />

with significant investment needed<br />

in the present in order to protect<br />

Tim Yeates,<br />

Co-Founder, Carbon1 Ltd.<br />



Modelling<br />

<strong>Modern</strong> Risk<br />

with Dr. Kirsten Mitchell Wallace<br />

<strong>Modern</strong> risk comes in many different forms. With this in mind, <strong>Modern</strong> <strong>Insurance</strong><br />

<strong>Magazine</strong> sat down with Dr. Kirsten Mitchell-Wallace, Director of Portfolio Risk<br />

Management at Lloyd’s of London, to discuss emerging challenges in the catastrophe<br />

risk market, the potential of new state-of-the-art underwriting technology, and the steps<br />

being taken to reassure the wider industry in light of rising claims costs.<br />

Hi, Kirsten – great to meet you! Thanks so<br />

much for your time today.<br />

Q<br />

You are responsible for leading the strategy<br />

and day-to-day activities of the Lloyd’s Portfolio<br />

Risk Management Directorate. I’d like to start by<br />

talking about your current priorities within this role.<br />

Where does your focus lie at present?<br />

AThanks Amelia. Great to meet you, too!<br />

The primary goal of the Portfolio Risk<br />

Management department at Lloyd’s is<br />

to create confidence to take risk. We have four<br />

teams focusing on Exposure Management and<br />

Aggregation, Outwards Reinsurance, Pricing<br />

and Portfolio Analytics, and Emerging Risks. The<br />

quantification of catastrophe risk is a very important<br />

part of that, but it’s certainly not all we do – our work<br />

covers many disciplines and parts of Lloyd’s.<br />

We have four key strategic priorities at the moment,<br />

which is primarily where our focus lies. Firstly, we’re<br />

reviewing the risk landscape – not just in natural<br />

catastrophe risk but also in non-natural catastrophe<br />

risk, like Cyber and Liability. We’re also looking at<br />

how we can apply technical advances in the field and<br />

disseminate best practice. We are developing our<br />

oversight, particularly around pricing, which is quite<br />

new for Lloyd’s. Finally, we’re looking at how we can<br />

improve our processes to make them smoother.<br />

QWe live in a time of unprecedented levels<br />

of risk from both natural and anthropogenic<br />

causes. What are the emerging market<br />

challenges facing the catastrophe risk industry at<br />

the moment?<br />

AWell, in terms of natural catastrophe (‘Nat<br />

Cat’) risk, we’re in a fairly good position in<br />

many ways because we have years of data,<br />

alongside established frameworks for understanding<br />

the risk and recording exposures. In terms of non-<br />

Nat Cat risk, particularly cyber, there’s definitely still<br />

more work to do in terms of how we quantify those<br />

risks. That’s certainly a big challenge at the moment.<br />

The completeness and appropriateness of our risk<br />

quantification methods is also a challenge. We must<br />

continually review our models to make sure they’re<br />

appropriate for current risks, accounting for changes<br />

in hazard, particularly with regards to regional<br />

perils and in response to climate change. Whether<br />

it’s monitoring the impacts of social inflation or<br />

issues around insurance to value, models should be<br />

complete for all of the different sources of risk that<br />

might be associated with a peril.<br />

QLloyd’s maintains mandatory Realistic<br />

Disaster Scenarios to stress test both<br />

individual syndicates and the market as a<br />

whole. How have tests evolved in recent years,<br />

and what are your findings within this results<br />

framework?<br />

AWe’re always evolving and reviewing our<br />

Realistic Disaster Scenario framework to<br />

make sure it continues to be appropriate for<br />

the risk landscape.<br />

However, we also know the risk landscape is<br />

changing rapidly. We’ve just completed a data<br />

collection exercise on geopolitical risk scenarios,<br />

for example, and we’ve recently updated our cyber<br />

risk scenarios to make sure we’re still measuring<br />

the right things – blackouts, data breaches,<br />

ransomware and cloud cascade scenarios.<br />

Three years ago, we also introduced six new liability<br />

scenarios around financial product mis-selling,<br />

financial market manipulation, pharmaceutical<br />

products, construction products, and chemicals in<br />

the food & energy sectors respectively.<br />

We need to make sure our scenarios remain<br />

appropriate for both Nat Cat and non-Nat Cat risk.<br />

QTell me about your most successful<br />

transformation effort. How has this come to<br />

fruition in recent years?<br />

AIn terms of oversight at Lloyds, the move<br />

from ‘minimum standards’ (of which<br />

we had hundreds) to oversight based<br />

on just 13 principles has been really important.<br />

This embraces the concept that the level of<br />

risk should be proportionate to your maturity<br />

and ability to manage that risk, and that’s been<br />

a really fundamental transformation. We’ve<br />

certainly moved away from a minimum standards<br />

approach, towards a method that is more outcomeorientated.<br />

It seems to be working really well.<br />

QWhat potential is being realised through<br />

new, state of the art underwriting<br />

technology?<br />

AWell, there are a number of algorithmic<br />

underwriting proposals in play at the<br />

moment, not to mention existing syndicates<br />

as well. There’s a lot of discussion about Big<br />

Data in particular, and the potential that could be<br />

unlocked. For example, businesses are now using<br />

satellite data to really understand the details of<br />

roof types on individual properties, which can<br />

massively impact the outcomes of claims potential.<br />

Telemetrics data isn’t something we’d use so much<br />

at Lloyd’s, but having seen the impact of that in the<br />



Kirsten Mitchell-Wallace<br />

is the Director of Portfolio Risk Management at Lloyd’s, the world’s<br />

leading insurance market. She is responsible for leading the strategy<br />

and day to day activities of Exposure Management & Aggregation,<br />

Outwards Reinsurance, Pricing & Portfolio Analytics and Emerging<br />

Risks teams. She has been at Lloyd’s for over 5 years and has over 20<br />

years of experience in the insurance industry. In her previous role as<br />

Regional Cat Manager for Europe, Middle East and Africa at SCOR, she<br />

was responsible for leading catastrophe risk teams based in Zurich and<br />

Paris. Before this she was Head of Cat Pricing and Methodology and<br />

responsible for coordinating the development of SCOR’s own view of<br />

risks, as well as managing the Zurich-based cat team. She also worked<br />

for Willis as a Senior Catastrophe Risk Analyst for almost five years and<br />

spent two years in model development for RMS and a couple of years as<br />

a risk management consultant.<br />

Kirsten has a PhD in Atmospheric Physics from Imperial College, London<br />

and a Masters in Meteorology from Reading University, as well as a<br />

degree in Chemistry from the University of Bristol. She also has an<br />

International Diploma in Risk Management from the Institute of Risk<br />

Management, a Level 5 qualification in Coaching and Mentoring from<br />

ILM, and is a Certified Catastrophe Risk Management Professional.<br />

motor insurance space, there are clearly so many<br />

potential avenues where we’re seeing information<br />

open up - particularly for insurance, pricing,<br />

accumulation and product development.<br />

QConversely, catastrophe modelling is a<br />

relatively young discipline in comparison<br />

to other risk management processes within<br />

insurance. How does this create limitations?<br />

ACatastrophe modelling came about in the<br />

early 1990s, so we’re looking at around 30<br />

years - quite a while in career terms! That<br />

being said, we face some of the same challenges we<br />

always have, one of which is the communication of<br />

uncertainty.<br />

Limited quantification of uncertainty in catastrophe<br />

models is definitely still a restriction. I think that<br />

continues to create a real test for us as an industry,<br />

particularly for anyone who’s involved in modelling<br />

or quantification of risk. You can’t just think about<br />

what the point estimate answer is, but also what the<br />

uncertainty around that is, and what your appetite<br />

for that uncertainty is. How conservative do you<br />

want to be? We’re asking people to think about that<br />

a lot more within the market at the moment.<br />

QWhat about Managing Agents? How can<br />

they improve their modelling and pricing of<br />

catastrophe exposures?<br />

AThe completeness and appropriateness of<br />

their view of risk in relation to the current<br />

risk environment is paramount. Managing<br />

Agents must be alive to all of the changes that<br />

are happening at the moment, and ensuring that<br />

those changes are adequately reflected within their<br />

distribution of losses.<br />

Traditionally, I think the focus of catastrophe<br />

modelling and exposure management has been<br />

more on the tail risk, making sure people are<br />

adequately capitalised for really big events. Now, it’s<br />

becoming equally important for people to put the<br />

same level of focus not just on the tail, but on the<br />

whole distribution. You’ve got to get the expected<br />

loss right if you want the pricing to be right and the<br />

technical pricing to be appropriately derived.<br />

QFinally, many insurers have declared an<br />

intention to reduce their natural catastrophe<br />

exposures due to volatility and the<br />

likelihood of rising claims costs. What more can<br />

be done to provide the sector with appropriate<br />

reassurance?<br />

AIt’s true that claims costs are rising, and<br />

in reality, we expect them to continue to<br />

rise because there continues to be more<br />

exposure. Much of that exposure is in locations<br />

which are inherently considered to be more<br />

hazardous; coastal areas or the wildland-urban<br />

interface, for example. That’s before we’ve even<br />

considered the impact of climate change.<br />

On top of this, climate change will have an impact<br />

– and that impact will vary depending on different<br />

perils in each specific region.<br />

A rigorous analysis of historical claims and the<br />

components of this data helps to ensure that<br />

current claims are being modelled appropriately<br />

and, on top of that, potential future changes within<br />

the environment can be worked into modelling<br />

frameworks. The data going into these models<br />

needs to be accurate, and other factors which could<br />

amplify claims should be considered within the<br />

modelling framework.<br />

It’s important that we focus on the frequency of<br />

catastrophe claims, not just the severity, keeping on<br />

top of the science and making sure that our models<br />

remain appropriate for the current conditions.<br />

Dr Kirsten Mitchell-Wallace,<br />

Director of Portfolio Risk Management,<br />

Lloyd’s of London<br />





with Iain Willis,<br />

Gallagher Research Centre<br />

Q<br />

The Gallagher Research Centre<br />

(GRC) launched in September<br />

2022 to support research and<br />

innovation across the full spectrum of<br />

reinsurance. Tell me more about the<br />

key tenets and objectives of the GRC.<br />

How has the evolving nature of risk<br />

demonstrated a need to adopt this wider<br />

remit in recent years?<br />

A<br />

Well, it’s fair to say that we live in an<br />

increasingly dynamic risk landscape.<br />

A number of systemic risks have hit<br />

us in the last few years; Brexit, COVID-19<br />

and the war in Ukraine have all really driven<br />

macroeconomic risk in particular. Climate<br />

risk is also an influence, and coupled with<br />

other evolving and emerging risks, I don’t<br />

think we’ve ever needed research more in<br />

order to really understand some of those<br />

issues.<br />

The question of it all being interconnected<br />

is key; these factors impact all areas of<br />

insurance in quite significant, disparate<br />

ways. The impact of globalisation also<br />

means that events have a much greater<br />

complexity than ever before in terms of<br />

how they impact different insurance lines.<br />

It’s only through research that you really<br />

start to further comprehend that, and<br />

this is an area that we’re keen to address.<br />

It’s clear that you need a lot of different<br />

experts in the room to solve a problem,<br />

and we’re keen to work with those experts<br />

in our search for answers.<br />

Q<br />

How are the findings of your<br />

research enhancing existing models<br />

and risk solutions?<br />

Over the last few decades,<br />

catastrophe models have been<br />

A effective, and super useful when it<br />

comes to understanding a pragmatic view<br />

of risk. If you can model a risk, you can<br />

understand it, you can price it effectively<br />

and close the protection gap, making<br />

insurance more affordable. But we’re facing<br />

significant challenges now, with secondary<br />

perils contributing to much of the damage<br />

and disruption that we’re seeing across the<br />

world.<br />

Take hurricanes, for example. Catastrophe<br />

risk models will generally focus on wind,<br />

perhaps without considering tropical<br />

cyclone-driven rainfall which can often<br />

result in pluvial or fluvial flooding. Models<br />

are generally built around capturing one<br />

single peril; they don’t always capture how<br />

a weather event can graduate and develop<br />

to affect other geographical areas. We<br />

don’t really have models that capture these<br />

transitions, and so we need research in<br />

order to look at the whole, holistic journey<br />

of a weather event. Secondary perils can<br />

often cause much of the insured loss, and<br />

yet they remain somewhat unmodelled.<br />

We tend to find the same issues exist<br />

with manmade perils. A lot of modern<br />

risks just aren’t covered in existing risk<br />



solutions, particularly in specialist insurance<br />

when it comes to understanding potential<br />

conflict. Undertaking research that helps<br />

us get to grips with the complicated<br />

dynamics of supply chain dependencies<br />

is critical. In recent years, we’ve seen<br />

instances of being blindsided by that level<br />

of interconnectedness, and investing in<br />

research is the real key to understanding<br />

how we can be best prepared for future<br />

systemic shocks.<br />

Q<br />

A<br />

How have you seen research trends<br />

change and evolve in recent years?<br />

What factors have triggered these<br />

changes?<br />

Research is increasingly moving to<br />

more interdisciplinary approaches.<br />

To answer the big questions, you<br />

need a range of different specialisms in the<br />

room. To fully understand the risk posed<br />

by hurricanes in the reinsurance industry<br />

you need wind experts, but you also need<br />

hydrologists, coastal flood specialists,<br />

actuaries, civil engineers. A lot of the current<br />

focus lies in understanding risks holistically,<br />

considering the bigger picture behind that<br />

risk and its full effects.<br />

Research trends are also becoming more<br />

attuned to systemic risks. We’d been<br />

living in a fairly benign period for quite a<br />

few years before the pandemic; conflict,<br />

the macroeconomic landscape and wider<br />

geopolitical risks hadn’t significantly<br />

moved insurance markets on a global scale<br />

until very recently. Now that we’ve faced<br />

an unforeseen set of global challenges,<br />

alongside a growing climate crisis, research<br />

trends are steering towards a greater need<br />

to understand systemic risks in order to be<br />

better prepared.<br />

Q<br />

On the subject of interdisciplinary<br />

approaches, the GRC looks to<br />

create ties between insurance and<br />

academia. How does this collaboration<br />

benefit Gallagher Re’s product offering<br />

in relation to both natural and manmade<br />

perils?<br />

The output of our research filters<br />

back into our product offering<br />

A through any and all relevant means.<br />

From an economic risk aspect, for example,<br />

we’re working with London School of<br />

Economics in order to better understand<br />

the drivers of macroeconomic inflation and<br />

interest rates; and how these differ in the<br />

US, Eurozone and Asia. While some macro<br />

drivers are the same, the impact is different<br />

regionally and across different insurance<br />

products. This is of huge relevance to our<br />

brokers and the wider insurance market<br />

more generally. Rising inflation had a major<br />

impact on reinsurance renewals over the last<br />

12 months, so it’s vital that we’re ahead of<br />

the curve on this.<br />

When we’re discussing research in the<br />

natural catastrophe space, there’s a strong<br />

correlation between data and risk models.<br />

Our academic partners are a fundamental<br />

source of the latest scientific data to help<br />

build hazard models, solutions, advocacy<br />

and advisory services that Gallagher Re<br />

offers. We’re always keen to point out that<br />

the Research Centre is focused on ‘applied<br />

research’ rather than philanthropy; all of our<br />

research is being used in some way to the<br />

ultimate benefit of our clients and the wider<br />

industry as we seek to navigate a really<br />

tricky risk landscape.<br />

Q<br />

Interestingly, you showcased some<br />

new storm surge scenarios for<br />

UK insurers at your ‘Rising Tides’<br />

research seminar back in May. What key<br />

findings were exposed by this analysis?<br />

A<br />

Well, 70 years have passed since<br />

the North Sea floods of 1953.<br />

Despite being the biggest UK<br />

coastal flood disaster of the 20th Century,<br />

research within the reinsurance industry<br />

on storm surge risk has been relatively<br />

overlooked in recent years. Since 1953, the<br />

UK government has spent a lot of time<br />

and money upgrading and creating flood<br />

defences around the UK coastline, which<br />

have been effective, but we’ve also had<br />

more significant tidal levels since then.<br />

The key difference is that current flood<br />

defences are hugely mitigating storm surge<br />

risk, but that also begs the question of what<br />

will happen if flood defences fail or are<br />

breached? In the 2013/2014 winter season,<br />

there were 25 breaches of UK coastal flood<br />

defences. This became something we<br />

wanted to explore in our research.<br />

Working with HR Wallingford, we simulated<br />

a number of different flood breach<br />

scenarios along the UK’s east and west<br />

coastline, taking note of particular locations<br />

that are heavily exposed in terms of<br />

properties.<br />

The takeaways from this were fascinating.<br />

Our findings show that even when a<br />

defence breaches, the remaining defence<br />

still protects much of the coastline, often<br />

acting to slow down the flood waters. The<br />

second question was to consider how much<br />

worse that same event could be in 2050<br />

due to climate change and rising sea levels.<br />

Again, HR Wallingford completed a number<br />

of different simulations based on the surge<br />

scenarios, and the findings are enlightening.<br />

A huge amount of the UK coastline is<br />

protected at the moment, but if that<br />

protection wasn’t there, it’s hard to deny<br />

how exposed certain communities are. We<br />

also found that climate change will further<br />

exacerbate that risk, with an additional 20%<br />

more properties at risk in 2050. It made<br />

for a great event with lots of technical<br />

deep-dive sessions and discussion with our<br />

clients and guest speakers!<br />

Q<br />

Which topics generated the most<br />

audience engagement at the<br />

research seminar?<br />

There was a lot of debate in<br />

the room around flood defence<br />

A breaches. We could have a storm<br />

tomorrow and it might be the biggest surge<br />

event ever seen in the UK. Sure, there would<br />

be very little impact if all defences hold.<br />

Realistically however, we know that<br />

some defences are likely to<br />

breach. So, if you’re a UK insurer and you’re<br />

modelling and pricing that risk, there’s a<br />

huge amount of uncertainty to factor in<br />

there.<br />

Compound risk was another key talking<br />

point. What might happen if a river flood<br />

meets a large coastal surge in an estuary?<br />

In these circumstances, you have to<br />

consider the joint probability of such an<br />

event occurring. This idea of compounded<br />

risk is something that the industry is only<br />

very recently starting to consider. Again,<br />

there’s no reason why we can’t understand<br />

these risks better through effective and<br />

collaborative research.<br />

Q<br />

Finally, what do you think might<br />

prove to be the most valuable focus<br />

in catastrophe research and<br />

risk modelling over the next decade?<br />

We need models to be more<br />

dynamic. We’re starting to see that<br />

A the current ways in which we look<br />

at risk are perhaps not entirely sustainable;<br />

non-stationarity and trending climate are all<br />

factors that challenge the accuracy of our<br />

existing catastrophe risk models. We need a<br />

more dynamic approach to modelling risk in<br />

order to ensure that our models are realistic<br />

and not out of date.<br />

Intercorrelation between other perils, and<br />

understanding how all of our weather is<br />

connected, will also be really important as<br />

we look to learn about how climate change<br />

and climate modes can affect our weather<br />

patterns. If we can understand some of<br />

those bigger processes, moving away<br />

from our tendency to model perils in very<br />

defined, geographic regions, this will be a<br />

huge area of innovation across the global<br />

catastrophe risk marketplace.<br />


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Supporting Vulnerable<br />

Customers in<br />

Catastrophic Claims<br />

At Carpenters Group, our colleagues are trained<br />

to recognise vulnerable clients from the very first<br />

point of contact. The definition of this includes<br />

any vulnerabilities that could impact an ability to<br />

participate in litigation, or diminish the quality of<br />

evidence which they can give. A vulnerable client may<br />

also lack legal capacity to conduct the litigation. We<br />

need to understand their needs by giving our people<br />

the skills and knowledge to recognise this, before<br />

delivering our services in a bespoke and holistic way.<br />

In the early stages, an important part of our role involves identifying<br />

pressure points. We must do all that we can to mitigate pressure on<br />

the family, so early face-to-face meetings and engagement with our<br />

opponent insurers is critical - as is securing financial and practical<br />

support for our clients in a timely manner.<br />

Certain stages of the litigation process are more stressful or difficult<br />

for our vulnerable clients, such as attending multiple medical<br />

assessments, giving witness statements, or attending Chambers<br />

and Court. We take steps to fully prepare our clients by taking them<br />

through what to expect step-by-step, scheduling domiciliary medical<br />

appointments where appropriate, arranging conferences in their own<br />

home, or asking the Court for bespoke directions under CPR 1A and<br />

PD1A for vulnerable parties.<br />

We also engage with registered intermediaries who are recruited<br />

and trained by the MOJ. They act as a conduit to help maximise<br />

communication for vulnerable clients, which helps our clients when it<br />

comes to making themselves understood.<br />

Dealing with vulnerable clients means that we have to think<br />

about doing things differently. They will always receive the same<br />

professional courtesy and respect; however, we are trained to be<br />

mindful of restrictions, limitations and other prospective difficulties.<br />

We will agree on a bespoke approach, created to meet their needs<br />

in a way that keeps them comfortable whilst remaining mindful of<br />

fulfilling our professional obligations.<br />

For instance, we frequently work with brain injured clients who lack<br />

the capacity to litigate themselves, but still wish to be involved.<br />

Careful and tactful handling is needed to strike a balance between<br />

the involvement of the litigation friend, whilst simultaneously allowing<br />

our client to still feel very much at the centre of the process and have<br />

their voice heard.<br />

Speaking in simple language, keeping sentences short, using pictures<br />

or images, keeping meetings short and selecting a meeting time that<br />

fits in with fatigue management are all examples of steps that we will<br />

take to ensure that our vulnerable clients always understand what is<br />

happening. We must think creatively about the best ways to meet<br />

their needs in a form that works for them, and keep this under review<br />

at all times.<br />

Carol Hopwood,<br />

Head of Serious and Catastrophic Injury, Carpenters Group<br />

Data Security is a<br />

Vizion Standard<br />

In 2018, facing changes to data protection<br />

law and an increased risk of cyber-attacks,<br />

Vizion formed their Client Advisory Group - a<br />

consortium of representatives consisting of<br />

leading insurers, cyber experts, and specialists<br />

from the Vizion team. This group created the<br />

‘Vizion Standard’ to support repairers that<br />

would continue to provide education, support,<br />

and resilience across the Vizion network.<br />

The ‘Vizion Standard’ is part of Vizion’s commitment to the customer;<br />

assurance that we, our clients, and our repairer partners consider<br />

their privacy and protection of personal data to be a critical element<br />

of the consumer journey.<br />

In the recent past, the cyber landscape witnessed a seismic shift from<br />

small petty online crimes to large-scale ransomware attacks. Such<br />

attacks have brought some organisations to the brink of collapse.<br />

The thing is, it can happen to anyone, and as the web grows more<br />

dynamic and more connected, the ‘Vizion Standard’ adapts to everevolving<br />

cyber security threats - delivering consistently updated<br />

certification and auditing to ensure that both Vizion and our clients<br />

stay ahead of virtual and physical security and privacy needs.<br />

July sees the launch of the 2023 standard assessment, the latest<br />

version of the standard, which will be sent to our entire network using<br />

our own auditing and assessment application, Opus.<br />

The Proof is in the Pudding<br />

Vizion Network has achieved widely recognised ISO/IEC 27001<br />

security standard certification and ISO/IEC 23001 business continuity<br />

management, demonstrating the company’s ongoing commitment to<br />

information security and risk management.<br />

The holistic approach of ISO/IEC 27001 and ISO/IEC 23001 means<br />

that the entire organisation, not just IT, is covered from cyberthreats,<br />

resulting in benefits to people, technology, and processes.<br />

By gaining this certification, Vizion has demonstrated to its clients<br />

and customers that it is committed to managing information and risk<br />

securely and safely.<br />

This certification is the latest milestone in our information security<br />

roadmap, which continuously demonstrates our commitment to<br />

data security. Everyone at Vizion is deeply dedicated to protecting<br />

client data, and proud to have achieved the ISO 27001 and 23001<br />

certifications to prove it.<br />

Chris McKie,<br />

Managing Director, Vizion Network Limited<br />


Be a part of<br />

something bigger<br />

Helping people. Innovating an industry.<br />

At Crawford, employees are empowered to grow, emboldened to act and inspired to innovate.<br />

Our industry-leading team pioneers new solutions for the industries and customers we serve.<br />

We’re looking for the next generation of leaders to take this journey with us.<br />

You’ll be empowered to help people when they need it most, to work on things that you’re<br />

passionate about and your ideas will matter.<br />

To create the future you want, look at the careers available at Crawford:<br />

www.crawco.co.uk/about/careers or contact recruitment@crawco.co.uk<br />

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Crawford & Company is an equal opportunity employer.


Preparing for<br />

Climate Risk<br />

The Met Office predicts coastal flooding from<br />

storms is expected to increase under climate<br />

change, worsening the impacts of storm<br />

surges 1 . Around 5 million people already live<br />

in flood risk areas in England and Wales 2 , so<br />

it is critical that insurance providers gain the<br />

deepest understanding of the perils they and<br />

their customers face.<br />

Geospatial data intelligence is evolving to meet this need, but so too<br />

are the platforms to access this data – making it swifter and simpler for<br />

insurance providers to act on a holistic and cohesive view of risk built<br />

from multiple data sets.<br />

Surge events are sudden by their very nature, but it’s now possible to<br />

visualise perils in real-time to make a full, fast and accurate assessment<br />

of environmental risk, putting insurance providers on the front-foot<br />

to help manage the risk. Geospatial data visualisation tools such<br />

as LexisNexis® Map View help insurance providers to understand<br />

their exposures and accumulations at a glance, predicting which<br />

policyholders could be vulnerable in the path of a storm or flood.<br />

One peril that has really come to the forefront in the last few years is<br />

flash flooding, causing devastating floods to basements 3 . In response<br />

to this rising threat, the LexisNexis® Basements Indicator goes further<br />

to help property insurance providers identify whether a basement<br />

or an underground level may be present in a home or a commercial<br />

building. This is essential knowledge not only for pricing, but also for<br />

risk mitigation as a peril advances.<br />

Meanwhile, subsidence prone areas are set to double by 2050 4 .<br />

Therefore, access to detailed information about trees (which can add<br />

to subsidence risk around a property) is valuable. <strong>Insurance</strong> providers<br />

can now understand the location, canopy cover and height of trees 3<br />

metres and taller in the proximity of the properties they are insuring.<br />

Windstorms are amongst the most damaging natural hazards leading<br />

to insurance surge events. However, new modelling solutions - such<br />

as the LexisNexis® Windstorm Model - predict maximum wind gust<br />

speeds as a better predictor for property and structural damage,<br />

compared to sustained wind speeds.<br />

Climate change is already affecting our daily lives, and these changes<br />

may become more marked as weather extremes continue. However, a<br />

host of geospatial data intelligence has kept pace with these changes,<br />

allowing insurance providers to make more informed decisions when it<br />

comes to pricing policies accurately and fairly, mitigating risk as perils<br />

approach whilst revealing potential hotspots for claims.<br />

Caroline Elliott-Grey,<br />

Product Manager, LexisNexis Risk Solutions, <strong>Insurance</strong>, U.K.<br />

and Ireland<br />

1 https://www.metoffice.gov.uk/research/climate/understanding-climate/uk-and-globalextreme-events-wind-storms<br />

2 https://reachandrescue.com/flood-statistics/<br />

3 https://www.ncl.ac.uk/apl/news/item/london-basement-extensions/<br />

4 https://www.bgs.ac.uk/datasets/geoclimate-ukcp09-and-ukcp18/<br />

A Resilience Strategy<br />

for the Future<br />

Our supply chains have evolved to meet the<br />

pressures of the past few years, with glass<br />

supply across Europe and Asia providing<br />

global sourcing flexibility. We’ve increased our<br />

stock holding capacity across the UK as part<br />

of our long-term strategy towards improving<br />

resilience, including the expansion of our<br />

infrastructure with new, strategically located<br />

branches and warehouses, allowing us to<br />

deliver glass in the quickest possible time.<br />

An increased focus on our digital capabilities - considering<br />

automation, AI and robotics - futureproofs our customer journey,<br />

working to fulfil the expectations of customers in this digital age.<br />

This also provides an additional layer of resilience at various stages of<br />

the customer journey.<br />

In an environment where recruitment is more challenging than<br />

ever, developing and retaining our existing team is a priority. Whilst<br />

attracting new talent to the business, we also seek to provide our<br />

existing team with development opportunities as a key part of our<br />

resilience strategy.<br />

Climate change is affecting the predictability of seasonal demands<br />

in windscreen repair and replacement. Our business resilience<br />

strategy has certainly had to adapt to allow for this increase in peaks<br />

and troughs in the volume of jobs, all of which is dependent on<br />

fluctuations in the weather.<br />

We are acutely aware of the need to look at every aspect of our<br />

operations and supply chain to drive towards net zero. We are<br />

working with our suppliers and recycling partners to pave the way to<br />

a circular economy by recycling 100% of the 3,300 tonnes of glass<br />

that we replace each year.<br />

I am excited for the release of our sustainability report, which enables<br />

us to set our short-term and long-term ESG targets and measure the<br />

progress that we have made as a business.<br />

Watch this space!<br />

Simon Hunt,<br />

Commercial & Services Director, National Windscreens<br />



Safeguarding the<br />

Future at SYNETIQ<br />

As a vehicle recycler that provides a<br />

responsive service to clients during a<br />

catastrophe, we understand just how difficult<br />

preparing for potential events can be. There’s<br />

simply no way to predict how they will unfold.<br />

Monitoring, learning and adapting from past events can provide an<br />

element of preparation for future catastrophes, but with only 8% of<br />

large business currently monitoring climate-related risks 1 , there’s still<br />

some way to go in building quality results to help.<br />

We experience an increase in vehicle volumes each winter, a common<br />

time for catastrophe events, and being aware of this does help us to<br />

enter preparation-mode as we approach the colder months. During<br />

this season, we monitor weather changes and plan our resources<br />

accordingly so we’re never on the backfoot.<br />

Having a consistent and honest line of communication with our<br />

clients has been a vital tool in our ‘catastrophe event toolkit’. Being<br />

aware of their vehicle volumes gives us the chance to plan and direct<br />

our resources; only by working together can we ensure the claims<br />

process continues unaffected. We reflect on successes as well as<br />

lessons learned, using this to plan for future events as a team.<br />

We don’t overlook the fact that policyholders are at the very heart of<br />

a claim. We’ve all been in their shoes; we want the claims process to<br />

be as smooth and pain-free as possible. Our colleagues are trained to<br />

work with policyholders, acting as a helpful resource during what can<br />

be an extremely stressful time.<br />

The insurance landscape as a whole is ever-evolving, and we need to<br />

be ever-adapting as a result. Within the vehicle recycling industry, it’s<br />

all-hands-on-deck to look into the safe disposal and recycling of EV<br />

batteries. We’re also conscious that the 2030 ban on petrol and diesel<br />

vehicles is creeping ever closer. We need to prepare ourselves for an<br />

increase in claims relating to EV vehicles at all times of the year, not<br />

just during a catastrophic event.<br />

At SYNETIQ, we’re working with OEMs and risk intelligence specialist,<br />

Thatcham Research, in order to look at solutions and bring a recycling<br />

solution to the industry.<br />

Assessing climate risk isn’t isolated to the insurance industry, and<br />

it’s certainly not our issue to face alone. The UK Government has<br />

already called for large businesses to step up in their monitoring and<br />

reporting of such risks. From April 2022, it has become mandatory for<br />

large businesses to report climate-related risks to the Task Force on<br />

Climate-Related Financial Disclosures, with the aim of increasing the<br />

quantity and quality of climate-related reporting across the business<br />

community 2 . This cross-industry approach of working together truly<br />

is the way forward to successfully tackle whatever climate challenges<br />

could come our way.<br />

Tom Rumboll,<br />

Chief Executive Officer, SYNETIQ Solutions<br />

1<br />

ONS Business Insight and Conditions Survey (2022)<br />

2<br />

www.gov.uk<br />

‘GROW’ at EDAM Group<br />

We’ve all had an interesting couple of years,<br />

faced with challenges that could not have been<br />

foreseen, learning lessons about ourselves<br />

and what is important in our lives. This has<br />

also been a challenging time for business, not<br />

just in terms of survival but also in terms of<br />

maintaining people, our greatest asset.<br />

Investment in a People Strategy has never been more integral to the<br />

success of a business - not just to survive, but to thrive. The strategy<br />

must provide clarity of purpose, strong leadership, and personal<br />

growth. It must be holistic and take account of the employee at a<br />

personal level. Do you see a nameless claims handler, or do you see<br />

John, an expert communicator with ambitions to become the next<br />

Team Leader?<br />

At EDAM, we know every member of our team, their story so far<br />

and what they want their next chapter to be. We are also committed<br />

to understanding and providing the support needed to make that<br />

their reality.<br />

In late 2022, after extensive collaboration with our team, we launched<br />

our new performance management model ‘GROW’. ‘GROW‘ ensures<br />

that we possess clarity on our ‘Goals’, get ‘Recognised’ for our<br />

contributions and support ‘Opportunities’ for personal growth, all<br />

whilst taking good care of our ‘Wellbeing’.<br />

To further support this initiative, we launched our Learning Hub<br />

and issued each employee with at least 2 ‘GROW’ hours per month,<br />

which can be used as the individual sees fit. Through ‘GROW’ and the<br />

Learning Hub, we can unlock and support the potential of our people.<br />

We also host an array of development opportunities, such as<br />

shadowing placements offering the opportunity to explore and<br />

understand more about another team. Other options include<br />

Leadership Development, Secondments, Technical Training, Skills<br />

Training, wellbeing activities and volunteering opportunities.<br />

The Learning Hub is ‘For You, By You’, and the results speak for<br />

themselves. 10% of our team have moved to another role or have<br />

been promoted within EDAM to start their next chapter, including two<br />

members of our Leadership team who have since been promoted<br />

into Senior Leadership roles. We have received around 850 Learning<br />

Hub requests and have issued over 1,000 ‘GROW’ hours to our team<br />

in the last six months. Last but not least, we are very proud that our<br />

employee turnover is now at an all time low, significantly below that<br />

of the wider industry benchmark.<br />

Clare Charity,<br />

Group Learning and Development Manager, EDAM Group<br />


Helping businesses<br />

make better decisions<br />

“The Digilog Solution is a key tool for us as it<br />

enables us to ‘fast track’ many truthful<br />

customers whilst we can have more detailed<br />

discussions with those where the technology<br />

detects high risk.”<br />

Machine Learning Artificial Intelligence to analyse and<br />

validate risk in a Telephone or Video conversation.<br />

Right Choice <strong>Insurance</strong> Brokers<br />

Our unique software enables the fast & accurate validation of<br />

genuine customers whilst identifying key risk issues associated<br />

with a claim, application or dispute, irrespective of the<br />

customers past, profile or geographic location.<br />

Find out more:<br />

Email: enquiries@digiloguk.com / Call: +44 208 087 2724<br />

www.digiloguk.com / https://www.linkedin.com/company/digilog-uk-ltd


Mitigating <strong>Modern</strong> Risk<br />

There are many ways in which insurers can,<br />

and should, be more forward-thinking and<br />

proactive in their approach to mitigating<br />

risk. They can do this by leveraging various<br />

emerging and cutting-edge technologies such<br />

as artificial intelligence (AI), machine learning<br />

(ML) and language analysis to deal with large<br />

amounts of data in real-time.<br />

One such technology is the Internet of Things (IoT), where data from<br />

wearables, smart home appliances and other devices can improve<br />

the accuracy of risk assessments and create a clearer, up-to-date<br />

depiction of the risks faced by the policyholder.<br />

A bespoke and personalised risk management solution may also be<br />

offered, something which extends beyond the traditional insurance<br />

policy. For example, insurers can provide their customers with access<br />

to resources and tools that help them to alleviate risk in their everyday<br />

lives. This has already been utilised by some companies who provide<br />

their policyholders with wellness programmes or home security<br />

systems. However, it does not stop there…<br />

Insurers need to improve their collaboration and share more data,<br />

which will inevitably help to address these new and emerging risks.<br />

Working with the likes of the IFB and similar organisations, regulators<br />

and policymakers will assist in developing a new and more robust<br />

approach to risk management. This will undoubtedly result in<br />

insurance that better reflects the constantly changing nature of risk in<br />

today’s dynamic world.<br />

Furthermore, working closely with academic institutions whilst<br />

participating in ‘think tanks’ and research would also greatly<br />

contribute to identifying new and emerging trends.<br />

The key to being more proactive is in keeping an open mind,<br />

embracing innovation and remaining agile in the face of change.<br />

Insurers who are always on the lookout for new ways and means to<br />

tackle the issue of risk – those who are willing to adopt new business<br />

models and trial the latest technologies available - will be better<br />

equipped to meet the needs of their policyholders and provide better<br />

protection to customers and their own organisation alike.<br />

Lior Koskas,<br />

CEO, Digilog UK Ltd<br />

Business Resilience in the<br />

e2e Network Model<br />

Business resilience is increasingly under the<br />

spotlight in the motor claims supply chain. At<br />

the time of writing, the latest provisional findings<br />

from the CMA regarding Copart’s acquisition<br />

of Hills Salvage have rung alarm bells for many<br />

insurers.<br />

‘There are very few salvage companies with a track record of<br />

servicing large national contracts for insurance companies,’ the CMA<br />

states. ‘This deal could reduce the options for customers, which could<br />

lead to higher prices or lower quality services.’ Only one potential<br />

effective structural remedy has been identified - the full divestiture of<br />

Hills Motors by Copart.<br />

The FCA monitors insurers for operational resilience, including the<br />

effective management of third-party providers. Therefore, supply<br />

chain resilience is a business priority for insurers and forms part of<br />

their business continuity planning.<br />

At e2e, we are alive to the operational resilience challenges facing<br />

insurers. Our network model can deliver service certainty to insurers<br />

from their salvage provider, despite significant M&A activity in<br />

the market as a whole. Large, single entity salvage and recycling<br />

companies are attractive propositions for those on the acquisition<br />

trail, representing an increased risk profile for insurers.<br />

The beauty of our unique, non-profit network model is that<br />

it is greater than the sum of its parts. The network provides a<br />

nationwide service delivered by independent, entrepreneurial<br />

salvage businesses with decades of expertise, who are committed<br />

to collective professional standards and unified network goals. The<br />

model also provides insurers with the additional benefit of deep<br />

regional knowledge, and the intelligence available through combined<br />

data and analytics. Should a member of the e2e salvage and recycling<br />

network be acquired, there is the scale, flexibility and capacity for<br />

alternative members of the network to take over. Service is seamlessly<br />

maintained for insurers with adherence to contractually agreed<br />

service level agreements and the audited network quality standard.<br />

The network approach delivers resilience, insulating the insurer from<br />

dependency on one supplier whilst still benefitting from one audit and<br />

management function.<br />

e2e builds resilience into its operations through robust network<br />

management and good governance. Risk mitigation and business<br />

continuity plans, aligned to evolving market dynamics and needs, are<br />

continually reviewed and adapted as required. Risk management rules<br />

cap maximum exposure to any one network member at any one time.<br />

Business continuity plans exist to cater for the exit of any specific<br />

network member, for whatever reason. The insurer contracts with e2e,<br />

and it is e2e’s responsibility to manage the network and deliver against<br />

the insurer’s needs. In the event of a member leaving the network and<br />

where service provision is reallocated to an alternative member, or<br />

members, ESG goals are also factored into decision making in order<br />

to reduce CO2 emissions related to transportation and ensure optimal<br />

proximity of members’ sites.<br />

Jim Loughran,<br />

CEO, e2e Total Loss Vehicle Management<br />



Steering our global sustainability<br />

target for climate protection<br />

At BASF, we create chemistry for a sustainable<br />

future. We implement our corporate purpose<br />

by systematically incorporating sustainability<br />

into our strategy, our business, not to mention<br />

our assessment, steering, and compensation<br />

systems. We secure our long-term success<br />

with products, solutions, and technologies<br />

that create added value for the environment,<br />

society, and the economy.<br />

Sustainability is at the core of what we do; a driver for growth and<br />

value. Analysing our contributions to sustainability also enables us to<br />

manage risks effectively. We pursue a holistic sustainability approach<br />

that covers the entire value chain – from our suppliers and our own<br />

activities right through to our customers.<br />

Based on our corporate strategy, we steer the global sustainability<br />

target for climate protection via the most important key performance<br />

indicator: ‘absolute zero CO2 emissions’. To this end, we have<br />

established the necessary steering mechanisms and control systems<br />

at Group level. Our activities to reduce greenhouse gas emissions<br />

include the use of renewable energies for both electricity and steam<br />

production; developing and applying new low-carbon production<br />

processes; using renewable raw materials, and adopting ongoing<br />

measures to further increase energy and resource efficiency in our<br />

production.<br />

We have also set up a project organisation to achieve our climate<br />

protection targets. The Net Zero Accelerator unit concentrates on<br />

implementing and accelerating projects on low-carbon production<br />

technologies, the circular economy, and renewable energies.<br />

We want to offer innovative products and solutions to our customers<br />

that support their sustainability goals - that’s why we continuously<br />

monitor and evaluate relevant sustainability aspects. These evaluations<br />

are taken into account in our strategies, in the implementation of<br />

research projects, and in innovation processes.<br />

A significant steering tool for the product portfolio, based on the<br />

sustainability performance of our products, is the Sustainable Solution<br />

Steering method. A particular focus in the continued development<br />

of our product portfolio is on products that make a substantial<br />

sustainability contribution in the value chain. These include products<br />

that make positive contributions to areas such as health and safety,<br />

reducing emissions, and the circular economy.<br />

Our target of generating €22 billion in Accelerator sales by 2025, which<br />

was based on our corporate strategy, was already achieved in 2021 with<br />

sales of €24.1 billion. To address the growing sustainability requirements<br />

in our markets with innovative solutions, we want to align our product<br />

portfolio even more strongly with climate protection, climate neutrality<br />

and the circular economy. That’s why we’re updating our methodology<br />

and our product portfolio steering target, with a revised method due<br />

to be introduced later in 2023. Learn more about BASF’s Climate<br />

Protection Solutions at www.basf.com.<br />

Natalie Wong,<br />

Marketing & Portfolio Management Lead, BASF Automotive<br />

Refinish UK & Ireland<br />

Can we increase vehicle<br />

repair capacity?<br />

Advanced vehicle technology, an ageing workforce<br />

and a lack of apprentice recruitment over the<br />

last decade are fuelling a capacity crisis in the<br />

vehicle repair sector. According to a report from<br />

the Institute of the Motor Industry (IMI), as many<br />

as 1<strong>60</strong>,000 vacancies in the sector will need filling<br />

by 2031. Of these, a massive 16% are likely to be<br />

vehicle technicians. So, what’s causing this skills<br />

shortage, and what can we do about it?<br />

Vehicle Technology<br />

It’s true that more complex vehicle technology increases the need for<br />

specialist training and equipment. EU regulations mean that all new<br />

vehicles are fitted with ADAS safety features, which may need to be<br />

recalibrated after an incident. EV and hybrid repairs require specialist<br />

training and equipment to work safely with high-voltage batteries.<br />

It’s not just the technology on modern vehicles that’s changed,<br />

either. There’s wider use of materials in the bodywork – steel, plastic,<br />

carbon fibre and aluminium all require different repair methods and<br />

equipment.<br />

Training<br />

Training alone will not solve the problem; record numbers of<br />

technicians have gained EV accreditation in the last 12 months. At<br />

Activate Accident Repair - and all BSI approved repairers - technicians<br />

complete regular, accredited training on the latest vehicle technology<br />

and best practice. While significant investment is going to upskill the<br />

current workforce, retirement, migration and people leaving the sector<br />

mean the skills shortage is likely to continue to grow. We need to<br />

encourage existing technicians to stay in the industry and attract young<br />

people to a career in vehicle repair. Basic salaries are increasing across<br />

all roles, which is sure to help attract and retain employees.<br />

Attracting people to an automotive career<br />

There are two factors at play here - increasing the number of<br />

apprenticeships, and challenging the misconceptions that turn people<br />

off the motor industry.<br />

At Activate Repair, we have an annual intake of apprentices across all of<br />

our sites UK-wide. Apprenticeship numbers are up across the industry,<br />

but they are still not at pre-pandemic levels.<br />

I’d strongly recommend offering an apprenticeship scheme.<br />

Government funding is available, and it’s a great way to recruit<br />

enthusiastic team members and help them develop in their chosen<br />

profession.<br />

Encouraging more people into the industry is trickier. We need to<br />

demonstrate the wide range of fantastic careers on offer to people<br />

from all diverse genders and backgrounds. The development in vehicle<br />

technology may also make the industry more appealing to Gen Z.<br />

At Activate Repair, we’re doing this by sharing the career stories of<br />

our greatest assets – the people that work for us. This showcases not<br />

just the types of roles available, but also the flexibility and professional<br />

development that we can offer.<br />

Jim Gordon,<br />

Operations Director, Activate Accident Repair<br />




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Paving the Way for<br />

Heightened Resilience<br />

Home or hybrid working is no-longer the<br />

exception but the norm, as is the volatile<br />

global economy that has seen prices spiralling<br />

and supply chains struggling. There’s an<br />

inordinate amount of change and uncertainty<br />

in these continued headwinds, and it’s<br />

more important than ever for businesses to<br />

build dynamic and innovative models, with<br />

adaptability and resilience at the core.<br />

As we saw with the COVID-19 pandemic, more resilient businesses<br />

had better outcomes - some even emerging stronger and with<br />

customer loyalty flourishing. It’s therefore not surprising that<br />

resilience has risen to the top of many agendas.<br />

As the market continues to present its vast array of challenges,<br />

FMG have recognised the importance of a resilient business model<br />

to reduce the impact of unforeseen events on our customers. True<br />

resilience encapsulates our capacity to mitigate stress, to recover<br />

critical operations and thrive in these new conditions. Done well, true<br />

resilience creates opportunity and a potential strategic advantage.<br />

We’re following these three tips to build resilience into our business:<br />

1. Take advantage<br />

Consider crises as inevitable disruptions to be prepared for, managed,<br />

and leveraged, rather than occasional ad-hoc events. This approach<br />

drives proactive and productive decision making that positively<br />

shapes the customer experience as the impending landscape<br />

emerges. New problems need new solutions, and that in itself is an<br />

opportunity.<br />

2. Cultural shift<br />

Backward-looking metrics, legacy constraints and the mentality<br />

of ‘that’s the way we’ve always done it’ can result in a stagnated<br />

model that becomes difficult to pivot. Adopting resilience requires<br />

a cultural shift at all levels of the business to create a competitive<br />

edge. Businesses must reinforce change by championing resilience,<br />

sharing their learnings from recent crises with a focus on meeting,<br />

anticipating and exceeding customer expectations in turbulent times.<br />

3. Connected creativity<br />

Create a work environment that fosters a positive, open and<br />

respectful attitude towards new ideas and innovation. Inviting<br />

colleagues to share thoughts, challenge perspectives and anticipate<br />

future needs brings a higher level of employee connection and<br />

investment, all of which becomes instrumental to your brand’s<br />

customer experience.<br />

The industry will always present new challenges, but customers must<br />

come first under any and all circumstances.<br />

Andrew Chandler,<br />

Sales Director, FMG<br />

Improving Resilience<br />

to Risk<br />

As an insurance software platform, resilience<br />

is non-negotiable. We are a cloud-based<br />

business with extensive backup and<br />

redundancy capabilities, so if the worst should<br />

happen, Paracode customers will still be able<br />

to use our system and access their data.<br />

We are constantly assessing not just the risks to our business, but<br />

also the risks faced by our customers in order to ensure that we are<br />

as well prepared as possible. In relation to catastrophic events in<br />

particular, insurance software can help the market to prepare through<br />

the provision of scalable technology, particularly in relation to First<br />

Notification of Loss (FNOL) and claims handling. Paracode is robust<br />

and inclusive of in-built redundancy should the worst occur.<br />

Given the potential for specific work locations to be knocked out by<br />

catastrophic events, it also makes sense to build insurance software<br />

that is cloud based rather than on-premises, which guarantees<br />

business continuity for our customers when it comes to employees<br />

who are able to work from any location, on any device.<br />

The industry can certainly be more proactive, rather than reactive,<br />

in response to predicting future risk. For example, there’s a huge<br />

opportunity to engage with specialist companies in the satellite<br />

imagery space at the moment, some of whom are able to provide real<br />

time data on catastrophic events around the globe. There are also<br />

specialist insurance technology providers who are building sensors<br />

that can be installed in properties to detect flooding, fire risk and so<br />

on, in order to trigger support even when properties are empty or<br />

uninhabited.<br />

It is also worth noting that fraud and cyber-crime will typically increase<br />

when economies are strained, either through recession, unemployment,<br />

or climate crisis. With climate risk likely to trigger negative expected<br />

and unexpected consequences for economies around the world,<br />

climate events are likely to be a leading indicator of increasing cases<br />

of fraud. Naturally, resilience to the risk of fraudulent activity should<br />

become paramount in light of this.<br />

Will Prest,<br />

Project Manager, Paracode Agile <strong>Insurance</strong> Software<br />




It’s not by chance that RGI Solutions<br />

has grown to become one of the UK’s<br />

leading independent insurance<br />

investigation specialists. When we set<br />

out in business back in 1990, our<br />

mantra was simple: ‘to provide<br />

integrity, reliability, insight, value<br />

and quality in everything we do’.<br />



About Us<br />

Today, with leading insurance<br />

companies, solicitors, self-insurers<br />

and claims handling companies<br />

among our clients, our founding<br />

principles remain just as important to<br />

us as they did all those years ago.<br />

Proud of our heritage, clear fixedprice<br />

services and outstanding fraud<br />

savings rate, we deliver exceptional<br />

value.<br />

Believing that being ‘good’ really<br />

isn’t good enough, we view the<br />

service level agreement we establish<br />

with each client as the absolute<br />

minimum standard we must achieve.<br />

0161 486 0100<br />

Our portfolio of services is regularly<br />

reviewed to ensure we provide<br />

comprehensive, up-to-date and<br />

effective investigation solutions. Most<br />

importantly, each service is tailored to<br />

clients’ specific needs and fully<br />

compliant with the jurisdiction in<br />

which we operate.<br />


With highly experienced, qualified and<br />

licensed investigators, sophisticated<br />

information databases and a<br />

management team made up of leading<br />

counter-fraud specialists, we offer<br />

true insight, capability and expertise.<br />

Understanding that speed is always of<br />

the essence, we offer a rapid<br />

response.<br />

The Intelligent Choice<br />

Integrity, reliability, insight, value and quality<br />

Address : The Chambers, 44 Station Road,<br />

Cheadle Hulme, SK8 7AB<br />

Mailbox : sales@rgisolutions.co.uk


Our Response to<br />

Catastrophic Claims<br />

Every incident and every claim that we<br />

are involved with has the potential to be<br />

catastrophic to someone. Nationwide Vehicle<br />

Assistance pride themselves in providing a<br />

total support solution to all stakeholders in<br />

these situations, from insurers and vehicle<br />

manufacturers to drivers and policyholders.<br />

Incidents involving chemicals and hazardous goods have the<br />

potential to be some of the most catastrophic situations within our<br />

remit. Nationwide Chemical Assistance is our specialist division, and<br />

we’re proud to say that it remains one of Europe’s largest recovery<br />

solution companies in this sector. Our network of audited businesses<br />

and qualified ADR licensed drivers have vast experience of incident<br />

handling, and we also employ our own Dangerous Goods Safety<br />

Advisers. Ongoing training is essential, with every qualified driver<br />

working towards 35 hours of CPC training to maintain their license<br />

and remain fully competent in their duties. ADR licenses are renewed<br />

every 5 years.<br />

For our corporate customers, we are acutely aware of our<br />

responsibilities around protecting and upholding their brand values<br />

and standards. As such, our recovery agents are regularly instructed<br />

to ensure that these requirements are met at all times. This ethos<br />

translates into industry-leading response times and an unrivalled<br />

level of customer care. Our on-the-scene image capture capability<br />

underpins the vital role we play at an incident; API links with<br />

customer systems to speed up the notification process and eliminate<br />

the need for double keying. All of these processes have a positive<br />

impact in the handling of potentially catastrophic claims.<br />

We regularly hold customer demonstration days to present our range<br />

of services and our response to major incidents. These are delivered<br />

to fuel companies, a range of emergency services and recovery<br />

operators. We welcome insurance companies and other key industry<br />

stakeholders to attend and observe our demonstration days too.<br />

For drivers and policyholders, any form of accident is likely to feel<br />

catastrophic. Our core team and our wider network of agents are<br />

understanding and empathetic to the nature of this stress. With<br />

a typical response time of just 55 minutes after FNOL, and with<br />

our quick and efficient communications, we do everything we can<br />

to put drivers at ease. If they are unable to continue their journey,<br />

Nationwide Vehicle Assistance will arrange onward transport to their<br />

destination or even overnight accommodation if required.<br />

To find out how we can help your customers, please contact the team<br />

at sales@nwva.co.uk or by telephone on 01621 730039.<br />

Mick Jennings,<br />

Managing Director, Nationwide Vehicle Assistance (NWVA)<br />

Navigating the<br />

Skills Gap<br />

The skills gap in the accident repair industry<br />

has been a major challenge for many years,<br />

although Gemini Accident Repair Centres are<br />

transforming that.<br />

Rewind to 2017. An aging technician demographic, combined with<br />

a lack of investment in training and recruiting, had led to a massive<br />

shortage of skilled staff in the sector. As a business and an industry,<br />

change needed to happen fast.<br />

At Gemini, we accelerated the adoption of a training team, a<br />

team that has now grown to cover all fundamentals necessary to<br />

bodyshops and future technology advancements. This team initially<br />

began mentoring apprenticeship routes to guide young talent<br />

entering the industry into life-long careers, but now it oversees<br />

the project of retaining and developing existing talent, maintaining<br />

required skill sets. A key aspect of this ensures that developments<br />

in technology advance hand in hand with the skills required by<br />

technicians and vehicle damage assessors.<br />

There was an initial battle in the skills gap environment, where most<br />

industry experts battled with how to make impactful and necessary<br />

changes. Our relationships are key at Gemini, working alongside<br />

partnerships such as EMTEC (part of Nottingham College), and<br />

AutoRaise, the industry charity for apprenticeships. We made it a<br />

priority to work alongside partners with the same thirst for making<br />

change around education and development.<br />

Year after year, we have recycled this strategy of navigating the skills<br />

gap. Following the success of our Multi-Skilled Technician and Vehicle<br />

Damage Assessor apprenticeships, we continue to bridge the skills<br />

gap and progress to the next rung of the ladder, with a present focus<br />

on centralising our recruitment plans. This means that roles are quicker<br />

to fill, and we can turn our heads to a talent pool of staff who have an<br />

impressive list of skills across multiple disciplines.<br />

Ongoing advancements in the repair world will continue to bring<br />

around fresh challenges, as well as opportunities. It’s all about being<br />

prepared and ready to invest in managing change, starting with the<br />

people. Yes, technology is evolving, but so are we.<br />

Dave Sargeant,<br />

Managing Director, Gemini Accident Repair Solutions<br />



A Final<br />

Word<br />

with Steve White<br />

Just hours after announcing his forthcoming retirement at this<br />

year’s BIBA Conference, <strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong> sat down<br />

with BIBA Chief Executive, Steve White, to discuss Next Gen<br />

talent, industry collaboration, and overcoming present-day<br />

challenges in the broker market.<br />

QHi Steve, thanks so much for<br />

taking time out of your busy<br />

schedule to meet with us today!<br />

The theme of this year’s Annual<br />

Conference is ‘Rising to the Challenge,’<br />

in which speakers and insurance<br />

company representatives analyse how<br />

the industry has continued to positively<br />

respond to evolving political, economic<br />

and environmental headwinds. In light<br />

of this, how would you define the biggest<br />

challenges facing brokers and the wider<br />

broker market at the moment?<br />

AThanks Amelia, it’s great to be<br />

speaking with you today.<br />

We publish an annual manifesto<br />

which covers feedback from our members;<br />

they’re telling us what’s important and<br />

where their biggest challenges lie. Talent<br />

attraction certainly seems to be a key issue<br />

at present – everywhere we go, we’re being<br />

told that attracting talent is proving to be<br />

really difficult. Fifteen or twenty years ago,<br />

most towns had an independent insurance<br />

company on the high street, and brokers<br />

would often recruit through outreach.<br />

Since this changed, the broker market is<br />

really having to really focus on ‘growing<br />

our own’ – from the attraction of talent<br />

right through to the development and<br />

retention of staff, it’s absolutely a priority<br />

for us as a core sector of the insurance<br />

industry.<br />

heard from our members that customer<br />

service across the insurance arena had<br />

deteriorated somewhat post-pandemic;<br />

the hard market, staff shortages, and<br />

issues with trading platforms all seem<br />

to have been contributing factors. We<br />

went to Gracechurch in response to<br />

this, experts in surveying the quality of<br />

insurance service, and asked for help in<br />

both measuring and creating an industry<br />

service delivery standard.<br />

The measurement exercise is underway<br />

at the moment - we’ve had over 500<br />

brokers respond to that – and the survey<br />

is an ongoing, living and breathing project.<br />

With this, we can measure how service<br />

is changing. What does ‘good’ look like?<br />

We’re reverting back to our members to<br />

ask this question, and their responses will<br />

form part of our output.<br />

QFantastic! Reverting back to<br />

your earlier point around talent<br />

acquisition challenges for a<br />

moment; what about Next Gen<br />

talent? How are BIBA helping to drive<br />

Next Gen recruitment in the sector?<br />

AI’ve always been a huge advocate<br />

for getting younger brokers<br />

involved. As we went out and about<br />

on our regional tour recently, we spoke to<br />

many young brokers about the length and<br />

breadth of what we do, and there’s always<br />

something that seems to spark an interest.<br />

from their peers as to why this is a great<br />

career path to take. Our Young Broker<br />

Ambassadors are such a diverse bunch,<br />

not just in the way they look but in the<br />

way they feel, the way they speak. We’re<br />

also looking at outreach in schools<br />

and colleges, looking beyond graduate<br />

programmes to gather more diversity of<br />

thought in our recruitment processes and<br />

leaving no stone unturned in our efforts to<br />

improve our wider diversity in this space.<br />

QAnd finally - in your opening<br />

speech this morning, you<br />

announced that you will be<br />

retiring from your role in the<br />

latter half of 2023. How do think BIBA<br />

will evolve moving forward, and how do<br />

you hope to see your legacy live on?<br />

ASteering the BIBA ship is a 24/7 job,<br />

and 10 years is certainly a long time<br />

to have been doing it! If you ask our<br />

members, I think they’d say we’re doing<br />

most things right. That being said, there’s<br />

always room for incremental improvement,<br />

and my successor will certainly need to<br />

take a helicopter view in order to look at<br />

BIBA’s present strengths and weaknesses.<br />

Social media has really flourished in the<br />

last decade; I identified that we had a<br />

great story to tell, and doubled the size<br />

of our Comms Team to guarantee that we<br />

told that story well. Your members need<br />

to understand and value what you do, and<br />

I’m delighted to see more people renewing<br />

their memberships year after year. We<br />

have firms queuing up to be associate<br />

members, and I’m just so proud of the<br />

team and the effort that they all continue<br />

to put in. Everything we do has to make<br />

our boat go quicker, and I have every faith<br />

that this mindset will continue at BIBA in<br />

the months and years to come.<br />

Steve White,<br />

Chief Executive, British <strong>Insurance</strong><br />

Brokers’ Association (BIBA)<br />

Regulation is also a perennial and topical<br />

issue for members, especially this year<br />

where regulators seem to have been<br />

working an awful lot on our space.<br />

There comes a point where it becomes<br />

overwhelming; our members want to be<br />

compliant, but it’s so difficult for them<br />

to keep track of so many rule changes,<br />

especially principle-based rules where<br />

firms are expected to work things out for<br />

themselves. We need prescriptive rules –<br />

tell us what to do, and we will do it!<br />

QDo you have an example of how<br />

BIBA is collaborating with the<br />

wider industry in the face of these<br />

challenges?<br />

AThere’s such a lot of collaboration<br />

going on, which is great to see!<br />

Service is a great example. We<br />

Our regional broker engagement has<br />

become much younger, and we’ve now<br />

got several young regional Chairs. We’re<br />

also looking at how we can promote<br />

a career in insurance brokerage as a<br />

‘destination’ career. Too many young<br />

people stumble into this, but we want<br />

them to actively choose it. We’re utilising<br />

our Young Broker Ambassadors as the<br />

focal point of a social media campaign,<br />

so prospective brokers can hear directly<br />



Rising to the Challenge<br />

Looking across the insurance industry and<br />

scanning the wider geopolitical horizon at the<br />

moment, it’s clear to see that our marketplace has<br />

never faced a greater array of challenges.<br />

Growing frequency and severity of events, rising loss complexity,<br />

expanding risk horizons, deepening supply-chain issues, acrossthe-board<br />

price hikes and an escalating energy crisis are just<br />

some of the developments fusing together to create one of the<br />

most turbulent claims environments in recent history. Our ability<br />

to face these issues is heavily reliant on the strength of the talent<br />

foundation underpinning the insurance sector.<br />

Much has been said about the war on talent that rages within the<br />

industry – particularly in the context of the community adjusting<br />

to a combination of ‘the Great Resignation’ and ‘the Grey Tsunami,’<br />

both of which have created a skills shortfall.<br />

Our industry must commit to a process of talent futureproofing<br />

if we are to maintain and enhance our relevance in an ever more<br />

risk-exposed environment. At Crawford, we are adding breadth and<br />

depth to our talent pool by adopting a holistic approach to talent<br />

management, extending from new joiners right through to business<br />

leaders. Our approach is based around three key areas – creating<br />

a pipeline of talent, closing the skills gaps, and diversifying our<br />

workforce – all of which we believe make Crawford a great place<br />

to work.<br />

Over the last 18 months, we have integrated a multifaceted talent<br />

strategy based upon a comprehensive portfolio of development<br />

programmes. At ground level, our apprenticeship programme<br />

spans a series of training, networking and support capabilities<br />

designed to immerse new joiners in the Crawford experience from<br />

day one. We also operate a values-led engagement and retention<br />

programme of training and resources to support every employee,<br />

both with regards to integration in their respective teams as well<br />

as the organisation at large. We want every member of the team<br />

to see themselves as part of Crawford’s long-term vision.<br />

Our talent programme is also a core component of our people,<br />

diversity and wellbeing strategies. We are committed to investing<br />

in the next generation of adjusters, focusing on increasing<br />

diversity, equity, inclusion and social mobility across new hires.<br />

This is no small challenge, especially with such a diverse spread of<br />

needs and motivations, but rest assured - it is certainly one that<br />

we are rising to.<br />

Lisa Bartlett,<br />

President, UK & Ireland, Crawford & Co.<br />

Resilience at RGI Solutions<br />

In response to challenging market conditions<br />

and dynamic customer demands, RGI Solutions<br />

has taken proactive steps to change and adapt<br />

the business model. Building resilience and<br />

staying ahead of the curve has been our key<br />

focus, and we have successfully accomplished<br />

this by making some necessary changes.<br />

Embracing technology and investing heavily in digitalisation is one<br />

strong example. In the height of the pandemic, we invested in online<br />

video and telephone interviewing platforms where statements<br />

were taken and signed digitally. We have also experienced greater<br />

efficiency when it comes to the claims cycle, and continue to use this<br />

technology wherever it is suitable.<br />

By leveraging technology and developing innovative solutions,<br />

we were also able to improve efficiency, streamline processes and<br />

enhance customer experience. With remote working and contactless<br />

service becoming the norm, we offered our clients the flexibility to<br />

access our services via our portal and ‘File View’ access, in order to<br />

demonstrate their claims journey in real time.<br />

We also realised the importance of partnerships and collaborations<br />

in creating a robust and sustainable business model. Hence, we<br />

established strong partnerships with various industry players, which<br />

has enabled us to tap into new markets, gaining access to resources<br />

and knowledge whilst strengthening our capabilities.<br />

In addition, we have emphasised the need for a flexible and agile<br />

approach to business, constantly adapting to the changing needs<br />

of the market. By adopting this approach, we have been able to<br />

diversify our product and service offerings, catering to different<br />

market segments and remaining relevant in an ever-changing business<br />

landscape.<br />

Finally, we have continued to invest in our people, empowering them<br />

with the skills and knowledge to thrive in an ever-changing business<br />

environment. By nurturing a culture of innovation and creativity, we<br />

have built a highly resilient workforce that can easily adapt and thrive<br />

in challenging times.<br />

The above measures have enabled us to create a business model that<br />

is agile and adaptable. As we continue to navigate through these<br />

challenging times, we are confident that our business model will<br />

stand the test of time, as it has done for over three decades. We will<br />

continue to serve our clients with the highest levels of professionalism<br />

and excellence that leans into our core values, to ‘provide integrity,<br />

reliability, insight, value and quality in everything we do’.<br />

Sarah Glenn,<br />

Commercial Director, RGI Solutions<br />



Is it time for<br />

risk managers<br />

to rethink<br />

their role in<br />

the climate<br />

crisis?<br />

With climate risk now the primary concern for<br />

risk managers around the world, Sustainability<br />

Transition expert François Lanavère explains<br />

how the role will become more important to<br />

businesses than ever before.<br />

The job of a risk manager is defined as a) managing an<br />

organisation’s risks, and b) minimising the adverse impact of losses<br />

on the achievement of the organisation’s objectives.<br />

There is nothing placing more risk and presenting more loss to<br />

businesses than the climate crisis. PwC recently confirmed that<br />

55% of global GDP—equivalent to about $58 trillion—is moderately<br />

or highly dependent on nature, and in five key industries including<br />

construction, all of the economic value from company operations<br />

exhibits ‘high dependence’ on the environment.<br />

No wonder, then, that in 2022, climate risk became the number<br />

one global concern for Risk Managers for the very first time. As<br />

natural disasters develop, increase and intensify, the role of the<br />

Risk Manager has, and will continue to become, more essential<br />

than ever.<br />

As part of our offering at The Climate School, AXA Climate recently<br />

worked in partnership with leading specialist consultancies, risk<br />

management experts and research teams alike to build an online<br />

training curriculum specifically designed around upskilling risk<br />

managers and building awareness. Here are some of the most<br />

pressing areas that need to be on your radar, and how you can<br />

begin to take action.<br />

Climate risk - what are the threats?<br />

For a start, there are the simple physical risks. This could range<br />

from your supply chain being unexpectedly disrupted through to<br />

some kind of extreme weather event, such as a freak heat wave<br />

that would disrupt industrial processes or make work impossible.<br />

Yes, you have insurance, but that industry in itself has recently<br />

been shown to have massively underestimated the immediacy<br />

of the effects of climate change. So, it’s only sensible to do your<br />

homework and plot out your company’s possible risk exposure to<br />

events such as unusually strong storms and droughts in key parts<br />

of the world.<br />

Next, question your climate crisis-related financing and talent<br />

risks. Investors are looking for action here, and the Gen Z hires that<br />

you’re soon to be relying on are refusing to work for companies<br />

that aren’t proactive. Do you have policies that could prevent such<br />

long-term existential threats?<br />

Tied to this is the absolute certainty of increased regulation and<br />

climate crisis compliance. Think Scope 3, but also newer systems<br />

like TNFD and Science Based Targets for Nature (SBTN). If you<br />

roll all this together, it’s clear that there will soon be a huge<br />

need for planning – not just cross-company but also in extracompany<br />

communication with partners and suppliers, big work on<br />

communications and PR, serious thinking about product design,<br />

and concrete plans for Green transition. Enterprise transition is a<br />

risky process in itself.<br />

François Lanavère<br />

Head of Strategic Partnerships, AXA Climate<br />

Know your role - identify and quantify!<br />

With all of this in mind, it’s understandable to feel overwhelmed.<br />

However, your role isn’t necessarily to have a firm grasp of exactly<br />

what each risk is. Instead, focus on mastering the methodology<br />

of identifying, quantifying and treating risks over a longer-term<br />

period. Learn to look beyond the 5-year horizon of business that<br />

most risk managers have (now wrongfully) been trained to explore.<br />

Here are some ways in which you can prepare to do just that.<br />

Logically enough, you first need to identify all of the physical<br />

risks and transition issues that concern your company specifically,<br />

crucially looking beyond the five-year horizon wherever you can.<br />

Next, build risk scenarios—a narrative where you plot out various<br />

what-ifs (potential issue, possible causes and consequences). From<br />

these, you and your team need to query the most likely outcome,<br />

and ask what would have the most impact if they happen.<br />

For example, perhaps your production plant will have access to<br />

30% less water in 2030 due to drought. How do you maintain your<br />

production line with that in mind? Are there other ways to produce<br />

your product using less water? How confident are you about that?<br />

Once you’ve assembled all of this information, you can complete<br />

your prep with a quantification exercise. As a model requirement,<br />

the Task Force on Climate-Related Financial Disclosures (TCFD)<br />

will require numbers alongside every part of your new climate risk<br />

model, and your C-Suite will also want to see these figures too.<br />

The catalyst for change is you. Now is the time to grasp the issues<br />

and make huge strategic contributions. Major regulatory deadlines<br />

are fast approaching, each of which offers a unique window of<br />

opportunity. Take advantage and help your company adapt.<br />

The Climate School is one tool that can help you break this problem<br />

down and take assured action.<br />

François Lanavère is Head of Strategic Partnerships at AXA<br />

Climate. AXA Climate provides climate consultancy and<br />

digital training, with initiatives such as The Climate School,<br />

which has been used by more than 4 million people around<br />

the world to upskill their green skills.<br />

To find out more about The Climate School’s dedicated<br />

course for risk management professionals, visit<br />

www.axaclimateschool.com<br />





Welcome to<br />

Associations Assemble!<br />

<strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong> is delighted to be<br />

joined by some of the leading names from our<br />

industry associations, organisations and institutes.<br />

This issue voices the thoughts of:<br />

Sue Brown<br />

Chair,<br />

Motor Accident Solicitors Society<br />

(MASS)<br />

Anthony Hughes<br />

Chairman and CEO,<br />

Credit Hire Organisation (CHO)<br />

Jonathan Scarsbrook<br />

President,<br />

Association of Personal Injury Lawyers<br />

(APIL)<br />

Laurence Besemer<br />

Chief Executive Officer,<br />

Forum of <strong>Insurance</strong> Lawyers<br />

(FOIL)<br />

Heather Sanderson<br />

Vice-President,<br />

Canadian Defence Lawyers<br />

(CDL)<br />

Graeme Trudgill<br />

Executive Director,<br />

British <strong>Insurance</strong> Brokers’ Association<br />

(BIBA)<br />

Mike Keating<br />

CEO,<br />

Managing General Agents’ Association<br />

(MGAA)<br />

Dr Matthew Connell<br />

Director, Policy and Public Affairs,<br />

at the Chartered <strong>Insurance</strong> Institute<br />

(CII)<br />

Adrian Jolly<br />

Head of Strategic Development,<br />

British Damage Management Association<br />

(BDMA)<br />


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Sue Brown<br />

Title: Chair<br />

Association: Motor Accident Solicitors Society<br />

(MASS)<br />

Transparency<br />

with E-Scooter<br />

Regulations<br />

E-scooter regulations are still months,<br />

or even years, away. Appearing before<br />

the Transport Select Committee recently,<br />

Transport Minister Jesse Norman admitted<br />

that proposals are still a long way off,<br />

adding that this will also be preceded by<br />

a consultation process. This news will be<br />

hugely disappointing for anyone concerned<br />

about the impact of e-scooters on health<br />

and the general public.<br />

With over 2,000 people injured by e-scooters, including<br />

some deaths, there’s an ever-growing need to just get<br />

on with it. As one Committee member noted, the UK<br />

is the last major country in Europe to bring forward a<br />

regulatory framework.<br />

The Motor Insurers’ Bureau also believe that accidents<br />

with cars and uninsured e-scooters add 3% or 4% to<br />

the cost of motor insurance premiums. With the details<br />

having not been published, any scrutiny can only be<br />

a rough estimate. However, with gross written motor<br />

premiums exceeding £20bn, this would translate to<br />

costs of around £<strong>60</strong>0-800 million per year to UK<br />

motorists, adding around £20-25 per premium. If this<br />

became common knowledge among British motorists,<br />

it’s very likely that calls to regulate e-scooters would<br />

intensify considerably.<br />

The MIB is, of course, legally obliged to compensate<br />

the non-fault victims of accidents involving uninsured<br />

e-scooters. These victims fully deserve to be protected.<br />

However, with 1,349 collisions involving e-scooters in<br />

the year ending June 2022 - not to mention apparent<br />

costs of around £<strong>60</strong>0-800m - this would roughly<br />

translate to around £450,000-£<strong>60</strong>0,000 per collision.<br />

Clearly, such figures would be absurd, which is<br />

why there’s an urgent need for this estimate to be<br />

published – opening the door to full scrutiny and<br />

workings. Motorists are already facing hefty premiums<br />

at a difficult time<br />

through rising repair<br />

costs. Meanwhile, a<br />

reduced bill remains<br />

for personal injury<br />

claims. We deserve<br />

full transparency and<br />

disclosure of these<br />

figures so motorists<br />

can see what they’re<br />

paying for.<br />

Anthony Hughes<br />

Title: Chairman & CEO<br />

Association: Credit Hire Organisation (CHO)<br />

Catastrophic<br />

Events, Climate<br />

& Loss<br />

Perhaps you wouldn’t think that mobility<br />

provision is sensitive to surge events, but<br />

floods, fires and other catastrophes have a<br />

tendency to impact the Credit Hire industry<br />

as much as any other. In 2017, for example,<br />

more than 1,000 vehicles were destroyed<br />

in a huge car park fire in Liverpool on New<br />

Year’s Eve.<br />

In that instance, mobility providers would’ve needed to<br />

provide 1,000 like-for-like vehicles for customers, all of<br />

whom need to get to work or take their kids to school.<br />

In another natural disaster, following Storm Dennis and<br />

Storm Ciara in February 2020, salvage company Copart<br />

collected 3,000 flood damaged cars in one day, mostly<br />

from the South West where these storms were at their<br />

most ferocious.<br />

The majority of Credit Hire business is derived from<br />

insurer partners, most of whom are hugely concerned<br />

by the climate emergency themselves - not least<br />

because the cost of reinsurance has risen sharply,<br />

putting great pressure on commercial and personal<br />

premiums.<br />

Earlier this year, Howden Broking Group said that<br />

global property catastrophe risk-adjusted reinsurance<br />

rates-on-line were up by an average of 37%, the biggest<br />

year-on-year increase since 1992.<br />

Natural disasters such as Storm Dennis are becoming<br />

much more frequent, and reinsurers have been exposed<br />

to such heavy losses that, even with inflation-busting<br />

increases in the price of reinsurance treaties, it may<br />

eventually become impossible for them to provide the<br />

safety net of coverage.<br />

The pace of global warming is accelerating; the<br />

warnings are flashing red.<br />

Governments and insurers are<br />

contemplating a scenario<br />

where the private sector<br />

cannot deliver insurance<br />

for catastrophic certainties<br />

on its own. Our industry –<br />

currently working through<br />

immediate challenges in<br />

the motor supply chain –<br />

must also start thinking<br />

through the ways in<br />

which its own business<br />

models will deal with the<br />

approaching storm.<br />


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Jonathan Scarsbrook<br />

Title: President<br />

Association: Association of Personal Injury<br />

Lawyers (APIL)<br />

An Overdue<br />

Reform to<br />

Bereavement<br />

Damages<br />

The death of a child is a parent’s worst<br />

nightmare come true. The heartache is<br />

compounded further when a child is killed<br />

because of negligence.<br />

In England, Wales, and Northern Ireland, a grieving<br />

father will then discover that he is not eligible for<br />

statutory bereavement compensation if he is not<br />

married to, or in a civil partnership with, the child’s<br />

mother.<br />

It is not unusual in 2023 for British couples to become<br />

parents without getting married first. More than half of<br />

births last year were to unwed parents.<br />

In a written ministerial answer in April, the Ministry<br />

of Justice (MoJ) implied that the relationships these<br />

fathers have with their children are not as close as they<br />

would be if the children were not “illegitimate”. This<br />

stigmatises both the fathers and their children. The<br />

MoJ’s approach, not to mention the language used,<br />

demonstrates how deeply flawed the Government’s<br />

attitude is to the fabric of modern families.<br />

APIL members often bear the burden of telling<br />

bereaved relatives that their relationship to a loved one<br />

is not recognised by the law on statutory bereavement<br />

damages. When we told our members about the<br />

Government’s most recent refusal to reform the law and<br />

asked them for help, the membership was galvanised.<br />

Members are writing to their MPs in their droves about<br />

the need to reform the antiquated and offensive law on<br />

bereavement damages.<br />

MPs are often unaware of the fact that statutory<br />

bereavement damages are only available for a very<br />

limited number of grieving relatives, and that the<br />

statutory sum they are given is very low. They are<br />

invariably shocked when they learn the truth, as are<br />

most people.<br />

Bereavement damages is a<br />

key campaign issue for APIL.<br />

We continue to highlight these<br />

issues with parliamentarians<br />

and the public alike. Reform is<br />

long overdue.<br />

Laurence<br />

Besemer<br />

Title: Chief Executive Officer<br />

Association: FOIL<br />

(Forum of <strong>Insurance</strong> Lawyers)<br />

Heather<br />

Sanderson<br />

Title: Vice-President<br />

Association: CDL<br />

(Canadian Defence Lawyers)<br />

Collaboration is Key<br />

International co-operation between legal<br />

organisations and insurance organisations<br />

is an increasingly important tool as climate<br />

change challenges the insurance industry.<br />

AM Best reported that natural disasters cost the global<br />

economy US$343bn in 2021, which is US$46bn more<br />

than 2020 and significantly over average for the 21st<br />

Century. In the main, these losses have been driven<br />

by secondary weather-related perils such as severe,<br />

regional weather events, rather than primary perils like<br />

earthquakes and hurricanes.<br />

These severe weather events do not respect national<br />

borders, and have fueled a worldwide issue of availability<br />

and accessibility of property insurance. The issue<br />

must be addressed through international co-operation<br />

between industry and legal professional organisations.<br />

The benefit of international co-operation was evident<br />

through a recent joint webinar hosted by the Forum<br />

of <strong>Insurance</strong> Lawyers (FOIL) and Canadian Defence<br />

Lawyers (CDL). The panel advocated that insurers must<br />

share their data to enable a co-ordinated response in<br />

support of the insurance industry as it transitions to the<br />

changing weather landscape. There must be further<br />

collaboration to change wordings and build back more<br />

resilient structures in areas away from flood plains and<br />

landslide risk.<br />

The panel also addressed a gap between the actual loss<br />

and the insured loss - as well as its impact - which is<br />

fueling a climate change liability risk. Challenging D&O<br />

policies, well-funded NGO’s are calling-out greenwashing<br />

and holding corporations to their net zero commitments<br />

by questioning their carbon neutral plans.<br />

Claims are also being made against a failure to build<br />

weather resilient structures, holding designers and<br />

contractors to a higher standard than existing building<br />

codes. The panel noted that these claims challenge<br />

traditional CGL liability wordings, which carry a long-tail<br />

risk. International co-operation is required to implement<br />

wording changes in light of these liability risks.<br />

The bottom-line message of the panel is that without<br />

co-operation in these key areas, profitability will almost<br />

certainly be impacted.<br />



Graeme Trudgill<br />

Title: Executive Director<br />

Association: British <strong>Insurance</strong> Brokers’<br />

Association (BIBA)<br />

<strong>Insurance</strong> and the<br />

Weather<br />

It’s inevitable that climate change will<br />

impact the insurance broking sector at<br />

every level, regardless of the types of<br />

insurance a broker is involved with.<br />

Of course, those in the international sector will have<br />

already seen clients catastrophically affected by<br />

weather extremes including storms, floods, landslides<br />

and wildfires. Extreme flooding in Italy has led to a<br />

terrible loss of life as well as the cancellation of the<br />

Emilia Romagna Formula One Grand Prix, something<br />

which is likely to result in a large and complex<br />

cancellation claim if not self-insured.<br />

Brokers focusing on UK domiciled business and their<br />

customers are by no means immune. For example,<br />

flash flooding recently caused a major incident to be<br />

declared in Somerset, and a quick keyword search of<br />

‘storm’ on one news app revealed twelve worldwide<br />

stories in the last eight weeks alone.<br />

In the immediate future, the industry needs to maximise<br />

accessibility to suitable insurance coverage. As one<br />

example, Flood Re already makes a big difference to<br />

affordability in flood hit areas, and they’ve now been<br />

able to allow for an alternative to traditional indemnity<br />

style maintenance when effecting flood repairs.<br />

‘Build Back Better’ is a scheme which accepts repairs<br />

incorporating Property Flood Resilience measures up<br />

to the value of £10,000, on the basis of avoiding or<br />

substantially reducing flood damage in the future.<br />

Climate change is an issue which goes far beyond the<br />

insurance sector, and with ESG firmly on the agenda<br />

in many broker boardrooms, this will certainly remain<br />

front of mind. We are looking at how our own firms<br />

impact the environment, alongside that of our supplychains<br />

and those of our customers, members and<br />

stakeholders. BIBA<br />

has recently launched<br />

a new ESG guide for<br />

members, something we<br />

really hope will support<br />

members in their<br />

navigation of this issue.<br />

Mike Keating,<br />

Title: CEO<br />

Association: Managing General Agents’<br />

Association (MGAA)<br />

Markets Unlocked<br />

through the Power<br />

of Data<br />

The insurance industry has traditionally<br />

been slow to adopt emerging technologies<br />

and processes. But times are changing,<br />

with forward-thinking MGAs leading<br />

the way in demonstrating the value of<br />

technological innovation for even the<br />

largest and most established organisations<br />

within the sector.<br />

This is particularly true when it comes to looking at<br />

how MGAs use data from the online customer journey.<br />

Insurers have struggled when it comes to gathering<br />

and capturing data, not to mention extracting insights<br />

from this information which could help in the process<br />

of informed decision making.<br />

This is primarily due to legacy IT systems, most of<br />

which were implemented many years ago and have<br />

not been upgraded since. Given this timeframe - and<br />

the amount of data they now store - most insurers<br />

are quite rightly nervous to make changes, overcome<br />

by the fear of losing important information during<br />

the transition. However, this lack of flexibility makes it<br />

harder to integrate and apply data from the vast array<br />

of new sources emerging almost daily, which is driving<br />

a revolution in insight and understanding.<br />

This is where MGAs are proving to be a real asset.<br />

They are not hamstrung by legacy systems, remaining<br />

agile and fast-moving whilst able to access, analyse<br />

and understand many sources of information. This<br />

provides crucial insights when it comes to writing<br />

specialist insurance, enabling MGAs to make better<br />

operational decisions, launch new products and enter<br />

new, emerging markets quicker than ever before. They<br />

can also provide their capacity providers with access to<br />

markets that they would otherwise struggle to reach.<br />

The ability to be nimble is fundamental in such a fastchanging<br />

world, and whilst<br />

insurers are beginning<br />

to invest more heavily in<br />

updating their own datahandling<br />

systems, MGAs<br />

continue to lead the way –<br />

firmly securing their role in<br />

the future of the industry.<br />



Dr Matthew Connell<br />

Title: Director, Policy and Public Affairs<br />

Association: Chartered <strong>Insurance</strong> Institute<br />

(CII)<br />

Industry<br />

Influences on<br />

Climate<br />

<strong>Insurance</strong> does not touch on sustainability<br />

as obviously as sectors such as aviation,<br />

energy production, or even agriculture.<br />

However, there’s probably no other sector<br />

which interacts with the drive to net zero in<br />

as many different ways as insurance does.<br />

Insurers influence climate change through:<br />

• Using their leverage as underwriters to ensure that<br />

projects are built right first time. This is because<br />

substandard construction is inherently unsustainable.<br />

For example, buildings that are not resilient to<br />

earthquakes or hurricanes in high-risk areas will have<br />

a lifespan that is a fraction of that of a properlyconstructed<br />

building.<br />

• Sharing data and insights into developing risks, for<br />

example giving advice to clients and governments<br />

around evolving flood risks.<br />

• Investing in a way that promotes sustainability, either<br />

by investing in firms that are producing goods and<br />

services that promote sustainability, or by taking<br />

an active role in the governance of firms to prepare<br />

them for the transition to a sustainable approach.<br />

• Underwriting firms that produce new technologies.<br />

For regulatory reasons, innovative firms sometimes<br />

struggle to find cover because of a lack of a track<br />

record. In turn, this threatens their ability to secure<br />

credit. For example, mobility solutions based<br />

on hydrogen have challenges around reserving<br />

requirements because they are so new, despite<br />

having significant advantages over other energy<br />

sources in relation to sustainability.<br />

• Resolving claims in a more sustainable way, either<br />

by repairing rather than replacing new for old, or<br />

replacing inefficient technologies with more efficient<br />

technologies. Around 80% of the building stock that<br />

will exist in 2050 already exists, so the actions of<br />

insurers now will have a direct and irreversible impact<br />

on the achievement of<br />

climate goals.<br />

Every part of the<br />

insurance value chain –<br />

broking, underwriting and<br />

claims – is involved in the<br />

drive to net zero. Without<br />

insurance, we cannot<br />

achieve sustainability.<br />

Adrian Jolly<br />

Title: Head of Strategic Development<br />

Association: British Damage Management<br />

Association (BDMA)<br />

Collaboration in the<br />

Climate Crisis<br />

The British Damage Management<br />

Association (BDMA) is the accreditation<br />

body of choice for the UK damage<br />

management and property restoration<br />

industry sectors. The membership<br />

demographic forming the BDMA comprises<br />

of damage management contractors and<br />

individual practitioners, insurance company<br />

claims management personnel, loss<br />

adjusters, and loss assessors.<br />

There’s no doubt that global warming is having a<br />

seismic effect on national and global weather patterns.<br />

In the UK, we are experiencing more prolonged drought<br />

periods, more extreme temperatures, and greater<br />

incidences of both torrential and excessive rainfall.<br />

The above means that the UK insurance sector faces<br />

a significant increase in the number of surge events<br />

that it is having to handle. Events of this nature can<br />

cause substantial damage to buildings and contents;<br />

domestic housing and commercial premises can all be<br />

affected, causing extreme disruption and distress. Event<br />

types include a greater incidence of fires, localised flash<br />

flooding, regional and national flooding, and burst pipe<br />

claims caused by low temperature extremes. Never has<br />

resilience and contingent capacity planning been more<br />

important and focused.<br />

The wide variances in weather conditions and events<br />

creates a ‘feast and famine’ situation for damage and<br />

claims management practitioners alike. When it’s quiet,<br />

it’s very quiet. However, significant work volumes<br />

from surge events can cause excessive pressure on<br />

resource, not just in terms of equipment, but in terms of<br />

manpower too.<br />

Whilst governments and industry are increasingly<br />

imposing regulation and measures to slow the<br />

effects of global warming, the horse may already<br />

have bolted. There’s no doubt that communities will<br />

continue to suffer from extremes of temperature,<br />

rainfall, and drought.<br />

<strong>Insurance</strong> companies<br />

and their policyholders<br />

will bear the brunt of<br />

increased claims costs, and<br />

in turn, the BDMA and its<br />

members will undoubtedly<br />

form an integral part of<br />

the restorative response<br />

required.<br />


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Building Trust through<br />

Responsible AI in Claims:<br />

Championing a Voluntary<br />

Code of Conduct<br />

One of the core tenets of insurance is that of trust. Our customers<br />

must believe that monies will be available to meet their costs and<br />

settlement will be on a fair and equitable basis in the event of a<br />

valid claim. Without that trust, the whole ecosystem of insurance<br />

comes under threat. Customers will feel short-changed, deceived,<br />

and even mutinous – perhaps to the point where fraudulent<br />

behaviours are seen as somehow acceptable.<br />

Just a<br />

Thought<br />

from Eddie Longworth<br />

Therefore, it seems obvious that claims<br />

settlement systems must reflect that core<br />

principle in both design and application.<br />

Be it a human-centred, technology<br />

driven, or hybrid decision-making modus<br />

operandi, there is a requirement upon us<br />

to deliver a service that is transparent,<br />

accountable, and beyond reproach.<br />

What then of the role of AI as we navigate<br />

the waters of future developments?<br />

How are we to ensure that there is never<br />

any danger of AI mismanagement,<br />

misunderstanding, or unintended<br />

consequences breaching the fundamental<br />

principles of a trust-based relationship?<br />

It seems to me that one way is for those<br />

involved in the AI world – in whatever<br />

guise that may take - to agree on a<br />

voluntary Code of Conduct that will guide<br />

their thoughts, deeds, and activities. An<br />

AI ‘Ten Commandments’ perhaps, that<br />

drives us to ever higher standards of<br />

ethical behaviours, helping to ensure that<br />

the amazing AI-driven developments<br />

of the coming years are not ‘the tail<br />

wagging the dog’. However, as much<br />

as we can marvel at AI’s extraordinary<br />

feats of analysis, insight, and automated<br />

decision-making, we must always have a<br />

set of guiding principles as our reference<br />

points, that help to avoid poor practices<br />

or simply the mistaken application of the<br />

power of AI.<br />

We all know the Little Britain catchphrase<br />

of ‘computer says no’, and we’ve all<br />

met this barrier to trust and mutual<br />

comprehension in our daily interactions<br />

with financial institutions and other<br />

service suppliers. Imagine that frustration<br />

and breakdown in relationships when writ<br />

large on the AI platforms of the future.<br />

Like any technology, we must have regard<br />

not only for what we can do with it, but<br />

also what we should do with it.<br />

That old dictum of being comfortable<br />

with headlines on the front page of the<br />

Daily Mirror if anything were to go wrong<br />

might well be the best advice that we<br />

could give ourselves as we contemplate<br />

a future world of claims, in which<br />

technology will eclipse human beings as<br />

the primary decision makers.<br />

Of course, we must also grasp<br />

opportunities offered by ethical AI<br />

applications with both hands. No Code<br />

of Conduct should ever act as a brake on<br />

the rapid development of this amazing<br />

technology. Instead, it should serve as<br />

a great catalyst for all stakeholders to<br />

mutually agree the ‘stake in the ground’<br />

that we will need if we are to retain public<br />

trust in our industry.<br />

Because, and I repeat, without that trust<br />

there is no solid foundation on which we<br />

can build. Technology is not the driver<br />

of our industry but the enabler. It is<br />

not AI that ultimately determines who<br />

is right and who is wrong, whether a<br />

claim should be paid or not, if a claim is<br />

fraudulent or valid.<br />

Instead, it is the human beings behind<br />

this technology on which our future<br />

depends, and a voluntary Code of<br />

Conduct can only serve to improve<br />

the chances of us getting it right -<br />

to the benefit of all the players and<br />

policyholders for generations to come.<br />

Join me in advocating for such an<br />

approach, and feel free to contact me<br />

directly with your thoughts and support:<br />

eddie.longworth@jelconsulting.co.uk<br />

Eddie Longworth,<br />

Director, JEL Consulting<br />


Subsidence claims<br />

improving supply chain efficiency<br />

Geobear is the inventor of geopolymer<br />

injection treatments to stabilise properties<br />

impacted by subsidence.<br />

The fast process means treatments can be<br />

completed in as little as one day, minimising<br />

the disruption to end customers and<br />

improving satisfaction.<br />

34% less carbon is emitted than traditional<br />

methods and tree removal is not required for<br />

the process to work.<br />

As a BBA-accredited business, we work with<br />

insurers and adjusters to bring transformative<br />

solutions to the sector and reduce overall<br />

claim times and costs.<br />



Making Efficiency<br />

Gains in<br />

Subsidence Claims<br />

A critical aspect concerning subsidence claims revolves around the<br />

timeliness of their resolution. On average, a subsidence insurance<br />

claim can take 18-24 months to conclude. Subsidence claims, being<br />

relatively complex, demand thorough investigations in order to devise<br />

appropriate solutions. In the wake of the surge in 2018, out of the<br />

40,000 successful insurance claims, only half had been resolved<br />

within a two-year timeframe. Given the 2022 summer heat surge<br />

that the insurance sector experienced, it’s possible that it could<br />

be 2024 before some of the claims from last summer are settled.<br />

The claims process commences when the<br />

customer notifies their insurer about the<br />

presence of cracks or movement in their<br />

property. At this stage, the insurer will<br />

handle the claim in-house, or they will<br />

assign a loss adjuster to handle the claim<br />

on their behalf. The adjuster conducts a<br />

comprehensive inspection, organising a site<br />

investigation (SI) and monitoring program<br />

if appropriate to do so, before reporting<br />

their findings to both the insurer and the<br />

customer. After analysing the results, the<br />

adjuster determines whether additional<br />

information is required and looks to propose<br />

a repair solution and programme of works<br />

for the claim.<br />

The response to claims was efficiently<br />

coordinated using video technology. By<br />

meticulously analysing available information,<br />

Geobear could design and undertake a<br />

ground improvement scheme within 90 days<br />

of claim notification. Using an approach that<br />

only takes an average of 1-2 days to complete<br />

on-site, Geobear can stabilise and strengthen<br />

the subsoil beneath affected foundations,<br />

effectively halting further movement. This<br />

innovative approach eliminates the need<br />

for prolonged and complex investigations,<br />

monitoring, and mitigation phases - enabling<br />

the insurer and loss adjuster to proceed<br />

directly to final superstructure repairs.<br />

The key to all of this lies in expediting<br />

the claims process. Enhancing efficiency<br />

throughout the process reduces<br />

administrative time and uncertainty, leading<br />

to improved customer understanding and<br />

satisfaction.<br />

Efficiency improvements in subsidence<br />

claims can be achieved by working in<br />

partnership with insurers and loss adjusting<br />

clients. Geobear serves as a case study<br />

in efficiency improvement, benefitting all<br />

stakeholders involved through an innovative<br />

approach to resolving subsidence issues.<br />

Subsidence repair contractor Geobear<br />

worked with a Top 10 UK insurer and leading<br />

global loss adjuster to revolutionise the<br />

subsidence claim lifecycle by aiming to<br />

reduce the time taken for such claims by<br />

one year, all without incurring additional<br />

costs. Research indicated that costs rose<br />

as claims extended beyond 90 days, while<br />

customer satisfaction declined. However, it<br />

was found that these outcomes could largely<br />

be avoided. Armed with this understanding,<br />

the partnership collaborated to develop, test<br />

and implement an innovative solution for<br />

subsidence claims.<br />

The solution incorporated ‘smart triaging’,<br />

resulting in a streamlined claims process<br />

and a novel approach to repair. This new<br />

methodology was rapid and non-invasive,<br />

effectively curtailing ground movement<br />

to allow prompt commencement of the<br />

repair phase.<br />

Within a remarkably short timeframe of just<br />

six months, the partnership successfully<br />

devised an entirely new approach to<br />

managing subsidence claims. By minimising<br />

the number of works in progress, adjusters<br />

could concentrate their resources on a select<br />

number of claims, enabling the delivery<br />

of a superior level of customer service.<br />

This reduction in overall claims volumes<br />

alleviated pressure on the extended supply<br />

chain, ensuring smooth operations. Complex<br />

claims were also resolved at an earlier stage,<br />

reducing internal administrative costs and<br />

emotional distress for the policyholder.<br />

In addition, the Geobear solution eliminates<br />

the necessity for tree removal, safeguarding<br />

the surrounding community environment.<br />

Furthermore, homes are stabilised with the<br />

treatment, accompanied by a market leading,<br />

insurance backed guarantee and a certificate<br />

of structural adequacy to provide that extra<br />

layer of reassurance.<br />

Collaboration within the supply chain delivers<br />

unparalleled benefits to customers. Given<br />

the increasingly dry climate in the UK, the<br />

likelihood of subsidence surges has risen<br />

from 10% to 25%. To prepare for the growing<br />

probability of such events, a proactive and<br />

collaborative approach must be fostered.<br />

Building efficiency today ensures timely,<br />

cost-effective, and satisfactory outcomes for<br />

tomorrow’s customers.<br />

Chris Carlton,<br />

MRICS, New Business &<br />

Key Account Director, Geobear<br />




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seamless collaboration of systems to reduce complexity,<br />

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In a world of finite problems, we bring infinite solutions<br />

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The Vizion team has decades of industry and digital<br />

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Chemistry for<br />

a Sustainable<br />

Future:<br />

Q&A with<br />

Grant Dempsey<br />

<strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong> were delighted<br />

to welcome BASF Automotive Refinish UK &<br />

Ireland as our Headline Sponsor at this year’s<br />

<strong>Modern</strong> Claims Awards. We sat down with Grant<br />

Dempsey, Sales Manager – Distribution, to discuss<br />

sustainability, innovation, and how their work feeds<br />

into the overall aims of the motor repair sector.<br />

Hi Grant - let’s kick things off by talking about<br />

sustainability and climate! What’s your current focus when<br />

Q it comes to sustainability, and how is BASF working to<br />

achieve net-zero emissions?<br />

AAt BASF, our goal is net-zero emissions by 2050. How’s that<br />

possible for a company in the energy-intensive chemical<br />

industry? It’s ambitious, for sure. But we’re confident we can<br />

get there. That’s because we’re leaving no stone unturned in our<br />

pursuit for change, questioning everything that can be questioned<br />

and finding inspiration in surprising places.<br />

We have an established track record in reducing our global CO2<br />

emissions. Since 1990, we’ve almost halved them, and by 2030,<br />

we want to reduce our emissions by a quarter compared to 2018.<br />

By 2050, in accordance with the Paris Climate Agreement, we’re<br />

aiming for net-zero CO2 emissions.<br />

We’ve set a benchmark in achieving climate protection targets with<br />

our BASF Carbon Management Program, and we’re also aiming<br />

towards a Circular Economy with our ChemCycling approach. We<br />

also co-founded the Alliance to End Plastic Waste, a global effort<br />

to end plastic waste in the environment. This is how we understand<br />

our corporate purpose - ‘we create chemistry for a sustainable<br />

future’.<br />

Q What’s new for BASF in the world of innovation?<br />

AInnovation made BASF the leading chemical company.<br />

Today, our customers and wider society are both looking for<br />

innovative solutions more than ever. We all need answers<br />

for problems like climate change, scarcity of resources, and marine<br />

littering. As the most innovative chemical company, we take a<br />

special responsibility here, because innovations based on chemistry<br />

are the key to those answers.<br />

In 2023, we’re proudly leading the way with our highly-anticipated<br />

Glasurit® 100 Line basecoat system. Exceeding all global VOC<br />

requirements, Glasurit 100 Line is already proving to be an absolute<br />

winner in the field. With Glasurit 100 Line, leading body shops in<br />

our industry can now make the environmentally-responsible choice<br />

when it comes to automotive repairs.<br />

At BASF, our innovative power is based on efficient research<br />

and development. We build on our Know How Verbund: the<br />

great creativity, the specific skills, and the broad knowledge of<br />

our networks. It’s all about developing solutions together for a<br />

sustainable future. Join us in our efforts to innovate; we welcome<br />

your expertise and opportunities for external collaboration in our<br />

fight against ongoing challenges!<br />

QBASF has won its fair share of awards and accolades in<br />

recent months, which is fantastic! Tell us more about these<br />

achievements…<br />

ALast October, we won the 2022 British Coatings Federation<br />

Sustainable Innovation Manufacturer Award with our<br />

waterborne basecoat system AGILIS® by R-M®, BASF’s<br />

premium refinish brand. The award raises awareness of new<br />

developments within the industry towards a more sustainable<br />

future, and highlights the significance of the positive impacts made<br />

by manufacturers. We couldn’t have been prouder of our win!<br />

Just last month, BASF - in collaboration with Pulpex Ltd - picked<br />

up the first SCI® Award for Innovation Enabled by Partnership. The<br />

underlying mission was to develop a bottle that was renewable,<br />

biodegradable, and recyclable through existing paper recycling<br />

schemes. The resulting fibre bottle offers brand owners a<br />

sustainable, environmentally-friendly alternative. This is such an<br />

exciting time for sustainable innovation at BASF.<br />

QThat’s great! So, can you give an example of how your<br />

award-winning initiatives and products factor into the<br />

ecosystem of the motor repair industry?<br />

AWell, where do we begin? Our award-winning R-M® AGILIS<br />

paint system is the UK’s first waterborne vehicle refinish<br />

basecoat system to hold a VOC value below 250 g/L. R-M<br />

AGILIS has now revolutionised the global premium automotive<br />

refinish market, setting a standard with the highest ecoeffectiveness<br />

in the industry.<br />

I’d also be remiss to forget BASF’s Biomass Balance Approach. Our<br />

products, like R-M Pioneer Series, are manufactured with renewable<br />

raw materials. This means less CO2 (over 1,900 tonnes to date),<br />

and with initiatives like R-M AGILIS and Pioneer Series, bodyshop<br />

businesses can attract new, sustainably-minded customers too.<br />

QOn the subject of awards, BASF were recently the Headline<br />

Sponsor at our <strong>Modern</strong> Claims Awards in Liverpool. What<br />

did you enjoy most about the evening, and why do you<br />

think it was important to sponsor the awards?<br />

AIt was a great privilege to be Headline Sponsor for this year’s<br />

event. The stunning location and the atmosphere created by<br />

the team was particularly enjoyable, and I would personally<br />

like to congratulate the winners and all involved in making the<br />

event such a success. As a supplier to the collision repair industry,<br />

it was important for us to have the opportunity to raise awareness<br />

that with each automotive refinish repair utilising our awardwinning<br />

eco-effective products, we are progressing towards our<br />

climate protection goal, all while supporting our customers on their<br />

journey to net-zero.<br />

Grant Dempsey,<br />

Sales Manager - Distribution, BASF Automotive Refinish<br />

UK & Ireland<br />



Industry<br />

Collaboration:<br />

Working together to provide the best mobility solution<br />

<strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong> has partnered with mobility provider, Europcar Mobility Group UK, to run a<br />

series of roundtables in 2023. In the second instalment, held at Europcar’s Kings Cross branch in May, we<br />

discussed the customer benefits of collaboration between credit hire organisations, vehicle rental companies<br />

and insurers.<br />


n Why aren’t credit hire<br />

processes working?<br />

n The role of technology<br />

n Open communication<br />

throughout the repair<br />

supply chain<br />

n Fit for purpose for<br />

Consumer Duty<br />

n Credit hire versus courtesy<br />

vehicle - improving<br />

consumer understanding<br />



Kirsty McKno, Managing Director, Cogent<br />

Hire, kicked off the discussion with an admittedly<br />

controversial point. She believes the current credit<br />

hire processes in the industry are broken, and open,<br />

honest discussion is essential. Without identifying<br />

where the process is broken, and where there is<br />

genuine friction, it can’t be fixed. She highlighted<br />

that for collaboration to be successful, it requires a<br />

true meeting of minds, two sides coming together<br />

with the same agenda.<br />

Kirsty believes the industry is currently not<br />

transparent enough and does not share enough<br />

data to make collaboration successful.<br />




Wayne Mason-Drust, Managing Director,<br />

Accident Express Group, added that where credit<br />

hire is today is not really where it was originally<br />

intended to be. He believes it is important to<br />

recognise this in order to get the industry to where it<br />

needs to be. He cited the example of the third-party<br />

system. Over the years, this has been hardened<br />

and eroded so that it no longer does what it was<br />

designed to deliver. Kirsty agreed, stating that<br />

if it worked as intended, litigation would only be<br />

required for the all or nothing liability cases.<br />


James Roberts, Business Development Director,<br />

<strong>Insurance</strong>, Europcar Mobility Group UK, asked<br />

how the industry can improve interactions and<br />

better support insurers. Jamie Summerscales,<br />

Senior Manager, Third Party Claims, Covéa<br />

<strong>Insurance</strong>, spoke about how the General Terms of<br />

Agreement (GTA) was introduced to bring peace<br />

between insurers and credit hire organisations, but<br />

that time has seen a shift in behaviours. He believes<br />

it still works when both parties understand and buy<br />

into the same framework, but not when players<br />

start to move the goal posts or introduce new<br />

ambiguities. Then it begins to unravel, ultimately<br />

inviting litigation.<br />

He believes that, before the industry can work<br />

together to fix what is not working today,<br />



participants in the GTA must look in the mirror and<br />

judge whether they contribute to the vision and<br />

purpose of the framework.<br />

Matt Corby, Founder, Vehicle Replacement<br />

Group, added that he believes communication<br />

is the missing ingredient to make collaboration<br />

successful. With opposing ways of structuring<br />

how credit hire is provided, and without common<br />

ground, there will always be friction. He said<br />

protocols work for larger players, but smaller<br />

MGAs and smaller insurers have to do their own<br />

thing and there is a void between the two where<br />

collaboration is impossible. Jamie agreed, pointing<br />

out that this breeds a damaging lack of trust.<br />

One of the main challenges, according to Luke<br />

LeSauteur, Director, West Grove Consulting, is that<br />

everyone is seeking to gain competitive advantage.<br />

Large CHOs dominate the top 20 insurers and<br />

do the most transactions. It’s not in their interests,<br />

therefore, to collaborate. Until priorities change<br />

from profit to purpose, these conversations will be<br />

very difficult. Everyone around the table agreed<br />

that better competition is needed, to breed better<br />

practice and keep CHOs more honest.<br />


Communicating clearly with customers and sharing<br />

data openly with other players in the supply chain<br />

can make a significant difference to outcomes and<br />

customer experience. The latest technology, as<br />

Kirsty explained, can be utilised to deliver positive<br />

customer service and an efficient repair.<br />

She described how Cogent Hire aims to shrug<br />

off the bad, frictional practices and look at a<br />

new way of doing things, utilising ‘people plus<br />

technology’. Vehicles are triaged, for example,<br />

with customers informed quickly of the next steps,<br />

such as whether the car is written off or if a smart<br />

repair can be carried out to remove the need for a<br />

replacement vehicle. At all stages, each customer<br />

knows where their vehicle is in the process and<br />

what will happen next.<br />





Open communication is also vital between each<br />

business involved in the repair and claim process.<br />

Matt suggested this should occur through APIs<br />

between the credit hire company, repairer, and<br />

insurer/ broker, so that FNOL and other data is<br />

shared to give all organisations the same level of<br />

information. As Kirsty added, from the customer<br />

point of view each of those companies is simply<br />

part of the insurer. It is, therefore, in the insurer’s best<br />

interests to maintain open communication with the<br />

entire supply chain, to gain real-time updates and<br />

avoid over-hires or other mis-communications.<br />


However, Luke shared one of the communication<br />

challenges that he faces when working across<br />

all channels – the repairer, customer, insurer,<br />

accident management company. That is the<br />

question of who owns – and who can see –<br />

the data. This can be a blocker, halting both<br />

communication and collaboration.<br />

Jamie reminded the group that the focus must<br />

remain on getting vehicles processed and<br />

repaired or settled as quickly and efficiently as<br />

possible, via open dialogue between all parties. If<br />

that is done effectively, the hire will be minimised<br />

and take care of itself.<br />


James also asked the group for their thoughts on<br />

the upcoming Consumer Duty. He asked whether<br />

people believe consumers will know what their<br />

rights are, or if the onus is on the industry to<br />

protect them.<br />

The general consensus was that the industry will<br />

continue to work to protect consumers, but that<br />

insight is needed regarding current complaints<br />

and how these issues can be avoided in future.<br />

Jamie added that the entire industry has a duty to<br />

ensure their customers understand the products and<br />

services they are purchasing, and to process and<br />

repair vehicles as quickly as possible.<br />

The difficulty, according to Luke, comes when<br />

customer service becomes a potential sales<br />

opportunity. At all times, it is critical that the<br />

customer understands their rights, even if<br />

something changes.<br />

Kirsty provided an example of where cases<br />

originally referred as ‘at fault’ later become<br />

known as ‘non-fault’. At that point, the credit hire<br />

company will need to make their involvement clear<br />

to the customer. It comes back to the challenge of<br />

communications discussed earlier, and the friction<br />

created because processes do not include a clear<br />

explanation of details to the customer.<br />

Jamie felt the Consumer Duty legislation should not<br />

cause a seismic shift to the front of house teams who<br />

already sell to customers and explain the terms.<br />

But Kirsty questioned whether that really does<br />

happen every time, suggesting that it could require<br />

a significant adjustment for many.<br />

Kirsty went on to explain that because credit hire<br />

itself is an unregulated activity, many credit hire<br />

companies are not regulated and, therefore, may<br />

not realise this new legislation applies to them. She<br />

believes the industry needs to raise awareness of<br />

the fact that credit hire companies need to know<br />

about the new rules – if for no other reason than<br />

because they will be included as part of the supply<br />

chain under insurers.<br />






The other discussion around the table involved the<br />

significant issue of consumer misunderstanding,<br />

particularly regarding the terms around the vehicle<br />

supplied under a credit hire agreement while theirs<br />

is being repaired. In Jamie’s experience, many<br />

people do not realise that they are driving a credit<br />

hire vehicle or that they will be liable for the cost<br />

later. Wayne agreed, citing examples of cases<br />

being referred on to a credit hire or credit repair<br />

business. He has previously had conversations<br />

with customers around what their rights are,<br />

advising that the credit hire company will pay out<br />

a significant amount of money on their behalf, but<br />

they are ultimately responsible for the cost. Often,<br />

these customers will opt to go through their own<br />

insurance instead.<br />

Matt added that the next step in a non-fault claim<br />

(when the customer does opt to go through their<br />

own insurer) involves the insurer referring them onto<br />

a credit hire company. In these cases, the customer<br />

is likely to accept the referral because they see<br />

this as part of their insurer’s service. However, this<br />

leaves the customer in the same situation and at risk<br />

of a large and unexpected cost if the terms are not<br />

clearly explained.<br />

Using the term ‘credit’ is, in Kirsty’s opinion,<br />

a reason for customer confusion. In reality, the<br />

arrangement is actually just a deferment of<br />

payment rather than actual credit. She suggested<br />

that changing this terminology would perhaps help<br />

consumers when it comes to understanding the<br />

agreement that they are entering into.<br />


In the closing comments, Kirsty stated that<br />

‘collaboration’ should not just be the latest trendy<br />

buzzword; players must commit wholeheartedly.<br />

Wayne reiterated the importance of every area<br />

of the industry being involved and heard in<br />

discussions, to shape the future and the terminology<br />

being used.<br />

Jamie believes that there are a lot of challenges<br />

in the market that can be overcome together.<br />

He asked whether technology really can fix the<br />

problem, or does it just bring new ambiguity and<br />

make some things worse? Matt added that there is<br />

a lot of will from each organisation, but old legacy<br />

systems and mindsets are slowing down innovation<br />

and development. Luke suggested the involvement<br />

of bigger players in the discussions would help the<br />

industry and its customers.<br />

Further topics discussed around sole supplier<br />

relationships and the barriers to change will be<br />

examined in the next issue of <strong>Modern</strong> <strong>Insurance</strong><br />

<strong>Magazine</strong>.<br />

The next roundtable will take place in September<br />

2023, where the discussion will be continued.<br />


“We don’t just want to be good; we want to be the best.”<br />

Robertsons understand the need to design products and<br />

services, which deliver across a fast-evolving landscape.<br />

W I T H<br />

E X P E R T I S E<br />

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Our packaged services are bespoke, innovative and cost focused,<br />

providing fully integrated claim solutions to the Insurer, broker, MGA<br />

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Ben.Robertson@Robertsonandco.com<br />

David.Eldridge@Robertsonandco.com<br />

Lee.Whitehouse@Robertsonandco.com<br />

Allan.Clark@Robertsonandco.com<br />

Jason.Harris@Robertsonandco.com<br />



3<br />

Mind the<br />

Protection Gap<br />

Much like the rest of the world, the UK has a natural catastrophe protection gap, where total<br />

economic losses exceed the total insured losses. Former Governor of the Bank of England, Mark<br />

Carney, worried a few Lloyd’s syndicates when talking about the ‘tragedy on the horizon’ at Lloyds<br />

in 2015. However, not much has materially changed since then in terms of closing the gap and<br />

reducing risk exposure.<br />

Why is this? Are policyholders willingly exposing themselves<br />

to risk? Is there a lack of trust between the policyholder and<br />

the insurer? Or, perhaps, with the cost of everything else<br />

increasing, wallets are stretched too thin to cover?<br />

Prospect theory - and more specifically, loss aversion - form<br />

the basis of the behavioural economics of insurance. Tversky<br />

and Kahneman found that psychologically, the pain of losing<br />

is about twice as powerful as the pleasure of gaining, which<br />

begs the question; why are people underinsuring their homes<br />

to climate and catastrophe risk, given the increasing frequency,<br />

duration and volatility of such events due to climate change? In<br />

the UK, we are less susceptible to large impact events such as<br />

tsunamis, earthquakes or wildfire. However, take a moment to<br />

think of the winter storms and summer heatwave temperatures<br />

that the UK faced back in 2022. Subsidence, escape of water<br />

and general weather events account for 48% of home insurance<br />

claims in the UK.<br />

One could assume that the protection gap would be related to<br />

inflation, the cost-of-living crisis and a lack of financial support.<br />

However, in 2022, the average cost of home insurance was<br />

actually the lowest it has been for 10 years. Everyone loves<br />

a deal, but with a cheap home insurance policy you’ll often<br />

find that the insurer has stripped more and more out of the<br />

coverage to offer a reduced price, resulting in an insufficient<br />

product that doesn’t provide the necessary cover. <strong>Insurance</strong><br />

doesn’t equal protection.<br />

The blame for the protection gap typically sits with customers<br />

for being underinsured. However, the protection gap is in fact<br />

a by-product of the knowledge gap. I personally hate taking<br />

my car into the garage due to my lack of knowledge on the<br />

subject matter of car mechanics. A knowledge gap between<br />

those buying and selling leads to trust issues - trust which is<br />

then broken when the car still has a problem after paying for<br />

the works, or when the claim is not approved after buying what<br />

you thought was a great policy. Therefore, there is a shared<br />

responsibility to educate consumers, simplify the process and<br />

increase transparency on what they are actually buying. Only<br />

then will trust be gained and retained.<br />

Insurtech is leading the way - not just in our ability to predict<br />

events, but also in our ability to assess damages after the<br />

fact. Levering technology can also simplify the process for<br />

consumers. Picture a climate protection product which offers a<br />

cash pay-out based on an approved severity of risk. This creates<br />

a climate risk management approach suitable for all parties, a<br />

simplified and transparent process for buying insurance, and<br />

an improved claims journey powered by technology - much<br />

of which you will be able to find in Claim Technology’s open<br />

insurtech marketplace. This can also lead to increased trust<br />

between the insurer and the policyholder.<br />

If insurers would start treating<br />

policyholders with more care and<br />

minimise their customer turnover,<br />

building products that are fit for<br />

purpose and don’t break as soon<br />

as you want to use them, we really<br />

could begin to reduce the home<br />

insurance protection gap in the UK.<br />

Ashley Preece,<br />

Product Owner, Claim Technology<br />


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are ready for<br />

the future.<br />

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In Conversation<br />

with… Solera |<br />

Audatex<br />

Hi Neil, thanks so much for your time today.<br />

Q Tell me about Solera, what you do and the solutions that<br />

you offer to support the wider industry?<br />

ASolera, as a global automotive software and solutions<br />

company, is built on four pillars, each of which support an<br />

array of interconnected solutions. The aim of our fourpillar<br />

structure (vehicle claims, vehicle repair, vehicle solutions<br />

and fleet solutions) is to be the global leader in vehicle lifecycle<br />

management, with a touchpoint at every significant milestone.<br />

How does Artificial Intelligence fit into your business<br />

practices, and how are you encouraging your staff and<br />

Q customers to trust the decision-making capability of AI?<br />

We use the power of AI, data and services to streamline<br />

processes across vehicle claims, repair, sales and fleet<br />

A management, delivering actionable insights so our<br />

customers can make better business decisions.<br />

For intelligent vehicle repair estimates, we use Qapter. It blends<br />

human repair expertise with the science of AI, which detects<br />

vehicle damage via images. It’s intuitive for customers and<br />

assessors to use, with the customer guided through the process<br />

of taking and uploading relevant images by the technology itself.<br />

AI then presents a cost estimate for the experts to review. This<br />

provides trust, because assessors can see how accurate the AI<br />

estimates are and the ways in which they are informed by our live<br />

datasets, thus keeping apace of cost changes.<br />

In addition, some decisions can be made straight away and<br />

without physical inspection, such as assessing whether the car is<br />

safe to drive, requires recovery or is a total loss case. This brings<br />

substantial savings for insurers and expedites the customer’s<br />

claim. AI is really opening up all kinds of applications where we can<br />

improve our business efficiency.<br />

QWhere were the most significant challenges in your area of<br />

the industry over the last 12-18 months, and how are you<br />

adapting to meet the demands of the ‘Perfect Storm’<br />

across the motor claims sector?<br />

AThe <strong>Insurance</strong> industry is facing many challenges: inflationbusting<br />

highs, advances in technology, and staffing. The<br />

automotive insurance industry has always run on small<br />

margins and has a driving need to offer a high-value, competitive<br />

service with minimised costs. Our role has always been to facilitate<br />

this, and it has never been more important.<br />

The economy may be faltering - inflation high and insurance<br />

a more competitive market than ever – but our role remains<br />

the same. To provide the technologies, services and solutions<br />

which mean insurers can work faster, more efficiently and more<br />

sustainably, while supporting their customers as professionally and<br />

swiftly as possible.<br />

The harder the market, the more value our solutions add for<br />

everyone in the automotive sector, whether they fill the role of a<br />

supplier, repairer or operator.<br />

QSolera have recently partnered with Mercedes-AMG<br />

PETRONAS Formula One team, which is great to see!<br />

Tell us more about that partnership and how this factors<br />

into your plans for Solera.<br />

ASolera and the Mercedes-AMG PETRONAS Formula One<br />

Team share the same commitment to transforming the<br />

automotive industry, so we’re really excited about this<br />

collaboration. It’s an opportunity to break new boundaries and<br />

inspire excellence on a global scale.<br />

Back in June, we also exhibited and spoke at Automechanika at<br />

the NEC in Birmingham, where we also featured a replica of the<br />

Mercedes-AMG PETRONAS Formula One car. It certainly gained a<br />

lot of attention and exposure for Solera!<br />

QFrom your experience, where do you see the future of<br />

mobility heading, and what does the industry still need to<br />

do in order to adapt?<br />

AThere are a number of areas in which we think the industry<br />

could adapt, and we’re really aiming to play a part in<br />

this. The automotive world is an ecosystem. We like to<br />

compartmentalise sectors such as insurance, dealerships, haulage,<br />

couriers and vehicle repairers as separate business areas. Really,<br />

they are all part of the same ecosystem, and their problems and<br />

solutions are often the same or dovetail together. For example,<br />

they may have different business models but often shared values,<br />

challenges and solutions, like sustainability or improved road safety<br />

measures.<br />

The UK Government has detailed a clear decarbonisation pathway<br />

for road transport, with emissions control progressing to enforce<br />

Clean Air Zones. Sales of new ICE cars will also end in 2030, with<br />

diesel commercial vehicles following suit in 2035 and 2040. This<br />

means everyone must adjust their skills and their business models<br />

accordingly.<br />

We all have a role to play in this journey. At Solera, we hope that<br />

by creating technology platforms which embrace and interconnect<br />

the whole automotive ecosystem, we can help all of these sectors<br />

handle the challenges ahead of us, each adding value to one<br />

another’s proposition.<br />

Neil Garrett<br />

UK, South Africa & Nordics Sales Director, Solera | Audatex<br />


I Love Claims<br />



2023/4<br />

JUL<br />

4<br />

SEP<br />

14<br />

SEP<br />

28<br />

ARC3<strong>60</strong><br />

Conference<br />

ClaimsTech<br />

LIVE<br />

Event<br />

MGA Claims<br />

Conference<br />

OCT<br />

05<br />

NOV<br />

30<br />

JAN<br />

19<br />

Motor Claims<br />

Exclusive<br />

Conference<br />

Home &<br />

Property Claims<br />

Conference<br />

Motor Claims<br />

Networking<br />

Lunch 2024<br />

FEB<br />

14<br />

MAR<br />

TBC<br />

MAY 10<br />

ILC Day 2024<br />

Charity Day<br />

Home Claims<br />

Specialist<br />

Conference 2024<br />

Home Claims<br />

Networking<br />

Lunch<br />

TBC<br />

APR<br />

25<br />

New Generation<br />

Conference<br />

TBC<br />


Claims Essentials<br />


Benchmarking,<br />

Fraud, Risk<br />

& Compliance<br />

Motor Claims Home & Property Claims MGA<br />

Claims Essentials<br />

Sustainability<br />



A New Climate<br />

For Claims<br />

The changing global<br />

climate is having a<br />

substantial and<br />

increasing impact on the<br />

insurance industry, with<br />

storms, droughts and<br />

wildfires more frequent<br />

and severe than ever.<br />

The problem for insurers is knowing what<br />

to expect. What they knew in 1990 and<br />

even 2010 is not necessarily relevant now,<br />

and what they learn now is unlikely to<br />

help them forecast for 2030 and beyond.<br />

In the US, the number of natural disasters<br />

has doubled in the last 20 years, while in<br />

the UK storms and flooding have become<br />

a regular and costly event. In February<br />

2022, three storms buffeted the UK in<br />

quick succession – Dudley, Eunice and<br />

Franklin – with the claims cost to insurers<br />

estimated to be about £500m.<br />

According to the Met Office, extreme<br />

weather like this is only going to become<br />

more frequent and severe. Its data has<br />

revealed that UK summers from 2009-18<br />

were 13% wetter than 1961-90, and they<br />

are now predicting that extreme rainfall<br />

events in the UK could be four times as<br />

frequent in 2080 as they were in 1980.<br />

Risk<br />

For the insurance industry, this poses<br />

both a direct and indirect risk. Alongside<br />

the obvious and immediate damage<br />

caused by such weather, insurers must<br />

also consider the cost of more insidious<br />

effects in areas of the sector such as<br />

subsidence. Evidence of this is already<br />

starting to take effect, with subsidence<br />

surges in 2018 and 2022 both coming<br />

after unusually warm winters and wet<br />

summers.<br />

Speaking at this year’s ILC Subsidence<br />

Claims specialist event, Sarah Dodd,<br />

Director of the Subsidence Forum<br />

and Treelaw, noted that ‘subsidence is<br />

inextricably linked to climate change’.<br />

With Consumer Duty just around the<br />

corner, handling these claims quickly and<br />

fairly has never been more important.<br />

However, this is easier said than done,<br />

with a lack of skills, erratic volumes<br />

and growing challenges around taking<br />

mitigating measures making effective<br />

claims handling ever-more difficult.<br />

Steve Gelder, CEO, Gelder Group,<br />

who was also talking at the specialist<br />

event, said ‘a subsidence claim is<br />

the worst claim in the world to have<br />

for homeowners. They are virtually<br />

paralysed for two years. They can’t sell<br />

the house, they can’t change insurers,<br />

they can’t do anything. Previously, an<br />

engineer would visit the site and decide<br />

what needed to be done. But now<br />

there are so many people involved, and<br />

everything takes so much longer’.<br />

Skills<br />

The skills issue is widely reported. All<br />

industries find themselves in a battle<br />

for fresh talent, exacerbated by the<br />

pandemic. There are now more than a<br />

million vacancies in the UK, meaning<br />

insurers have to compete with other<br />

sectors for the best people.<br />

Nick Hill, Head of Home Claims, Aviva,<br />

acknowledges that ‘there is enough<br />

expertise in the sector to handle<br />

subsidence claims now, but projecting<br />

forward, we need to make sure that<br />

expertise remains there and improves,<br />

adopting new and innovative methods.<br />

We need to guarantee a continued<br />

pipeline of people and skills’.<br />

Insurers can’t afford to simply recruit en<br />

masse when surges strike. While the vast<br />

majority of subsidence claims are simple,<br />

about 10% are complex and require<br />

expert knowledge to first identify and<br />

then process the claim correctly.<br />

Alex Finch, Commercial Director, Optera<br />

Structural Solutions, said ‘you have<br />

to secure the technical people within<br />

your business, and then ringfence them<br />

around technical claims. The people still<br />

training and developing can then handle<br />

the simple claims’.<br />

Partners<br />

Partnering with experts in the supply<br />

chain at an early stage is one way to<br />

ensure correct handling of complex<br />

claims, while innovative technologies<br />

are also assisting insurers as they work<br />

their way through sudden increases in<br />

volumes.<br />

Automation and live video are becoming<br />

commonplace, and the challenge now is<br />

to find digital-savvy people who are able<br />

to make the most of these solutions.<br />

Kevin Williams, Head of Subsidence &<br />

Valuations, Sedgwick, said ‘the surges<br />

of 2018 and 2022 are very similar, but in<br />

2022 there was much more use of digital<br />

solutions. That will increase again when<br />

we get another surge, and as an industry,<br />

we need to ensure that we have those<br />

skills available to us. You have to recruit<br />

and train new talent’.<br />


mins with...<br />

Ola Jacob<br />

Title: Independent <strong>Insurance</strong> Advisor<br />

QWhat is your most memorable achievement whilst<br />

working in your current role?<br />

AMy mind still considers the creativity and<br />

complexity of Heroes and Villains. These characters<br />

are often born from the same tragic story, yet their<br />

paths diverge drastically. The hero, driven by empathy<br />

and compassion, endeavours to prevent others from<br />

experiencing the same pain. The villain, consumed by<br />

anger and hatred, seeks to inflict that pain on the world.<br />

However, there are no clear distinctions between good<br />

and evil, and the intentions of the character do not always<br />

align with the consequences of their actions. Some villains<br />

think they are heroes, and vice versa.<br />

<strong>Insurance</strong> can be a murky world filled with labyrinth-style<br />

policy wordings and elaborate claims procedures, and it<br />

is easy for us to become villains in the eyes of the public.<br />

I have made it my mission to transform the narrative<br />

surrounding insurance and present us as the heroes we<br />

are. By combining parametric and indemnity insurance,<br />

we have the power to revolutionise the industry. I am<br />

deeply honoured to have been named the ‘Technology<br />

Champion of the Year’ for pursuing this goal, but there is<br />

still so much work to be done. Together, we can transform<br />

insurance into the hero we all need.<br />

QWhat piece of advice has been the most valuable<br />

to you?<br />

AAlways remember the importance of emotional<br />

intelligence and the need to give back to others.<br />

Not surprisingly, all of my sponsors - Dominic<br />

Christian, Tom Gallagher, Darren Powell, Matthew Pike,<br />

Steve White and Jane Keilty - echo the same advice and<br />

practice what they preach. They will all be included in the<br />

book that I refer to later.<br />

QWhat has been the key positive or negative<br />

impact of change in your area of the market?<br />

AAs someone who has covered the length and<br />

breadth of the country, conversing with brokers<br />

and underwriters about the potential of parametric<br />

insurance, I have witnessed first-hand how change can<br />

be both challenging and refreshing. However, I have been<br />

heartened by how receptive and enthusiastic everyone<br />

has been about embracing new ideas. The benefits of<br />

incorporating rapid payouts into policies to help mitigate<br />

losses have been outstanding, and we have successfully<br />

transformed a niche concept into a mass-market<br />

enhancement for thousands of businesses in the UK and<br />

the US. Of course, there are still many more companies<br />

that could benefit from parametric insurance, but the<br />

pressures of deadlines and targets can often make it<br />

difficult to explore new ideas. Even so, I am confident<br />

that the willingness to adapt and innovate will ultimately<br />

triumph in the end.<br />

What three items would you put on display in a<br />

museum of your life and why?<br />

QThis is by far the hardest question, and I needed to<br />

get help from my family and friends to come up with<br />

Aan answer. The first item would be a ‘Gold Bar’ - not<br />

a real one, but a white chocolate biscuit from McVities. This<br />

seemingly insignificant biscuit holds a deep meaning for<br />

me, as it represents my first taste of seizing opportunities.<br />

When my classmates were risking expulsion by scaling the<br />

school gates to visit the local shop, I had the bright idea<br />

of bringing the shop to them, beginning my chocolate and<br />

sweets empire at the age of thirteen. The ‘Gold Bar’ was my<br />

bestseller.<br />

The second item would be a globe treasure chest filled with<br />

relics from my travels and adventures. This chest serves as<br />

a reminder of the vast array of perspectives and insights<br />

that different cultures offer, as well as the beauty and<br />

diversity of our world.<br />

The third and most important item would be a hardback<br />

book called ‘No One Has Ever Achieved Anything Alone’.<br />

The book will contain a personal note of gratitude to all<br />

those who have helped me along the way. From mentors<br />

and colleagues to teachers and my opinionated brothers,<br />

I’m eternally grateful for their support.<br />

What three guests would you invite to a dinner<br />

party?<br />

Q<br />

A<br />

In case my brothers are reading this, my answer<br />

assumes they are already coming. Otherwise, they<br />

would take the first two seats.<br />

Julius Caesar, faced with countless obstacles and<br />

adversities, is arguably one of the best negotiators in<br />

history. He always had problems to solve, but he found<br />

a way to look at the bigger picture and ultimately bring<br />

enemies and contrasting viewpoints together.<br />

Aurore Dupin Dudevant. She was so determined to succeed<br />

and didn’t let anything stop her; she did the impossible,<br />

creatively using a male pseudonym ‘George Sands’ when<br />

female writers were not recognised at that time. This<br />

reminds us that we can be whatever we want to be despite<br />

what society has to say about it.<br />

Finally, Mansa Musa. An African emperor whose wealth and<br />

generosity is legendary. Some historians believe he was the<br />

wealthiest man in the world. The lost stories of Africa have<br />

always fascinated me, and who better to tell this story? It’s<br />

an inspirational tale of good prevailing over greed.<br />


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Soar with 100 Line. Upgrade today: glasurit.com.

MCA2023<br />

On April 27th, <strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong><br />

raised the roof of Liverpool’s Rum Warehouse<br />

in celebration of a united claims industry.<br />

The claims sector has changed, adapted and evolved<br />

beyond measure since we last held this event back in 2017.<br />

However, recognising our rising and established superstars<br />

never fails to bring the industry together, encouraging us<br />

to learn from each other’s successes and meet collective<br />

challenges as a strong and united community.<br />

It is this unified resilience that we’ve come together to<br />

celebrate at the 2023 <strong>Modern</strong> Claims Awards. The evening<br />

begins with a touch of glamour as honoured guests and<br />

hopeful winners arrive for a glass of champagne against a<br />

backdrop of prestigious branded supercars - kindly provided<br />

by Laird, our Car and Media Board sponsor.<br />

After a call to be seated, <strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong>’s<br />

very own Rachael Pearson is first to address the room,<br />

welcoming guests to the Rum Warehouse and thanking<br />

all sponsors, judges and nominees for their involvement.<br />

Hannah Gurga, Chair Judge and Director General of the<br />

Association of British Insurers is next to take the stage,<br />

followed by Gavin Townsend, Sales Manager (UK and<br />

Ireland) at BASF Automotive Refinish, kindly representing<br />

the voice of our valued Headline Sponsor.<br />

Welcome speeches complete and the room is promptly catered for, entertained between courses by<br />

a small troupe of magicians and slight-of-hand performers. Fred Macaulay soon takes to the stage as<br />

our host for the evening to complete a short stand-up comedy set before announcing the 2023 winners<br />

and highly commended. From Coverdrone winning in the Insurer of the Year category, right through to<br />

Donna Scully’s poignant success as the Outstanding Achievement of the Year winner, the room was<br />

buzzing with recognition and pride.<br />

Please join us in<br />

congratulating all of<br />

the 2023 winners, highly<br />

commended, and everyone<br />

who made this year’s<br />

<strong>Modern</strong> Claims Awards<br />

such a memorable evening<br />

of celebration and unity.<br />


MCA2023<br />

Results<br />


WINNER - Coverdrone<br />


Napo Pet <strong>Insurance</strong> and ARAG plc<br />

kindly sponsored by FMG<br />


WINNER - Clegg Gifford & Co Limited<br />

HIGHLY COMMENDED - Ceta <strong>Insurance</strong><br />

kindly sponsored by Kindertons<br />


WINNER - The Vella Group<br />


Gemini Accident Repair Centres Ltd<br />

kindly sponsored by e2e Total Loss Solutions<br />


WINNER - HCC Solicitors<br />

HIGHLY COMMENDED - Indemnity Legal<br />

kindly sponsored by Medical-Legal Appointments Ltd<br />


WINNER - RPC<br />

HIGHLY COMMENDED - HCC Solicitors<br />

kindly sponsored by SX3 Claims Ltd<br />


WINNER - FloodFlash<br />

HIGHLY COMMENDED - Clearspeed<br />

kindly sponsored by AllThingsCX<br />



WINNER - FloodFlash<br />


kindly sponsored by ParaCode Ltd<br />



WINNER - Winn Group<br />


FMG’s Third Party Claims Management Team<br />

kindly sponsored by Solera, Inc.<br />


WINNER - NBRA (National Body Repair Association)<br />

HIGHLY COMMENDED - The Vella Group<br />

kindly sponsored by Enterprise Holdings<br />


(1-25 EMPLOYEES)<br />

WINNER - GT Motive UK<br />

HIGHLY COMMENDED - Countrywide Hearing<br />

kindly sponsored by Automotive Glazing Academy<br />

​<br />

<strong>60</strong> | MODERN INSURANCE

MCA2023<br />

Results<br />


(26+ EMPLOYEES)<br />

WINNER - Sedgwick<br />

HIGHLY COMMENDED - Clegg Gifford & Co Limited<br />

kindly sponsored by ACSO<br />


WINNER- Clearspeed<br />

HIGHLY COMMENDED - SBS <strong>Insurance</strong> Services Limited<br />

kindly sponsored by Autoflow Ltd<br />


WINNER - HF – HARP<br />

JOINT HIGHLY COMMENDED - Corporé and expert.ai<br />

kindly sponsored by AutoWindscreens<br />


WINNER- Corporé<br />

HIGHLY COMMENDED - Direct Commercial<br />

kindly sponsored by Accident Express<br />


WINNER- Sedgwick<br />

JOINT HIGHLY COMMENDED - Charles Taylor and HF - HOLT<br />

kindly sponsored by Winn Group<br />


WINNER - Danielle Williamson, S&G Response<br />

HIGHLY COMMENDED - Andrew Mackenzie,<br />

Atrium Underwriting Ltd<br />

kindly sponsored by RGI Solutions (UK) Ltd<br />


WINNER - Clearspeed<br />

HIGHLY COMMENDED - Go-Insur from Pancentric Digital<br />

kindly sponsored by <strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong><br />


WINNER- Duncan Lewis Solicitors<br />

HIGHLY COMMENDED - Parklane Plowden Chambers<br />

kindly sponsored by Carpenters Group<br />



WINNER- Donna Scully<br />

kindly sponsored by S&G Response Ltd<br />


WINNER - The Rt Hon. the Lord Hunt of Wirral MBE<br />

kindly sponsored by BASF Automotive Refinish UK & Ireland<br />


MCA2023<br />

“My highlight of the night was the opportunity to present<br />

the Outstanding Achievement Award to Donna Scully,<br />

who has a tremendous record of fighting for fairness<br />

and is a champion for diversity, equity and inclusion<br />

across our industry.<br />

Donna is highly regarded and respected throughout<br />

our sector, and I was proud to play a part in offering<br />

the deserved recognition for her contribution. It was<br />

also a pleasure to see Lord Hunt of Wirral receive the<br />

Lifetime Achievement Award for his remarkable career<br />

and championing of our industry.”<br />

Hannah Gurga, Director General,<br />

Association of British Insurers<br />

Chair Judge, <strong>Modern</strong> Claims Awards 2023<br />

“It was a great evening overall, but the highlight for<br />

me was bearing witness to Donna Scully receiving<br />

her ‘Outstanding Achievement of the Year’ Award.<br />

Obviously, I supported her as the right choice, but her<br />

acceptance speech again showed the humility that<br />

we have got so used to from Donna. To see her receive<br />

the award in her adopted home city of Liverpool, which<br />

she loves so much, and with the ‘Fans Supporting<br />

Foodbanks’ charity that she has done so much work<br />

with in the room as the award was won – it was an<br />

incredibly special moment.”<br />

David Williams, Vice Chair Judge, <strong>Modern</strong> Claims<br />

Awards 2023<br />

“As the bright lights of Liverpool shone down on the<br />

<strong>Modern</strong> Claims Awards, it was clear that this was a<br />

night to remember. From the elegantly dressed guests<br />

to the thrilling suspense of the awards themselves, it<br />

was an honour to be present and support excellence<br />

in our industry.<br />

As the night drew to a close and the last champagne<br />

glass was raised, it was clear that the <strong>Modern</strong> Claims<br />

Awards had not only celebrated the best of the best<br />

in the industry, but had also left an inspiring message<br />

of perseverance and dedication. Here’s to a future of<br />

continued excellence and the recognition it deserves!”<br />

Sarah Glenn, Commercial Director, RGI Solutions<br />

“The <strong>Modern</strong> Claims Awards was a fantastic night that<br />

brought together some of the best in the industry and<br />

celebrated their achievements. While I presented an<br />

award, I was more delighted to see Winn Group win<br />

at the event also, acting as a nod of recognition for<br />

all of the hard work that goes into our market-leading<br />

accident management service.”<br />

Mark Pallas, Associate Director,<br />

Head of Business Development, Winn Group<br />

“The <strong>Modern</strong> Claims Awards was an incredible night!<br />

We are so proud to have been the official Headline<br />

Sponsor for such a tremendous event – and even more<br />

honoured to have been able to sponsor and present<br />

this year’s Lifetime Achievement Award.<br />

Thank you to everyone who attended for making this<br />

the event to remember – and to the <strong>Modern</strong> <strong>Insurance</strong><br />

<strong>Magazine</strong> team for putting together such a showstopping<br />

night!”<br />

Natalie Wong, Marketing & Portfolio Lead,<br />

BASF Automotive Refinish UK & Ireland<br />

Thank you to all our sponsors...<br />


MCA2023<br />

“We chose to sponsor the Bodyshop of the Year<br />

Category at the <strong>Modern</strong> Claims Awards because we<br />

wanted to recognise the resilience of the bodyshop<br />

community, and focus on customer service to<br />

acknowledge what has been a challenging year.<br />

The night was a real showcase of industry progress<br />

and stand out achievements. The atmosphere was<br />

electric and you could tell that everyone was enjoying<br />

themselves. Absolutely fantastic! We were really proud<br />

to be sponsors.”<br />

Mia Constable, Head of Business Development,<br />

e2e Total Loss Vehicle Management<br />

“ParaCode were nominated for two awards and proud<br />

sponsors of the Managing General Agent of the Year<br />

category. We were delighted by the brand promotion<br />

that we received, the mixed table we were sat on<br />

was a really fun group, and the effort that went into<br />

dressing the venue was absolutely top class.<br />

Thank you to the whole team at <strong>Modern</strong> <strong>Insurance</strong><br />

<strong>Magazine</strong> for a wonderful event!”<br />

Sarah Lambert-Gibbs,<br />

Business Development Manager, Paracode<br />

“For me, talking about the work of Fans Supporting<br />

Foodbanks was the highlight of the night, and it was<br />

a privilege to have them attend the event, too. Very<br />

special. Then, to add icing on the cake, hearing the<br />

testimonials & receiving the Outstanding Achievement<br />

of the Year Award was incredibly humbling. The song<br />

choice was emotional but inspired, and I thought it<br />

was a magnificent evening from start to finish. Kate<br />

and the team hit it out of the park, again!”<br />

Donna Scully, Director, Carpenters Group<br />

“It was a real highlight to see dedicated solicitors and<br />

other firms within the claims industry come together<br />

to celebrate each other’s tireless efforts in upholding<br />

justice and advocating for the rights of those in need.”<br />

Michael Shallcross, Managing Director,<br />

Medical-Legal Appointments Ltd<br />

“We were very pleased to sponsor the Tech Initiative of<br />

the Year category at this year’s <strong>Modern</strong> Claims Awards.<br />

Liverpool has a great history, and it’s a really nice city<br />

to host an event like this. The venue, atmosphere, food<br />

and entertainment on the night were fantastic. It was<br />

also wonderful to see the hard work of Carpenters<br />

Group Director, Donna Scully, recognised in receipt of<br />

the Outstanding Achievement of the Year award.”<br />

James Reynolds, Commercial and Sales Director,<br />

Auto Windscreens<br />

“I loved that the team at <strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong><br />

thought outside the box with our sponsorship, allowing<br />

us to place our branded cars at the entrance. As for<br />

the evening; what a great event filled with familiar<br />

faces, new faces and plenty of fun entertainment.<br />

Roll on 2024 - we’ve already signed up!”<br />

Nik Ellis, Managing Director, Laird<br />




INSUR.<br />

TECH.<br />

TALK<br />




Hello, dear readers!<br />

Welcome to the tenth<br />

issue of Insur.Tech.Talk!<br />

Who’s ready to make some waves?<br />

This issue was put together at the end of May 2023, the<br />

beginning of hurricane season for many around the world.<br />

With global warming on the rise and the climate crisis a firm<br />

part of the global insurance narrative, natural catastrophes<br />

represent a profound opportunity for innovation. There is a<br />

light in the metaphorical storm!<br />

For Property and Casualty (P&C) insurers, catastrophes are<br />

defined by the infrequent events that cause severe loss,<br />

injury and property damage to a large population. In light<br />

of this, I have assembled a panel of experts who will provide<br />

their insight on the technologies and applications that our<br />

industry has developed in order to predict and mitigate risk,<br />

revolutionising the claims process for all involved.<br />

Until next time, happy reading!<br />

Megan Kuczynski,<br />

President,<br />

Insurtech Insights<br />



CLARA<br />

Analytics<br />

CLARA Analytics is not just a claims intelligence platform for risk<br />

professionals. It’s also an AI decision support assistant for adjusters - used at<br />

carriers, MGAs/MGUs, reinsurers and self-insured organisations for loss cost<br />

and expense savings.<br />

So, how is AI improving the claims process? We sat down with Heather H.<br />

Wilson, CEO of CLARA Analytics, to find out. be, catastrophic.<br />

Q Q<br />

Heather, so great to connect! Congratulations on<br />

You<br />

being named in the top 100 global insurtechs of<br />

2022! You have certainly accomplished a lot in a<br />

short amount of time.<br />

I saw you were recently on CoffeeAndNoCode with Gary<br />

Hoberman. It was a great episode! Can you expand on what<br />

you mean by “we compete against the Ghost of Build”?<br />

ANowadays, organisations are realising that to be agile<br />

and accelerated, they need to think of parallel paths<br />

in terms of build and buy. There is room for both. We<br />

are finding that organisations want to partner with CLARA<br />

because we are truly ‘plug-n-play’ with our API architecture,<br />

allowing our clients to get started with capabilities that<br />

otherwise take years to build.<br />

Sometimes, the “Ghost of Build” is still roaming the<br />

hallways. However, I have found that mentality has been<br />

changing over the last two years because advancements<br />

are happening so quickly that organisations need an<br />

accelerated path. We are a low-lift technology, providing<br />

claims organisations with a gateway to modern insurance.<br />

Our onboarding process takes 8-12 weeks to get clients<br />

moving forward with our AI Platform.<br />

QTalk to me about CLARA Analytics’ focus on<br />

workers’ comp. How does the technology triage the<br />

most complex of claims?<br />

ACLARA Analytics is the only casualty AI platform<br />

in the marketplace, covering workers’ comp, auto<br />

liability, and general liability. Our models are triaging<br />

the most complex of claims throughout the course of its full<br />

lifecycle, creating a decision support system for the adjuster<br />

or claims handler.<br />

The adjuster is provided with a ‘second set of eyes’ - or<br />

a ‘GPS’ as we like to say - that will monitor and provide a<br />

heads-up on predictive alerts. This prompts our users to<br />

take action and details why that action is needed, helping<br />

the claim to stay on the optimal path. We are shifting the<br />

paradigm for claims adjusters to be drawn to their claims<br />

files with ‘trusted prompting’ and explainable, prescriptive,<br />

next best actions.<br />

QWhat are the biggest challenges facing P&C carriers<br />

in the midst of growing concerns around global<br />

warming and the climate crises as a whole? How<br />

does the CLARA Analytics product suite provide a solution<br />

in light of this?<br />

AAt CLARA, we focus on the bodily injury cases our<br />

clients face, whether this is in a workers’ comp, auto<br />

or general liability setting. In any type of casualty, our<br />

AI system is used to provide predictive alerts and trusted<br />

prompting, which helps our clients get the best outcomes<br />

possible for these severe cases. We also have a large global<br />

data set that provides benchmarking for our clients as they<br />

deal with exposure and understanding occurring patterns.<br />

Heather H. Wilson,<br />

Chief Executive Officer,<br />

CLARA Analytics<br />

just announced a new AI platform for general<br />

liability claims. What role does augmented<br />

intelligence play for general liability insurance?<br />

AYes! Beyond workers’ compensation and auto liability,<br />

we recently announced the launch of general liability,<br />

which makes us the only AI platform for casualty<br />

claims. We are really excited to bring this to the insurance<br />

marketplace, because we know the difficulty of managing<br />

this book of complex claims.<br />

We know that our Triage and Litigation products will help<br />

claims officers and adjusters to intervene when our models<br />

are detecting the potential of litigation, or they will help<br />

with settlement of those cases. We have already proven<br />

ourselves in the workers’ comp and auto liability space, so<br />

to help our current (and future) clients in this highly litigious<br />

environment is an opportunity to provide our demonstrated<br />

expertise.<br />

QHeather, you are so inspiring and serve as a role<br />

model for many women in insurance innovation.<br />

You’ve been the Chief Data Officer for Citi, the Global<br />

Head of Innovation at Kaiser Permanente, a board member<br />

at Equifax, and now CEO at CLARA Analytics.<br />

What advice do you have for other women when it comes to<br />

advancing their careers? What are some of the obstacles you<br />

have had to overcome to get to the C-suite?<br />

AI have been a lifelong learner and listener. Both of these<br />

skills have been foundational for me to be confident<br />

and a risk-taker as a leader. To continue growing as<br />

a leader means putting oneself in uncomfortable or new<br />

situations sometimes. It’s important to work through the fear<br />

and understand that mental strength is needed when you<br />

want to embrace that growth.<br />

Also, having a rewarding career equates to the ‘grit and<br />

grind’ of a work ethic — it’s just what it takes! Lastly, this may<br />

sound very simple, but relationships matter. I have found<br />

myself working with amazing people again who I met or<br />

initially knew years ago. Building and maintaining strong<br />

relations is imperative to success.<br />

Heather H. Wilson, Chief Executive Officer of<br />

CLARA Analytics, has more than a decade of executive<br />

experience in data, analytics and artificial intelligence,<br />

including Global Head of Innovation and Advanced<br />

Technology at Kaiser Permanente and Chief Data Officer<br />

of AIG. She currently sits on Equifax’s board of directors.<br />

While at AIG, she was named the <strong>Insurance</strong> Woman of the<br />

Year by the <strong>Insurance</strong> Technology Association for her data<br />

innovation work. Wilson has been a steady supporter of<br />

diversity. She launched the Kaiser Permanente Women in<br />

Technology group, focused on mentorship and retention<br />

for women in math, technology and science, and at AIG,<br />

she launched Global Women in Technology and served as<br />

Executive Sponsor of Girls Who Code.<br />



Climate Risk<br />

and Resilience<br />

with Stephen Weinstein<br />

In this very special edition of <strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong>, Megan Kuczynski, President of<br />

Insurtech Insights USA, sat with Stephen Weinstein, Former Chair of the Bermuda Business<br />

Development Agency, to discuss mitigating climate risk, emerging technologies, and the<br />

importance of ocean science.<br />

Q Hi Steve, great to catch up!<br />

I was intrigued by one of your recent LinkedIn posts<br />

regarding the cost of global warming to policyholders in<br />

areas hit the hardest by catastrophic surge events and risk.<br />

Where do you see this direction heading in the next 3-5<br />

years?<br />

A<br />

From the highest level, the acceleration of climatedriven<br />

risk is driving the most significant set of<br />

challenges across the industry. At the same time,<br />

fostering mitigation, adaptation and transition is giving rise<br />

to the most significant - and exciting - set of business and<br />

investment opportunities. I think we have to be clear eyed and<br />

vigorous, in terms of mitigating these risks but also in terms<br />

of allocating new capital into growth opportunities.<br />

It’s also important to recognise that not all climate risks are<br />

created equal. For example, I’m extremely confident in the<br />

industry’s ability to manage risks of hurricanes, particularly in<br />

the US southeast. Florida hurricanes are, I believe, the most<br />

rigorously understood hazard in the world, and data available<br />

to the industry can be accurate, validated and actionable.<br />

Our recent challenges in Florida have instead been driven<br />

by fraud, not by the very real but well-managed risks of<br />

hurricanes.<br />

In many developing markets, I believe the industry has<br />

developed very useful tools in terms of understanding<br />

the meteorology and physical impact of extreme weather<br />

events - including the near and medium impacts of climate<br />

change. But we lack the kind of validated and actionable data<br />

in a number of regions with respect to property and other<br />

insured value available. This is an area where I think insurtech<br />

innovations can help bridge the gap. There’s a lot of exciting<br />

work going on - some in public, some in stealth mode - with<br />

sensors, imagery, data mining, AI, and other cutting-edge<br />

innovations, all of which marry up effectively with tested risk<br />

management tools in the context of well-modelled hazards.<br />

We also have to recognise that there are some risks where our<br />

understanding of the peril may not be as robust as it needs<br />

to be. To me, the most prominent example of this is California<br />

wildfire. Clearly, the models have not been performing as well<br />

as they should be in order to allocate capital with confidence.<br />

Some of this relates to changes in the underlying risk. Out of<br />

the 15 largest recorded fires in California history, every single<br />

one has occurred at some stage in the last two decades. Six<br />

of the seven largest have occurred since 2020 alone.<br />

While traditional data is robust in California, we may not have<br />

been collecting the right data. Insured properties can be<br />

ignited not just by smoking in bed, kitchen fires, wiring issues<br />

and the like - all of which is reflected in traditional submission<br />

and claims files - but by factors like vegetation on the<br />

property.<br />

In my view, these are issues that are too large not to tackle,<br />

and I believe that in 3 to 5 years we’ll see some exciting<br />

progress across the board in the private sector. The harder<br />

nut to crack may be needed in public policy reforms, but I<br />

choose to be cautiously optimistic on that front as well. When<br />

it comes to climate, we have no time to waste. Everything<br />

that emerges in the coming years is likely to be something we<br />

should have been doing already.<br />

How do you see climate-focused solutions being<br />

integrated into traditional P&C coverage?<br />

Q<br />

In the three decades since Hurricane Andrew<br />

destabilised much of the P&C market, the industry as<br />

A a whole has done a solid job enhancing its ability to<br />

manage climate driven risks in terms of coverage. Andrew<br />

drove a big paradigm shift in terms of severity assumptions,<br />

and the storms of the Katrina-Rita-Wilma era certainly<br />

changed our understanding of frequency risk. While 9/11 was<br />

not a climate risk, it did lead to advancements in managing<br />

risk aggregation, which have great utility in terms of climate<br />

driven perils. Across that time, stochastic risk modelling<br />

and big data utilisation evolved from outlier ideas to nearuniversal<br />

application. At this point, if a P&C carrier doesn’t<br />

think of itself as a climate focused company, it’s on its way to<br />

being a legacy company.<br />

However, this outlook speaks to traditional P&C coverage.<br />

I think the real challenge - and the fun - lies ahead in<br />

innovation and in expanding the solutions we can offer to<br />

help mitigate climate risk. Some of this will come from closing<br />

the coverage gap in respect of the climate driven perils<br />

that we understand well already. I think of US Flood in that<br />

context, for example. In regions where we already underwrite<br />

commercial flood, there’s no reason not to imagine a more<br />

robust residential flood market. The US flood gap has been<br />

an outgrowth of public policy distortions that underwritten<br />

acumen and data sets are already positioned to address.<br />

I think the underlying megatrends of climate adaptation and<br />

transition support an incredible opportunity for insurance<br />

innovation. For example, a Bermuda company recently<br />

launched an innovative product in respect of batteries<br />

that combines some features of indemnity and warranty<br />

protection. I’m aware of some efforts to provide solutions to<br />

support manufacturers, installers and owners of residential<br />

solar. We see continuing innovation to mitigate risk linked to<br />

extreme heat, cold, precipitation and other climate perils. I’m<br />

sure there are fascinating ideas in stealth mode or beyond my<br />

own ability to imagine. It’s always a good time for insurance<br />



innovation, but given the scale of the climate crisis, there’s<br />

never been a better time than now.<br />

Q<br />

A<br />

Science.<br />

I’d love for you to expand on Bermuda’s current and<br />

future Climate Tech initiatives! I’m especially keen<br />

to hear more about the Bermuda Institute of Ocean<br />

I’m really excited by Bermuda’s vision and commitment<br />

to become a climate finance capital, building on its<br />

decades of leadership in climate driven reinsurance<br />

and ILS. Catastrophe driven reinsurance is written worldwide,<br />

but Bermuda emerged as its global capital in the decades<br />

following Hurricane Andrew. Now, I see Bermuda expanding<br />

into the most adjacent vertical - climate driven finance.<br />

Bermuda as a platform offers founders, funders and<br />

management teams so much in the way of supporting and<br />

accelerating strategies. In terms of human capital, on a<br />

‘pound for pound’ basis, Bermuda has the most significant<br />

critical mass of climate fluent experts in the world. This<br />

ranges from C Suite reinsurance veterans, to risk managers,<br />

accountants and compliance managers who understand how<br />

climate risk and revenue impacts their functions. Bermuda’s<br />

globally recognised, highly sophisticated regulator is a critical<br />

advantage - including the fact that there’s only one, the<br />

Bermuda Monetary Authority. Innovation in climate finance<br />

can sometimes blur traditional product distinctions. Some<br />

of the ideas I hear about frequently seem to mix attributes<br />

of, say, insurance, banking, consumer credit, derivatives and<br />

potentially more. In the US, there’s a regulator for each of<br />

those domains - not to mention the 50 states which all have<br />

separate insurance regimes. In Bermuda, the BMA is a unified,<br />

consolidated regulator with depth and expertise when it<br />

comes to climate. In climate matters, where speed to market<br />

is important, having a single, sophisticated regulator to work<br />

with - rather than dozens - can be a game changer.<br />

I really believe Bermuda will become the Silicon Valley<br />

of Climate Finance. It shares all of the key architecture of<br />

innovation hubs when it comes to climate risk, and the<br />

Bermuda Institute of Ocean Sciences is a key part of that<br />

ecosystem. There’s no better place to study the world’s<br />

oceans than Bermuda, given its location in the deep ocean.<br />

For more than a century, Bermuda Institute of Ocean<br />

Science (BIOS) has been a global leader in ocean science<br />

and applied marine reinsurance. Critically, it’s home to<br />

some of the longest-running sets of ocean observations<br />

available anywhere in the world, the Bermuda Atlantic Time<br />

Series. Resident and visiting scientists are at the leading<br />

edge of ocean research. At the same time, BIOS offers a<br />

robust suite of educational programs, ranging from PHD<br />

program candidates to young local Bermuda students, all of<br />

which is magnified by their recent merger into Arizona State<br />

University.<br />

Looking forward, BIOS and ASU may be uniquely positioned<br />

to help explore and expand our understanding of perils like<br />

extreme heat, ocean warming, wildfires and sea level rise. As<br />

the capabilities of BIOS and our partners expand, so too does<br />

our relevance to market participants.<br />

Q<br />

Tell me about some of the most blockbuster new<br />

climate technologies you’re seeing in the market at<br />

the moment!<br />

If I could wave a wand, I’d want to see future<br />

innovations on the market already. Still, that doesn’t<br />

A mean we shouldn’t celebrate what we already have!<br />

To name but a few in the Bermuda ecosystem specifically,<br />

Aanika Biosciences is a Bermuda firm with really impressive<br />

microbial technology, used to track and trace organic material<br />

in supply chains. With their own reinsurance entity and other<br />

partnerships, this improved ability to distinguish otherwise<br />

identical commodities from each other will increase<br />

transparency throughout the claims process beyond<br />

what’s possible in traditional processes and digital<br />

technologies.<br />

directly with assets for sustainability tracking, risk transfer,<br />

reporting, benchmarking, and analysis.<br />

Our Kettle Enhances is also bringing solutions to challenging<br />

risks like wildfire by using, in lieu of incomplete or inaccurate<br />

historical data, swarm neural networks to produce precision<br />

priced products. This creates specific returns to match with<br />

markets with corresponding appetite.<br />

Q<br />

What do insurers need to do to identify and develop<br />

climate-focused solutions, ensuring net-zero transition<br />

and risk mitigation?<br />

This is a pretty big topic, and I hope it becomes even<br />

bigger in the future.<br />

AFirstly, I think the industry needs to be increasingly willing to<br />

embrace collaboration and open-source solutions. We don’t<br />

have decades to tackle the climate crisis, and the scale of<br />

the risk and contrasting opportunity is too vast for any one<br />

player. We need an all-hands-on-deck approach, with speed<br />

to market and speed to solutions. There’s room for everyone;<br />

and every new solution will create a place for the next one.<br />

Secondly, I would encourage all of us to lean into the<br />

transition. Follow the money! Infrastructure at the scale global<br />

players have now committed to requires insurance. We need<br />

new coverage ideas for D&O and for professional lines, too. I<br />

think the opportunity is limited only by our imagination and<br />

ability to demonstrate an understanding of risk.<br />

Finally, I would encourage players in the market to think about<br />

investing in relevant applied research and engagement. In<br />

large part, we have sprinklers and airbags because insurers<br />

played a role in risk mitigation and research funding. Steam<br />

boilers became universal in times gone by, safer because of<br />

the insurance mechanism. The role of insurance in effecting<br />

change should not be underestimated.<br />

Stephen Weinstein,<br />

Former Chair of the Bermuda Business Development Agency<br />

Stephen is a financial services and insurance executive with<br />

an extensive background in innovation,<br />

strategy, governance, mitigation<br />

and resilience, and transactions.<br />

He currently serves as the<br />

Chair of Itasca Re, a recently<br />

launched Bermuda specialty<br />

reinsurer, Chair of the<br />

Bermuda Institute of<br />

Ocean Sciences (BIOS),<br />

an independent<br />

U.S. non-profit<br />

scientific research<br />

and educational<br />

organisation, and<br />

Itasca Re, a Bermuda<br />

domiciled specialty<br />

reinsurer.<br />

My friends at Blockchain Triangle are pioneering tech<br />

to aggregate, homogenise, and analyse data across<br />

individual sources, including IOT sensors to link data


Maptycs<br />

Founded in 2016, Maptycs provides a geospatial risk<br />

visualisation platform for property insurers, reinsurers,<br />

brokers and risk managers. We had the pleasure of sitting<br />

down with Jacqueline Legrand, CEO and Co-Founder, to<br />

discuss how Maptycs’ platform can support risk selection,<br />

pricing, and event response.<br />

Q Jacqui, great to see you!<br />

You have a fascinating background, moving from<br />

IBM to a global insurance leader, and now to<br />

Maptycs. What problem did you identify in the<br />

market, and how can Maptycs solve this for the<br />

insurance industry?<br />

With the rise of natural disasters and the<br />

explosion of high-quality location-based data,<br />

A insurers need to consolidate high volumes of<br />

data in multiple formats to compute pricing and losses<br />

with accuracy. This is exactly our value proposition.<br />

We combine the data of our clients’ property<br />

portfolios with ‘a la carte’ external data, like risk maps<br />

and real-time events from governmental agencies or<br />

from specialised third-party providers. We do this for<br />

any type of perils, like flood, earthquake, wildfires, and<br />

more.<br />

How do (re) insurers, risk managers and<br />

brokers use Maptycs in different ways?<br />

Q<br />

A<br />

Insurers primarily use Maptycs for property<br />

underwriting and reinsurance placements.<br />

Risk Managers use Maptycs to improve their<br />

property risk management strategy in terms of risk<br />

prevention and risk transfer. Brokers are increasingly<br />

working with Maptycs to improve their clients<br />

servicing using modern technology, and subsequently<br />

have a competitive advantage for client acquisition<br />

and retention.<br />

I would love to hear your thoughts about<br />

the global climate crisis, and how Maptycs is<br />

Q addressing this across your product suite!<br />

A<br />

We wanted to offer our users the ability to<br />

run any type of climate change scenario to<br />

assess the future impact on their portfolios<br />

and investments. To do this, we designed a model<br />

that used all IPCC pathways data - ranging from<br />

temperatures, precipitation, wind, population density<br />

and sea level rise between now and 2100. It was an<br />

ambitious undertaking, but our clients are very happy<br />

with the result.<br />

What specific climate catastrophes and<br />

geographies does Maptycs cover?<br />

Q<br />

A<br />

Our geospatial analytics features work around<br />

the world. In terms of perils, we can cover<br />

any perils and geographies covered by our<br />

data providers. At present, we have integrated flood,<br />

wildfire, earthquake, wind, drought, tsunami, wind<br />

datasets and maps. We also keep enriching our<br />

data offering as more datasets become available or<br />

requested by our clients.<br />

How can the Maptycs platform be used for<br />

event response?<br />

Q<br />

In the platform, we integrate real-time data<br />

on tropical storms, wildfires and earthquakes,<br />

A and combine this with a powerful notifications<br />

system. It helps insurers optimise their claims<br />

management resources, and also helps to maintain<br />

adequate reserves for claims payouts. It also helps risk<br />

managers to proactively mitigate losses and manage<br />

business continuity during natural disasters.<br />

Q<br />

A<br />

You are a very inspiring leader and<br />

entrepreneur. What advice do you have for<br />

other female founders?<br />

As a leader, I have had the opportunity to work<br />

and live in various countries with people from<br />

many cultural and professional backgrounds.<br />

This taught me to learn and adjust fast, and to be<br />

fearless, humble and confident.<br />

As an entrepreneur, I have learned to be resourceful<br />

and to listen to our clients to continuously improve<br />

our solution. As a female founder, I have accepted that<br />

I cannot have it all, but I can make it all work. Make<br />

sure you have a robust organisation at home; embrace<br />

good and forget perfection; stay focused and avoid<br />

distractions. Remember, you need to make big things<br />

happen fast; leverage your network. They will provide<br />

reliable feedback and open doors to develop your<br />

business.<br />

Jacqui LeGrand,<br />

CEO, Maptycs<br />

Jacqueline Legrand is CEO & Co-Founder at MAPTYCS,<br />

an Insurtech company that uses advanced geospatial<br />

analytics technology to help insurance professionals<br />

better understand property risk exposure and manage<br />

events response in real-time.<br />

She has 25 years of experience in insurance<br />

and reinsurance markets across Europe and the<br />

Americas. Prior to joining MAPTYCS, Legrand was COO<br />

& Board Member at MDS, a Global <strong>Insurance</strong> Broker with<br />

operations in Iberia, Brazil, and Africa. She was also CEO<br />

of Brokerslink, one of the largest global brokers’ network<br />

and CEO of HighDome PCC, a captive insurance company.<br />

Earlier in her career, she oversaw the international<br />

business at Crystal & Company in New York. Before<br />

stepping into the insurance industry, she used to work<br />

at IBM, managing multinational client accounts in the<br />

automotive industry.<br />

Legrand has been recognized as an <strong>Insurance</strong> Executive<br />

to Watch and a Top Insurtech Leader, She received a<br />

Master of Business Administration degree from ESLSCA,<br />

Paris. She attended a Graduate Marketing Management<br />

program at Columbia University, a Finance program at<br />

Harvard Business School and earned the ARM (associate<br />

in risk management) designation.<br />


Verisk<br />

insured.<br />

Hi Bill, great to sit down with you at the start of<br />

hurricane season to hear some of your insights!<br />

Q<br />

This issue of Insur.Tech.Talk focuses on climate change,<br />

climate tech, mitigating risk, and improving the claims<br />

process. I understand Verisk was launched five years before<br />

Hurricane Andrew hit Florida. Talk about timing! Tell me<br />

more about Verisk’s risk analysis approach to catastrophic<br />

events, especially through computer simulation models. How<br />

has your technology improved prediction?<br />

AYou’re so right - timing was everything with Hurricane<br />

Andrew. There was a great deal of scepticism about<br />

catastrophe modelling before Andrew came along.<br />

At that point in time, people had a very limited view of how<br />

much damage a catastrophe like that could cause in the<br />

insurance industry. Despite what models like ours were telling<br />

them, when that occurred in 1992 people acknowledged a<br />

need for different technology and different approaches to<br />

tackle it. That’s really where the accelerated use catastrophe<br />

models came into being.<br />

It’s a computer simulation model to provide a more complete<br />

picture of the potential damage that hurricanes, earthquakes,<br />

floods and severe thunderstorms can do. Historical claims<br />

data that insurers have can be robust, but it’s not sufficient<br />

to give a perspective of more infrequent events like natural<br />

catastrophes.<br />

The general premise of trying to simulate what could happen<br />

next year - thousands of times over to give a full distribution<br />

of potential losses - remains fundamental methodology at<br />

Verisk. As you alluded, the technology and the sophistication<br />

of the models has improved immensely over this time period.<br />

We don’t think about predictions. We don’t necessarily<br />

predict what will happen this year. What we’re trying to do<br />

is give a sense of the possibilities. These models have been<br />

proven in terms of resolution, and some of that comes from<br />

the insurance industry itself. They’ve collected much higher<br />

resolution exposure data in many parts of the world. The<br />

models now can better differentiate risk across hundreds<br />

of different building types and geographies, not to mention<br />

the sophistication and resolution at which we’re calculating<br />

damage, which has gone up dramatically over time.<br />

Q<br />

A<br />

What kind of impact has Verisk’s technology had on<br />

both the insurer and the policy holder as it relates to<br />

the claims process?<br />

The industry has experienced years of very high<br />

catastrophe losses. Compared to the years before<br />

Hurricane Andrew however, the industry is in a much<br />

better position to handle large-scale catastrophe losses. It<br />

also has the proper amount of capital on hand so claims from<br />

these events can be paid out.<br />

What do I mean by that? Well, let’s go back to Hurricane<br />

Andrew. When that event happened, at least twelve<br />

insurance companies went insolvent, causing a great deal of<br />

disruption in the market. Fast forward to 2010, 2011 or 2017,<br />

for example – years of very high recorded catastrophe losses<br />

– and only one or two companies went out of business in<br />

response.<br />

I think as a policyholder, you should feel much more<br />

comfortable in the knowledge that the insurance industry<br />

is a more secure place now with regards to capital on hand.<br />

To some degree, some people would say that it has helped<br />

to smooth out insurance cycles. Even though we’re in a hard<br />

market right now, the amplitude of those cycles is a bit less.<br />

This is because catastrophe models have given people more<br />

of a baseline to understand what the risk is.<br />

Great! So, what is Verisk doing to improve the<br />

protection gap?<br />

Q<br />

AFirst of all, I’ll define the protection gap in order to put<br />

it into context. Obviously, we have natural disasters<br />

occurring here in the US and around the world, but<br />

not all of it is insured. That’s an issue in the United States,<br />

where we would say maybe half of natural disaster losses are<br />

Most people don’t buy earthquake insurance. Most<br />

people don’t have flood insurance as you move around the<br />

world. It’s even more exacerbated in places like Asia, where<br />

maybe 10% of losses are insured. So that’s what we’re talking<br />

about when we talk about a protection gap. It’s a mismatch<br />

between the cost of the actual economic loss, and what<br />

people can recover from insurance.<br />

We would say that we have models covering insured losses,<br />

over 90% of which occurs in the world on an insured basis.<br />

So, the technology is there to help companies confidently<br />

underwrite that risk, and we continue to update those<br />

models across the insurance market. We also work with<br />

different governmental and non-governmental agencies who<br />

look to issue catastrophe bonds in the event of a disaster,<br />

subsequently securing emergency funds. We’ve done that<br />

in regions with low insurance penetration, like a number of<br />

Pacific Islands and Latin America.<br />

Outside of our core business of modelling, we also support a<br />

non-profit organisation called Geohazard International, that<br />

helps reduce suffering and fatalities in the event of natural<br />

disasters. Part of our efforts help to shine a light on the<br />

issue and raise awareness, using our technology to improve<br />

outcomes. You absolutely want to minimise fatalities with<br />

these events. Tackle that first, and then worry about physical<br />

damage afterwards.<br />

Q<br />

A<br />

Amazing! And what do you see as some of the most<br />

novel new technologies being born out of the climate<br />

crisis?<br />

I’ll make a bit of a diversion as I think this is an<br />

important topic. In the insurance industry, there’s been<br />

a lot of concern over the last five years in relation to<br />

the level of insured losses going up significantly. There’s been<br />

a lot of blame on climate change, but we’ve reiterated that<br />

climate change is merely a factor.<br />

Let’s take a step back. First and foremost, more structures<br />

are being built in areas of high hazard. Also, the value of<br />

those structures continues to rise; we’re in an environment<br />

of super high inflation. An event that might have caused<br />

$10billion in loss ten years ago would see double that loss<br />

now. The technology has to work for the insurance industry<br />

in order to make sure they’re using high quality, accurate<br />

exposure information. If you don’t get the exposure data<br />

right, you can chase climate change all you want, but you will<br />

continually run behind.<br />

Getting proper data is a much more solvable, intractable<br />

problem, and it’s fundamental to running the business. We<br />

stress this first and foremost around issues of climate. Our<br />

focus has been on trying to develop and architect a set of<br />

catastrophe models so we can go back to clients and say,<br />

look, this data reflects the climate change that’s happening<br />

today. We’re seeing good improvements in climate models,<br />

but there’s still a level of uncertainty in long term projections.<br />

It is becoming easier though, because of better computing<br />

power and improvements in these models when it comes<br />

to looking at correlations across different regions, and so<br />

on. What a lot of insurers and global companies will worry<br />

about is the correlation between hurricanes and wildfires in<br />

the US, or how risk in Europe might be correlated with that<br />

In Asia. We’re actively developing solutions where everyone<br />

can have better insights into those types of questions, which<br />

could help manage and allocate capital better, and achieve<br />

better business outcomes.<br />

Bill Churney,<br />

President, Extreme Event<br />

Solutions, Verisk<br />

Bill Churney is President<br />

of Verisk’s Extreme Events<br />

Solutions team. He’s<br />

responsible for setting the<br />

team’s global strategy and<br />

overseeing its worldwide<br />

operations. Bill has extensive<br />

experience working with<br />

companies to better<br />

understand how they manage<br />

risk and identify ways to<br />

use analytics to improve<br />

catastrophe risk management.<br />



Save The Date<br />

07.02.24<br />

Deadline for entries<br />

27.10.23<br />

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BOARD<br />

WELCOME to the Insur.Tech.Talk<br />

Editorial Board.<br />

<strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong> is once again<br />

bringing our board of insurtech experts<br />

together in a showcase of thought leadership<br />

insights from the very heart of this area of<br />

the industry.<br />

This issue voices the thoughts of...<br />

In this issue, we’re looking at controlling risk<br />

and resilience, facilitating security through<br />

data and technology, the connection between<br />

insurance and climate, and the power of realtime<br />

data.<br />

Scott Holmes,<br />

Sales Director UK&I,<br />

Quantee<br />

Dino Bertolis,<br />

CEO and Founder,<br />

Breez<br />

Daniel Thafvelin,<br />

Group CEO,<br />

Contemi Solutions<br />

Sophie Twilton,<br />

Project Manager,<br />

Contemi Solutions<br />

André Symes,<br />

Group CEO, Genasys<br />

Denise Garth,<br />

Chief Strategy Officer,<br />

Majesco<br />

Tim Hardcastle,<br />

CEO and Co-Founder<br />

at INSTANDA<br />



The Connection<br />

Between<br />

Climate and<br />

<strong>Insurance</strong><br />

Climate change has the potential to radically affect our<br />

insurance industry. As our climate continues to change, insurers<br />

face increased financial risks from claims related to extreme<br />

weather, such as floods or fires. From rising sea levels to hotter<br />

temperatures and more frequent storms, climate change<br />

ultimately creates an unpredictable environment which insurers<br />

aren’t able to prepare for.<br />

So, is climate change too big of a<br />

problem for individuals and SMEs to<br />

have any kind of positive influence? I<br />

wanted to explore this question and<br />

understand how the insurance industry<br />

can make a positive impact.<br />

Breez is a UK insurtech using telematics<br />

technology to help people travel more<br />

affordably, safely and sustainably. I<br />

spoke with Dino Bertolis, CEO and<br />

Founder of Breez, about how insurance<br />

companies can make a difference in<br />

lowering their total cost of ownership.<br />

QTelematics has long been<br />

established in the insurance<br />

world, most famously in the<br />

car insurance space. How is telematics<br />

being used in the sustainability space?<br />

AThe same way telematics has<br />

been used in insurance for<br />

understanding and influencing<br />

risk, telematics can also be used<br />

in sustainability for measuring and<br />

reducing emissions. It’s one of the<br />

few examples of how an insurance<br />

technology is being expanded into<br />

other industries, which is great to see.<br />

The use-case of quantifying transport<br />

and emissions might seem obvious, but<br />

many companies in the sustainability<br />

space either aren’t aware of this<br />

technology’s benefits, or they still<br />

believe the associated costs are<br />

prohibitively high. This is no longer<br />

the case; we’ve witnessed a significant<br />

decrease in both hardware and<br />

software costs, thanks in part to the<br />

efforts of companies like ours.<br />

Q<br />

A<br />

What opportunities exist<br />

for insurance companies to<br />

positively impact climate<br />

change?<br />

I believe one of the most exciting<br />

opportunities is for insurance<br />

companies to encourage<br />

behaviour change towards a greener<br />

world. It may sound like a cliché, but<br />

let me elaborate. There tends to be a<br />

strong correlation between behaviours<br />

that reduce risk and those that reduce<br />

emissions. For instance, safe driving<br />

lowers fuel consumption, decreases<br />

emissions and reduces the likelihood<br />

of accidents, subsequently decreasing<br />

claim costs.<br />

This presents an opportunity for insurers<br />

to incentivise and reward appropriate<br />

behaviours in a way that both reduces<br />

their loss ratios and significantly lowers<br />

emissions. Importantly, the savings on<br />

claim costs provides funding for these<br />

incentives and rewards that promote<br />

behaviour change.<br />

The key to achieving this is telematics.<br />

When viewed in this light, the<br />

technology is a social good, and it’s<br />

astonishing that some insurers still<br />

reject the idea of telematics as an<br />

effective tool for risk measurement and<br />

management<br />

QMany people associate<br />

telematics with a little black box<br />

installed in their car. How has<br />

telematics changed and evolved?<br />

Fortunately, the industry has<br />

advanced beyond black boxes.<br />

A We’re now living in a world of<br />

connected cars and connected devices<br />

that perform equally well, if not better.<br />

Scott Holmes,<br />

Sales Director UK&I, Quantee<br />

Dino Bertolis,<br />

CEO and Founder, Breez<br />

Augmenting different data sources<br />

has become increasingly crucial over<br />

time to quantify mobility behaviour.<br />

Currently, our focus lies on connected<br />

car data, mobile phones and wearable<br />

devices such as smartwatches, all<br />

of which are far more practical for<br />

consumers.<br />

It’s fascinating to observe how<br />

technological change and the nature<br />

of risk continue to drive an everexpanding<br />

intersection between<br />

climate change, risk and insurance.<br />

I believe telematics technology is a<br />

pivotal example of this, and I’m sure<br />

we’ll see more insurers leverage this<br />

technology for non-traditional use<br />

cases, especially as this technology<br />

becomes more mainstream and<br />

accessible.<br />



Catastrophe<br />

and Climate:<br />

Facilitating Security<br />

through Data and<br />

Technology<br />

Daniel Thafvelin,<br />

Group CEO, Contemi Solutions<br />

It’s no secret that global climate conditions are shifting.<br />

We are seeing an increasing number of extreme weather<br />

events and natural disasters across the globe - the results<br />

of which have been, and will continue to be, catastrophic.<br />

<strong>Insurance</strong> software vendors, standing at the intersection<br />

of technology and risk management, play a crucial role<br />

in facilitating insight and seamless processes, helping<br />

to rebuild the lives and homes of those affected by<br />

catastrophic weather events.<br />

Whilst loss of life may have been lessened in recent years<br />

thanks to further sophistication and the introduction of<br />

multi-hazard early warning systems, economic losses<br />

continue to surge. However, the very nature of insurance<br />

aims to provide security, supporting the policyholder should<br />

you fall victim to material losses due to climatic events.<br />

Vendors need to understand the role they play in this<br />

ecosystem, and focus on the contributions they can<br />

make to this process instead. Software is a valuable tool<br />

for streamlining and optimising processes across the<br />

world, and this is no different when it comes to insurance.<br />

Understanding how your software can be used and the<br />

impact it can have will result in even better and more<br />

efficient tools.<br />

Analytics and Reporting<br />

<strong>Insurance</strong> software often incorporates robust analytics<br />

capabilities, leveraging data insights to drive informed<br />

decision-making. By analysing historical claims data,<br />

insurers can identify patterns, trends, and risk factors,<br />

enabling them to make data-driven assessments and refine<br />

underwriting processes. This improves applicability of<br />

insurance products provided to customers.<br />

Efficiently Manage <strong>Insurance</strong> Claims<br />

<strong>Insurance</strong> software reduces time and overhead costs for<br />

the insurer, as well as providing a lean ‘hassle free’ process<br />

for customers requiring financial support following loss/<br />

damage.<br />

Error Reduction & Improved Accuracy<br />

Data validation & verification mechanisms in insurance<br />

software, alongside automated calculations and checks,<br />

help to mitigate the risk of error.<br />

Sophie Twilton,<br />

Project Manager, Contemi Solutions<br />

Streamline Communication<br />

Software creates a centralised platform, with integrated<br />

communication channels and alerts which enables realtime<br />

collaboration and information sharing. This allows<br />

stakeholders to access relevant resources & updates at the<br />

click of a button.<br />

Enhanced Customer Experience & Accessibility<br />

User-friendly interfaces - accessible online or via a mobile<br />

device - ensure quick and easy access for customers in<br />

their time of need.<br />

Cost Savings<br />

Improved efficiency and reduced overheads leads to a<br />

reduction in costs for the insurer. This can be passed onto<br />

customers through the cost of their policy.<br />

Whilst insurance may provide some security, it’s crucial<br />

that we all play our part in reducing our own carbon<br />

footprint and attempt to protect our fragile and fluctuating<br />

environment. The insurance industry itself is adapting<br />

to the ever-changing world around us and adjusting to<br />

become more sustainable.<br />

Seamless.Insure - a Cloud-Native, No-Code insurance<br />

platform - was designed to connect, automate and simplify<br />

insurance management and claims processing. Cloud is<br />

revolutionising the IT industry in several ways, including the<br />

reduction of energy consumption through its contradiction<br />

to on-premises solutions.<br />

Get more information on Seamless Claims at<br />

https://seamless.insure/seamless-claims/<br />



Control<br />

What You<br />

Can Control<br />

Risk doesn’t always show itself, but it’s an ever-present companion<br />

for insurers. It drives with us in our cars, follows us into our homes<br />

and workplaces, and looks over our shoulders as we create new<br />

products or services.<br />

Denise Garth,<br />

Chief Strategy Officer, Majesco<br />

At times, risk is unreasonable and barely predictable. It speaks to us in the language of data, and it challenges us to tame it by<br />

learning more about it — then it evolves into something new. For insurance, understanding risk lies at the core of the business.<br />

Insurers assess, underwrite, and manage risk to provide the right products and value-added services that help customers to<br />

navigate the challenges of risk.<br />

Risk is growing and becoming more complex. Gone is its predictability; risk events are becoming more frequent, and new risk<br />

layers - such as climate, societal and technology risks - add new considerations and complexity. Handling the new realms of<br />

risk requires both a policy and portfolio view. It requires expanding the traditional underwriting approach to consider a broader<br />

array of information to assess risk beyond the obvious. This growing complexity of risk affects insurers’ product offerings,<br />

underwriting profitability and customer relationships, resulting in many customers lacking sufficient coverage, creating a gap<br />

and increased financial risk.<br />

The old adage of ‘control what you can control’ is now front and centre for insurers as they consider new risk management<br />

methods in relation to their underwriting and customer service strategies. While most insurers are focused on improving risk<br />

assessment, many more are expanding to also focus on loss prevention and mitigation, creating risk resilience for customers.<br />

Risk resilience through prevention and mitigation is becoming the marketing love language of insureds - eclipsing repair and<br />

restoration. With risk resilience, customers experience prevention before they need protection - whether businesses, homes,<br />

vehicles, assets or employee health and wellbeing are at risk. Even better, risk resilient technologies communicate and educate.<br />

Every claim and pre-claim event becomes a teachable moment to help avoid future claims.<br />

Leading insurers are leveraging technology such as IoT devices, advanced analytics, loss control assessments and valueadded<br />

services, not only to assess and monitor risk but to proactively respond to it with mitigation services and actions. From<br />

monitoring water hazards and the safety of employees to helping people live healthy lifestyles, leading insurers are shifting to<br />

risk resilience strategies that not only drive better business outcomes, but also cultivate customer loyalty.<br />

Today’s increased catastrophes, market environment and pressure on profitability demands a greater focus on preventable<br />

losses and better outcomes - primarily through underwriting profitability, proactive risk mitigation to minimise or eliminate<br />

claims, and enhanced customer experiences.<br />

Make risk explain itself. Improve lives and businesses and control what you can control using a next generation, risk resilient<br />

technology foundation.<br />



André Symes,<br />

Group CEO, Genasys Technologies<br />

The Power<br />

of Real-<br />

Time Data<br />

<strong>Insurance</strong> is an emotive issue for consumers, with the<br />

insurance sector constantly challenged by the public<br />

sentiment that insurance is a grudge purchase. But<br />

when policyholders are experiencing a catastrophe,<br />

insurance businesses can really do a lot to shift the<br />

dial towards a more favourable perception of the<br />

value, with trust built in accordance with how they act<br />

during and after the crisis.<br />

It’s not rocket science. The ideal scenario is for policyholders to have<br />

a quick, seamless claims experience in their time of need, combined<br />

with the view that they’re receiving a fair price for their premium at<br />

renewal. It’s crucial to consumer trust that policyholders aren’t unfairly<br />

penalised, especially when catastrophic events, sometimes driven by<br />

climate change, are often beyond anyone’s control. So, how do we work<br />

together as an industry to change the way we do insurance and put the<br />

end-customer first, whilst simultaneously providing insurers with the<br />

ability to deliver solutions quickly in a catastrophic scenario?<br />

Smart insurance businesses achieve this reality through their core<br />

tech and an API-first approach. Core tech plays a significant role in<br />

mitigating the impact of catastrophe, because it provides the ability<br />

for an insurance business to innovate and deliver at speed. Innovation<br />

to help meet and even exceed customer expectation, improve the<br />

customer experience and to protect the company’s bottom line can all<br />

thrive when the tech stack is built around a single core platform which<br />

everything can connect to, evolving and innovating as needed.<br />

Well-designed APIs drive this innovation. API-first technology plays<br />

a crucial role in catastrophic scenarios through the real-time data it<br />

offers. Accessing real-time data is critical here if insurers and reinsurers<br />

are to accurately identify their catastrophic risk and exposure in order<br />

to price accordingly.<br />

An API-first approach enables insurance businesses to drill down<br />

review management information and geo-plot the risk. This geospecific<br />

information can then be overlaid with additional third-party<br />

information such as weather and fire risks to really understand the level<br />

of exposure. This is useful if businesses want to encourage positive<br />

policyholder behaviour change, such as implementing climate-related<br />

adaptations to their property. By taking an API-first approach to datasharing,<br />

businesses can better understand risks in real-time rather<br />

than retrospectively correcting their catastrophe modelling, which is<br />

essential when forecasting losses.<br />

In our experience of working with diverse clients, consumers may<br />

require additional protection from the variety of unforeseen risks which<br />

frequently emerge when a catastrophe unfolds. This is when it becomes<br />

imperative for an insurance business to be able to lean in and possess<br />

the digital ability to quickly ‘plug in’ through APIs, launching a new<br />

type of product designed to meet this unexpected consumer need. At<br />

Genasys, we supported a client in their launch of such a product, from<br />

initial concept to live launch in just 50 days.<br />

An API-first approach in the delivery of real-time data helps keep it<br />

real for everyone. To play this out in context, imagine a fire wiped out<br />

80% of your book of business. Then imagine if you could identify the<br />

fire damaged properties in a specific location and understand the<br />

exact reasons for the disaster to strike. Based on this insight, imagine<br />

how you could pro-actively mitigate future catastrophic loss for<br />

your policyholders and your business. With an API-first approach to<br />

accessing real-time data, you can turn this theory into reality. Let’s be<br />

the change we want to see and let’s change the way we do insurance,<br />

by using technology that helps us to put the customer first.<br />



MGA Resilience<br />

in the Face of<br />

Agile Start-ups<br />

Digital transformation continues to rock the boat in the<br />

insurance industry, with technology increasingly acting as<br />

the new middleman between insurers and clients. In 2021,<br />

investment in insurtech start-ups grew by a staggering 87%,<br />

and whilst 2022 proved a tough year for some insurtechs (and<br />

indeed the wider tech industry as a whole), the overall trajectory<br />

is only headed in one direction. So, with freshly minted start-ups<br />

in the sector among the main drivers of investment, how can<br />

large scale MGAs stay resilient?<br />

Tim Hardcastle,<br />

CEO and Co-Founder at INSTANDA<br />

To remain ahead of the curve,<br />

traditional MGA insurance providers<br />

must invest in digitisation to create<br />

the agility and flexibility that mirrors<br />

the methodologies of these newer<br />

intermediaries. At the same time,<br />

they must put their advantages (data,<br />

human resources, and brand reputation<br />

to name but a few) to good use.<br />

Relevant products must be created for<br />

audiences demanding modern end-toend<br />

technological experiences.<br />

With this in mind, how can start-ups<br />

revolutionise the insurance industry<br />

with agile solutions?<br />

Agile start-ups and insurtech<br />

As tech-driven innovation reshapes<br />

the insurance industry, investors are<br />

rapidly taking note, with the number of<br />

insurtech start-ups skyrocketing. What<br />

are the key factors driving growth?<br />

Insurtech has enabled the insurance<br />

industry to step up its user experience,<br />

offering services which are far<br />

superior to traditional providers.<br />

The introduction of technology like<br />

smartphone apps, online policy<br />

handling and claims processing tools<br />

means that customers and brokers<br />

can access their insurance policy<br />

information with ease. Embedded<br />

platforms also enable insurers to<br />

seamlessly merge with technology<br />

in other sectors, meaning insurance<br />

no longer needs to be treated as a<br />

standalone proposition.<br />

The impact of Insurtech on mature<br />

MGAs<br />

New solutions offered by insurtech<br />

intermediaries provide complete endto-end<br />

services - negating the value of<br />

some prior MGA-carrier relationships<br />

and often significantly decreasing the<br />

total cost of ownership for carriers<br />

through technology.<br />

Therefore, emerging start-ups are<br />

challenging some more established<br />

MGAs by offering newer, slicker product<br />

offerings and customer experiences.<br />

Where insurtechs have chosen the MGA<br />

structure, many have been founded by<br />

non-insurance folks who are bringing<br />

tech and data expertise from other<br />

industries to the table. Whilst this has<br />

its potential drawbacks, it has certainly<br />

given traditional MGAs a different<br />

competitive landscape to consider.<br />

Positive disruption<br />

While the introduction of insurtech<br />

intermediaries is certainly disrupting<br />

the industry, it isn’t all doom and<br />

gloom for the traditional players. This<br />

shift is pushing existing MGAs forward<br />

by driving the need to embrace<br />

technology, and when looking at the<br />

bigger picture, it could provide a<br />

multitude of benefits across the value<br />

chain.<br />

Customers and brokers can receive<br />

a better all-round experience and<br />

access to new, innovative products and<br />

services. Carriers will be able to access<br />

data that they might not have had at<br />

their fingertips otherwise, thus giving<br />

a better understanding of how their<br />

capital is deployed.<br />

Flexibility in large scale MGAs<br />

Large scale MGAs can achieve digital<br />

transformation through numerous<br />

avenues - perhaps the most influential<br />

being the replacement of legacy<br />

systems to revolutionise the approach<br />

to product creation and policy<br />

management. By digitising core<br />

services through the use of automation,<br />

cloud technology and data analysis,<br />

existing MGAs can bolster their<br />

appeal with carriers, brokers and endcustomers<br />

alike.<br />

Speed-to-market solutions like<br />

INSTANDA allow for adaptable<br />

test-and-learn environments which<br />

empower MGAs to get out ‘lightweight’<br />

versions of new products quickly and<br />

easily. MGAs can then assess product<br />

performance before enhancing and<br />

amending them in line with market<br />

demand. The ability to create, build and<br />

implement complex insurance products<br />

in weeks or months - as opposed to<br />

years - can help alleviate some of the<br />

pressure caused by an influx of startups.<br />

INSTANDA’s no-code technology<br />

(hosted via Microsoft Azure) also<br />

enables MGAs to say goodbye to<br />

the need for never-ending cycles<br />

of ‘change requests’ with their tech<br />

partner, drastically lowering their total<br />

cost of ownership.<br />


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