Modern Insurance Magazine Issue 60

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F EATURES Industry Collaboration: Working together to provide the best mobility solution Modern Insurance Magazine has partnered with mobility provider, Europcar Mobility Group UK, to run a series of roundtables in 2023. In the second instalment, held at Europcar’s Kings Cross branch in May, we discussed the customer benefits of collaboration between credit hire organisations, vehicle rental companies and insurers. KEY TALKING POINTS n Why aren’t credit hire processes working? n The role of technology n Open communication throughout the repair supply chain n Fit for purpose for Consumer Duty n Credit hire versus courtesy vehicle - improving consumer understanding MAKING COLLABORATION WORK FOR ALL PLAYERS Kirsty McKno, Managing Director, Cogent Hire, kicked off the discussion with an admittedly controversial point. She believes the current credit hire processes in the industry are broken, and open, honest discussion is essential. Without identifying where the process is broken, and where there is genuine friction, it can’t be fixed. She highlighted that for collaboration to be successful, it requires a true meeting of minds, two sides coming together with the same agenda. Kirsty believes the industry is currently not transparent enough and does not share enough data to make collaboration successful. THERE IS A LONG ROAD BACK TO WHERE CREDIT HIRE SHOULD BE Wayne Mason-Drust, Managing Director, Accident Express Group, added that where credit hire is today is not really where it was originally intended to be. He believes it is important to recognise this in order to get the industry to where it needs to be. He cited the example of the third-party system. Over the years, this has been hardened and eroded so that it no longer does what it was designed to deliver. Kirsty agreed, stating that if it worked as intended, litigation would only be required for the all or nothing liability cases. A LIKE-MINDED VISION James Roberts, Business Development Director, Insurance, Europcar Mobility Group UK, asked how the industry can improve interactions and better support insurers. Jamie Summerscales, Senior Manager, Third Party Claims, Covéa Insurance, spoke about how the General Terms of Agreement (GTA) was introduced to bring peace between insurers and credit hire organisations, but that time has seen a shift in behaviours. He believes it still works when both parties understand and buy into the same framework, but not when players start to move the goal posts or introduce new ambiguities. Then it begins to unravel, ultimately inviting litigation. He believes that, before the industry can work together to fix what is not working today, 48 | MODERN INSURANCE
FEATURES participants in the GTA must look in the mirror and judge whether they contribute to the vision and purpose of the framework. Matt Corby, Founder, Vehicle Replacement Group, added that he believes communication is the missing ingredient to make collaboration successful. With opposing ways of structuring how credit hire is provided, and without common ground, there will always be friction. He said protocols work for larger players, but smaller MGAs and smaller insurers have to do their own thing and there is a void between the two where collaboration is impossible. Jamie agreed, pointing out that this breeds a damaging lack of trust. One of the main challenges, according to Luke LeSauteur, Director, West Grove Consulting, is that everyone is seeking to gain competitive advantage. Large CHOs dominate the top 20 insurers and do the most transactions. It’s not in their interests, therefore, to collaborate. Until priorities change from profit to purpose, these conversations will be very difficult. Everyone around the table agreed that better competition is needed, to breed better practice and keep CHOs more honest. THE COMMUNICATIONS ELEMENT Communicating clearly with customers and sharing data openly with other players in the supply chain can make a significant difference to outcomes and customer experience. The latest technology, as Kirsty explained, can be utilised to deliver positive customer service and an efficient repair. She described how Cogent Hire aims to shrug off the bad, frictional practices and look at a new way of doing things, utilising ‘people plus technology’. Vehicles are triaged, for example, with customers informed quickly of the next steps, such as whether the car is written off or if a smart repair can be carried out to remove the need for a replacement vehicle. At all stages, each customer knows where their vehicle is in the process and what will happen next. OPEN COMMUNICATION THROUGHOUT THE REPAIR SUPPLY CHAIN AND WITH CUSTOMERS IS ESSENTIAL Open communication is also vital between each business involved in the repair and claim process. Matt suggested this should occur through APIs between the credit hire company, repairer, and insurer/ broker, so that FNOL and other data is shared to give all organisations the same level of information. As Kirsty added, from the customer point of view each of those companies is simply part of the insurer. It is, therefore, in the insurer’s best interests to maintain open communication with the entire supply chain, to gain real-time updates and avoid over-hires or other mis-communications. WHOSE DATA IS IT ANYWAY? However, Luke shared one of the communication challenges that he faces when working across all channels – the repairer, customer, insurer, accident management company. That is the question of who owns – and who can see – the data. This can be a blocker, halting both communication and collaboration. Jamie reminded the group that the focus must remain on getting vehicles processed and repaired or settled as quickly and efficiently as possible, via open dialogue between all parties. If that is done effectively, the hire will be minimised and take care of itself. CONSUMER DUTY James also asked the group for their thoughts on the upcoming Consumer Duty. He asked whether people believe consumers will know what their rights are, or if the onus is on the industry to protect them. The general consensus was that the industry will continue to work to protect consumers, but that insight is needed regarding current complaints and how these issues can be avoided in future. Jamie added that the entire industry has a duty to ensure their customers understand the products and services they are purchasing, and to process and repair vehicles as quickly as possible. The difficulty, according to Luke, comes when customer service becomes a potential sales opportunity. At all times, it is critical that the customer understands their rights, even if something changes. Kirsty provided an example of where cases originally referred as ‘at fault’ later become known as ‘non-fault’. At that point, the credit hire company will need to make their involvement clear to the customer. It comes back to the challenge of communications discussed earlier, and the friction created because processes do not include a clear explanation of details to the customer. Jamie felt the Consumer Duty legislation should not cause a seismic shift to the front of house teams who already sell to customers and explain the terms. But Kirsty questioned whether that really does happen every time, suggesting that it could require a significant adjustment for many. Kirsty went on to explain that because credit hire itself is an unregulated activity, many credit hire companies are not regulated and, therefore, may not realise this new legislation applies to them. She believes the industry needs to raise awareness of the fact that credit hire companies need to know about the new rules – if for no other reason than because they will be included as part of the supply chain under insurers. CREDIT HIRE COMPANIES MAY NOT BE REGULATED, BUT CONSUMER DUTY STILL APPLIES CREDIT OR COURTESY? The other discussion around the table involved the significant issue of consumer misunderstanding, particularly regarding the terms around the vehicle supplied under a credit hire agreement while theirs is being repaired. In Jamie’s experience, many people do not realise that they are driving a credit hire vehicle or that they will be liable for the cost later. Wayne agreed, citing examples of cases being referred on to a credit hire or credit repair business. He has previously had conversations with customers around what their rights are, advising that the credit hire company will pay out a significant amount of money on their behalf, but they are ultimately responsible for the cost. Often, these customers will opt to go through their own insurance instead. Matt added that the next step in a non-fault claim (when the customer does opt to go through their own insurer) involves the insurer referring them onto a credit hire company. In these cases, the customer is likely to accept the referral because they see this as part of their insurer’s service. However, this leaves the customer in the same situation and at risk of a large and unexpected cost if the terms are not clearly explained. Using the term ‘credit’ is, in Kirsty’s opinion, a reason for customer confusion. In reality, the arrangement is actually just a deferment of payment rather than actual credit. She suggested that changing this terminology would perhaps help consumers when it comes to understanding the agreement that they are entering into. COLLABORATION: NOT JUST A BUZZWORD In the closing comments, Kirsty stated that ‘collaboration’ should not just be the latest trendy buzzword; players must commit wholeheartedly. Wayne reiterated the importance of every area of the industry being involved and heard in discussions, to shape the future and the terminology being used. Jamie believes that there are a lot of challenges in the market that can be overcome together. He asked whether technology really can fix the problem, or does it just bring new ambiguity and make some things worse? Matt added that there is a lot of will from each organisation, but old legacy systems and mindsets are slowing down innovation and development. Luke suggested the involvement of bigger players in the discussions would help the industry and its customers. Further topics discussed around sole supplier relationships and the barriers to change will be examined in the next issue of Modern Insurance Magazine. The next roundtable will take place in September 2023, where the discussion will be continued. MODERN INSURANCE | 49
Page 1 and 2: ISSUE 60 ISSN 2515-3803 Risky Busin
Page 3 and 4: WELCOME Hello readers, Welcome to I
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Page 9 and 10: INSIGHT These events openly challen
Page 11 and 12: INSIGHT THE NECESSARY ROLE OF INSUR
Page 13 and 14: INTERVIEWS Kirsten Mitchell-Wallace
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Page 17 and 18: EDITORIAL BOARD Supporting Vulnerab
Page 19: EDITORIAL BOARD Preparing for Clima
Page 22 and 23: Helping businesses make better deci
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Page 43 and 44: FEATURES Building Trust through Res
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Page 81 and 82: INSURTECH André Symes, Group CEO,

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