Modern Insurance Magazine Issue 62

ISSUE
62
ISSN 2515-3803
CONSUMER DUTY:
CLEARER STANDARDS
Doing the
Right Thing
with Matt Brewis, FCA
A New Consumer
Freedom
with Sam Richardson,
Which? Money
A Guide to the New
Consumer Duty
with Branko Bjelobaba, FCII
Europcar:
Can the insurance sector
help to accelerate
the adoption of EV?
INSUR.TECH.
TALK
Insurtech Insights
2023 Contributors Media Partners

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WELCOME
Hello readers,
Welcome to Issue 62 of Modern Insurance Magazine, where we’re
talking all about the new Consumer Duty in Insurance.
Back in July, the Financial Conduct Authority (FCA) introduced a new set of rules
and guidelines for financial services, one that hopes to set higher and clearer
standards for consumer protection. With a focus on positive outcomes, insurer
firms must now take additional measures to minimise scope for foreseeable harm,
embracing reasonable steps to act in ‘good faith’, as well as evidencing how they
are supporting customers with their bespoke financial objectives.
Amelia Barlow, Editor
For a detailed overview of these regulations, head to p.8 to read a useful guide
on the new Consumer Duty from Branko Bjelobaba, FCII. On p.12, we’ve also sat
down with Matt Brewis, Director of Insurance at the Financial Conduct Authority, in
order to capture the regulator’s perspective - as well as offering a platform for the
consumer voice from Sam Richardson, Deputy Editor at Which? Money, on p.14.
There’s also a diverse selection of thought leadership contributions from our inhouse
editorial board of experts, starting with Carpenters Group on p.17. You’ll
also find several articles from our pool of esteemed industry associations from p.29.
Modern Insurance Magazine wouldn’t be whole without our valued INSUR.TECH.
TALK section (in partnership with Insurtech Insights), bringing you the very latest
updates from the world of insurtech through a series of highly relevant interviews
around the definition of ‘Consumer Duty in Insurance’.
As we collectively find our feet in the new Consumer Duty landscape, I hope this
issue goes some way to further clarify the intricacies of the new guidance for you,
our valued readership.
Until next time,
Rachael Pearson, Project Manager
Amelia Day Barlow,
Editor,
Modern Insurance Magazine.
amelia@charltongrant.co.uk
ISSUE 62
ISSN 2515-3803
Editor
Amelia Barlow
Project Manager & Events Sales
Rachael Pearson
Modern Insurance Magazine
is published by Charlton Grant Ltd ©2023
All material is copyrighted both written and illustrated. Reproduction in part or whole is strictly
forbidden without the written permission of the publisher. All images and information is collated
from extensive research and along with advertisements is published in good faith. Although the
author and publisher have made every effort to ensure that the information in this publication
was correct at press time, the author and publisher do not assume and hereby disclaim any
liability to any party for any loss, damage, or disruption caused by errors or omissions, whether
such errors or omissions result from negligence, accident, or any other cause.
MODERN INSURANCE | 3

14
Contents
12
49
51
55
4 | MODERN INSURANCE

8
12
14
17
29
39
41
42
45
46
47
Insight
A Guide to the New Consumer Duty,
by Branko Bjelobaba, FCII
Interview
Doing the Right Thing, with Matt
Brewis, Director of Insurance at the
Financial Conduct Authority (FCA)
A New Consumer Freedom, with
Sam Richardson, Deputy Editor at
Which? Money
Editorial Board
Find out what our editorial board
panel of industry experts have to say
in this edition of Modern Insurance
Magazine.
Associations
Assemble
Modern Insurance’s panel of resident
associations outline the burning
issues in insurance
Features
Just a Thought with Eddie
Longworth…
Suppliers Must Also Deliver
Consumer Duty Obligations
Consumer Intelligence: Avoiding
Consumer Harm in the Consumer
Duty Age
Modern Claims Awards 2024: Meet
the Judges
Meet the Company: Internal
Satisfaction Informs Customer
Satisfaction at EDAM Group
Dive In Festival: Dive In’s ‘Below the
Surface’ Event Shines a Light on
Insurance Industry’s Diversity and
Inclusion Challenges
Thinking Upside Down:
Consumer Duty: An Illusion??
by Michael Lewis, CEO, Claim
Technology
49
51
53
I Love Claims / ARC 360
The Unintended Consequences of
Consumer Duty
Can the insurance sector help to
accelerate the adoption of EV? with
James Roberts, Head of Insurance
Sales, Europcar Mobility Group UK
10 Mins with...
10 minutes with... Ajay Mistry,
Founder and Director, Gambit
Partners, & Co-Founder and Co-
Chair, iCAN (The Insurance Cultural
Awareness Network)
Insur.Tech.Talk
Interviews
56 Welcome
Megan Kuczynski, President,
Insurtech Insights
57 Unqork
Farooq Sheikh, Global Head of
Insurance, Unqork
58 Benekiva
Brent Williams, Founder and CEO,
Benekiva
60 Celent
Juan Mazzini, Head of Insurance
Practice APAC, EMEA, LATAM, Celent
62
ReSource Pro Consulting
Meredith Barnes-Cook, Partner,
ReSource Pro Consulting
64 JobsOhio
Ron Rock, Managing Director -
Financial Services, JobsOhio
65
Insur.Tech.Talk
Editorial Board
Experts from the insurtech sector
join us once more to share their
unique insights!
INSUR.TECH.TALK BOARD
Disclaimer: Our publications contain advertising material submitted by third parties. Each individual advertiser is solely responsible for the content of its advertising
material. We accept no responsibility for the content of advertising material, including, without limitation, any error, omission or inaccuracy therein. We do not endorse,
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
connection with, the use of or reliance on any such advertising or products in such advertising.
MODERN INSURANCE | 5

Editorial Board
17
19
21
PREPARING STAFF FOR
THE NEW CONSUMER
DUTY
Paul Challinor, Commercial Director,
Carpenters Group
THE NEW CONSUMER
DUTY: A CHANGE IN
DISTRIBUTION
Will Prest, Product Manager,
ParaCode
SUPPORTING INSURERS
WITH THEIR CONSUMER
DUTY OBLIGATIONS
Jim Loughran, CEO, e2e Total Loss
Vehicle Management
MITIGATING THE EFFECTS
OF RISING CLAIMS COSTS
Tom Lawrie-Fussey, senior director
of product management, U.K and
Ireland, LexisNexis Risk Solutions
EMBRACING THE NEW
CONSUMER DUTY
Simon Hunt, Commercial & Services
Director, National Windscreens
23
25
BASF UK X STEM:
CURIOSITY AND
CREATIVITY
Dr. Natalie Wong, Marketing &
Portfolio Management Lead, BASF
Automotive Refinish UK & Ireland
HAS THE ‘AS-A-SERVICE’
TREND ARRIVED IN THE
CLAIMS INDUSTRY?
Lorna Turner, Director of Business
Development, Activate Group
PROVIDING FAIR,
FLEXIBLE AND INCLUSIVE
SERVICES
Hannah Gardner, Customer
Enhancement Service Lead,
Crawford & Co.
CONSUMER DUTY
REGULATIONS AND
THE WORLD OF VEHICLE
RECOVERY
Mick Jennings, Managing Director,
Nationwide Vehicle Assistance
(NWVA)
Editorial Board Contributors
6 | MODERN INSURANCE

EUROPCAR
NEW BRAND BLOCK
Color gradient background
File: 20151645E
Date: 7/10/2015
AC/DC validation :
Client validation :
Insur.tech. talk and
Editorial Board
27
THE NEW CONSUMER
DUTY AT RGI
SOLUTIONS
Sarah Glenn, Commercial
Director, RGI Solutions
OFFERING CUSTOMER
CHOICE AND
PROVIDING A DIGITAL
FOOTPRINT
Andrew Chander,
Sales Director, FMG
66
67
68
69
70
31
71
72
73
75
Welcome - Bradley Collins, Chief
Commercial Officer, Insurtech
Insights
AXA Retail - Tara Foley, CEO of AXA
Retail
Munich Re - Dr. Fabian Winter, Group
Chief Data Officer at Munich Re
EIS - Anthony Grosso, CMO of EIS
BIBA
Zego Using - Sten the Saar, Consumer CEO of Duty Zego to Deliver
Good Outcomes
David Sparkes, Regulation Director,
Aon British - Marguerite Insurance Soeteman-Reijnen,
Brokers’ Association
Chairman (BIBA) Executive Board, Aon
Holdings
MGAA
Arma MGAs: Karma Vital - Support Ben Smyth, for Brokers CEO,
Arma Mike Karma Keating, CEO, Managing General
Agents’ Association (MGAA)
Revolut - Balázs Gáti, Global Head of
Insurance, Revolut
The Justice Gap
BIMA
Mike
- Mathilda
Benner, Chief
Strom,
Executive,
Co-Founder
& Deputy
Association
CEO,
of
BIMA
Personal Injury Lawyers
(APIL)
WTW - Pardeep Bassi, Global
Proposition CHO Leader – Data Science,
WTW
Consumer Duty: Overly Onerous, or
a Necessary Check on Overzealous
Capitalism?
Insur.Tech.Talk
Anthony Hughes, Chair and CEO, Credit
Hire Organisation (CHO)
33 APIL
Editorial Board
35 MASS
Experts
2024:
from
A Year
within
for Statutory
the Insurtech
Review
sector Sue Brown, and beyond Chair, share Motor their Accident unique
insights. Solicitors In this Society issue, (MASS) we look at
balancing automation with customer
satisfaction, FOIL the concept of ‘digital
transformation’, Consumer Duty and & how Claims new signals
point Jonathan to technology Drake, Member as a solution of the to Forum
address of Insurance economic Lawyers concerns. (FOIL) and
Partner at DWF
37 NBRA
Consumer Protection in the Automotive
Repair Industry
Thomas Hudd, National Technical
Manager, Nationwide Bodyshop Repair
Association (NBRA)
INSUR.TECH.TALK BOARD
CII
Is the insurance sector ready for the
Consumer Duty?
Dr Matthew Connell, Director, Policy
and Public Affairs, Chartered Insurance
Institute (CII)
MODERN INSURANCE | 7

INSIGHT
A GUIDE TO THE NEW
CONSUMER
DUTY
By now, I’m sure that everyone in the
insurance industry will have heard
about the new Consumer Duty. New
regulations kicked off on 31st July
2023, with the Financial Conduct
Authority (FCA) going into overdrive
to issue helpful guidance, letters - as
well as playing host to a number of
interesting podcasts and Q&As – in
order to explain what’s needed.
I, for one, welcome the new Consumer
Duty. The Financial Services Authority
commenced the regulation of General
Insurance on 14th January 2005, and it
all began with the principle of ‘Treating
Customers Fairly’. This brief piece of
commentary provides a springboard
with which to further discuss my
thoughts on the new Consumer Duty.
Consumer Duty applies to everything that falls under FCA
regulations – not just insurance, but also investments,
mortgages, bank accounts, funeral plans, and so on. For
insurance, this will be a progressive activity. However, for
longer term policies, the new Consumer Duty will also apply
in a retrospective sphere, and a ‘rear mirror’ approach will
be needed to ensure compliance. In other words, does the
product and service still work in the best interests of the
consumer? Does it still provide fair value? This is a most
interesting concept, but think of it like ongoing safety
recalls on cars. Such evaluations can go on for several years
in the event that a fault is discovered!
So, if we have had the ‘Treating Customers Fairly’ principle
for so long, why do we need to add a new principle, three
cost cutting rules, and four outcomes?
To refer back to the motor analogy, think of this as a very
comprehensive instruction manual for a new car. It will
show you how the product was made, how green it is, how
everything works, what you need to do to enhance your
driving experience, what happens if there is a blip… and
then who you should address a complaint to! There will be
copious detail included around design, assembly, testing,
re-testing… the list goes on. Cars these days are incredibly
complex, and likewise, insurance policies are hefty tomes.
8 | MODERN INSURANCE

INSIGHT
Now the FCA has tasked us all with a massive collective
challenge – design your products right, make sure it works,
provide evidence that it is understood by the consumer, and
show everyone that it does indeed work through a seamless
and transparent claims process.
Back to the beginning, then…
When an insurer or broker comes up with a bright idea,
we need to create a product or service for a certain type
of individual or business, one that will meet their exact
needs. So, what does the insurer need to do to deliver this
to market, with a huge focus simultaneously on the delivery
of key outcomes? In other words, how are we going to put
the thing together so it is ready for the road? And we will
know that beforehand, as the road testing is integral to the
design, building of the prototype, etc?
The new principle is simple. “A firm must act to deliver good
outcomes for retail customers.” Wait, I hear you ask. What
are retail customers? We have been used to this definition
since 2005 - it does include individual policies, but nothing
considered as a ‘group’. SME business is included, but
large corporate business is not – meeting the ‘Large Risk’
definition instead. Why this doesn’t apply to everyone is
beyond me, but anyway, I digress…
Let’s focus on the four key outcomes…
OUTCOME 1
Products and services must be sold or
provided at a fair price that reflects
their benefits.
This is a two-part equation. How has the insurer priced the
product, and is that fair? Then, what services will the broker
(and anyone else in the chain) provide, and is the payment
they get for this sale (the commission) also fair? If you think
this sounds like the Product Value Assessments that took
place back in September 2022, you’d be right.
If we go back to the car analogy, think of this as the
collection of glossy booklets, plus a shed load of other stuff
from the manufacturer. Is it a special scheme, has it cut
down benefits, have excesses gone up, and are there any
additions to enhance cover?
OUTCOME 2
Products and services that are fit for
purpose - with terms and features that
match the needs of the consumers
they’re made for, and that work as
expected.
This is where the sharing of claims data is a must. Does
the product actually work, and can the adviser use this to
demonstrate efficacy to the prospective customer?
Think of this as the test drive. Have we consulted with
customers to gauge what they want, what works best for
them, what’s important, and what’s less so? What is the
customer prepared to pay for revolutionary new ideas?
MODERN INSURANCE | 9

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INSIGHT
OUTCOME 3
Consumers are equipped to make effective decisions.
This involves presenting all of the necessary information at the right time in order to help the customer reach
their informed decision. The adviser must assess the customer’s understanding, and check that the terms of
the policy have been explained using clear and simple language.
Bear in mind, advisers should be doing this as standard anyway! An adviser must advise, and NOT leave
everything up to the customer to work out for themselves. Insurance terminology isn’t exactly easy to
understand. Does this help the customer? Can definitions be made simpler, and how will you ascertain that
customers understand what they’re buying?
OUTCOME 4
Helpful customer service.
Is your customer service responsive and accessible? How easy is it for a policyholder to make changes,
claim, complain, or cancel their policy? Don’t forget, a switch at renewal should always be in the very best
interests of the customer, and not in the best interests of the adviser – someone who may well know that
the firm gets much more commission at new business stage, rather than at the point of renewal.
Did insurers square this off when they completed their Product Value Assessments? I hear some alarming
statistics around claims calls taking well over an hour to answer, in comparison to new business calls
taking less than a minute. Is that right?
A quick update…
On 20th September 2023, the FCA published further guidance calling on insurers to take action, warning
that more steps must be taken to ensure good consumer outcomes.
The FCA reminded insurers of its expectations, instructing the
industry to review products to ensure that they are providing fair
value to their customers.
Matt Brewis, Director of General Insurance, said:
“This is an early signal of the work we’ll be doing under the
Consumer Duty. Customers should be reassured that we’re in
their corner, and are taking action where we see poor value being
provided.
If the firms are unable to prove they’re providing fair value to their
customers, they should expect further action from the regulator.”
So, insurers have been warned, and I expect much more follow-up
in the coming months. However, this does give the whole industry
a huge opportunity to get things right. Product, price, value and
service are the fundamental basics of insurance.
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MODERN INSURANCE | 11

INTERVIEWS
DOING THE
RIGHT THING
As the insurance industry
falls into step with
new Consumer Duty
regulations, Modern
Insurance Magazine sat
down with Matt Brewis,
Director of Insurance at
the Financial Conduct
Authority (FCA), to
discuss preparations for
the new guidance, the
regulator’s key areas of
focus at the moment, and
the associated challenges
faced by the industry in
relation to adoption and
compliance.
Hi Matt, thanks so much for your time today!
Q This edition of Modern Insurance Magazine focuses on the
new Consumer Duty, which came into effect for existing
products and services on 31st July 2023. How does your
role specifically focus on an industry understanding of
these new requirements?
A
I’m responsible for overseeing regulation within the full
insurance ecosystem. Every part of the market has its own
unique set of operations, with different roles to adopt
when it comes to bringing new rules into force. General Insurance,
for example, saw the introduction of the Insurance Distribution
Directive in 2018, the key components of which form part of our
new Consumer Duty.
Arguably, this area of the sector has had plenty of time to get their
head around what we’re doing here in comparison to other areas of
financial services. My role has involved preparing the team for the
implementation of the new Consumer Duty, as well as guiding the
industry as much as possible when it comes to our own priorities
under the new regulations. We’ve done this through thematic
reviews, keynote speeches and interviews, published guidance, Q&A
sessions - you name it! We’re aiming for complete transparency
in our instruction and direction, particularly when it comes to
addressing areas where we want to see the most improvement.
Q
A
I know that your team spent a large part of last year
carrying out thematic reviews ahead of the regulations
coming into place. What were the standout areas of
this work?
Yes, on the back of these thematic reviews, our latest set
of publications informs the industry of our key focus and
priorities. ‘Fair value’ is a standout area and key theme
running throughout all areas of our new guidance. Do the products
on offer truly make sense for consumers?
We’ve still found weaknesses, despite focusing some of our reviews
on existing Product Governance rules - as opposed to the new
Consumer Duty, which is, of course, one step further. That’s why our
focus on ‘fair value’ continues to be emphasised. Take Guaranteed
Asset Protection (GAP) insurance as one example. Our stance
asks insurers to question whether the product on sale genuinely
offers value to the consumer, when a disproportionate amount of
premiums received frequently contribute to sales commission.
When we start to consider life insurance, service standards
and transformation are also core issues for us. Many firms are
12 | MODERN INSURANCE

INTERVIEWS
WITH MATT BREWIS
consolidating their books and outsourcing this type of work;
we’ve seen cyber incidents in some cases, which has naturally
had a significant impact on customers. We’ve also seen service
standards drop when firms have been migrating data, resulting in
claims taking longer than usual to pay out and affecting vulnerable
customers who are in the process of grieving the loss of a loved
one.
We’re pushing firms on all of these areas, and demonstrating where
we want to see improvements made. The recent intervention we’ve
taken towards GAP insurance is really the first example of the type
of action that the industry is going to see more of. We’ve got a
whole range of tools that we can use to act against firms who don’t
comply, and I hope these consequences will move the market in the
right direction and show that we’re serious about these changes in
the long term.
Back in Spring, the FCA specifically commissioned
an anonymous survey of 1,230 firms to establish the
Q industry’s preparedness and attitudes in respect of the
new Consumer Duty. What were your key findings from
this, and how do those compare with reality now that the
new Consumer Duty has come into play?
A
The FCA supervise around 55,000 firms, and so we’re
somewhat outnumbered when it comes to being able
to spend an adequate amount of time with each one!
Therefore, the purpose of this survey was to ascertain preparedness
for the Consumer Duty from smaller firms specifically. We did this
anonymously and via a third party to encourage honesty.
The adoption of the new Consumer Duty is a gradual journey;
even some of the big firms are still embedding it. We need to keep
pressing in order to push for these higher standards. The results of
the survey indicated that 64% of firms would be fully compliant by
the July deadline, with 23% displaying confidence that they would
be mostly compliant by this time. I don’t believe these figures
reflect the reality we’re faced with at the moment, and that’s why
it’s really important for us to keep pushing. We’re dedicated to
identifying firms that are defying the regulations. Some firms are
nearly there; some are burying their heads in the sand, and part of
our task right now is to find them.
How have the FCA supported firms in addressing pressure
points and challenges?
Q
A
Well, when it comes to those firms who are really trying,
we’re happy to give as much guidance as possible to ensure
they get it right. The aforementioned example of GAP
insurance illustrates this point; regulation for General Insurance
has been in place for years already. Low value products that exist
more for the financial gain of the distribution chain are a problem,
and often delivered at the consumer’s expense. Our latest letter
addressing this is full of examples of products that we don’t like the
look of, and we’re perfectly clear in our explanation of how we’d
like insurers to address these issues - as well as details of what the
consequences will be if they don’t.
We’ve also taken time to highlight our concerns around
Premium Finance, and the ‘poverty premium’ which profits from
policyholders who are unable to pay their annual premium upfront.
Consumers should not have to pay 30% more for their car or home
insurance if they have to pay monthly, and we’ve made our stance
Matt Brewis,
Director of Insurance at the Financial
Conduct Authority (FCA)
on that perfectly clear in our latest guidance. Where cars have been
written off, we’ve identified instances where a number of firms
have been paying out claims that do not cover the full value of the
car, and they are now being forced to make reparations for this in
retrospect. Executives that commission internal reviews to identify
and combat these issues within their own claims departments are
displaying the right behaviour, and I would recommend that others
should follow suit.
Q
The obligation to act in ‘good faith’ has been the cause of
much comment in the lead-up, and also in the delivery of
these new regulations. Is there now widespread clarity in
terms of the way that this is being interpreted, or is this
aspect still a work in progress?
Whilst the rules are clear, of course there’s potential for
discrepancy in how these are interpreted. Some people
A prefer to work to general principles and others want to know
the exact boundaries for compliance, so as a regulator, it’s difficult
to find a balance that suits everyone.
I think this is one of those areas where case law is going to build
up over time. I know how I interpret the guidance, and the basic
sentiment really just involves putting the best interests of the
customer at the heart of all products and services. We want to
achieve the right outcome for customers on every occasion. We’ll
continue to work closely with the Financial Ombudsman, and they
will still be adjudicating complaints as we follow up with individual
firms. This will build a precedent as we move into the new era of
Consumer Duty. The basic message: do the right thing by your
customers. Would you buy this product as it exists in its current
form, and if not, what are you doing selling it?
Q
A
The FCA has introduced Principle 11 of the new Consumer
Duty, which requires firms to notify you if they become
aware of an organisation within the distribution chain
that does not comply with the new regulations. Whilst
the principal of this works in theory, how will the FCA be
upholding this in practice?
Whistleblowing and intelligence from firms will always be
received confidentially, and in many ways, we do rely on
this type of information when it comes to enforcement.
There are regulated elements of the distribution chain juxtaposed
with other aspects, like Credit Hire, which fall outside of this remit.
However, insurers and brokers choose to work with these firms
and control how that chain of distribution works. If behaviour from
an unregulated firm is problematic and not compliant with the
Consumer Duty, it still falls to the insurer to take ownership of that
process.
One of the key regulatory components involves the avoidance of
creating foreseeable harm in products and services, and Credit
Hire is a clear-cut example. Outsourcing claims services to an
unregulated industry and passing the buck won’t make the problem
go away; it’s really important that this issue is dealt with to maintain
the principle of acting in good faith. Every part of the distribution
chain should be working together to achieve this mutual goal, and
anything else is simply bad for business.
MODERN INSURANCE | 13

INTERVIEWS
Modern Insurance
Magazine recently
sat down with
Sam Richardson,
Deputy Editor
of Which?
Money, to query
the ‘consumer’
aspect of the new
Consumer Duty.
How does the
general public
perceive insurance,
and can these new
regulations make a
positive impact in
the long term?
with Sam Richardson,
Which? Money
Sam – drawing upon your
experience at Which? Money,
Qwhat does the current relationship
between consumers and insurers
look like to you?
A
We survey home and car insurance
customers who have made a
claim within the last one or two
years. Almost all of those customers have
reported satisfaction on these surveys;
90% of home insurance claimants and
93% of car insurance claimants are happy
with the overall service received from their
insurance provider.
I’m sure you’ll agree that this is really
encouraging, but the fact that this
feedback comes from claimants is
certainly worth noting. Where customers
haven’t needed to submit a claim, we’re
seeing plenty of irritation around price
rises and claims inflation right now. It’s a
matter that is really testing patience, and
customers are struggling to see the value
in their premiums - especially where those
price rises end up significantly higher
than the standard rate of inflation. Some
aspects of this are explainable, but there’s
little we can do to provide the necessary
comfort to those with the highest rise in
the cost of their premiums.
Oftentimes, we’ve also found that if
something goes wrong in the claims
process, it goes very wrong. We’ve
heard examples of many home insurance
customers having to chase their insurer on
multiple occasions, alongside reports from
three quarters of car insurance customers
to say that they weren’t offered a suitable
explanation when their claim was rejected
or only partially accepted. On top of
this, there’s the General Insurance Value
Measures from the Financial Conduct
Authority (FCA), highlighting pretty
poor payout rates from home and travel
insurance providers across the board.
This creates a general sense of scepticism
between consumers and insurers, and
seemingly, it has been that way for many
years.
What’s the most common
grievance that consumers
Q report to Which? in relation to
insurance?
Anecdotally, most of the
complaints we’re seeing are around
A the subject of price rises, in some
cases addressing inexplicably huge jumps
in premiums without much reasoning
given as to why this was necessary. In
claims, our surveys indicate that the main
areas of dissatisfaction address delays
with the speed of settlement, the lack of
support provision in place from insurers,
and poor communications around the
status of a claim.
With this in mind, how do you
expect to see the new Consumer
QDuty alter the reputation of the
insurance industry over time?
Insurers have been subject to high
levels of scrutiny for many years,
A including some changes to Product
Governance rules in General Insurance
back in 2021. I’m confident that we’ll see
some improvements in the long-term,
and while better outcomes won’t happen
overnight, when we think about the
potential for longevity within these new
regulations, I’m sure that we’ll see some
developments in consumer satisfaction as
the new Consumer Duty takes hold.
At the moment, we’re seeing a high
number of complaints to the Financial
Ombudsman Service (FOS), of which
a lot are upheld. I would say that
improvements in insurance products
and processes specifically will result in a
consequent handling of those complaints
internally, namely in a way that doesn’t
14 | MODERN INSURANCE

INTERVIEWS
involve the FOS so much moving forward.
The FCA are predicting a short-term spike
in complaints as the new regulations settle
in, followed by a reduced number once the
new Consumer Duty hopefully starts to
mitigate issues for potentially vulnerable,
high risk or dissatisfied customers.
Ultimately, it’s up to the FCA to step
up and enforce these new rules, and on
behalf of consumers, we want to see real
penalties for those who do not comply.
Which? was extensively
involved in consultation as the
Q new Consumer Duty was being
developed. Tell me more about
this process, and what was
involved.
A
Indeed, our Policy Team worked
really closely in consultation with
the FCA to form the basis of the
new Consumer Duty through regular
discussions and collaboration. We’re very
much in support of it now; admittedly,
there was some concern at first around
the width of ambition behind the new
regulations, but we clearly see the FCA’s
commitment and dedication to industry
reform. It supports a lot of what Which?
is all about, the idea of fair treatment as
default.
On that topic then, how are
Which? hoping to raise awareness
Q of the new Consumer Duty in
order to educate insurance
customers about their rights
moving forward?
A
I’m sure we’ll be writing frequently
about the Consumer Duty as these
new regulations take hold. Where
we identify insurers or those within the
distribution chain that don’t comply, we’ll
also be referencing the Consumer Duty
and highlighting where a particular insurer
has fallen short of their obligations. From
the perspective of our readership, we
need to keep reminding them that the
Duty exists for their benefit. Insurance
is a topic that we cover in each issue of
Which? Money magazine, so of course we
need to cover the Consumer Duty as part
of our commentary.
We also cover complaints to insurers in
our various online guides. Currently,
these address the process of
making and escalating a
complaint, but I’m sure we’ll
be building on this advice
with more focus on the
Consumer Duty moving
forward.
Ultimately, however, rules
are for providers to follow.
It shouldn’t fall on the
consumer to adopt the
endless role of identifying a
lack of compliance; that job
falls to the regulator, and
also to us to a slightly lesser
extent. Of course we want
our readership to understand the basics,
but in this case, compliance falls firmly on
the shoulders of those responsible.
What impact might the new
Consumer Duty have on the
Q number of complaints in the short
and long term?
We’ve already touched on this
slightly, in that I know the FCA
A were expecting to see an initial
spike in the number of Consumer Duty
complaints before reaching an eventual
plateau. On the other hand, the FOS have
said that they can already judge the level
of complaints based on reasonable, fair
standards, so they don’t seem to predict
the same upturn.
I don’t foresee an immediate change in the
short term either, but time will tell. We’ll
still continue to refer people through to the
FOS and see how things go. Sometimes
there are delays, and if this happens, we’ll
work with them to find another way of
handling volume.
Q
More generally speaking, how long
do you think it will be until we see
a major shift in consumer trust and
confidence?
Some of the issues we’re seeing
have been around for years. We’re
A working on an editorial piece at the
moment looking into the standards of loss
adjusters in home and property claims,
and I suspect that issues in this area of the
industry will take a fair while to rectify. If
inflation starts to come down next year,
it will also be interesting to see whether
premiums fall as a consequence.
With dreadful savings account interest
rates, for instance, we saw politicians get
involved and the issues are being rectified
quickly. Unfortunately, I’m not sure that
the same can be said for insurance. Bad
behaviour has a habit of living on in the
memory of consumers for a while - not so
much related to General Insurance per se,
but I do think people are going to be very
cynical about the industry for quite a long
time to come.
Car insurance is another great example.
It’s still a grudge purchase and not a
much-loved product, and yet it has higher
payout rates than many other lines of
insurance at around 99%. We’re dedicated
to making sure that consumers obtain a
product which actually works, especially
when there are so many other cost-ofliving
pressures at the moment. We need
to see insurers offering fair value at a fair
price.
QFinally, looking ahead, what
research will Which? conduct in
future to assess the efficacy of the
new Consumer Duty in insurance?
AWe’ll continue to take a balanced
approach by conducting deep
research into the policy side of
the new Consumer Duty, one that informs
regulators and other governing bodies.
We also have the editorial side, which
informs consumers. Every year, we run
Customer Satisfaction surveys for car
and home insurance, sometimes for pet
and travel insurance as well. We also pay
very close attention to General Insurance
Value Measures, and submit a number of
Freedom of Information requests to the
FOS to ‘name and shame’ when we’re
investigating specific complaints further.
I think we’ll follow a similar approach for
matters related to the Consumer Duty, as
insurance is now one of our priority areas.
We’re particularly interested in pricing,
and how insurers are coming up with
their prices in an ethical, fair and balanced
way, particularly in light of increased
automation within the underwriting and
risk assessment process.
Sam Richardson,
Deputy Editor, Which? Money
MODERN INSURANCE | 15

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EDITORIAL BOARD
Preparing Teams for the
New Consumer Duty
The new Consumer Duty requirements for General
Insurance is a significant shift in regulatory
expectations. It introduces a more outcomes-focused
approach to consumer protection, and sets higher
expectations for the standard of care given to
customers.
The Financial Conduct Authority (FCA) want good outcomes
for customers to be at the heart of firms’ strategies and business
objectives, and leaders have a key role to play here. Firms’ boards and
senior management should embed the interests of customers into
their culture and purpose.
Here at Carpenters Group, our values are fully aligned to delivering
a first-class claims experience. We understand that it is paramount
to our customers and our insurer partners that we deliver when the
customer needs us most – at the point of claim.
Our long-standing relationships are a testament to the quality of our
service. Our focus is always on the customer, ensuring a claims journey
that consistently exceeds expectation.
Carpenters Group have been preparing for the new Consumer Duty
for some time, building on the strong foundation of our customer
focused strategy. This already includes constant training to ensure
that we are treating all customers fairly, along with our more specific
training for vulnerable customers in particular. We have adapted
our training regime to include Consumer Duty specific training to all
colleagues, supporting their understanding of the changes and what
this means to the various teams across the business.
We continue to work collaboratively with our insurer clients to
ensure that we represent their brand in the best possible light, by
communicating with customers in a way that effectively meets the
differing requirements of our insurer clients.
Identifying vulnerability has always been a part of the Carpenters
Group customer journey, and this has not changed. We promote an
agile and adaptive approach, long recognising that ‘one size does not
fit all’.
We are closely linked to our insurers with regards to data and
reporting requirements, and remain happy to discuss the industry’s
wider needs with regards to reporting and agreeing a standard set of
MI, one that all parties involved in the customer journey can subscribe
to.
Paul Challoner,
Commercial Director, Carpenters Group
The New Consumer Duty:
A Change in Distribution
The new Consumer Duty rules will set ‘higher
and clearer standards of consumer protection’
for the insurance industry. While many firms will
already have the new rules enshrined in their
operations, securing consumer protection during
the distribution journey brings its own unique set of
challenges, and should not be neglected.
During B2C digital journeys, customers must fend for themselves
as they navigate the online infrastructure of the business they are
engaging with. Many B2C journeys are optimised around new business
generation, but Consumer Duty requires firms to make a product’s
cancellation process just as simple as the purchase process.
There are several ways that firms can achieve this, one of which is
to offer an end-to-end digital portal that allows clients to log in and
make changes themselves. Some firms will struggle with this from a
technical perspective and a cost perspective, and this solution will
not suit everyone. Quite rightly, many firms will want to speak to the
client before they make changes to their policy, particularly during
the cost-of-living crisis when clients might be tempted towards
underinsurance. To support this, firms need to make their online
environment clear - complete with instructions that detail how clients
can amend or cancel their policies, and with obvious signposting to
guide clients in the right direction.
Brokers and MGAs/insurers may also have to communicate with
clients in new ways. The FCA has identified good practice for MGAs/
insurers, asking them to contact clients directly (even when a
broker controls the relationship) to establish whether the product is
appropriate, particularly when there is a possibility that the client is
vulnerable in some way.
This is challenging for brokers and MGAs/insurers in two ways. Firstly,
the MGA/insurer would not necessarily have contact details for their
clients if the business was brokered, and the infrastructure may not
be in place to allow this to be shared between both parties. Secondly,
the idea of an MGA/insurer contacting a client directly will be
anathema to many brokers, and quite likely prohibited by the existing
agreements in place between them.
However, innovative brokers and MGAs/insurers are likely to be able
to find a strong solution to this challenge. Many may see it as an
opportunity to engage with clients on a joint basis, and in a manner
that not only satisfies the requirements of Consumer Duty, but also
strengthens the operations of their respective brands.
Will Prest,
Product Manager, ParaCode
MODERN INSURANCE | 17

EDITORIAL BOARD
Supporting Insurers with their
Consumer Duty obligations
At the end of July, insurers were required to
implement the FCA Consumer Duty rules for
new and existing products and services for sale
or renewal. Significant process re-engineering
and monitoring continues to be necessary to
reflect and fulfil the regulations. In the claims
environment, we believe that service delivery from
external providers must align with insurer strategy
and procedures to meet the FCA requirements.
At e2e, we help our insurer clients to help their customers and, in
doing so, we are an important part of the Consumer Duty distribution
chain. Our job is to satisfy our clients’ needs and, nowadays, this
necessitates an awareness of their responsibilities under Consumer
Duty. We regard ourselves as the supportive arm of an insurer,
who must fulfil the requirements of Consumer Duty principles and
practices in turn.
A total loss motor claim is a stressful situation for insurance
customers. As experts in total loss vehicle management, we add
value for our insurer clients, and for their customers as a result.
Our professional contact centre delivers a high-quality customer
experience, and can supplement the insurer role where needed.
Clear communication is our priority, including careful and appropriate
management of vulnerable customers. The loss of a vehicle means
different things to different customers, and we treat each situation
individually with empathy and understanding. This ranges from
collecting the vehicle, which in some cases will be directly from the
policy holder, to carefully packaging and returning personal effects
which may have been left in the vehicle. We ensure all personal
information is removed from infotainment systems, giving customers
confidence that their personal data is securely handled in line with
GDPR requirements. Reflecting different customer needs, we also
offer specific services for cherished plates and classic cars.
We help to move vehicles swiftly through the claims life cycle,
providing swift, accurate engineering assessments to determine
whether a borderline vehicle is repairable or a total loss. Access to our
network’s comprehensive 0.5M stocks of quality-graded, warrantyassured
reclaimed parts means our insurer clients can offer choices
to their customer. In many cases, it can become economically viable
to repair a borderline total loss vehicle with reclaimed parts. Where a
vehicle is a total loss, we accurately represent the insurer philosophy,
negotiating settlement where required using insurer guidelines in line
with ‘fair value’. Furthermore, we have invested in a state-of-the-art
auction platform, enabling us to further maximise salvage auction
returns. This also facilitates the insurer in supporting the customer
and offering ‘fair value’ when a settlement is being determined.
Our role is far greater than the provision of salvage services; it
encompasses the management of customer loss. Our insurer clients
trust us to get it right, reflecting their Consumer Duty strategy and
boosting their reputation. At e2e, it’s a role we truly relish.
Jim Loughran,
CEO, e2e Total Loss Vehicle Management
Mitigating the Effects
of Rising Claims Costs
The motor insurance market is under immense
pressure from claims inflation. Labour costs
are up by 40%, and vehicle repair costs have
risen by 33% 1 . For every £1 that motor insurers
received in premiums, £1.10 in claims and
operating costs were paid out in 2022 2 .
However, motor insurance providers can claw back some control
through effective use of the latest data enrichment solutions.
Innovations in vehicle, person and place data delivered through one
gateway can help them understand the risk of a claim and how much
that claim could cost, to a high degree of accuracy.
Take vehicle centric data as an example. It is now possible to build
an immediate and granular picture of the history and value of a
vehicle - as well as the risk related to how well that vehicle has been
maintained - through LexisNexis® Vehicle Insights. The beauty of this
data enrichment solution is that it can be used in tandem with unique
information on vehicle build (via LexisNexis® Vehicle Build) to identify
the presence and performance of Advanced Driver Assistance Systems
(ADAS) features for that specific vehicle. Therefore, insurance providers
can instantly understand the features that the vehicle was ‘born’ with,
its life after leaving the production line, and what that means from a
risk perspective.
Insurance providers can then incorporate predictive information on the
drivers/additional drivers of the vehicle (such as their policy history)
through solutions such as LexisNexis® Policy Insights. For example, past
cancellations can equate to 70% higher loss cost, and an individual
with multiple NCD entitlements at any one time has a 33% higher loss
cost. In addition, individuals with gaps in cover have a 55% increased
likelihood of cancelling a policy mid-term 3 .
A cross-market view of claims history for the car or home as well as
the individual through LexisNexis® Precision Claims offers immense
predictive potential. This is really evidenced in U.S. analysis 4 , which
shows that people with three or more motor claims incur home claims
losses that are approximately 40% higher in cost than those without
any motor claims.
The next step could be to bring in more detailed information about the
property using geospatial data intelligence to understand theft risk,
and indeed garaging and/or parking at the address.
There are many factors involved in understanding motor insurance risk,
but by using one gateway to some of the market’s most powerful data
enrichment solutions, insurance providers can make more informed
decisions that could help to mitigate the rising cost of claims.
Tom Lawrie-Fussey,
senior director of product management, U.K and Ireland,
LexisNexis Risk Solutions
1 https://www.abi.org.uk/news/news-articles/2023/8/sustained-cost-pressures-oninsurers-push-the-average-price-of-motor-insurance-to-a-record-high/#:~:text=The%20
average%20premium%20paid%20for,this%20data%20back%20in%202012.
2 https://www.ey.com/en_uk/news/2023/06/ey-uk-motor-insurance-results-analysis
3 Based on LexisNexis Risk Solutions Analysis
4 Based on LexisNexis Risk Solutions internal studies of U.S. personal lines claims histories
MODERN INSURANCE | 19

EDITORIAL BOARD
Embracing the
New Consumer Duty
Here at National Windscreens, we welcome
the introduction of Consumer Duty from the
FCA. It serves to further reinforce our duty of
care to the customer. Providing a first-class
service has always been our priority, and this
has embedded best practices throughout the
organisation even before the regulations were
introduced in July.
As a result of the Consumer Duty, we have established even closer
relationships with our insurance partners to further collaborate
and align our services. National Windscreens has always sought
to provide a personalised and transparent service, and with the
introduction of Consumer Duty, we re-assessed our policies
and reaffirmed the need for positive and clear interactions with
policyholders.
We have become increasingly focused on collecting the right insights
to help us care for our customers in the future, especially around
vulnerabilities. We understand that recruiting motivated people
and developing them as engaged employees will guarantee good
customer outcomes.
As we are customer-centric, we have invested heavily in our
communication strategies to meet the convenience of the
policyholder. Our digital team has worked incredibly hard to establish
an award-winning customer journey; a robust process that was
created following rigorous feedback programmes in collaboration
with our valued insurance partners.
On the day of the appointment, the policyholder can track the
progress of the technician as they make their way to the venue,
enabling the policyholder to anticipate the technician’s arrival and
manage their day effectively.
We fully utilise Trustpilot to better understand the perspective
and experience of our customers, helping us to constantly review
and shape our proposition, and ensuring that communication with
customers continues to be effective and accessible. Crucially, in the
instances where our high standards have not been met, we conduct
an immediate investigation to address the incident.
We want to continue improving the customer experience with both
digital and traditional routes by incorporating additional signposting
for vulnerable customers, all with the goal of creating exceptional
service.
We have also embraced technology to welcome the new Consumer
Duty. We use a bespoke, in-house system to manage the first notice
of loss (FNOL), validation, and the most appropriate booking for the
policyholder. This system logs the job from the initial contact, right
through to completion.
We also use Vodafone Storm, which allows omnichannel
communication between phone, email, chat and text. This manages
timely communication with the policyholder in line with their
preferences. Vodafone Storm is used by the emergency services and
is therefore very dependable under pressure, with 99.99% reliability.
This system brings all channels into a single, cloud-based platform,
with the capability to future proof the needs of the policyholder
through AI as they evolve over time.
Simon Hunt,
Commercial & Services Director, National Windscreens
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MODERN INSURANCE | 21

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EDITORIAL BOARD
BASF UK x STEM:
Curiosity and Creativity
Earlier this year, young learners at St Matthew’s
Primary School, Stockport enjoyed a week of
science-based experiences and experiments,
supported by a team of volunteers from BASF,
the world’s largest chemical company.
Throughout the week, 27 BASF STEM Ambassadors hosted 11
interactive sessions, bringing the breadth of science to life, and asking
the children to consider what it is to be a scientist. The activities on
offer aimed to stimulate an interest in science, fostering curiosity and
creativity.
Highlights included worm-charming to investigate soil health,
designing innovative car colours through BASF Colour Lab, learning
how drones work, creating an indoor planetarium, and exploring food
technology by making chocolate mousse!
It was great to see all the pupils at St Matthew’s Primary School get
involved in STEM week. Year on year, we see just how vital it is for
us to do our part within the community in order to inspire the next
generation of painters. The activities we ran this year have STEM
learning at their heart, ultimately designed to encourage pupils to
be inquisitive about the world around them. It was amazing to see
so many pupils join in, asking questions about different colour mixes
and quizzing the volunteers to see what inspired them to work in our
industry in the first place.
We also took the opportunity to select the most inimitable of the
custom colours mixed by the pupils, and brought their designs to life
using our all new Glasurit 100 Line basecoat line. Sustainable initiatives
add value to our brand, so when brands like Glasurit showcase its
innovations - and in a way that can be adapted to suit a young
audience - it signals to future painters and prospects that we care.
Clearly, for us, sustainability is far more than just ‘going green’. When
even the next generation of painters are on board, that’s what success
looks like for us.
“A week like this has a massive impact on our pupils,” commented
Faye Garner, Science Lead at St Matthew’s Primary School. “They get
to experience things they normally wouldn’t, and the BASF STEM
ambassadors have been inspirational.”
The relationship with St Matthew’s Primary School will continue, as the
BASF STEM Ambassadors are keen to support science learning and
help the school to redevelop their outdoor garden space.
At BASF, we create chemistry for a sustainable future.
Dr. Natalie Wong,
Marketing & Portfolio Management Lead,
BASF Automotive Refinish UK & Ireland
Has the ‘as-a-Service’ trend
arrived in the claims industry?
Software-as-a-Service (SaaS) hit the big time
in the early 2000s, and since then, the ‘as-a-
Service’ model has made its way into many other
industries. ‘As-a-Service’ is a tried and tested
way of providing a flexible service offering. It’s
a scalable solution that reduces initial outlay,
allowing businesses and individuals to draw on a
service as and when they need it.
It’s extremely common in the software space. You’ve probably
heard of Mobility-as-a-Service (MaaS), which aims to bring multiple
transport options together on a single platform.
In the insurance industry, there’s a growing interest in ‘Claims-as-a-
Service’ - on demand access to services like FNOL and third-party
intervention. This allows insurers and MGAs to effectively handle
peaks in demand, or bolster in-house capacity without investing
in additional, permanent resources. Advances in technology and
system connectivity mean that more businesses can take advantage
of flexible, outsourced services as part of their claims strategy. The
benefit is the ability to scale services quickly, and deliver great
outcomes at the point of claim.
Could ‘as-a-Service’ solutions be used in other areas of the claims
supply chain?
In motor claims, long-term challenges - including a shortage of
repair capacity and parts delays - are placing traditional vehicle
repair strategies under pressure. According to Trend Tracker’s Market
Snapshot Report, available repair capacity has fallen, while demand
for vehicle repairs increased by 23% over the last 12 months.
To counter these challenges, insurers need a more dynamic repair
solution, one that complements their existing capabilities. Repair-as-a-
Service could very well be the answer - a solution that offers insurers
direct access to vehicle repair slots, with no minimum deployment
required. The flexibility to deploy as many or as few vehicles as needed
to a repairer at any time, in any location, and at varying levels as
demand fluctuates.
It’s an offering with the potential to support insurers in relieving repair
backlogs that are affecting certain location or vehicle types, or as
overflow to support day-to-day operations. Like other ‘as-a-Service’
offerings, Repair-as-a-Service includes value-added options like
engineering, triage, and repair management, which can also be utilised
on demand. This allows insurers to pick and choose the services they
need most, creating a repair partnership that works for them and
adapts to their changing requirements.
Repair-as-a-Service could address anything, from straightforward
overflow capacity to a fully-fledged accident management partnership
that encompasses the whole repair management process. When we
look at the challenges facing the motor claims industry, it seems clear
that increased flexibility could offer significant benefits.
‘As-a-Service’ models can be a fantastic tool when developing a claims
strategy, and a real benefit in building a robust repair solution to
reduce repair times and hire costs.
Head to activate-group.com/repair-as-a-service if you want to find out
more.
Lorna Turner,
Director of Business Development, Activate Group
MODERN INSURANCE | 23

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EDITORIAL BOARD
Providing Fair, Flexible
and Inclusive Services
Since 2015, the Financial Conduct Authority
(FCA) has urged the financial sector to
offer extra support for customers in need of
additional care, formerly known as ‘vulnerable
customers’. However, circumstances can be
wide-ranging and complex, leading to an
individual or their family needing further
assistance adjacent to that of their insurance
claim.
The pandemic changed everything for some people, and our eyes
have been opened to the broader issues that may affect a person’s
ability to understand and navigate the claims process. Someone
who didn’t need additional support at the outset of the pandemic
may have since experienced a loss of income or bereavement, stress
or loneliness - factors that may now leave them anxious or hesitant
to communicate. Furthermore, the cost-of-living crisis has added
pressure that may also result in a change of behaviour or personal
circumstances.
That’s why we’ve enhanced our existing provision for customers who
may be experiencing a wide range of issues or changes that make
their lives harder. We are now in a position to provide exactly the right
support for their needs through the clinically-led Crawford Customer
Enhancement Service. We have built a dedicated solution rooted
in clinical practices to help the industry identify and assess the risk
category for each customer, ensuring the claims process is adjusted to
help customers feel more comfortable and secure.
Each member of the team has a background in Occupational Health,
Medicine or Social Care (as well as a counselling qualification), all of
which creates the perfect environment for customers to share their
experiences. As a consequence, this allows the most appropriate
adjustments to be made.
Since we introduced the service, we have seen a variety of referrals
to our Customer Enhancement Service team, covering issues such as
bereavement, disability, isolation, complex trauma and PTSD, financial
difficulties, depression, suicidal ideation, and anxiety.
Use of our Individual Assistance Plan (IAP) support has also increased.
Alongside the live support from our Customer Enhancement Advisors,
our IAP provides wrap-around support to customers during and after
their claim. At no extra cost to the client, we can provide customers
with access to a wide range of support services based online, via an
app or telephone, with services available 24 hours a day, 365 days
a year. This also includes access to BACP accredited counsellors,
financial advisors and legal assistance.
Since introducing our new service for specific clients, we have
witnessed a 51% reduction in elapsed settlement times, a 50%
reduction in complaints, an 18% increase in compliments, and a 36%
reduction in indemnity spend. This approach is not only good for the
customer and compliance; it also makes great business sense.
Hannah Gardner,
Customer Enhancement Service Lead, Crawford & Co.
Consumer Duty Regulations
and the World of Vehicle
Recovery
As the Financial Conduct Authority (FCA)
introduce their new Consumer Duty
regulations, insurers are asking many
companies in the claims supply chain about
how they plan to set the higher and clearer
standards of consumer protection required,
and how they intend to put the needs of the
customer first.
It’s probably fair to say that, save for the last few years, roadside
recovery hasn’t been at the top of everyone’s supply chain agenda.
As a result, vehicles would regularly be recovered by the Police or
Highways authorities at substantially inflated charges, and then ‘lost’
or left in storage for some considerable time.
However, the market has moved on, and it’s now widely recognised
that the recovery agent and their driver is, on many occasions, the
only face of the insurer brand that the customer will ever meet in
person. Therefore, it’s hugely important that the experts taking the
initial call have undertaken in depth vulnerability assessments, and
that the attending driver is clear and concise in terms of next steps, as
well as the options open to the customer around onward transport.
At NWVA, these vulnerability assessments are not new. However, we
recognise that it’s no longer as simple as having young children in
the car, or an elderly person on a country road. Vulnerability is much
broader than that, and it’s a key part of what we do when assessing
recovery needs.
Looking after the customer and not just the vehicle is central to our
assessment process, as well as a core part of our drivers’ ongoing
development programme. We recognise that accidents are distressing
enough, and being left with a damaged or undriveable car at the side
of the road only leads to increased stress. Therefore, arrival times and
continual communication with the customer is absolutely paramount.
To find out how we can help your customers, please contact the team
at sales@nwva.co.uk or by calling 01621 730039. You can also visit our
website at: www.nwva.co.uk
Mick Jennings,
Managing Director, Nationwide Vehicle Assistance (NWVA)
MODERN INSURANCE | 25

EDITORIAL BOARD
The new Consumer Duty
at RGI Solutions
In our commitment to Consumer Duty, we take
immense pride in our deep understanding of both
our team members and, most importantly, our
valued customers. We firmly believe that cultivating
an engaging, supportive, and high-performing
work environment for our team empowers them
to deliver excellence to our customers. This
fundamental principle seamlessly aligns with our
comprehensive Sustainability Strategy.
The core of RGI’s ethos has always revolved around demonstrating
how our customers’ needs are at the very heart of everything we do.
To ensure the consistent application of this ethos throughout our
organisation, we have implemented several key initiatives.
Educating Our Teams. We are actively developing comprehensive
communication materials designed to introduce the principles of
Consumer Duty to our teams. These materials not only elucidate our
responsibilities as a business, but also provide insights into how we
meet the stringent requirements set forth by the regulator.
Sharing Success Stories. We believe in leading by example. Therefore,
we regularly share success stories and case studies that showcase
the various ways in which we consistently deliver positive customer
outcomes. These real-life examples serve as a source of inspiration
and guidance for our teams.
Management Focus on Customers. In our monthly management
meetings, we have instituted a dedicated agenda item centred around
the customer. We also plan to extend this focus to target good
customer outcomes, meticulously reviewing customer metrics to
ensure strict compliance with FCA requirements.
Vulnerable Customer Training. Acknowledging the importance
of addressing the unique needs of vulnerable customers, we
have included comprehensive vulnerable customer training as a
fundamental component of our induction training plan for several
years. We are confident that this training remains not only fit
for purpose but also indispensable, and we are committed to its
continued integration.
At RGI Solutions, our unwavering dedication to Consumer Duty
underscores our commitment to delivering superior customer
experiences. Through these proactive measures and initiatives, we aim
to exceed the expectations of our valued customers. As we continue
to evolve and adapt in an ever-changing business landscape, our
steadfast focus on our customers will remain at the forefront of our
operations, driving our pursuit of excellence and trustworthiness.
Sarah Glenn,
Commercial Director, RGI Solutions
Offering Customer Choice and
Providing a Digital Footprint
The parallels between professional footballers
and claims handlers are not immediately
obvious. But push aside the stadium, stardom
and sporty kits, and the similarities rise to the
fore. Role requirements include embracing
teamwork and clear communication,
maintaining focus yet remaining calm under
pressure, and respecting strong leadership
to reach a shared goal. And when the going
gets tough, there’s a simple yet fundamental
philosophy for success.
Controlling the controllables has been the mantra of sports coaches
and insurance leaders for decades, and this has never been more
significant than it is today. After two years of rising inflation,
policyholders are feeling the financial strain, and whilst we can’t
control inflation any more than we can control the Premier League,
we can influence overall claims costs in the policyholder’s favour
whilst streamlining operations to manage our operating expenses.
Proactive intervention and recovery. FMG intervene with over 24,000
at-fault accidents per year, managing the third party’s claim with a
quality vehicle repair and replacement vehicle service to keep our
customer’s total claim cost to a minimum. Our ULR experts step in
when our customer is not at fault, recovering over £1.7m per month in
uninsured losses on their behalf.
Controlling repair costs. We eliminate bodyshop waste, drive
efficiencies in repair processes, and only use high quality (but
competitively priced) paint, tools and equipment, including non-
OE and green parts options. Our in-house independent automotive
engineers verify repair estimates and keep a close eye on repair
progress, ensuring quality repairs at the right price.
Vehicle recovery and storage. We control recovery and storage costs
for our customers following road traffic accidents, quickly recovering
RTA vehicles to their point of destination. Here, our experts efficiently
assess the damage, and triage to pursue total loss, salvage or repair
routes.
Digitalisation and robotics. We’ve invested in digitalisation and
robotics to streamline and automate processes. FMG Connect, our
omni-channel communications platform, gives customers choice in
how they interact with us, controlling operating costs for both clients
and ourselves.
Colleague engagement and retention. Our DE&I, personal
development, employee engagement and wellbeing strategies
support our aim to nurture our company culture. In turn, this
promotes the efficacy of retaining talent, key knowledge and
expertise, which means that we’re able to support customers
consistently whilst averting the high cost of recruiting and retaining
new employees.
We’re not a top flight sports club, and we can’t control the economy.
But we are a responsible, sustainable business, dedicated to focusing
on the areas of our operation that we can control, and excelling at
providing support for our customers through this economic storm.
Andrew Chandler,
Sales Director, FMG
MODERN INSURANCE | 27

INVESTIGATION WITH
REAL INSIGHT
It’s not by chance that RGI Solutions
has grown to become one of the UK’s
leading independent insurance
investigation specialists. When we set
out in business back in 1990, our
mantra was simple: ‘to provide
integrity, reliability, insight, value
and quality in everything we do’.
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About Us
Today, with leading insurance
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Proud of our heritage, clear fixedprice
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Believing that being ‘good’ really
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0161 486 0100
Our portfolio of services is regularly
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THE INTELLIGENT CHOICE
With highly experienced, qualified and
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Understanding that speed is always of
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The Intelligent Choice
Integrity, reliability, insight, value and quality
Address : The Chambers, 44 Station Road,
Cheadle Hulme, SK8 7AB
Mailbox : sales@rgisolutions.co.uk

ASSOCIATIONS ASSEMBLE
ASSOCIATIONS
ASSEMBLE
Welcome to
Associations Assemble!
Modern Insurance Magazine is delighted to be joined by some of the leading
names from our industry associations, organisations and institutes.
This issue voices the thoughts of:
David Sparkes
Regulation Director
British Insurance Brokers’ Association
(BIBA)
Anthony Hughes
Chairman & CEO
Credit Hire Organisation
(CHO)
Mike Keating
CEO
Managing General Agents’ Association
(MGAA)
Sue Brown
Chair
Motor Accident Solicitors Society
(MASS)
Mike Benner
Chief Executive
Association of Personal Injury Lawyers
(APIL)
Jonathan Drake
Member of the
Forum of Insurance Lawyers (FOIL)
and Partner at DWF
Thomas Hudd
National Technical Manager
National Body Repair Association
(NBRA)
Dr Matthew Connell
Director, Policy and Public Affairs
Chartered Insurance Institute
(CII)
MODERN INSURANCE | 29

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ASSOCIATIONS ASSEMBLE
David Sparkes
Title: Regulation Director
Association: British Insurance Brokers’
Association (BIBA)
Using the Consumer
Duty to Deliver
Good Outcomes
With the Consumer Duty now a key part
of the fabric for all Financial Conduct
Authority (FCA) regulated markets, there
is an expectation that good outcomes will
be the norm for customers as part of the
general service provided - let alone the
claims service.
However, is this truly the case? How many issues will we
see like the one we saw around business interruption
claims, or the accusation that at least one firm was
offering customers less than market value for their cars
in total loss claims?
In reality, there’s an important balance to be made
between customer outcomes and maintaining a
financially stable business. When you set it down in
black and white, it becomes rather obvious that it’s
not possible to sustain ‘competition in the interests
of customers’ (to use the terminology in the relevant
FCA objective) if a firm’s claims payments exceed their
premium income and any reserves.
So, how does a firm strike the right balance?
Communications play a vital role, both in terms of
what teams within firms hear about the service and
outcomes they are employed to deliver, and the
messages that customers hear or read as part of the
arrangement or claims process. The ‘old’ standard of
‘clear, fair, and not misleading’ is now the baseline, not
the expected standard.
A key part of the Consumer Duty requires a guarantee
of customer understanding when it comes to what
they have been told. This needs to be a detailed
conversation, but not a technical one, otherwise
customer understanding will go out of the window.
Customers that understand their claims settlement
and accept this as meeting the expectations of their
insurance cover will result in good outcomes.
Mike Keating
Title: CEO
Association: Managing General Agents’
Association (MGAA)
MGAs: Vital Support
for Brokers
The relationship between brokers and
MGAs has gone from strength to strength
in recent years. Looking at our membership
figures alone, 90% of MGAA members
now distribute products via the broker
community, a figure that continues to grow.
Where MGAs were once seen by the insurance industry
as niche outsiders, they are quickly becoming the go-to
way for brokers to place business on behalf of their
clients. But why is this the case?
Perhaps one of the more obvious reasons is that MGAs
cover risks in niche markets, and many larger insurers
don’t have the resource, appetite or expertise to
compete. But this is just the tip of the iceberg in terms
of the value that MGAs can offer.
Because of the agile nature of MGAs, they’re able to
provide a level of service which larger organisations
would naturally struggle to achieve. From a broker
panel session at our recent annual conference, we know
that an MGA’s tailored, efficient, and personal approach
to customer service is one of the key benefits of their
offering.
We also know that brokers appreciate having greater
access to decision-makers within the businesses they
partner with, which further adds to the overall positive
experience of working with MGAs.
MGAs have been fundamental in helping brokers tackle
the economic headwinds that the industry continues
to battle against. As insurance prices continue to
rise, MGAs have been able to offer tailored solutions
centered around the needs of the broker and their
clients, a proposition which is difficult to find elsewhere.
The fact that relationships
between MGAs and their
broker partners continue to
thrive is a testament to the
value they provide - not only
to brokers themselves, but
to the industry as a whole.
MODERN INSURANCE | 31

ASSOCIATIONS ASSEMBLE
Mike Benner
Title: Chief Executive
Association: Association of Personal Injury
Lawyers (APIL)
The Justice Gap
Many people injured in road collisions
are not receiving compensation since the
‘whiplash reforms’, where damages were
slashed and the Official Injury Claim (OIC)
system was introduced.
A clear ‘justice gap’ has been unveiled by APIL’s
dedicated research team, which tracks and analyses
data relating to justice for victims of negligence. Data
is studied from a broad range of sources and addresses
a variety of issues - from criminal injury claims to birth
rates, insurance premiums, traffic concentrations, court
delays, and in this case, access to justice and injury
levels.
The team has unearthed some stark results. Comparing
the landscape today to how it looked pre-pandemic,
the number of people injured in road traffic collisions
has increased by 18%, while the number of people
claiming compensation is down by a quarter. Far more
people are being injured, yet there are fewer claims. The
only explanation lies with the reforms.
The Government believed the insurance industry when
it said that the cost of compensating people for injuries
made premiums high, and that premiums would go
down if the reforms were introduced. However, APIL
analysis shows that insurance premiums are creeping
ever higher – 41% higher than in 2021, in fact, according
to data from the Office of National Statistics. The
situation is wholly unfair, and smacks of poor policy.
Injured victims of negligence were never the problem.
We hope that insurers will be held to account when
the Treasury reports on the benefits of the reforms to
consumers. The damage is already done for the many
road crash victims who will never get the compensation
they need to help get their lives back on track. The law
is there to provide for the needs of injured people. It is
the Government’s job to make sure it does exactly that
in the future.
Anthony Hughes
Title: Chairman & CEO
Association: Credit Hire Organisation (CHO)
Consumer Duty:
Overly Onerous, or
a Necessary Check
on Overzealous
Capitalism?
Preparing for the Consumer Duty has
been a massive exercise for the insurance
industry. One major player sent 14,000
emails and other such material to their
broking partners over a five-month period,
to help them understand what the new
regulations required.
According to the Financial Conduct Authority (FCA),
the new Consumer Duty sets higher and clearer
standards of consumer protection across financial
services, and requires firms to put their customers’
needs first. This is especially important in light of the
cost-of-living crisis and the number of customers
showing vulnerability characteristics. The FCA
estimates that 47% of the adult population exhibits one
or more of these traits.
But how easy is it for insurers to put customers first,
when they have a competing fiduciary duty to their
shareholders? In the last 18 months, car insurance
premiums have rocketed thanks to surging claims
inflation. Customers, even those with a zero claims
history, have been hit by 40%+ price hikes, which
insurers say is needed to fill the hole in their balance
sheets.
We see similar issues across many other regulated
industry sectors. Water companies are under fire
for paying out dividends instead of investing in
infrastructure to stop our rivers filling up with sewage.
Energy companies have been accused of profiteering
from the energy crisis; Centrica reported record profits
of £3.3bn back in February.
To add to the consumer/shareholder paradox, there
are calls, mostly from the political right, for regulatory
burdens to be further relaxed,
especially where issues
such as ESG and EDI are
concerned - both of which
are allegedly stifling
corporate growth.
No one piece of
regulation is perfect, but
if the FCA feels the need
to demand more of big
business, the complex
balance of interests
between consumers and
shareholders may come
to be out of kilter.
MODERN INSURANCE | 33

ASSOCIATIONS ASSEMBLE
Sue Brown
Title: Chair
Association: Motor Accident Solicitors Society
(MASS)
2024: A Year for
Statutory Review
2024 is an important year for the sector.
The general election could confirm a
continuation of digitisation policy and
continued cost suppression across even
more areas of civil law. On the other hand,
there could be a Labour government,
resulting in a different tone and set of
policies altogether.
Next year will also herald a statutory review of many
aspects of the Civil Liability Act 2018. The recent
Justice Committee report on the OIC portal set
out some of the obvious problems in stark terms -
highlighting a growing number of unresolved claims
and claims that are taking longer to reach settlement,
continued technical issues for professional users, and
less than 10% of OIC users representing themselves - all
despite a dramatic fall in the number of claims.
These issues are not just operational, but policy driven.
They are the result of a badly conceived system, built
and developed for less than 10% of users. Many law
firms have exited the market, while others are still trying
to make the economics work at the low-value level.
Ten years of fixed costs without an uplift are inevitably
taking its toll.
Insurers may have legitimate concerns around fraud.
However, in a deliberately light-touch regulatory
system, already lacking the most basic checks, fewer
lawyers will mean even fewer checks for fraud. We need
to work together to address these concerns, rather
than looking to relocate the boundaries yet again.
Hopefully, some of these issues will be confronted next
year in the statutory review. The tariff of damages will
be reconsidered. The definition of whiplash may be
revisited. For insurers, the Financial Conduct Authority
and the Treasury will determine whether the savings
from the reforms have been passed on to consumers
through a reduction in their motor premiums.
Parliament will delve deeper into the OIC. We should
all hope that what
emerges is a better,
more efficient and
fairer process.
Jonathan Drake
Title: Member and Partner
Association: Forum of Insurance Lawyers (FOIL)
and DWF
Consumer Duty &
Claims
We are now a couple of months into the
new era of Consumer Duty requirements
for authorised firms in the insurance
sector. Although this is inevitably a very
early point in its journey, we can already
discern some emerging themes and areas
of concern from the regulator, especially in
relation to claims and claims handling.
We know from a recent exchange of correspondence
between the Financial Conduct Authority (FCA) and
the House of Commons Treasury Select Committee
that in relation to claims handling by small and medium
insurers (including all authorised firms involved in those
processes), the FCA is:
• Engaging with firms, including small and medium size
firms, to understand their settlement processes and
their internal procedures for ensuring consistency in
quality across all claims - irrespective of whether it is
outsourced - in order to prevent customers from being
at a disadvantage;
• Monitoring claim handling processes and outcomes.
For example, the FCA worked with Direct Line Group
back in June to carry out an extensive review of
their claim settlements between September 2017
and August 2022, identifying and redressing any
policyholders who had received unfair settlements;
• Analysing data provided from the Financial
Ombudsman Service and engaging in discussions
surrounding emerging issues and trends. As a result
of this work, the FCA have identified specific issues
relating to motor total loss claims, where cars were
judged total write offs.
It is clear, therefore, that even though we are only a
couple of months into the new Consumer Duty era, the
FCA is paying particular attention to the outcome of
claims for consumer policyholders. There is no reason to
believe that this level of scrutiny
will cease any time soon.
MODERN INSURANCE | 35

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ASSOCIATIONS ASSEMBLE
Thomas Hudd
Title: National Technical Manager
Association: National Body Repair Association
(NBRA)
Consumer
Protection in
the Automotive
Repair Industry
The National Body Repair Association
(NBRA) recognises the evolving regulatory
landscape and the challenges it presents
- particularly for repairers who, while not
directly regulated, collaborate with insurers
as approved repairers.
We acknowledge that adhering to Financial Conduct
Authority (FCA) requirements can burden repairers
who may not fall under direct regulation. Nevertheless,
embracing compliance as a fundamental aspect
of working with insurers is essential for approved
repairers. Moreover, compliance should be reflected in
the compensation methods for repair services.
Every repairer that becomes a member of the NBRA is
inspected to ensure that they are operating legally and
legitimately, with the correct facilities and capabilities
to competently repair vehicles following an accident.
All new members also join our Chartered Trading
Standards Institute (CTSI) approved Code of Practice,
which offers additional protection to customers in the
event of issues following a repair.
The NBRA are audited annually by the CTSI to ensure
our compliance in upholding the principles of the Code
of Practice. A key measure from the Code of Practice
involves monitoring customer satisfaction, which must
be recorded by a NBRA Code of Practice approved
repairer. Our most recent annual report covering March
2022 to Feb 2023 shows that 15,900 reviews were
audited, and an overall score of 4.6 out of 5 was given.
In conclusion, while we acknowledge the compliance
burden that FCA requirements place on repairers -
especially those that are not directly regulated - we
emphasise the importance of aligning with insurers for
approved repairers. Compliance should be considered
an integral part of this collaboration and reflected in
compensation methods. A cooperative approach that
recognises the mutual benefits of compliance can lead
to fair compensation, increased transparency, and a
better consumer experience. With our Code of Conduct
and arbitration services, we
can uphold the principles
of professionalism and
consumer protection in the
automotive repair industry.
Dr Matthew Connell
Title: Director, Policy and Public Affairs
Association: Chartered Insurance Institute
(CII)
Is the insurance
sector ready for the
Consumer Duty?
In September, the Financial Conduct
Authority (FCA) published a ‘Dear CEO’
letter for insurers that covered a wide
range of outstanding issues, including
speed of claims, treatment of existing
customers, and vulnerability.
Our tracking of public opinion over the last four years
has told us that consumers also take these issues
seriously.
Much of our research shows that insurers and
brokers are performing solidly against key indicators,
such as treating customers with respect during the
claims process, communication, price, and quality of
product. There is room for improvement in all of these
categories, but most customers are satisfied with the
service they are getting.
However, consumers still don’t believe that they
are getting a fair deal on loyalty, despite FCA rules
introduced last year designed to ensure that new and
existing customers are given equal treatment.
So, what do insurers need to do to make sure they are
delivering the right outcomes for the overwhelming
majority of consumers?
Our research findings show three key themes:
• The cost-of-living crisis has created much higher
expectations around speed of claims. Insurers
have largely risen to the challenge, gaining higher
performance ratings from most customers. However,
any slip in performance means that customers are
more likely to complain.
• Existing customers want to see solid evidence that
they are being treated in the same way as new
customers. This could take the form of genuine
rewards for loyalty.
• Consumers want to be treated as individuals when
it comes to assessing risk, complaints and flexibility
around claims and cover.
Getting these three
elements right will boost
insurers’ performance
against the Consumer
Duty from a solid pass
to a stellar grade, making
the next ‘Dear CEO’ letter
a much more comfortable
read.
MODERN INSURANCE | 37

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FEATURES
Just a
Thought
from Eddie Longworth
Suppliers
Must Also
Deliver
Consumer
Duty
Obligations
At a recent meeting
of around 50 different
representatives within
the claims supply chain -
spanning repair, IT, legal,
and other sub-sectors -
there was an interesting
discussion around the
new Consumer Duty
rules. The meeting had
a collective sigh of relief
from suppliers, who are
not directly part of the
regime.
We know that insurers have a whole new
host of things to think about, plan for,
and implement. But the perception that
suppliers have escaped the ‘burden’ of
these new regulations is simply incorrect.
Any supplier’s key role is to help meet the
needs and desires of their clients (at a profit
to themselves), and so logic dictates that if
a client has Consumer Duty obligations to
meet, then the supplier must also be a part
of that solution. Nor am I referring just to
those suppliers that may have some formal
delegation of claims management authority.
Every supplier of any element of the
claims journey must understand these new
requirements fully, and leap to offer new
solutions that will help their clients.
Gaining Competitive Advantage
Surely those suppliers that are first in the
queue to offer their support and services
will be looked upon most favourably when
the next batch of tender documents arrive?
The question around ‘added value’ that a
supplier could proffer as part of the tender
response is invariably filled with corporate
waffle or, even worse, financial inducements
that have never been asked for.
Instead, it would be a refreshing change
for a supplier to position themselves as a
firm with a genuine understanding of the
new needs of their clients, and respond
accordingly - not that you should wait
until the next tender comes along to gain
advantage! I wonder how many suppliers
have proactively started a conversation
with their Supply Chain Manager or Claims
Director in order to throw their hat into the
ring as being part of potential Consumer
Duty solutions…
Proactive Support Wins the Day
In a great many instances, it is the
supplier that has direct interface with the
policyholder, and will be the ‘face’ of the
claims department. But even where this is
not the case (IT companies, for example),
there is still a continuous obligation on
suppliers to build system, process, and
people skills/knowledge around helping the
insurer to work within the new regime.
Of course, I am aware that suppliers already
provide a great many supportive services
above and beyond their core products. But
that is the name of the game. Tesco does
not supply ‘free’ parking in addition to their
core food and associated products because
they really want to – it’s because that is
a support service that their customers
demand and expect. It’s part of the total
package.
The same goes for suppliers who expect
to win business from the insurer and
claims management communities. If your
clients have a need to fulfil Consumer Duty
regulations, then it is the responsibility of
suppliers to be at the forefront of providing
some of the answers.
Fortune Favours the Brave
Of course, it may cost money. It will
certainly take up management time. There
will be a need to change operational
processes, and perhaps new IT solutions
will be required as well.
But if that is what’s needed – and you want
to stay or become a premier supplier to
your clients – then you need to make a
start right now. The new regime is still in its
early days, and this provides a tremendous
opportunity for suppliers with foresight and
commitment to get in at the ground level,
embedding
themselves
into any new
elements that
the claims
department
needs in order
to comply
with their
Consumer Duty
obligations.
Get on with it!
Eddie Longworth,
Director, JEL Consulting
MODERN INSURANCE | 39

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FEATURES
CONSUMER INTELLIGENCE
October/November 2023 Issue No 62
Avoiding
Consumer
Harm in the
Consumer
Duty Age
When the FCA first
proposed the new
Consumer Duty back
in July 2021, little
did we know that
the UK would soon
be hit by a cost-ofliving
crisis. When
the implementation
finally arrived two
years later, the need
for strengthened
consumer protection
couldn’t have felt
more palpable; 69% of
consumers reported
that they had been
impacted by the crisis,
and 66% said that they
are worried about
being unable to afford
their bills.
Record-breaking premium
inflation, delays in pay outs, and
increased fraud activity are driving a
breakdown in trust between insurers
and consumers. The industry is
standing on a precipice; one where
it needs to embrace the spirit of the
Consumer Duty in order to survive.
Unfortunately, Ian Hughes, CEO
at Consumer Intelligence, says the
reception from the market has been
mixed. “Some firms have jumped
on it,” Ian says, “while others really
haven’t understood it. Given the
amount of signposting, it does seem
surprising that there has been so
much ‘nothing to see here’ from so
many companies”.
Ian continues, “I expect to see the
impact of this mentality pan out in
the market – whether insurers are
asked to review historic claims or
asked to review their fee structure.
All of these are sign posts for what
the Consumer Duty means”.
Intensifying consumer
expectations
The world we once knew, one
where savvy customers shopped
around for new business discounts,
is starting to seem like a distant
memory. Today’s customer doesn’t
have that luxury. In reality, they’re
facing significant increases in
renewal premium, with little relief
offered from shopping around.
Consumer Intelligence data shows
new business insurance premiums
inflating by 61% in motor and 27%
in home in the twelve months to
August.
Alongside increased costs
comes an increase in consumer
expectations. Hughes says, “If you
were suddenly asked to pay 50%
more for your favourite dish at
your local restaurant, you’d expect
an improvement in quality or
service. The same applies to any
consumable, including insurance”.
“Our research shows that consumer
expectations are currently not being
met consistently - particularly
during the claims process when
it comes to speed and efficiency.
If delays in pay outs continue,
consumer satisfaction will
continue to fall, leading to further
complaints and potential regulatory
consequences”.
The potential for
consumer harm
With costs rising on all sides, more
customers are shopping around
at renewal, making them more
susceptible to unfair practices which
artificially lower premiums.
Customer understanding of general
insurance products is lower than
many firms may realise, and lower
still as a result of the proliferation
of tiered products – those which
typically strip out cover and raise
excesses.
In a survey of 1056 people conducted
in February, Consumer Intelligence
found that knowledge about cover
levels and excess fees varied widely.
More than 1 in 5 of those with
insurance had no idea what level
of motor (22%) or home (21%) cover
they’d purchased – top, standard,
or basic.
When asked in more detail about
the level of cover they had, as many
as 46% of car insurance customers
had no idea how much excess they’d
agreed to pay in the event of a
claim, rising to nearly 60% of home
customers.
Hughes comments, “We’ve seen
an explosion of product tiers
following the General Insurance
Pricing Practices (GIPP) reforms,
with brands bringing out bronze/
silver/gold versions to serve different
consumer budgets, and to gain an
advantage on the Price Comparison
Websites”.
“The FCA has been about as clear
as it can be on the subject of Fair
Value. They have also been clear
about what they are planning
with anti-avoidance. Having tiered
products is not necessarily a
problem, however it does become
one when tiers result in individual
products within a package failing
to offer fair value, or where tiered
products are being used as a way to
avoid Consumer Duty principles,
achieving pricing outcomes to the
detriment of consumers.”
“The biggest worry has to be if
consumers are lured into buying
sub-standard products out of
necessity, which means that they
end up not having the right cover.
This will cause reputational
damage for the industry and
could lead to long term harm and
vulnerability for consumers.”
Time to understand
your performance
Considering current challenges,
trends and practices, it is essential
that firms fully embrace the spirit
of the new regulation to avoid the
potential for consumer harm that
currently exists.
For those firms with their blinkers
still firmly on, convinced they
have everything in order, Hughes
encourages them to assess their
performance in the context of the
market.
“Too many firms lack insight on
their market position and would
benefit from a clear, unbiased
view on how they measure up,
helping them avoid the perils of
marking their own homework.
Understanding performance
in the context of the wider
market will help companies test
internal assumptions, prioritise
areas for improvement, boost
competitiveness, and demonstrate
their commitment to delivering
high standards for customers to the
FCA.”
MODERN INSURANCE | 41

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MEET THE JUDGES
CHAIR
David J Williams - Chair of the Fire Protection Association (FPA),
Former MD of Claims & Underwriting at AXA Insurance
VICE CHAIR
Suneeta Padda - Director, Padda Consulting
Michael Keating - CEO, Managing General Agents’ Association (MGAA)
Susan Brown - Director and Chair, Motor Accident Solicitors Society (MASS)
Anthony Hughes - Chairman & CEO, The Credit Hire Organisation (CHO)
Ursula Jallow - Director, Insurance Fraud Bureau (IFB)
Kirsten Mitchell-Wallace - Director of Portfolio Risk Management,
Lloyds of London
John McQuater - President, Associations of Personal Injury Lawyers (APIL),
Director & Joint Head of Personal Injury at Switalskis Solicitors
Julia Graham - CEO, AIRMIC
Sue McCall ACII - Chartered Insurer, Past Chair of Society of Claims
Professionals & Panel Member of the CII General Insurance Learning
Advisory Panel, Senior Manager - Claims Management at MS Amlin
Underwriting Limited
Huw Evans - Partner, Insurance, KPMG in the UK
Donna Scully - Joint Owner/Director, Carpenters Group
Laurence Besemer FCII - CEO, Forum of Insurance Lawyers (FOIL)
Denise Garth - Chief Strategy Officer, Majesco
Rory Pyke - Global Partnerships Manager, Insurtech Insights
Helena Evans - Head of Specialist Services at Criterion and Immediate
Past President of the Chartered Institute of Loss Adjusters (CILA)
Chris Payne - EMEIA Insurance Technology Leader, (EY)
Rory Yates - CSO, EIS Ltd
Dr Renu Ann Joseph - Founder & CEO, Luminant Analytics
Eddie Longworth - Director, JEL Management Consultancy Ltd
Sabine VanderLinden - CoFounder & Managing Partner, Alchemy Crew
Claire McDonald - Member of the Board – HDI Global SE, Chair of iWIN
Insurance Women Inclusivity Network
John Thompson - Chairman, British Damage Management Association (BDMA)
Matthew Maxwell Scott - Executive Director, The Association of Consumer
Support Organisations (ACSO)

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FEATURES
Meet the Company:
Internal Satisfaction Informs Customer Satisfaction
With staff satisfaction at an all-time high, EDAM have strengthened their internal culture
in order to guarantee a top level of service and support for their customers.
Post-accident management company EDAM have spent the last
two years reshaping and transforming their business to provide
a strong culture and platform for continued growth. With
employee retention and engagement at an all-time high, the
positive impact on growth and customer satisfaction has never
been higher.
Simon Gallimore, Chief Executive Officer, said, “We’ve really
committed to improving our internal culture and creating a
professional environment with a true family feel. When you
give the best to your team, you receive the best for your
customers. That’s never been more evident within our business.
We are dedicated to maintaining a healthy internal culture, but
now that we have laid the foundations, we can really define
our company’s mission and enhance our proposition for our
customers”.
EDAM undertook a leadership feedback evaluation, inclusive of
a trusted leader review. This review saw 92% of the EDAM team
respond to say that they ‘trust their line manager’. It also found
that over 90% of EDAM staff consider their leadership to be role
models of EDAM’s values, and 93% felt their leader always acts
with integrity.
Simon continued, “This leadership feedback review
demonstrates that our dedication has paid off. These are the
highest scores I have known in my professional career – a real
endorsement of our ‘people first’ approach. We’ve fostered a
great culture of trust with our people, which is centred around
the basic leadership principles of integrity, benevolence and
ability. Overlaying this with our company values, which were
created by our staff, we have created a truly winning culture”.
EDAM’s dedication to their team goes deeper than leadership
reviews. When Simon joined the business, he made a
commitment to promote from within and has harnessed a
‘grow your own’ strategy where internal talent is nurtured and
recognised. Using the company’s ‘Learning Hub’ and leadership
development programme, every employee has a clear career
ladder that they can choose to follow. Internal movement
across departments has never been higher, which allows us to
retain knowledge within the business. There has only been one
external leadership appointment into the business over the past
two years, which is testament to the power of unlocking talent
from within.
Rebecca Chappell, Head of Human Resources, said, “The health
and wellbeing of our staff is a priority. We are always looking at
innovative ways to support our employees, such as ‘wellbeing
days’ which allow time out of work to focus on personal
wellbeing. We also encourage financial education sessions,
which provide one-on-one access to a financial advisor, and
volunteering days, which allow staff the opportunity to give
back to their local community”.
EDAM have recently restructured their team in order to
provide a more customer centric approach to communications.
Customers can now benefit from dedicated teams that
will provide an end-to-end claims experience. In July 2023,
the automotive sector began navigating Consumer Duty
regulations, with EDAM’s new structure and engaged workforce
playing a small part in their commitment to improving
consumer relations.
Their focus on internal satisfaction has seen the company’s
Net Promoter Scores rise to a consistent 80% and above,
demonstrating the stellar service that EDAM provide at every
stage of the client’s journey. From research undertaken by
EDAM to date, both from customers and the wider market,
these internal changes have only served to enhance EDAM’s
service proposition and growing reputation.
About EDAM
EDAM are a market leading accident management
company providing end-to-end claims management
for insurers, brokers, MGA’s and TPA’s. For over
20 years, EDAM have built a reputation of trust,
providing seamless partnerships and a connected
community to support every aspect of the postaccident
journey.
EDAM have an owned fleet providing standard,
prestige and commercial vehicles to customers,
and a nationwide repair network that allows them
to provide mobility and repair solutions.
Everyone at EDAM shares the same collective
passion for service excellence. They continuously
grow together, improving systems, services
and process to deliver best in class accident
management services, providing certainty during
uncertain times.
MODERN INSURANCE | 45

FEATURES
Dive In’s
‘Below the Surface’
Event Shines a
Light on Insurance
Industry’s Diversity
and Inclusion
Challenges
At Markel’s offices in the heart of
Fenchurch, Dive In, one of the world’s
largest diversity, equity, and inclusion
festivals, hosted an event called
‘Below the Surface - The Unspoken
Side of Insurance’. It brought to
light the hidden diversity, equity and
inclusion complexities within the
insurance industry.
The event, presented by The Communication Practice, a drama-based training
company with a focus on fostering diversity, equity, inclusion, and a sense
of belonging (DEIB) within the workplace, was far from your typical industry
event. It took the form of a dynamic workshop, drawing insights from research
conducted across the Lloyd’s Partner Networks.
The research findings were revealing, with 24% of survey respondents feeling
that they couldn’t be their authentic selves at work, and 22% sensing that their
true voices went unheard. With these statistics as a backdrop, the event aimed
to:
• Uncover diverse perspectives and experiences of marginalised individuals in
the insurance field.
• Shed light on perceived barriers and challenges that hinder professional
growth.
• Encourage attendees to take personal actions to challenge workplace biases
and become advocates for others.
One impactful segment featured actors delivering statements derived from
Dive In’s research, underscoring issues such as the industry’s perception as oldfashioned,
and the struggles of those who don’t conform to established norms.
Attendees engaged in a thought-provoking theatrical performance simulating
a one-on-one meeting between a boss, ‘Gary,’ and a junior team member,
‘Richard,’ struggling with ineffective communication. The audience actively
discussed ways in which Gary could have improved the situation, emphasising
the importance of active listening, body language, and making Richard feel
valued.
In breakout sessions, attendees tackled real-life case studies involving actors
facing industry difficulties, including a female executive feeling undermined
by male colleagues and a Muslim mother dealing with workplace inclusivity
challenges due to differences in social activities. Attendees grappled with finding
solutions and acknowledged the need for broader cultural change.
Attendees were also encouraged to reflect on their ‘lightbulb moments’ and
commit to immediate changes in their approach to inclusivity. Organisers
encouraged attendees to introspect and asked critical questions such as:
• Are you genuinely an active ally?
• Do you challenge bad behaviour and recruitment decisions based on ‘gut
instinct’?
• Are you investing in your own development to confront biases?
• How are you contributing to diverse hiring?
• Who are you personally sponsoring and pushing forward within your
organisation?
• Do you regularly review diversity statistics for your team or organisation?
• Are you objective when considering the skills and capabilities of team
members for promotions or new projects?
• Have you provided training to make the workplace more inclusive?
Organisers also shared inclusive communication tips, advocating:
• The need to embrace mistakes as learning opportunities.
• ‘Be the change;’ step outside of your comfort zone.
• That diversity, equity, and inclusion (DEI) isn’t solely HR’s responsibility! Be
prepared to lead from the front.
In his closing remarks, Bruce Carnegie Brown, Chairman of Lloyd’s of London,
commended the presenters for their practical approach to diversity and
inclusion.
He emphasised that inclusion should not be academic but practical and
actionable, urging attendees to spread the message beyond the event’s
confines.
The event illuminated the often-overlooked aspects of the insurance sector.
It provided a platform for open dialogue, learning, and reflection on creating
a more inclusive industry, exemplifying the spirit of Dive In and the ongoing
commitment to diversity, equity and inclusion within the insurance industry.
This event was sponsored by Dive In Global Festival Partners: BMS, Lloyd’s,
Markel, Tokio Marine Kiln, and MS Amlin.
46 | MODERN INSURANCE

FEATURES
5
ARTICLE
Consumer
Duty: An
Illusion??
It seems not a year goes by without a new regulatory or environmental change that becomes the
main industry topic of discussion. In the last five years, we’ve seen fallout from GDPR (2018), Brexit
(2019), COVID-19 (2020), Climate Change (2021), and Claims Inflation (2022). More rules and
regulations add yet more red tape to an already broken system.
In 2023, it’s the turn of ‘Consumer Duty’. What sounds like a
step in the right direction (to improve customer protection
and create better outcomes) has all the qualities of regulatory
bluewashing, where a deceptive slogan overstates an industry’s
commitment to responsible social practice, offering the illusion
that we’re creating better consumer outcomes when we’re
merely tinkering at the edges.
Let’s take the example of home insurance. From a customer
perspective, a good outcome would be for me to know that
costs will be covered when my fence blows over in the wind, or
when my roof tiles fall off. 70% of such claims are automatically
denied, which makes a mockery of insurers telling us that 97%
of claims are paid. ‘Ah, only ‘valid’ claims,’ you retort. Silly me, I
should’ve known better.
Similarly, let’s consider motor insurance. From a customer
perspective, a good outcome would be for me to know that
I‘m not on my own when accidents happen, obliged to sort it
out at my own expense. I’d also want a simple way of covering
the claims excess that I’d previously maxxed in order to obtain
the cheapest quote (this is particularly relevant to vulnerable
customers in short- or long-term financial difficulties who are
most at risk of doing exactly that).
Under the new Consumer Duty, insurers will be obliged
to design products and services that meet the needs,
characteristics and requirements of a specific customer
segment. However, I don’t see this happening for as long as the
industry continues to cling to a short-term model - exacerbated
by price comparison websites - where there is a relentless drive
to remove valuable cover and deny ever more claims in order to
maintain margins and drive prices further down. Insurance isn’t
a product that is designed to be used, and subsequently it isn’t
a product that is generally valued. And you wonder why it’s a
grudge purchase??
We really need to think upside-down and move from shortterm
thinking to long-term thinking if we are truly interested in
creating better outcomes.
Let’s start with preventing claims altogether. Whether it’s my
home or my car, the technology exists to monitor, alert and
mitigate against loss. However, no home insurer wants to cover
the cost of additional hardware to monitor leaks or improve
security, both of which hold the key to better outcomes. The
margins simply aren’t there on an annual policy, where
customers are given no reason not to churn.
But what if we thought long-term? As a customer, I would
willingly buy an insurance-backed product where the focus is
on prevention first and claim second, where the insurer could
purchase the hardware leveraging its economies of scale and
spread this over a 36-month policy. What about a service
package option, where a qualified contractor could pro-actively
complete a winter-readiness check to ensure my drains aren’t
blocked? This has the potential for creating great products,
especially if I can achieve peace of mind and see that the cost of
this is cheaper than the alternative. It would also help to avoid
surge/supply chain issues by switching the focus to preventive
maintenance.
Why not go one step further, and create an embedded
insurance product that comes with my mortgage over a 25-year
term? This would align the interests of homeowners, the banks
(who have a financial interest in the value of the property) and
the insurers - allowing the cost to be shared equitably across all
three parties and creating a possible framework for investment
in climate change measures, action that we know we’ll all need
to take but don’t currently factor into our pricing.
As a motorist, I’d also be prepared to buy an insurance backed
product that includes roadside assistance for when my tyre
does get a flat - as well as a smart repairer that could remove
dents and scratches to make my car look like new.
At the moment, I don’t see an insurance sector that wants to
develop genuinely valuable products and services. Everything
we do tells me the opposite. We seem prepared to create
products that don’t offer great value in order to remain
‘competitive’ for the next
shareholder update, pushing all
of the hassle onto customers
and forcing them to sort out
their own problems. If this is the
case, Consumer Duty seems to
be another opportunity to keep
everyone talking a good talk,
without ever having to confront
the real issue.
Time for change, anyone?
Do let me know your thoughts -
michael.lewis@claimtechnology.co.uk.
Michael Lewis,
CEO, Claim Technology
MODERN INSURANCE | 47

I Love Claims
www.iloveclaims.com
Claims Essentials
RISK &
COMPLIANCE
15 November 2023
etc Venues, Manchester
Consumers - more than just a duty
Home & Property Claims
CLAIMS
CONFERENCE
GETTING IN SHAPE
NEW VENUE!
Silverstone
30 November 2023
Motor Claims
NETWORKING
LUNCH
19 January 2024
De Vere Grand Connaught Rooms, London
Motor Claims Home & Property Claims MGA
Claims Essentials
Sustainability

FEATURES
The Unintended Consequences
of Consumer Duty
The Financial Conduct Authority’s Consumer Duty came into force on 31 July 2023. However,
barely two months since its introduction, there are already worrying signs of unintended
consequences.
Consumer Duty requires firms to put
customers first in every area of their
business, as well as providing proof of
having done so.
Widely regarded as one of the most
substantial regulatory changes to impact
the insurance industry for decades,
the regulations have demanded many
insurers completely transform their
claims strategies, products and selling
policies in order to provide ‘fair value’ to
customers.
However, while the new regulations
are no doubt well-intentioned, the
ramifications could spell bad news for
both insurers and policyholders alike.
Crack down
With the Financial Conduct Authority
(FCA) promising to crack down on
companies that fail to comply, the
pressure is being applied to those
working within the insurance sector.
Already facing a severe skills shortage
following the ‘Great Resignation’ that
came about during and following
COVID-19, insurers could find themselves
facing an even greater challenge around
staff retention.
A study conducted by CoreData back
in August found that 11% of financial
advisors in the UK said that they were
considering leaving the industry as a
direct consequence of Consumer Duty.
Worryingly, 35% said it was having a
negative effect on their mental health,
while 63% said it was hindering their
ability to do their job. Nearly half thought
the new regulations would do more harm
than good.
Fall-out
If these findings are mirrored in the
insurance sector, the fall-out could
be stark. According to the Office of
National Statistics, there were more
than five vacancies for every 100 jobs in
the sector in the second quarter of last
year, while The Skills Shortages Report,
published by ECI, found that insurers
were facing the biggest recruitment
challenge in the UK, with just 570
LinkedIn searches per month compared
with over 46,000 job advertisements.
However, the FCA has insisted that
recruitment and retention problems will
not be considered a mitigating factor in
non-compliance, warning insurers that
they need to ‘manage the issue before
problems occur’.
Resilience
In a letter to CEOs last month, Matt
Brewis, the FCA’s Director of Insurance,
warned that a lack of operational
resilience could impact an insurer’s
ability to meet Consumer Duty
standards.
He said, “A significant part of our
activity over the next two years will be
to test firms against our priorities and
expectations. We will also continue to
use data to identify outliers and, where
firms are not meeting our rules and
expectations, we will take action”.
Meanwhile, another unintended
consequence of Consumer Duty could
be higher prices for customers, with
some experts suggesting that the
operational costs of meeting the new
regulations will be passed down.
Who pays?
Discussing Consumer Duty at the Defaqto
Smarter Financial Decisions Conference
in September, Jeffrey Mushens, Technical
Policy Director at The Investing and
Saving Alliance, said: “Who pays? It is
always the customers. The firms will pay
the initial costs, but this will eventually get
passed onto the customers”.
A report prepared for the FCA
Practitioner Panel in 2021 appears to
have accepted this. It acknowledged
that complying with Consumer Duty
would add ‘significant cost’ to firms,
and said that ‘these costs will be passed
on in some form, to either shareholders
or customers. Where markets are
competitive, the balance is likely to tilt
more towards these costs ultimately
being borne by customers.’
I Love Claims is set to explore the
implications of the new consumer
regulations and much more at its
forthcoming Risk and Compliance themed
event, ‘Consumers – more than just a
duty’, taking place on 15th November in
Manchester.
Email Rachael Hunt to find out more:
rachael@iloveclaims.com
MODERN INSURANCE | 49

SHAPING THE FUTURE OF
SUSTAINABLE MOBILITY
Take charge at europcar.co.uk/business
or call 0371 384 0140

FEATURES
Can the insurance
sector help to
accelerate the
adoption of EV?
James Roberts, Head of Insurance Sales, Europcar Mobility Group UK, discusses how vehicle rental can
support the insurance industry as it strives to match customer ambitions towards zero emissions.
To help customers make those ‘good financial
decisions’, businesses must provide a range of
suitable options from which they can choose.
However, sole supplier agreements make this
difficult to achieve in the insurance space. Insurers
working with only one CHO or replacement
vehicle partner are at risk of breaching their
Consumer Duty if there’s a perception that the
customer is not being offered the best choice for
their needs.
As consumer demand for electric vehicles
(EVs) continues to grow, the insurance sector is
shifting rapidly to keep pace. Policies have been
amended to suit electric and hybrid models,
and repair networks have updated training and
suppliers to ensure that they can work safely
on the increasingly electrified car parc. What
is proving more of a challenge, however, is
providing electric vehicles as replacements while
a policyholder’s own EV is being repaired after
an accident.
The cost and availability of EVs are two significant
blockers, especially for those insurers with sole
supplier contracts. Many such insurers have been
forced to scrap like-for-like vehicle replacement
policies. In light of the COVID-19 supply
shortage, they were left grateful to be able to offer
customers any kind of temporary vehicle at all.
If an insurer is unable to offer the best solution
for the needs of the customer, they could now
be at risk of breaching their Consumer Duty
requirements. And, as the electric car parc grows,
the demand for like-for-like vehicle replacement
should be the default – not the exception.
Meeting policyholders’
expectations
We recently commissioned a study amongst
electric car drivers, and found that 90% would
expect an EV replacement in the event of their
own vehicle being out of commission after an
accident 1 . Insurers unable to meet this expectation
risk damaging delicate customer relationships. The
Motor Ombudsman is already starting to see a
small rise in the number of EV complaints – with
the level of service delivered by businesses, and
problems encountered at the point of purchase,
highlighted as key concerns 2 . As EV adoption
moves beyond the early adopters and becomes
a mainstream choice, insurers are going to need
to keep up the pace or face reputational risk.
There are already around 840,000 fully electric
cars and 520,000 plug-in hybrids on UK roads 3 ,
making up more than 20% of the car parc and
representing a significant number of customers
who are likely to expect an EV replacement.
Drivers of ICE vehicles may also be tempted to
use the opportunity to test-drive electric if the
option was available for their replacement.
Electric rental
As the industry adapts to the growing electric car
parc, Europcar Mobility Group UK is working
closely with insurance providers, repair networks
and other key players to help them deliver
continued customer satisfaction and retention.
We are already committed to helping drivers
adapt to the new drivetrain as soon as possible
by providing easy access to EV rental. That
commitment now extends to replacement vehicles
through insurance providers.
Insurers selecting Europcar as their EV
replacement partner will have the confidence
that our network is increasingly electrified. More
than 200 charging points are already installed at
rental locations across the UK. Plus, each driver
benefits from a comprehensive vehicle handover
and support with charging instructions, alongside
a growing team of specialist Certified Electric
Vehicle experts on hand at many locations to
help customers as they get to know their rental
vehicle.
We provide a viable alternative to the sole
supplier conundrum, too. For insurance providers
who have historically opted for sole supply
contracts, moving away from this model will
ensure that they have contingency against vehicle
supply gaps, resulting in minimised friction from
the claims process.
Understanding the customer
experience
Drivers and businesses are increasingly
prioritising sustainability and zero emissions
mobility, and insurers need to be able to respond
to these key issues. By working collaboratively, we
can help with valuable insights and learnings as
our fleet of electric vehicles grows.
For example, a Europcar team took part in a
1,200-mile EV Rally earlier this year, tracking
across the British Isles from Cardiff to London,
Edinburgh, Belfast and Dublin. This unique
experience provides us with invaluable insights,
which are helping us to better serve customers
as they look for more environmentally friendly
vehicles. It also underlined the importance of
gaining real-world experience with a range of
options available, from a rental of a few days to
several months, and with the facility to try different
makes and models.
Although the vehicle landscape is changing,
motorists will appreciate an insurance provider
that is flexible and able to offer innovative
solutions to sustainable driving. Working with
the right vehicle partner is a crucial step towards
making this a reality within the insurance industry.
For further information, visit www.europcar.co.uk/
business
James Roberts,
Head of Insurance Sales,
Europcar Mobility Group UK
1
Survey via Vypr of 228 EV owners, conducted September 2023
2
The Motor Ombudsman- https://www.themotorombudsman.org/
press-releases/tmo-reports-a-small-rise-in-ev-complaints-from-consumersin-q2-2023
3
ZapMap- https://www.zap-map.com/ev-stats/ev-market
MODERN INSURANCE | 51

mins with...
What is your most memorable career achievement?
Q
A
So far, my most memorable career achievement has been
setting up two organisations: Gambit Partners (a sales
and marketing firm), and iCAN – The Insurance Cultural
Awareness Network (a professional network built to support the
careers of ethnic minorities in the insurance industry). iCAN now
has over 6,500 members, and this continues to grow all the time.
Building two organisations from the ground up has been a huge
learning experience and I’ve had so much fun doing it, so much
so that I will be launching my third business in the New Year!
What has been the most valuable piece of advice
you’ve received?
Q
From my Dad, Ashwin Mistry: “Always have a plan”.
A
This ingrained a mentality in me around having goals and
plans, and ultimately a path to follow from a young age.
It really makes you think differently about decisions as you go
through life, as you’re thinking about how your decisions in the
present affect the outcomes of the future.
What has been the key positive or negative impact of
change in your area of the market?
Q
My core area of the market is schemes. The main positive
change in this area has been the increased use of, and
trust of, technology.
A
Ajay Mistry
The growth of the digital buying journey has evolved, and with
schemes being able to provide more competition and benefit
to the customer, there has never been a better time to provide
solutions to small and micro-business clients.
Title: Founder and Director, Gambit Partners and Co-Founder and Co-Chair, iCAN
(The Insurance Cultural Awareness Network)
The negative impact is the lack of quality advice. Access to
quality advice for small business owners has not advanced at the
same pace as technology. This has led to so many businesses
being wrongly insured, not understanding the value of insurance
and not being provided with adequate solutions to their evolving
needs in what is a fast-moving business landscape.
What three items would you put on display in a
museum of your life and why?
Q
A
My mobile phone, as it does everything for me and it’s my
connection to friends and family, as well as my business
partners and contacts. It also hosts my LinkedIn and
Social Media profiles (which are very important to me) and also
captures photos of everything I do!
I’d also include my trusty suitcase to represent travel. Having
done stints in Sweden and Spain, as well as all the great times I
have spent abroad, this is a huge part of my life.
Thirdly, I’d include an iCAN Role Models book (or any iCAN
merch!) to represent iCAN. With the amazing events we run, the
jobs board we have built, the self-serving mentoring platform,
the support we give to company Employee Resource Groups, the
support we give across the country in London, Birmingham and
Manchester – I am so proud of everything my team and I have
built. We help so many people each month, so it needs to go in
there to represent the significance of what iCAN means to me
and so many others.
What three guests would you invite to a dinner party?
Q
Sir Alex Ferguson – as well as being a huge Man Utd fan,
I would love the chance to get his views and advice on
leadership.
A
Jane Lu – she is an Australian entrepreneur who has built a
multi-million dollar empire under her banner of Showpo. From
her humble beginnings though to where she is now, she has
a lot to teach me about business and life. Plus, she is a wine
connoisseur who has built a network of thousands of others who
are interested in the study of wine – which would really help with
the food!
Gordon Ramsey – an excellent dinner party needs excellent
food! Gordon is also a very successful businessman and has built
several businesses from the ground up, so it would be great to
get his thoughts on building and scaling businesses.
Market-Leading Outsourced Claims Services
www.carpentersgroup.co.uk
MODERN INSURANCE | 53

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INSUR.
TECH.
TALK
MODERN INSURANCE | 55

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WELCOME
Greetings, and welcome
to Insur.Tech.Talk!
In this issue, we are tackling the complex issue of Consumer Duty in Insurance.
After all, we are in the protection business! We need to be obsessive about
the consumer experience, and nothing is more important than protecting
the interests of individuals and businesses who work with us to purchase the
necessary insurance products and services.
The new Consumer Duty promotes confidence, trust, and fairness in the
insurance industry by ensuring that insurers do not waver in their focus
on the needs and expectations of the customer. In the forthcoming set of
interviews, we will address Consumer Duty from the perspective of fair and
reasonable claims handling, appropriate consultation and advice on products
and services, clear and fair communication, data protection and privacy, as
well as the role of the regulators.
Finally, I would like to thank my wonderful panellists for their kind
contributions to this issue. This edition has been made possible due to the
knowledge and expertise of the following:
• Farooq Sheikh, Global Head of Insurance, Unqork
• Brent Williams, Founder and CEO, Benekiva
• Juan Mazzini, Director of Insurance Practice APAC, EMEA and LATAM,
Celent
• Meredith Barnes-Cook, Partner, ReSource Pro Consulting
• Ron Rock, Managing Director - Financial Services, JobsOhio
Until next time, happy reading!
Megan Kuczynski,
President,
Insurtech Insights
56 | MODERN INSURANCE

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Unqork
Farooq Sheikh,
Global Head of Insurance, Unqork
QFarooq, the UK’s Financial Conduct Authority
(FCA) recently implemented Consumer Duty
Initiatives which require financial institutions to
proactively deliver ‘good outcomes’ for all.
Many have called this initiative a ‘paradigm shift’ for
the industry. How is Unqork and its codeless platforms
aligned to Consumer Duty, and how can it improve
consumer outcomes? How has technology increased the
customer’s expectations?
AAcross insurance and financial services, consumers
are increasingly aware and interested in a higher
number of digital services, including self-service
capabilities. Empowering consumers and financial services
institutions to deliver on a seamless customer experience,
as well as accelerated onboarding and servicing, is at
the heart of Unqork’s mission to leverage our codeless
technology. This enables better outcomes for consumers
across Financial Services, Insurance, Healthcare and Public
Enterprise.
QHow has technology enhanced the customer’s
journey in the claims process? What are some of
the obstacles that need to be overcome in the
claims process as it relates to Consumer Duty?
ASeamless claims are the basis of an insurer’s
promise to its consumers, especially during times
of need. Unqork’s codeless Claims Workbench
is an effort to accelerate insurers’ efforts to transform
claims management technology as it undergoes massive
transformation - with insurers investing in transforming
the value chain from FNOL to adjudication to managing
litigation, subrogation and associated processes for a
seamless customer experience.
Q
As
policyholders and brokers increasingly seek
digital self-service options, when interacting with
an insurance company, what are some of the
more novel technologies you are seeing come to
market?
AWith the rise of Generative AI across industries,
we are seeing an increased number of novel
approaches to enhance self-service options. From
rapid summarisation of policy documents, to extraction of
data elements from submissions, to smart chatbots that
facilitate self-service capabilities, the impact of Generative
AI is truly transformative. I’m certain that this will continue
to be felt across the industry for some time.
QWhat steps can insurance companies take to ensure
that consumers have access to appropriate coverage
and remain protected against unfair and deceptive
practices?
AInsurers have a responsibility to protect consumers
by providing fair and appropriate coverage from
insurable risks. This involves ensuring that the
products are designed with consumers in mind. All functional
areas - including distribution, underwriting and claims – must
be focused on the needs of the consumer. Seamless digital
capabilities provide a significant accelerator in this journey,
and leading insurers are leveraging digital capabilities
aggressively to ensure consumer access to the appropriate
coverage, as well as protection against deceptive practices.
QAny personal anecdotes to share as a consumer in
terms of what insurers are doing right, and what
needs to change?
AAnyone who has lived through a catastrophic
hurricane can attest to an insurer’s magical ability
to protect communities. Hurricane Sandy was one
example of how insurers were able to step in to help those
affected. Many people in the New York area were impacted,
but they were also supported by their insurers to re-emerge
stronger after the devastating losses.
Farooq Sheikh is the Global Head of Insurance for
Unqork, working with global insurers, brokers and
technology providers.
Unqork is the leading code-less platform, which
enables large complex clients to digitize customer
experiences, create leading edge buying journeys, and
automate internal processes. Unqork has pioneered
the ‘code-less architecture’ approach, which allows
clients to accelerate the speed of digital transformation,
particularly focused on areas that require leading edge
presentation, orchestration, and integration capabilities.
Before Unqork, Farooq was at Oliver Wyman, where
he was a Partner in the Insurance and Digital practices.
He led go-to-market for multiple platforms, including
Reinventing Insurance and Legacy migrations.
Farooq completed his Executive Education from
INSEAD and The Wharton School of Business. He is a
qualified Actuary and CFA Charter holder.
MODERN INSURANCE | 57

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Benekiva
Brent, how have you seen technology increase the
customer’s expectations in recent years?
Q
A
Technology has fundamentally changed the way in
which a consumer interacts with businesses, including
insurance companies. Having previously worked as
a financial advisor, I’ve witnessed claimant challenges
firsthand as they navigate the complicated claims process.
Sometimes, due to a poor claims experience, I would lose
the opportunity to retain claimants as customers. This
underscores the critical importance of providing a seamless
and empathetic claims journey.
With the emergence of Amazon-like service expectations,
consumers have come to expect immediacy and a high level
of service in all aspects of their lives, including insurance. They
want easy access to policy information, quick responses to
queries, and transparent processes. Technology has raised
the bar for insurers to provide efficient, personalized, and
accessible services that meet these evolving expectations.
Q
A
How has technology enhanced the customer’s journey
in the claims process? What are some obstacles
to overcome in the claims process as it relates to
Consumer Duty?
Technology has undeniably transformed the landscape
of insurance claims, offering numerous advantages
such as faster claims reporting, real-time updates,
and the convenience of digital document submission. These
innovations have empowered consumers, granting them
greater control over their claims journey, and ensuring they
receive timely, transparent information.
However, amid the whirlwind of automation and digitalization,
one critical aspect remains indispensable—the human touch.
In the quest for efficiency and automation, it’s easy to forget
that behind every claim lies a unique individual with their own
set of concerns and emotions. While technology streamlines
processes, it’s the human interaction that infuses empathy,
understanding, and personalized care into the exchange.
Striking the right balance between automation and genuine
human connection is the key to ensuring that claimants not
only navigate their journey seamlessly, but also receive the
stellar and exceptional service they truly deserve.
Additionally, we must make inaccessible data easily accessible
to enable frictionless processing and payouts. Many insurers
still rely on legacy systems that make it challenging to
access and utilize customer information effectively. This
inaccessibility leads to overwhelming manual processes
and workarounds that must be navigated by associates.
To fulfill Consumer Duty effectively, we must prioritize the
automation of these cumbersome manual tasks. This not only
improves efficiency, but also ensures that claims are handled
consistently and fairly, aligning with our commitment to the
customer experience.
QCongratulations on the launch of Portal360. It’s great
to see your technology evolving to meet consumer
needs. Could you explain how the increased
functionality to accommodate third-party stakeholders in
Portal360 will enhance the claimant’s experience?
AThank you for your kind words. Portal360 is a
significant milestone for us, and I’m excited to
share how it benefits claimants and third-party
stakeholders alike.
Portal360, driven by Benekiva’s advanced technology,
offers a localized hub where claimants and stakeholders
can access crucial information and conduct transactions
seamlessly. For claimants, this means they can conveniently
access notifications, statements and correspondence, all
within the intuitive Portal360 interface. They can securely
upload documents, set up electronic transfers, and engage
in real-time discussions with our team, all without leaving the
platform. It’s all about putting control in the claimant’s hands
and ensuring a smooth, informed experience.
What’s equally important is the platform’s ability to
foster collaboration. Agents can utilize Portal360 to serve
their clients more effectively, efficiently manage claims,
and seamlessly exchange information. By extending its
functionality to third-party stakeholders, we’re creating
an ecosystem that improves communication, expedites
processes, and ultimately enhances the overall claimant
experience.
Additionally, Portal360 is designed to be user-friendly and
fully configurable to an insurer’s specific needs. This flexibility
ensures a seamless integration with their existing systems.
Through our proprietary Data Configurator and Innovation
Gateway architecture, insurers can effortlessly connect
Portal360 to their legacy systems, policy administration
systems, or third-party administrators - simplifying data
exchange and maximizing the value of their current
infrastructure.
In essence, Portal360 represents a significant leap forward
in beneficiary claim processes, providing an intuitive,
comprehensive, and collaborative platform. We’re confident
that it will make a positive impact on the industry, and help
us to continue our mission when it comes to transforming
insurance claims operations for the better.
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QIn your opinion, what are some of the challenges that
insurance companies face in fulfilling their Consumer
Duty?
AWhen it comes to fulfilling Consumer Duty in insurance,
one of the central obligations involves keeping a
promise to policyholders and beneficiaries. That
promise is to pay claims when they’re needed most. To
achieve this, insurers must navigate several challenges that
directly impact the claimant’s experience.
Firstly, transparency is key. Claimants expect clear and
timely updates on the status of their claims. Lack of
transparency or communication breakdowns can deter
claimants from becoming long-term clients, causing
significant stress. Therefore, it’s essential for insurers to
provide a transparent and open line of communication
throughout the claims journey.
On the flip side, there are areas where insurers can enhance
the claims experience, such as the efficiency of the claims
process. Lengthy waiting times for claim payouts can be a
pain point for consumers. In today’s world, where immediacy
is expected, insurers should aim to expedite claims processing
while maintaining accuracy.
I’ve also observed that insurers embracing modern
technology tend to offer a better consumer experience.
Digital platforms that allow easy access to policy information
and the ability to initiate claims online are becoming
increasingly important. However, not all insurers have fully
adopted these technological advancements, which can lead
to disparities in consumer experiences.
For Benekiva media enquiries, please reach out to
Maura Gilson-O’Donnell at maura@benekiva.com
Secondly, lengthy waiting times for claim payouts can be a
major pain point. In today’s fast-paced world, consumers have
come to expect quick, efficient services. Slow or inefficient
claims processing can be a source of frustration for claimants.
Insurers need to streamline their processes, leveraging
technology to expedite claims while maintaining accuracy.
Thirdly, inefficiencies within the claims process can be
a significant hurdle. Manual, paper-based workflows
and outdated systems can lead to errors, delays, and
inconsistencies. To fulfill Consumer Duty effectively, insurers
must embrace modern, automated solutions that enhance
efficiency and provide a seamless claims experience for
the claimant.
Ultimately, insurance companies have a responsibility to
go beyond mere compliance with regulation. They must
uphold policyholder trust and confidence. Addressing
challenges related to transparency, efficiency, and
communication is paramount, as it not only helps retain
clients but also ensures that the claims journey is as stressfree
as possible for the claimant.
QAny personal anecdotes to share as a
consumer in terms of what insurers are doing
right, and what needs to change?
In the realm of insurance claims, carriers share
a common goal: they genuinely want to fulfill
A their obligations and pay claims promptly.
Their focus needs to be on ensuring that the right
claims reach the right recipients.
First and foremost, some insurers have truly
mastered the art of claims handling, placing a
premium on clear and timely communication. As
a consumer, there’s nothing more reassuring than
receiving regular updates and comprehensive
information about the status of your claim, all
without the need to ‘chase it down’. When insurers
excel in this aspect of their service, it accomplishes
two essential objectives. It not only fosters trust
in their customers, but it also alleviates the stress
and uncertainty that can frequently accompany the
claims process. Effective communication stands as a
testament to the insurer’s commitment to providing
exceptional service during a critical moment in their
claimant’s lives.
Brent Williams,
Founder and CEO, Benekiva
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Celent
QJuan - I have followed your work
for years, and Celent are one of
my ‘go-to’s’ in terms of market
intelligence. I would love to know
how you’ve seen technology
increase the expectations of the
customer in recent years?
ATechnology has significantly
increased customer expectations
in the insurance industry.
Customers now have more options
and convenience, and they expect
insurance companies to offer a seamless,
personalized experience across all
channels - including online, mobile, and
in-person. They want to be able to easily
find what they are looking for, receive
personalized recommendations, and
have their questions answered quickly
and accurately. Additionally, customers
expect insurance companies to be
available 24/7 and to provide fast and
efficient service. Technology has made
it easier for customers to compare
insurance policies and prices, which
has increased their expectations for
competitive pricing and high-quality
coverage, too.
However, insurance encompasses many
lines of business and risks, which affect
expectations and perceptions of how the
customer journey should be set up.
The expectations of customers in the life
insurance industry may differ from those
in other insurance sectors, such as auto
or commercial insurance. In the case of
life insurance, customers may expect
a more empathetic and personalized
experience, as they are dealing with
sensitive and emotional issues related
to their own mortality or that of a
loved one. They may also expect clear
and transparent communication from
their insurance provider, as well as a
streamlined claims process that is easy
to navigate during a difficult time.
On the other hand, auto insurance
customers may have different
expectations. They may expect a 100%
digital self-service experience, with ease
to compare prices and options, no-touch
claims, and online support. Customers
of commercial insurance, particularly
with regards to complex risks, expect
their insurance provider to have a deep
understanding of the specific risks and
challenges associated with their industry.
They are also more likely to rely on a
broker or risk specialist to determine the
right type of coverage.
Q
How has technology enhanced
the customer’s journey in the
claims process?
Technology has enhanced the
customer’s journey in the claims
Aprocess mainly by providing more
efficient and streamlined processes.
These days, customers can expect to file
claims online, track the status of their
claims in real-time, and receive updates
via email or text message. They can
also expect insurers to provide fast and
accurate relief for their loss.
For example:
• Parametric insurance provides a
no-touch experience for customers;
no FNOL is required, and payments
are made against meeting a specific
threshold, as defined in the insurance
contract.
• The use of AI (eg. machine vision
algorithms) can analyze images
or videos of damaged property,
automatically assessing the extent
of the damage. Likewise, the use
of sensor-provided data (by itself,
or in combination with images/
video) could also help to speed up
the claims process and reduce the
need for manual intervention. With
the use of chatbots - and now with
the recent popularity of Generative
AI - we should expect improvements
in claims support. This will provide
policyholders with clear and easily
accessible information regarding their
claims.
• Fraud detection solutions, augmented
by AI and access to multiple data
sources, provide insurers with better
mechanisms to identify and expedite
non-fraudulent claims. By analyzing
images and videos of the claim event,
machine vision algorithms can identify
patterns and anomalies that may
indicate fraudulent activity. This can
help insurers to detect and prevent
fraud, which can ultimately lead to
lower costs and better outcomes for
policyholders.
• Geospatial data can be used to
identify the location of a property
and assess the risk of damage from
natural disasters, such as floods,
hurricanes, and wildfires. Aerial
imagery can then be used to assess
the extent of damage. By using drones
or other aerial vehicles to capture
images of the affected area, insurers
can get a more accurate picture
of the damage and determine the
appropriate amount of compensation
to offer. This can help to speed up
the claims process and ensure that
policyholders receive fair and accurate
compensation for their losses.
What are some obstacles to
overcome in the claims process
Qas it relates to Consumer Duty?
Customers may be required
(as per regulatory mandate, in
Asome cases) to provide detailed
information and documentation to
support their claims, which can be timeconsuming
and frustrating. Additionally,
customers may be required to take
certain actions, such as mitigating
damages or providing additional
information, in order to receive their
claim payout. These requirements can
be confusing or difficult to navigate,
particularly for customers who are
dealing with the stress and uncertainty
of a loss.
Insurers can take several steps to
improve the customer experience
related to Consumer Duty in insurance,
such as:
• Simplifying the application process
by using online forms and other tools.
This will make it easy for policyholders
to provide the necessary information,
and can help to reduce the likelihood
of errors and omissions, improving the
overall customer experience.
• Offering guidance and support to
policyholders who are unsure about
their duty of disclosure, or other
such obligations under the insurance
contract. This can help to ensure that
policyholders are able to provide
accurate and complete information,
building trust and confidence in the
insurer.
• Using technology and data to
automate and streamline the
process of collecting and analyzing
information from policyholders. This
can help to reduce the time and effort
required to complete the application
process, and improve the accuracy of
the data to assess the risk and manage
the claims process.
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QAs policyholders and brokers
increasingly seek digital
self-service options, when
interacting with an insurance
company, what are some of the
more novel technologies you are
seeing come to market?
ASeveral technologies can help
to improve the customer’s
experience of policyholders and
brokers. However, there’s a new way of
looking at the customer value equation
in a world of customer-centric design.
Delivering on this requires a wide
variety of digital capabilities, elements
that aren’t typically found in an insurer’s
core application architecture. At Celent,
we’ve developed a framework to help
insurers think about how to digitize
the customer experience, where the
‘customer’ could be the policyholder, a
broker, an agent, or an employee.
From a policyholder perspective, the
framework proposes these areas of
focus for fast, easy, and cost-effective
experiences:
• Know me. Use the technology
and data available to understand
my preferences, my situation and
life events, my coverage, and my
policy-related information. This is a
360-degree view of me as a client, so
in any interaction, I can trust you to
know what’s best for me.
• Help me to protect myself. If you
know me and know others like me,
you should provide me with products
that suit my needs. Advise me on
emerging risks, and any blind spots
that I might possess (since I am not
an insurance expert). Advice, realtime
decision engines, and the use of
geospatial data are all good examples
of technology that can help to better
protect the policyholder. Investing
against cybercrime is another means
of protection, as well as the data
stored within IT systems.
• Help me to prevent losses. I don’t
want to suffer a loss and neither do
you, the insurer. With the knowledge
and technology you have available,
help me to prevent the loss in
the first place. Move from a pure
indemnity value proposition to one
where you become my ally in loss
prevention. IoT, sensors, wearables,
and cyber protection for personal
and commercial lines are all examples
of technologies that can help prevent
losses.
• Help me to recover from losses. Do
it fast, do it right, and help me get
back on my feet as soon as possible.
Machine vision and aerial imagery are
two examples of useful technology
to help with this. A good claims
management system that provides
ease of use and clear communications
through the claims process is tablestakes.
Designing products with a notouch
claims process is another way to
approach a fast recovery from losses.
• Talk to me. Use the right channel,
and consider the stage of the journey
and my preferences. This could
be automated assistance, such as
chatbots or virtual CSRs, or messaging
such as SMS or WhatsApp. For
complex risks, video conferencing with
an expert is a great medium. For easyto-manage
situations, this could be
managed via a mobile app or access
to a service chatbot.
• Involve me. With more empowered
and knowledgeable customers, there’s
a need and an opportunity to involve
them in many steps of the journey.
This includes easy-to-use tools for
customizing an insurance product,
right the way through to self-service
claims management.
QWhat are insurers are doing
right, and what needs to change?
AThree examples of good
customer experience immediately
come to mind:
1. My boat insurer tracks weatherrelated
risks and keeps me informed.
They also tell me what I should do to
prevent losses, or at least mitigate the
loss severity.
2. Providing very little information in
order to obtain an auto insurance
quote. For example, the vehicle
information is populated based on
my home address. This is possible
because the insurer is accessing
vehicle-related data and preempting
this information on the form. While
this is common in the US, it’s not the
norm in many countries in the world.
3. On a recent trip to Singapore,
I encountered an embedded,
parametric, contextual insurance
offering provided by a ride-hailing
app, which covered the risk of delay
in my trip. This was a one-click sale
experience, and if I had a claim, the
experience would have triggered an
automatic payout without the need to
submit a FNOL.
There are still many things which
need to change, but the industry is
certainly headed in the right direction.
Technology is redefining the art of the
possible, and I would advise insurers
to look into Celent’s framework for
digitizing the customer experience. It
will provide a simple yet powerful tool
to assess areas for improvement beyond
their traditional customer journey.
Juan is a Director at Celent and Head
of Insurance Practice for EMEA,
APAC, and LATAM. He is responsible
for global research and advice to
C-level executives in the financial
services industry, on themes such
as fintech, insurtech, innovation,
emerging technologies, and business
transformation. He has been involved
in the launch and evolution of
various innovative initiatives and
business models in the financial
services industry, including the
first reinsurance exchange in Latin
America, a direct insurance brand in
the .com era, and most recently, the
design and construction of a digital
direct insurer.
Juan Mazzini,
Head of Insurance Practice APAC,
EMEA, LATAM, Celent
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ReSource Pro
Consulting
Meredith, great to catch up! I’d like to start
by talking about how you’ve seen technology
Qincrease consumer expectations in recent years?
Thank you for this opportunity to chat about
such an important topic, Megan.
AI believe our expectations as insurance customers are
continuously shaped by our experiences in all other
aspects of our lives, from retail and dining to travel
and entertainment, in addition to work. The role of
technology in our daily lives began to shift about thirty
years ago with the emergence of the pioneers of digital
consumer services, like Amazon, eBay, PayPal, Open
Table, Travelocity, and Netflix. Today, I can pay for my
coffee with a tap of my phone or my watch. Thanks to
innovation, I don’t even need to carry cash or a credit
card. But technology driven by necessity is a factor, too.
The pandemic lockdown required the use of technology
to get groceries and medications, even for those that
were not otherwise digitally included.
What does the insurance customer of today expect?
They expect requesting and receiving service to be
easy. They expect transparency, knowing where they are
in the service journey, what happens next, and when,
including proactivity. They expect the option of selfservice
through the digital channel of their choice, and a
clear path to reach a person.
How has technology enhanced the customer’s
journey in the claims process? What are some
Qobstacles to overcome in the claims process as it
relates to consumer duty?
Beginning with the first notice of loss or first
report of injury, we’ve come a long way from
A24x7x365 call centers and mobile apps to report
an accident. Today, there are telematics solutions that
detect impact and initiate the first notice of loss, and
wearables that measure and alert on ergonomic risk
factors to prevent a work-related injury. Technology
has accelerated the claim adjustment journey, too.
Video live streaming can get an adjuster virtually
on-site immediately to begin assessing a serious loss.
Telemedicine connects injured workers to medical
professionals for rapid care direction. AI photo
estimating can generate an immediate repair estimate,
eliminating the need for a physical appraisal. Digital
payments and real-time transactions get money into the
customer or claimant’s mobile wallet quickly, without
the friction of time and effort required for paper checks.
Omnichannel conversational AI solutions meet the
customer where they are, with proactive claim status
updates and maximum ease to get their questions
answered quickly.
Technology offers powerful options, making the
experience easy and ensuring end-to-end data privacy.
It also guarantees compliance with all applicable
regulations within and beyond those in insurance. While
automation can streamline an entire claim journey (or
pieces of that journey), we should never be so bold as
to assume it’s the path every customer wants to take,
regardless of the type of loss or its severity. It should be
digital by choice and not digital by force.
Q
A
As policyholders and brokers increasingly seek
digital self-service options, when interacting
with an insurance company, what are some of
the more novel technologies you are seeing
come to market?
I stand in great company when it comes to
being excited about the potential of generative
AI. There are still risks to understand and
mitigate when it comes to security, bias, and data
quality, but there is no time to wait. We must jump
in and begin to experiment with framing a scalable
process for execution and governance. The ‘crawl-walkrun’
approach of some carriers is to begin with their
internal knowledge bases of product brochures, service
procedures, and even technical support scripts to stand
up a Large Language Model. When put in the hands of
customer service representatives, this speeds up their
ability to respond to questions and solve problems. It
can also reduce employee downtime and internal help
desk calls.
Some other technologies that excite me might not be
considered novel, per se; rather, it’s how more familiar
solutions are being utilized to solve real, long-term
customer experience problems. In addition, this often
addresses sizeable drivers of operational expense.
I previously observed that customers want ease,
options, transparency, and proactive experiences,
which include agents and brokers, too. For me, that
sums up the ‘Amazon effect’ on expectations. However,
for digital self-service expectations to at least be met
(if not exceeded), there cannot be a digital approach
on the front-end only. The customer of today is savvy
enough to recognize when the service experience is not
fully automated, and the expense pressures across the
insurance industry are real and only increasing.
Conversational AI solutions are enabling carriers to
offer a consistent brand experience, regardless of the
line of business and/or journey where the agent, broker,
or policyholder is engaging. These solutions enable
carriers to automate the handling of high-volume and
predictable service requests. They also give carriers the
tools to eliminate some drivers for customers, brokers,
62 | MODERN INSURANCE

INSURTECH
and agents to reach in, by automating proactive status
updates. The best question is the one that is answered
before it’s asked – from the perspective of both
experience and expense.
There is an increasing array of data from reliable
third parties being pulled in, reducing the amount of
information that agents, brokers, and policyholders
must share (not to mention locate) in order to obtain
a quote or change a policy. These solutions are a
win-win because they also improve the quality of the
information, for faster and more precise underwriting as
well as profitable pricing.
Technology is enabling carriers to provide their
customers with real-time loss prevention guidance
specific to their homes or buildings. Or, as I noted
earlier, alerting workers via a wearable device that
their lifting technique puts them at risk of sustaining
an injury. In property, proactive alerts about roof wear
or damage detected by satellite imagery, drones, or
infrared cameras can avert the customer experiencing
a loss.
Documents as a means of sharing data between nonintegrated
stakeholders are not going away. What’s
changed are the expectations on how fast they will be
processed. From fleet lists generating a commercial
auto quote to bulk provider network billings, time is
of the essence to recognize those files, and get the
information they contain to a policy, claim, or payment
system. AI-based intelligent document processing (IDP)
solutions automate the detection, extraction, validation,
and interfacing of this key data. Taking people out of
this process enables straight-through processing of the
underwriting referral, accelerating responsiveness to the
broker, agent, or customer.
What steps can insurance companies take
to ensure that consumers have access to
Qappropriate coverage, and are protected against
unfair and deceptive practices?
The more information carriers have about a risk,
the more precise they can be in offering the best-
products, services, and coverage limits. Earlier,
Afit
I mentioned the increased sourcing of third-party data
as something that excites me. It speeds up service and
eliminates any disconnect between what the customer
needs to be covered, and the coverage provided.
Insurance companies are wholly invested in doing
right by their customers. Carriers in the U.S. operate
within a robust, state-based regulatory system that
provides important checks and balances on product
scope, rates, and licensing - in addition to solvency.
Insurance regulation strives to reinforce public
confidence by managing the big-picture view for fair
pricing, transparency, and availability across competing
companies.
Q
In your opinion, what are some of the challenges
that insurance companies face in fulfilling their
Consumer Duty?
Insurance is an array of financial protection
solutions that exist within an increasingly
A complex and ever-changing world. The industry
is not simple, and it can therefore be difficult for
consumers to trust and understand. The commercials
that show claims adjusters as evil conspirators seeking
to deny claims whenever possible only heighten that
mistrust.
Insurance in many instances is a mandatory consumer
purchase, driven by state regulation or contract.
Almost forty years into my own industry journey, I’ve
yet to meet someone who was excited to purchase a
policy, myself included! Even unconsciously, insurance
purchases are a reluctant consumer buyer journey at
best. Do I rest much easier knowing that my family and
I are protected? Absolutely! But do I celebrate when
my monthly premium auto-pay notification arrives?
Definitely not!
Q
Any personal anecdotes to share as a consumer
in terms of what insurers are doing right, and
what needs to change?
I am in awe of the insurance industry’s
unwavering focus to continuously innovate both
A its products and processes, to never fall short of
fulfilling its purpose. At the same time, everything is
shifting - from risks and climate, to the economy and
the consumer they are striving to serve.
As I reflect on how you framed Consumer Duty in your
introductory message, I am struck by the key part that
experience plays. For example, a consumer can have
two different perceptions when learning about the
total loss payout for their car, in terms of it being ‘fair
and reasonable’. Closing the gap between intent and
perception requires an outside-in voice, in terms of both
tone and terminology.
I’m borrowing from the playbooks of carriers that I
have worked for or with. Have someone other than
an insurance professional periodically test-drive your
company’s consumer interactions. Tapping into the
expectations of my son (Gen Z), husband (chef), and
mother (senior) has caused me to see and hear things
differently.
As carriers continue to innovate, I hope they will double
down on agility to move the needle as quickly as
possible, transforming in discreet increments. The faster
we can deliver focused changes, the sooner we can
hear the voice of the customer telling us if we’re on the
right path.
Meredith Barnes-Cook,
Partner, ReSource Pro Consulting
MODERN INSURANCE | 63

INSURTECH
JobsOhio
QRon, it was wonderful to see you and JobsOhio this
past June at Insurtech Insights! You have done a
phenomenal job growing JobsOhio into a global
insurtech and fintech hub, and you can certainly speak to
Consumer Duty in insurance from a few different angles.
I’m keen to hear how you’ve seen the role of technology
impact the customer’s expectations in recent years?
AI’ve said many times that the customer is in the
driver’s seat right now. The policyholder of the
past would call or visit their agent, provide various
pieces of information, get grouped together with a similar
population, and pay a premium based on similar risk
categories. Not exactly a truly personal experience!
The insurance industry is getting better at using data,
AI, and ML to assess risk more accurately and more
personally. Additionally, customers can control the
experience – insurance companies need to meet them when
and where they want to be met.
QHow has technology enhanced the customer’s
journey in the claims process? What are some
obstacles to overcome in the claims process as it
relates to Consumer Duty?
AWith the claims process, there are two key factors.
Firstly, it’s a moment of truth for both parties, and
secondly, service is being judged on the speediness
and accuracy of the claim. No customer buys insurance
wanting to file a claim because their valuable property is
affected. In the event that a loss occurs, the policyholder
expects to be indemnified with little interruption in their
life. If the insurance company creates a memorable
experience, good or bad, the policyholder will have a
reaction to that service. The positive reaction is that the
customer is retained and will voice their pleasure within
their circle of friends and family. On the contrary, if they are
negatively impacted, the company will lose a policyholder
to a competitor. Either reaction may result in not only one
policy lost, but multiple – all due to the customer’s influence.
QAs policyholders and brokers increasingly seek
digital self-service options, when interacting with an
insurance company, what are some of the more novel
technologies you’re seeing come to market?
ALots of eyes go right to P&C, since those are the
most prominent. However, I love technologies
that aggregate quotation in the small business
space. Commercial insurance is a huge relationship side of
the business, and it requires a ton of trust. Let the broker/
agent do what they do best and make relationships to sell
business. If the agent spends hours, days, or even weeks
creating a relationship, the last thing they want to hear
is that their prices aren’t competitive. Most agents aren’t
independent anymore, and being able to get the right
quote for the right price allows them to capitalize on what
they do best.
QWhat steps can insurance companies take to ensure
that consumers have access to appropriate coverage
and are protected against unfair and deceptive
practices?
AWhile customer experience is one of the more
forward facing and noticeable innovations, accurately
assessing and covering risk is going to impact an
insurance company’s bottom line. Transparency on the front
end is important because it earns trust. Customers are super
sensitive to price, and if an agent is doing sneaky things to
earn the business based on price, it may backfire during that
aforementioned moment of truth.
On the flip side, transparency is important to the insurance
company because it may help to mitigate fraud. There are
new technologies that improve upon initial risk assessment,
and those get my attention too.
QIn your opinion, what are some of the challenges
that insurance companies face in fulfilling their
Consumer Duty?
A
Insurance is a super competitive industry. Because
insurance used to be administratively onerous to the
customer, it was more of a pain to find an alternative
to their current insurer. The result was a policyholder
being unhappy, but just dealing with the lack of service.
Nowadays, it’s a lot easier to test the market, and customers
are changing insurers for less
money than ever. That means
insurers need to bring their
A-game, because the customer
always has the upper hand. ‘If
you aren’t growing, you’re
dying’ is an old saying - but in
the insurance industry, I believe
it’s less about growing and
more about innovating.
Ron Rock,
Managing Director - Financial
Services, JobsOhio
64 | MODERN INSURANCE

INSURTECH
EDITORIAL
BOARD
WELCOME to the Insur.Tech.Talk
Editorial Board.
Modern Insurance Magazine is delighted to bring our board of insurtech experts together
in a showcase of thought leadership insights from the very heart of the sector. In this issue,
we’re looking at how technology can aid insurers, brokers and MGAs in their attempts to stay
compliant with the new Consumer Duty…
This issue voices the thoughts of...
Scott Holmes,
Sales Director UK&I,
Quantee
Nelius Strydom,
Chief Product Officer,
Contemi Solutions
William Pitt,
Head of Customer Service,
Contemi Solutions
Denise Garth,
Chief Strategy Officer,
Majesco
André Symes,
Group CEO,
Genasys Technolgies
Tim Hardcastle,
CEO and Co-Founder,
INSTANDA
MODERN INSURANCE | 65

INSURTECH
Emphasising the
Policyholder’s Duty
The UK insurance industry is a robust and highly regulated
sector, one that plays a critical role in safeguarding individuals
and businesses from financial risks. While insurers have a
duty to provide reliable coverage and handle claims fairly,
consumers also have an essential role to play in this dynamic
relationship. This article emphasises the responsibilities and
actions that policyholders should take to ensure a fair and
efficient experience.
Scott Holmes,
Sales Director UK&I, Quantee
Individuals and businesses have responsibilities and
obligations when purchasing and maintaining insurance
policies. In the context of the UK insurance industry,
Consumer Duty is guided by several key principles:
n Honesty and Disclosure
n Research and Comparison
n Understanding the Policy
n Prompt Payment of Premiums
n Reporting Claims
n Preventing Fraud
n Seeking Redress
Consumers must provide accurate and complete
information. It’s crucial to update their insurer about any
changes in circumstances during the policy term to ensure
that coverage remains appropriate and valid. It’s a common
scenario that claims are not paid because the policy no
longer accurately reflects the risk, with the consumer
ultimately losing out as a result.
Consumers also need to be actively researching and
comparing insurance policies to find the one that best suits
their needs. In turn, insurance companies must make this
a simple, understandable and easy process. Price should
not be the sole deciding factor - and so if consumers
understand the product they are buying, the risk of underinsurance
should be mitigated.
The claims journey can often be a testing experience
for consumers. This is a stressful period which is often
associated to a loss, and if the claims process is not a
straightforward one then this can lead to poor experiences
where the consumer loses trust. The consumer needs to
report these losses promptly so the insurer can deal with
the claim using accurate information, and compensate
the consumer swiftly. This relationship needs to be
incentivised in order to enhance communication and
streamline the process, one where the consumer does not
delay their initial action and postpone a positive outcome.
Fraud remains a significant cost to insurers, which is then
passed on to consumers through increased premiums.
This vicious cycle has to be broken. For the vast majority
of consumers, fraud is not on the agenda. However,
opportunistic fraud does occasionally occur, alongside
subtle changes to risk information in an attempt to obtain
a lower price. This ultimately leads to insurers mitigating
fraud through higher premiums, but there is scope for a
real solution to this is in Big Data.
Using the various data sources that now exist for the
majority of retail or consumer-based products, there is a
reduced need for self-declared information. In theory, this
should result in more accurate pricing; consumers need
to understand this and provide the consent for their data
to be used. As a consequence, this should help to reduce
inflated premiums over time.
Consumer Duty is a vital component of the UK
insurance industry, fostering trust and accountability
between insurers and policyholders. By fulfilling their
responsibilities honestly and diligently, consumers can
help to maintain the integrity of the insurance market and
ensure that their insurance needs are met effectively.
Moreover, understanding their rights and the new
regulatory framework in place can empower consumers
to seek redress if they encounter unfair treatment. In this
symbiotic relationship between consumers and insurers,
transparency, honesty, and cooperation are key to a
successful and reliable insurance experience.
MODERN INSURANCE | 67

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INSURTECH
Empowering
Consumers:
New Duty Regulations,
the Impact on the
Insurance Industry, and
the Tech Revolution
Nelius Strydom,
Chief Product Officer, Contemi Solutions
In today’s digital age, consumers wield unprecedented power
and influence, often driving market changes through their
choices and demands. Recognising this, governments and
regulatory bodies are increasingly enacting new Consumer
William Pitt,
Duty regulations to protect and empower individuals. Head of Customer Service, Contemi Solutions
Consumer Duty regulations encompass
a broad range of laws and standards
aimed at safeguarding the rights and
interests of consumers in various
industries.
What does it mean for the financial
industry? The Financial Conduct
Authority (FCA) states that financial
firms must act in good faith towards
customers and avoid causing them
foreseeable harm, enabling and
supporting them to pursue their
financial objectives.
These regulations are evolving to
address contemporary challenges in
areas such as data privacy, product
safety, and ethical business practices.
In effect, the Consumer Duty
regulation should offer customers the
support they need when they need it,
and in a form of communication that
they understand. Products and services
should also meet their needs and offer
fair value, while protecting consumer
privacy at the same time.
Let’s explore some of the aspects that
are key to this regulation for financial
institutions.
Data Privacy and Security
Technology has brought about an
explosion of data, and with it, concerns
about privacy and security. Advanced
encryption techniques, tokenisation,
consent management and data
anonymisation are all key technologies
that help companies to comply
with data privacy regulations while
maintaining efficient operations.
Product Transparency & Services
Consumers have become increasingly
conscious and require full
transparency about the products
they are purchasing. Regulations in
this area are aimed at ensuring that
the products on offer help customers
to achieve their financial goals,
promoting access to clear and truthful
information.
Insurance software solutions like
Contemi’s Seamless.Insure provide
flexibility and transparency in
insurance products, as well as a selfservice
portal to insurance customers
– one that offers direct access to all
relevant information. This can allow
consumers to make an informed
purchase decision, or provide
clarification around what is included
in their policy. Customers are also able
to set reminders for themselves, or
register a claim via this platform.
Enhancing Consumer Engagement
Technology is facilitating direct
and meaningful engagement
between consumers and insurance
providers. Holistic access to
relevant customer data allows for
a positive, efficient experience in
customer service. Furthermore,
advancements in technology - like
chatbots for customer service, and
personalised marketing powered by
AI - can contribute to more efficient
consumer-business interactions.
Thus, technology is not just a
supporting actor; it’s a catalyst for
change, enabling the enforcement
of regulations and empowering
consumers with greater transparency,
control, and protection. Technology
will also help companies to ensure
and measure the value they deliver to
their customers at every stage of the
lifecycle.
Technology can:
• Guarantee the availability of clear
and easy to understand information
to prospective customers during the
sales stage, through interactive and
intuitive platforms available across all
devices.
• Provide instant response to queries
eg. through AI driven live chats.
• Make data collection easy through
quick onboarding dashboards,
reducing the need to enter repetitive
data.
• Use comprehensive data collection
and analysis systems, along with
robust risk assessment systems, all of
which can quickly help underwriters
to evaluate profiles and offer the
right solution based on the specific
needs of the consumer.
• Set up premium reminders.
• Easily access all information available
to the consumers, evaluating their
policies and understanding the
depth of their coverage.
• Offer an intuitive claims system for
customer support when they need it
most.
As we navigate this ever-changing
landscape, the collaboration between
governments, insurance businesses and
technology innovators will be vital in
achieving Consumer Duty objectives.
MODERN INSURANCE | 69

INSURTECH
Customer First
– It’s a Real Thing
The future is all about the customer. Customer-first strategies
can provide long-term growth, so customer signals must shape
business strategies. What signals are we seeing today? From COVID
to historic inflation, severe weather events and the rising cost of
insurance, customers are enduring an ongoing string of challenges
that have shaken their sense of financial security in how they can
protect their homes, cars, life, physical and financial well-being.
Denise Garth,
Chief Strategy Officer, Majesco
While insurance’s traditional products have and will always
be pivotal in creating peace of mind for the customer, new
and expanding risks, customer behaviours and expectations
require new ideas and approaches. Today’s customer judges
the insurance experience on an entirely different scale.
The rise of individualisation and personalisation is rewriting
the customer experience and the insurance process - from
the products offered and their pricing and underwriting, to
the channels recommended and the value-added services
provided. Customers are seeking simple, humanised
experiences that require a shift from a product-centric
approach to a customer-centric one.
Today’s customers are living different lifestyles and possess
far greater digital proficiency than ever. They demand
different experiences and have different expectations about
value. They want a risk product, value-added services, and
an experience that provides them with what they need to
manage their lives. Plus, they need financial wellness that
humanises the entire customer lifecycle.
But for many customers, there is a gap between what they
expect, want, and need, versus what insurers are delivering.
This gap influences long-term customer growth, value, and
loyalty. It demands a customer-centric strategy.
The customer expectation gap is most prevalent with
Millennials and Gen Z, who are not satisfied with traditional
insurance products, processes and business models. This was
demonstrated in Majesco’s consumer and SMB research. As
digital natives, they expect and demand digital capabilities
and products that will align to their activities and behaviours,
personalised to them. Even the older generations are
becoming digitally-savvy, and they have similar expectations
for service!
The implication is that traditional product-oriented strategies
developed from an inside perspective handicap insurers.
Savvy, innovative companies are redefining insurance from
an outside-in perspective, adapting to what customers
want and expect despite their generational demographic.
They are methodically peeling away generations of insideout
perspectives and operations that require customers to
conform to the way insurance works. Their innovative teams
are transforming insurance from a mysterious, confusing,
and difficult ordeal most would rather avoid, to a more
transparent, simple, and engaging experience.
How are insurers humanising insurance? They are offering
niche, personalised products, services, and experiences that
align with a customer’s specific risk needs. They do this by
using unique risk, lifestyle, and behaviour data.
Customer-first products also support the rising demand for
financial wellness. Since insurance is a vital tool for protecting
the financial security of individuals and businesses, additional
services that enhance this protection should be a good fit for
insurers to offer to customers, regardless of the specific lines
of business they offer.
Companies that offer and integrate their products and
value-added services into this financial wellness approach
can put themselves in a strong position and gain loyalty.
More importantly, these companies can gain a competitive
advantage over those that place their products and services
as a single or siloed item, instead of a vital piece of a much
broader financial wellness puzzle.
The advent of Consumer Duty embraces the customercentric
approach. It encourages insurers to showcase
their products in terms of value to the customer, helping
customers to achieve financial wellness and understanding to
the overall benefit of everyone.
There is no turning back. The future is here.
Game on!
MODERN INSURANCE | 71

INSURTECH
André Symes,
Group CEO, Genasys Technologies
Consumer
Focus:
Realising Commercial
Ambition and
Delivering Customer
Satisfaction
It’s a tough external environment for the insurance industry right
now. High inflation is impacting claims costs, and the rising cost
of living is affecting consumer behaviour. In addition to these
economic headwinds, regulatory standards through the new
Consumer Duty mean that insurance businesses have paused to
reflect on their product offering and interactions with customers,
with any required operational changes carrying a financial cost.
Particularly where the industry is working with inflexible legacy
technology, these changes have probably been felt quite acutely.
Keeping policyholders satisfied and making sure that
your COR meets shareholder expectation is a balancing
act. But how do you achieve this?
Building in adaptability
In my experience, the head start goes to insurance
leaders who are embracing what we at Genasys call a
‘pro-adaptive’ ethos.
A focus on implementing an API-first core tech
platform lies at the core of pro-actively building
adaptability into the DNA of an organisation. This
gives the digital capability and flexibility to lean into
future regulatory change and react rapidly to changing
market conditions, particularly in areas of the industry
where we can expect further changes and reform.
As a result, pro-adaptive insurance businesses
don’t have to pause expensive, five-year digital
‘transformation’ programmes. Instead, they pivot these
once ring-fenced resources in order to adapt to the
shifting environment.
Plugging in to innovation
The commercial advantage lies with insurers, carriers
and MGAs that are making the transition to an API-first
core platform. Why? Because they have the ability to
plug into tech innovation and multiple data sources, as
well as automating workflows. All of this is designed to
suit and protect their commercial needs today, while
realising their vision for the future.
Let’s take fraud detection as an example. By being
able to plug into multi-bureau data sets, you get an
exponential increase in the accuracy of detecting
possible fraud at first notification of loss (FNOL), which
helps to protect your balance sheet. The consumer
benefits, too. This wealth of data provides reliable rules
to support speedy, accurate, automatic claims payments
for legitimate claims – all of which enhances customer
loyalty.
The impact of core tech on COR
The results speak for themselves when you start to see
how a tech stack, built around a single core platform
which everything can connect to and evolve as
necessary, significantly improves the policy and claims
administration processes for the insurer and the insured.
At Genasys we’re working with one client where the use
of our tech to drive innovative, automated workflows is
reducing the average claim time – from first notification
to accurate settlement – from two days to just five
minutes. It’s a win-win.
An API-first approach helps to drive measurable
operational efficiencies, supporting action to bring down
the COR while delivering a better customer experience
at the same time.
Preparing for the future customer
Let’s remember that the digital native, Gen Z customer
will become the future consumer powerhouse. Growing
up in an on-demand, online world has shaped how
they want to interact with companies – with very clear
expectations of how they want to be treated.
Now is the time to adapt if insurance businesses are
to remain relevant to their customer base and survive.
Tech partners who can help their clients realise their
technological ambition are playing an integral role
in supporting the ethos of Consumer Duty: helping
to positively change the way in which the consumer
experiences insurance.
MODERN INSURANCE | 73

INSURTECH
Consumer Duty:
How Technology
Helps Compliance
It’s official: the Financial Conduct Authority (FCA) has
now announced the rollout of its new Consumer Duty
regulations from 31st July 2023. This is perhaps the most
significant change to insurance industry regulations for
over 20 years.
Tim Hardcastle,
CEO and Co-Founder at INSTANDA
It’s clear that these changes will
have a seismic impact on insurance
professionals, stakeholders, and
customers. With that in mind, what can
the enterprises within the insurance
industry do to ensure they can adapt
to new regulatory changes, anticipate
further reform down the line, and put
consumers first without affecting
revenue targets?
This article will discuss how insurers
can prepare themselves for compliance
issues, why being proactive is the best
course of action, and how no-code
technology and core platforms can help
insurers to future-proof their businesses.
The Implications of the new
Consumer Duty
What does the new Consumer Duty
mean for all of us? In brief, these
regulations are designed to ensure that
insurance products are fit for purpose
throughout the customer lifecycle.
Insurers now have to work harder
to understand their customers. To
comply with the new regulations, they
must continually assess whether their
products provide value for money and
remain suitable for customers. If not,
they’ll need to carry out more product
testing in order to remain aligned with
changing demands.
The FCA estimates that implementation
costs to the industry could be as high
as £2.4bn. Insurance firms need to
assess governance, revise their customer
service, and develop new systems
and processes. Continually reviewing
product suitability means that insurance
carriers must maintain ongoing
communications with customers at all
stages of the customer lifecycle; from
quote and apply, to inception, renewal,
cancellation, or claim.
Furthermore, insurers will also be forced
to create and release more products
than ever before to ensure that every
possible and potential customer need
is catered for. This rapid acceleration
of the time-to-market is obviously
a clear concern for insurance firms,
particularly those who are reliant on slow
or outdated infrastructures and admin
systems.
The value of new tech
The impact of new regulatory
requirements like this one perfectly
emphasises the reason why technology
has a vital role to play in helping insurers
and MGAs to stay compliant.
The ability of businesses to meet and
exceed these expectations is fully
dependent upon the platforms they have
access to. Clearly, insurers cannot rely
on legacy technology if they want to
release more products at a faster rate,
whilst enabling open dialogue with their
customers to drive ongoing business
decisions. By using digital solutions
to build Minimal Viable Products
(MVPs), insurers will cut their product
development time from many, many
months to just a matter of weeks.
However, implementing the modern
technology needed to achieve these
results can prove to be a costly,
challenging, and time-consuming
process. Insurers may not have the
resources and expertise to code the
platform they need to remain compliant.
Additionally, outsourcing to a thirdparty
has its own pitfalls, as these
programmers are far too removed from
customer needs to fully understand the
intricacies of the insurance industry.
Fortunately, there’s another way - one
that grants insurers full control over the
development and implementation of
their tech. This also allows them to build
and integrate what they want, how they
want it, without writing a single line of
code.
How no-code digital platforms
can help you prepare
No-code solutions enable insurers to
build, test, and launch new products
quickly, while minimising the cost and
resources needed. These solutions are
designed to be simple and intuitive
to use, meaning that insurers can
use core digital systems to design
products quickly, test them out
in the marketplace, and store all
documentation in different portals -
all without fussing over the technical
details.
Plus, in line with the requirement
for increased communication with
customers, insurance firms can
configure which predefined questions
they want to ask consumers in the
customer portal. The newly integrated
platforms can even be used as a
communication channel to gather
customer feedback.
Finally, no-code solutions should be
able to flag when vulnerable customers
are identified, helping insurers to
understand whether they should be
purchasing particular products.
Why you need to act now
The FCA isn’t specifically telling
businesses how to put its new rules into
effect, and this is a key takeaway. It’s
imperative that insurers and MGAs take
the initiative and act now. By acting
early and demonstrating due diligence,
carriers have a much higher chance of
avoiding noncompliance penalties.
Plus, as we’ve discussed, taking steps
to adopt modern technology will
help insurers to get ahead of their
competitors and level up their platform
capabilities. By acting early, they can
offer a larger number of better-quality
products, and release them faster
than ever.
These new regulations don’t have to be
a cause for concern. Instead, see this as
your time to embrace the possibilities
of no-code platforms, alongside a
further key opportunity for business
development.
74 | MODERN INSURANCE