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Modern Insurance Magazine Issue 64: The Credit Hire Supplement

This issue features... Interview: Catching Up on Credit Hire: In Conversation with Anthony Hughes, Chair & CEO, The Credit Hire Organisation (CHO) Interview: The New Face of the GTA: In Conversation with Stewart McCulloch, Independent Chair of the GTA Europcar: Shifting the Sole-Supply Chain Model Cogent Hire: Consumer Duty is Just the Tip of the ICE-berg when it Comes to Managing EV Claims Keeping Things TRUE, with Richard Milner, Partner, TRUE Solicitors The Value of SYNETIQ, Tom Rumboll, UK Managing Director for IAA, and CEO of SYNETIQ NBRA: Repairers: How to Navigate Credit Hire Taking Care of Business, with David Nash, Managing Director, Canford Law EDAM Group: Industry-Leading Credit Hire Services: How We Deliver Best in Class Post-Accident Management Services

This issue features...

Interview: Catching Up on Credit Hire: In Conversation with Anthony Hughes, Chair & CEO, The Credit Hire Organisation (CHO)
Interview: The New Face of the GTA: In Conversation with Stewart McCulloch, Independent Chair of the GTA
Europcar: Shifting the Sole-Supply Chain Model
Cogent Hire: Consumer Duty is Just the Tip of the ICE-berg when it Comes to Managing EV Claims
Keeping Things TRUE, with Richard Milner, Partner, TRUE Solicitors
The Value of SYNETIQ, Tom Rumboll, UK Managing Director for IAA, and CEO of SYNETIQ
NBRA: Repairers: How to Navigate Credit Hire
Taking Care of Business, with David Nash, Managing Director, Canford Law
EDAM Group: Industry-Leading Credit Hire Services: How We Deliver Best in Class Post-Accident Management Services

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CREDIT HIRE<br />

Cogent <strong>Hire</strong>:<br />

Consumer Duty is Just the<br />

Tip of the ICE-berg When It<br />

Comes to Managing EV Claims<br />

<strong>The</strong> New Face<br />

of the GTA:<br />

In Conversation with Stewart<br />

McCulloch<br />

Catching Up on<br />

<strong>Credit</strong> <strong>Hire</strong>:<br />

In Conversation with Anthony<br />

Hughes


WELCOME<br />

Amelia Barlow, Editor<br />

Like many other aspects of the accident<br />

repair sector, credit hire has been<br />

heavily affected in recent years. From<br />

an industry-wide skills shortage to<br />

difficulties finding like-for-like vehicle<br />

replacements, mitigating factors<br />

continue to come together to create<br />

the perfect storm.<br />

To find out more about the intricacies of the<br />

present-day credit hire landscape, I was lucky enough<br />

to sit down with Anthony Hughes, Chair and CEO<br />

of <strong>The</strong> <strong>Credit</strong> <strong>Hire</strong> Organisation (CHO) - you’ll find<br />

a summary of our conversation on p.4. I was also<br />

delighted to catch up with the marvellous Stewart<br />

McCulloch, the industry’s new Independent Chair of<br />

the GTA, for a conversation (p.8) all about his new role<br />

and the task he faces when it comes to modernising<br />

the agreement for 2024 and beyond.<br />

As always, my largest portion of gratitude goes to our<br />

contributors, without whom none of this would be<br />

possible. I’m so grateful for the time they’ve taken to<br />

write for the mag, or to speak with me in depth about<br />

their roles and observations from the credit hire sector.<br />

It’s really encouraging to know that this area of the<br />

industry is in such safe hands.<br />

Until next time,<br />

Rachael Pearson, Project Manager<br />

Rachael Pearson<br />

Project Manager<br />

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

rachael.pearson@charltongrant.co.uk<br />

Amelia Day Barlow<br />

Editor<br />

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

@Amelia<strong>Modern</strong>Ins<br />

amelia@charltongrant.co.uk<br />

2 <strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong>


INTERVIEWS<br />

4<br />

8<br />

Catching Up on <strong>Credit</strong> <strong>Hire</strong>: In Conversation with Anthony<br />

Hughes<br />

<strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong> sits down with Anthony Hughes,<br />

Chair and CEO of <strong>The</strong> <strong>Credit</strong> <strong>Hire</strong> Organisation (CHO), for a<br />

look at the existing credit hire landscape. How does the past,<br />

present and future affect the outlook of our modern-day credit<br />

hire sector?<br />

<strong>The</strong> New Face of the GTA: In Conversation with Stewart<br />

McCulloch<br />

<strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong> had the pleasure of sitting down<br />

with Stewart McCulloch, the new Independent Chair of the<br />

GTA, to discuss his plans for the role and the GTA’s potential for<br />

modernisation.<br />

FEATURES<br />

13<br />

14<br />

17<br />

18<br />

21<br />

Europcar: Shifting the Sole-Supply Chain Model<br />

<strong>The</strong> time has come for insurers to step away from the false<br />

economy of sole supplier agreements and build a network of<br />

innovative and adaptable partners. James Roberts, Head of<br />

<strong>Insurance</strong> Sales at Europcar, reports.<br />

Cogent <strong>Hire</strong>: Consumer Duty is just the tip of the ICE-berg<br />

when it comes to managing EV claims<br />

Kirsty McKno, Managing Director at Cogent <strong>Hire</strong>, reports on<br />

the ways in which the new Consumer Duty continues to affect<br />

processes within the credit hire sector, particularly through the<br />

lens of EV claims.<br />

Keeping Things TRUE with Richard Milner, TRUE Solicitors<br />

<strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong> recently caught up with Richard<br />

Milner, Partner at TRUE Solicitors, to discuss litigation in credit<br />

hire, the challenges and opportunities behind the Damages<br />

Claims Portal (DCP), and the importance of great CX in credit<br />

hire claims.<br />

Laird: Revolutionise, Optimise, Maximise<br />

Laird share their formula for claims and supply chain excellence.<br />

<strong>The</strong> Value of SYNETIQ<br />

SYNETIQ, an IAA company, is the UK’s leading vehicle salvage,<br />

dismantling and recycling firm. Tom Rumboll, UK Managing<br />

Director for IAA and CEO of SYNETIQ, reports on recent<br />

challenges and changes within the claims process, and how<br />

SYNETIQ are poised to overcome them.<br />

22<br />

25<br />

26<br />

NBRA: Repairers: How to Navigate <strong>Credit</strong> <strong>Hire</strong><br />

Thomas Hudd, National Technical Manager at the National<br />

Bodyshop Repair Association (NBRA), explains the pros and<br />

cons of accepting credit hire business for the benefit of repairers<br />

and their repairer members.<br />

Taking Care of Business with David Nash, Canford Law<br />

<strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong> recently had a chance to speak<br />

with David Nash, Managing Director at Canford Law, about the<br />

current landscape of the <strong>Credit</strong> <strong>Hire</strong> market, courts, litigation,<br />

and the future of recoveries in the insurance sector.<br />

EDAM Group: Industry-Leading <strong>Credit</strong> <strong>Hire</strong> Services<br />

As a leader in the industry, EDAM has consistently demonstrated<br />

a commitment to delivering first-class credit hire services,<br />

making a difficult journey easier for clients in need.<br />

Contributed by<br />

<strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong> 3


CATCHING UP ON<br />

CREDIT HIRE:<br />

In Conversation with Anthony Hughes<br />

<strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong> sits down with Anthony Hughes, Chair<br />

and CEO of <strong>The</strong> <strong>Credit</strong> <strong>Hire</strong> Organisation (CHO), for a look at the<br />

existing credit hire landscape. How does the past, present and future<br />

affect the outlook of our modern-day credit hire sector?<br />

Anthony Hughes,<br />

Chair & CEO, <strong>The</strong> <strong>Credit</strong> <strong>Hire</strong> Organisation (CHO)<br />

4 <strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong>


<strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong> 5


Q<br />

Anthony, thanks so much for taking time out of<br />

your day to speak with us!<br />

Let’s start by looking back at last year. What<br />

challenges did the credit hire sector face at the<br />

start of 2023? Have those challenges started to<br />

dissipate somewhat now, or has the industry just<br />

evolved to cope?<br />

A<br />

At<br />

the start of the year, the supply chain squeeze<br />

that was such a feature of 2022 was still very much<br />

in evidence. <strong>Hire</strong> periods remained longer than<br />

average, and it was hard to source vehicles both<br />

directly and from rental companies, who prioritised<br />

their own customer base. As the year wore on, those<br />

supply chain issues began to dissipate, although it’s<br />

by no means certain that we are out of the woods.<br />

Macro-issues, such as the conflict in the Middle East,<br />

threaten to disrupt supply chains again and lead to<br />

shortages of vehicles and parts.<br />

My feeling is that volatility has become a new normal,<br />

and our members have generally been brilliant<br />

at adapting to supply chain squeezes and other<br />

unforeseen events in order to continue serving their<br />

customers. Although the number of people claiming<br />

for post RTA injuries is down sharply (by around 25%<br />

since the end of the pandemic), the average number<br />

of miles driven in the UK has more or less returned to<br />

pre-pandemic norms, at 332bn a year (to June 2023).<br />

This suggests that RTA levels are at the same historic<br />

heights. <strong>Credit</strong> hire companies serve around 500,000<br />

customers each year, ensuring road users can<br />

continue to get their kids to school, or get to work. In<br />

a flatlining economy, providing mobility is an essential<br />

service, and I’m impressed by our industry’s continued<br />

ability to do this job so well in spite of the challenges.<br />

Q<br />

Looking to the here and now then, how do you<br />

see traditional credit hire practices being tested<br />

or challenged? And in respect of the future, how<br />

can the credit hire sector prepare for what’s to<br />

come?<br />

A<br />

<strong>The</strong> basic model of credit hire hasn’t changed that<br />

much. Although there are plenty of vested interests<br />

who would like to change it, no one has come up with<br />

a better approach. <strong>Credit</strong> hire is still an efficient and<br />

effective way of providing mobility to those who need<br />

it. I do think that notwithstanding a couple of outliers,<br />

there’s much less confrontation between insurers and<br />

CHCs these days. <strong>The</strong> market has matured, attitudes<br />

have matured, and most non-fault hire opportunities<br />

(“referrals”) are now provided to CHCs by motor<br />

insurers themselves.<br />

I’m keen to continue fostering a collegiate approach to<br />

credit hire, and that is why discussions with insurers<br />

to review the GTA (an industry wide protocol that<br />

streamlines and removes friction from the settlement<br />

of credit hire claims) and make it fit for the 2020’s are<br />

so vital. While there are still some important points to<br />

resolve, I have been impressed<br />

“I do think that not withstanding<br />

a couple of outliers, there’s much<br />

less confrontation between<br />

insurers and CHCs these days”<br />

by the constructive approach taken by both sides.<br />

Some measure of compromise will be needed from<br />

every player if we are to evolve the GTA in line with<br />

the MoJ’s recommendations and for the benefit of all<br />

parties. I feel that we are are making good progress on<br />

this for the consumer.<br />

A revised GTA will be much more sensitive and flexible<br />

to broader changes in the motor claims market,<br />

including the advent of EV, green parts for repairs, and<br />

other vital steps on the road to net zero. Our members<br />

have been keen to engage in the ongoing debate<br />

around sustainability, although EV is still a small part<br />

of the overall market. We expect the demand for<br />

EV replacement vehicles to grow as the UK moves<br />

towards a non-ICE vehicle parc, and the claims<br />

industry will have a major challenge ahead in meeting<br />

this rapid increase in demand.<br />

Q<br />

Is<br />

there still more to be done to improve<br />

understanding of credit hire, within the<br />

insurance industry but also within the consumer<br />

mindset? How are the CHO prioritising training<br />

and educational opportunities for insurance<br />

industry employees who perhaps lack credit hire<br />

experience and understanding?<br />

A<br />

Though<br />

vitally important, credit hire is an esoteric<br />

part of the motor claims industry that is indeed poorly<br />

understood by the general public, policymakers<br />

and regulators, as well as some people working in<br />

the day-to-day management of those claims. Lack<br />

of knowledge leads to friction, and I would like to<br />

see more information sharing between insurance<br />

company claims agents and ourselves to break down<br />

the barriers. After all, we all share the same customer!<br />

<strong>The</strong>re’s plenty of technical experience in specific<br />

areas, but not many in the insurer sector understand<br />

or are involved in the full commercial picture, certainly<br />

in terms of the economic impact of credit hire; from<br />

the costs it saves insurers in providing mobility to the<br />

referral fees, as well as the cost of processing the<br />

claims.<br />

Although credit hire is not regulated by the FCA, our<br />

members operate by a code of conduct and have<br />

ongoing commitments to training and development.<br />

We have sponsored Wiser Academy, a leading<br />

qualifications and training company, to work closely<br />

with our members who wish to do more in this space.<br />

We also think it is important to share learnings with<br />

insurers and defendant firms to smooth claims<br />

settlement times and avoid friction. With court delays<br />

6 <strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong>


continuing to cast a shadow over our civil justice<br />

system, better understanding of how credit hire works<br />

among stakeholders will make for a smoother process<br />

and ultimately, keep cases out of the courts.<br />

Q<br />

<strong>The</strong><br />

new Consumer Duty came into effect in<br />

the latter half of last year. How has this new<br />

regulation been felt within credit hire since its<br />

inception?<br />

A<br />

<strong>The</strong><br />

Duty sets higher and clearer standards of<br />

consumer protection across financial services, and<br />

requires firms to put their customers’ needs first.<br />

This is especially important in light of the cost-of-living<br />

crisis and the number of vulnerable customers this<br />

creates. <strong>The</strong> FCA estimates that 47% of the adult<br />

population exhibit one or more vulnerable traits.<br />

As many of our members are suppliers of claims<br />

services to insurer partners, those aspects of the<br />

Consumer Duty which relate to our customer service<br />

have needed to shape up to the new regime. Over<br />

2022 and the early half of 2023, our members made<br />

a significant investment in getting up to speed with<br />

the new requirements, and by and large, we’re<br />

comfortable in this new environment.<br />

Q<br />

<strong>The</strong> fight against fraud remains prevalent across<br />

all aspects of the insurance ecosystem. How does<br />

fraud continue to affect the credit hire landscape,<br />

and what new approaches, technologies and<br />

collaborations remain in place to combat this?<br />

A<br />

Fraud<br />

is certainly a tricky issue for our industry.<br />

Nobody likes it, everyone suffers from it, and while<br />

there’s a lot of talk around collaboration, I’m afraid<br />

that fraud is also a source of competitive advantage.<br />

<strong>The</strong> good news is that within the CHO, our members<br />

have long collaborated on tackling fraud using<br />

methods such as implementing member-wide alerts<br />

to identify potential fraudsters, and more recently<br />

using technology to improve fraud detection and<br />

intervention.<br />

In 2023, we commissioned Percayso Inform to build a<br />

new anti-fraud platform for our members, filling a gap<br />

in the industry’s anti-fraud arsenal and underscoring<br />

our strong commitment to countering fraud, both in the<br />

credit hire industry and across the wider motor claims<br />

supply chain.<br />

Subscribers will use this technology to screen claims<br />

in order to manage and identify fraudulent activity,<br />

supporting the CHO’s objective to do all we can to<br />

combat fraud within the industry. <strong>The</strong>re is no specific<br />

fraud data for credit hire yet, but our members tell me<br />

that fraudulent activity continues to be one of their<br />

biggest headaches.<br />

Some of our larger members employ full time<br />

anti-fraud teams, and there’s a lot of voluntary,<br />

informal information sharing in place across the<br />

sector right now. But we do need a fully-functioning<br />

intelligence and data platform, and we hope the<br />

Percayso option will mark an important step in<br />

combatting credit hire fraud when it goes live at some<br />

point in 2024.<br />

QAnd finally, how are you seeing advancements<br />

in technology improve CX, or streamline the<br />

process of a credit hire claim?<br />

A<br />

<strong>The</strong>re are many factors that affect the answer<br />

to this question. Brexit made an impact on parts<br />

supply; there were reduced discounts on parts from<br />

OEMs and a capacity issue for repairers, as well<br />

as significant energy price hikes. <strong>The</strong>re were 9,000<br />

bodyshops in the UK a decade ago, and now we’re<br />

down to 3,000. Brexit also caused a skills shortage,<br />

particularly as Eastern European labour is no longer<br />

available.<br />

Repair costs have also been affected by the need<br />

for repairers to invest in technology in order to stay<br />

compliant with OEM / BSI10125 approvals, all of<br />

which requires more tech. <strong>The</strong>re are increased<br />

franchise costs; insurers say repair costs on an<br />

average invoice save 30% when the repair goes<br />

through their own network, but inflationary pressures<br />

in the supply chain have forced prices up. Insurers<br />

with their own network have always been able to place<br />

downwards pressure on pricing, but with repairers<br />

exiting the market, everyone has been forced into a<br />

price increase, even the bigger franchise operations.<br />

We are also still feeling the squeeze around courtesy<br />

car supply and costs, as well as pressures around<br />

having enough physical space to begin with.<br />

Moreover, in the race to net zero, repairers have to<br />

consider their transition to EV and hybrid. New skills<br />

are needed, and as a general rule, electric vehicles<br />

have higher repair cost than their ICE counterparts.<br />

All this to say that we’re not yet in the sunlit uplands<br />

of a fully tech-enabled, streamlined repair process. In<br />

fact, there’s a lot of firefighting to be done if we are to<br />

navigate our way through these current challenges<br />

before we can begin the next phase of investment<br />

to further improve the speed of the claim. Most<br />

importantly, to get there requires input from many<br />

different parties, most especially insurers, who sent<br />

the agenda for their suppliers to follow. However, I’m<br />

not yet convinced that insurers are in agenda-setting<br />

mode when it comes to the next stage of claims<br />

evolution.<br />

“We’re not yet in the sunlit uplands<br />

of a fully tech-enabled, streamlined<br />

repair process. In fact, there’s a lot<br />

of firefighting to be done if we are<br />

to navigate our way through these<br />

current challenges”<br />

<strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong> 7


THE NEW FACE OF THE GTA:<br />

In Conversation with Stewart McCulloch<br />

<strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong> had the pleasure of sitting<br />

down with Stewart McCulloch, the new Independent Chair<br />

of the GTA, to discuss his plans for this role and the GTA’s<br />

potential for modernisation.<br />

8 <strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong>


Stewart, thanks so much for your time today!<br />

Q On December 1st 2023, you were appointed as the new<br />

Independent Chair of the GTA (General Terms of Agreement).<br />

What will this entail, and how have you settled into the role<br />

during these first few months in post?<br />

My job is to make sure that the GTA is functioning<br />

correctly and serving the needs of our insurer and credit<br />

Ahire company (CHC) subscribers. I think I have settled in<br />

well, but others may have a more objective view! You need to<br />

bear in mind that I had already served as Independent Secretary<br />

for just under four years. That meant that I was familiar with the<br />

territory and ‘arrived’ with a clear understanding of where the<br />

GTA is up to, and what needs to be driven forward. In my former<br />

position, my function was to make sure that all of our projects<br />

ran smoothly.<br />

We are only at the very early stages of my tenure as Chair.<br />

However, I am already spending a considerable amount of my<br />

time working with both sides of the Technical Committee on<br />

issues such as the rate review process and the grouping and<br />

rating of electric vehicles. It is well known that both issues have<br />

been the subject of debate within the GTA for some time, but<br />

I am determined to make sure that both are settled as quickly<br />

as possible. We have to make sure that we come up with a fair<br />

settlement for both the insurers and the CHCs.<br />

My strategy is to work with the parties to make sure that they<br />

reach their own agreed solutions. In the final analysis, and if all<br />

else fails, I do have the power to make the required decisions<br />

myself. Whilst I remain completely independent, there is the<br />

potential for one side to be very unhappy with an outcome<br />

delivered by someone in my position, and like litigation, it is not<br />

easy for the opposing parties to predict the outcome. Providing<br />

support to encourage the two groups to compromise and<br />

reach their own decision will mean that if done properly, any<br />

unhappiness with the outcome will be in equal measure – and in<br />

my view, that’s a happy outcome overall.<br />

What are your key priorities in this role for 2024 and<br />

beyond?<br />

Q<br />

A<br />

<strong>The</strong> GTA must stay relevant, and as I have said, serve the<br />

needs of our insurer and CHC subscribers. But we need to<br />

go further than that. <strong>The</strong> GTA is seen in the insurance and<br />

credit hire industry as the standard bearer, setting an example<br />

for productive and collaborative relationships. I will ensure that<br />

the leadership we bring to the industry is enhanced as we move<br />

forward. Our maximum daily hire rates are seen as one of the<br />

industry’s benchmarks, along with many other aspects of our<br />

claims settlement protocol. Whilst we can have differences of<br />

opinion, our Technical Committee members work really hard to<br />

ensure that we find solutions to everyday problems quickly, and<br />

to provide the right kind of encouragement towards reducing<br />

friction in the claims process.<br />

Where do you think the agreement most needs to see<br />

modernisation? And what impact do you expect these<br />

Q changes to have on the relationship between CHCs and<br />

insurers in the short and long term?<br />

A<br />

I think that some form of alternative dispute resolution<br />

(ADR) could play a significant role in modernising the<br />

GTA, but I accept that there are differing views on<br />

this. <strong>The</strong> issue is recognised as one to be debated, but the<br />

conversation has not yet started as we agreed that rate and the<br />

review mechanism had to take priority. Having our own GTAbased<br />

ADR system is an opportunity for all to save on another<br />

layer of frictional cost. I recognise that it’s not for everyone,<br />

so we need to carefully consider whether we do it, and how it<br />

should be positioned if so.<br />

During this calendar year, the Ministry of Justice is intending<br />

to introduce compulsory mediation for all Small Claims cases<br />

(usually valued up to £10,000) where a ‘specified’ sum has been<br />

claimed. This will cover most credit hire claims that are valued<br />

within the Small Claims limit. <strong>The</strong> court mediation service will<br />

be free of charge, but will be limited to an hour of telephone<br />

calls by the mediator. Getting a disputed credit hire case settled<br />

and an agreement drawn up in that kind of timeframe is a<br />

big ask. Having an industry-led ADR scheme may have more<br />

success. <strong>The</strong>re might be a small cost to pay, but that would be<br />

tiny compared to the cost of going to court. However, I would<br />

emphasise that its introduction requires careful consideration;<br />

before we go down that route, it has to be the right kind of<br />

ADR, one that is configured to meet the needs of all of our<br />

subscribers.<br />

<strong>The</strong> GTA is seen<br />

in the insurance and<br />

credit hire industry as the<br />

standard bearer, setting an<br />

example for productive<br />

and collaborative<br />

relationships<br />

My absolute priority is to make sure that we have new rates<br />

in place for 1 July, as well as an agreed mechanism for future<br />

reviews that are in place ready for the following review date.<br />

<strong>The</strong> number of road accidents involving electric vehicles is<br />

currently quite low, but that is no excuse for complacency; we<br />

must ensure that we have agreed groupings and maximum daily<br />

rates in place there as well. We will bring about improvements<br />

to our IT systems for the benefit of subscribers, and for the<br />

benefit of the wider credit hire and insurance community as a<br />

by-product.<br />

While this work is ongoing, it’s also important for us to get our<br />

message out there in order to build industry confidence in what<br />

we are doing. I will be spending a lot of my time meeting and<br />

talking to all of our subscribers, building a clear understanding<br />

of what it is they need from us. We have seen a lot of changes<br />

and volatility in the credit hire market in recent times, and it<br />

is important to meet all changing needs as we move forward.<br />

This will feed into our evolving strategy, which I am currently<br />

consulting on with all of our stakeholders.<br />

<strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong> 9


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Q<br />

Are there still ambiguities within the agreement that<br />

need to be ironed out between CHCs and insurers?<br />

What are the key areas of concern here, and how do<br />

you hope to see this rectified?<br />

<strong>The</strong> GTA has to evolve in order to meet changing<br />

circumstances. <strong>The</strong> agreement is always under<br />

A continuous review, and our version control table (which<br />

records change and reasons for change) is now available to be<br />

viewed by all.<br />

I don’t think that there are any glaring and obvious ambiguities<br />

within the agreement itself. <strong>The</strong>re are occasions when a set<br />

of circumstances arising in a claim don’t seem to fit with the<br />

precise wording of the GTA, but of course, we cannot legislate<br />

for every situation. Being a subscriber to the GTA means<br />

that you have chosen to go down the route of collaborative<br />

engagement, which might actually involve some compromise.<br />

Usually, through that collaboration, subscribers will find a way<br />

to resolve the case with minimal fuss. If they want my input and<br />

guidance (sometimes both will come to me), then I am always<br />

happy to provide it. Very often, that will lead to settlement.<br />

How do you expect to see the new Consumer Duty<br />

influence the nature of complaints made to the<br />

Q Financial Ombudsman Service in respect of credit hire<br />

claims and consumer disputes?<br />

This is a huge issue for insurers at the moment, but<br />

strictly speaking, the provision of credit hire services is<br />

A not a regulated activity. So, in general terms, the Financial<br />

Ombudsman Service will not deal with complaints about credit<br />

hire – although a CHC may be subject to that regime if it carries<br />

other activities that are regulated, or form part of their supply<br />

chain obligations.<br />

I would expect that most, if not all, GTA-subscribed CHCs will<br />

have their own internal complaints procedures, and will be<br />

operating processes that adhere to principles of good consumer<br />

practice.<br />

Stewart McCulloch,<br />

Independent Chair of the GTA<br />

As a very last resort, we have our complaints process. That<br />

process has very strict time limits for when a complaint can be<br />

made. It has to be that way because, if at all possible, we should<br />

try to resolve the issues within the normal GTA claims period.<br />

Complainants can be disappointed when the time limits are not<br />

adhered to, and I have to turn them away. I will be doing much<br />

more during 2024 to remind all subscribers of how the system<br />

works.<br />

From all of this, we often learn of new claims circumstances that<br />

all of our collective wisdom could not have foreseen. In light of<br />

this experience, we are sure to introduce or clarify rules that we<br />

hope will address this context.<br />

Q<br />

Being a subscriber to the<br />

GTA means that you have<br />

chosen to go down the route<br />

of collaborative engagement<br />

You have a reputation for successfully harnessing<br />

innovative technology to nurture and support dispute<br />

resolution within the claims industry. What new<br />

technologies are making waves across the industry at the<br />

moment which most excite you?<br />

This is an area where, as you say, I have significant<br />

experience! In relation to the GTA, we’ll start with IT<br />

A improvements. If subscribers decide that they want<br />

ADR, the online route is available to us using schemes based on<br />

existing industry standard platforms.<br />

Beyond that, I find it really interesting to see automation<br />

supported by AI making a big difference in some claims<br />

processes. Intelligent algorithms are now able to analyse data<br />

quickly, spotting patterns of fraud and supporting virtual<br />

assistant chatbots in their ability to gather all necessary<br />

information at the outset of a claim. <strong>The</strong>y are expensive to<br />

implement, but the cost of making or dealing with claims would,<br />

I hope, start to come down in the long run - with obvious benefit<br />

to policyholders.<br />

<strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong> 11


SHAPING THE FUTURE OF<br />

SUSTAINABLE MOBILITY<br />

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

or call 0371 384 0140


SHIFTING THE<br />

SOLE-SUPPLY<br />

CHAIN MODEL<br />

<strong>The</strong> ever-evolving insurance industry has not shied<br />

away from shifting gear to meet growing consumer<br />

demand for electric vehicles (EVs). Policies have<br />

been amended to suit electric and hybrid models,<br />

and repair networks have updated training and<br />

suppliers to ensure safe working on the increasingly<br />

electrified car parc.<br />

Providing a like-for-like replacement while a policyholder’s electric vehicle<br />

is being repaired proves to be more of a challenge. <strong>The</strong> cost and<br />

availability of EVs are two significant blockers, especially for those insurers<br />

with sole supplier contracts; many such providers have been forced to<br />

scrap like-for-like vehicle replacement policies. Indeed, in light of the<br />

supply shortage that was one of the many consequences of the COVID-19<br />

pandemic, insurers were left grateful to be able to offer customers any<br />

temporary vehicle at all.<br />

Additional challenges are compounded when an insurer is unable to offer<br />

the best solution for the needs of their customer. In this event, they could<br />

be at risk of breaching Consumer Duty requirements, and as the electric<br />

car parc grows, the importance of like-for-like replacement looms large for<br />

insurers.<br />

<strong>The</strong> bodyshop point of view<br />

<strong>The</strong> other issue at play addresses the long-term impact of vehicle supply<br />

challenges on bodyshops, keenly felt during the pandemic. Pre-pandemic,<br />

credit hire or courtesy vehicle fleets were generally the most cost-effective<br />

solution for bodyshops to use for vehicle replacement, and insurers would<br />

rely on this route to serve some policyholders’ needs.<br />

However, bodyshops that had to downsize their fleet have struggled to<br />

source suitable vehicles at an affordable price. <strong>The</strong> used car market has<br />

been highly competitive and highly priced, and manufacturers have not<br />

been offering the same traditional discounts on new vehicles. Plus,<br />

bodyshops are keen to move away from the servicing, maintenance and<br />

customer insurance risk costs that come with owning their own fleet,<br />

perhaps scarred by their experiences during the COVID-19 pandemic.<br />

Like-for-like or falling short?<br />

<strong>The</strong> other issue is that a fixed credit hire fleet lacks the necessary flexibility<br />

to meet evolving customer requirements, such as the growing EV parc.<br />

Bodyshops may have each vehicle on fleet for several years, and<br />

requirements can shift drastically in this time. A fleet that originally met a<br />

variety of customer needs can fall short long before the vehicles are due<br />

to be replaced. <strong>The</strong>re’s a bigger range of cars on UK roads today than<br />

ever before, and businesses must still be able to provide customers with a<br />

suitable replacement vehicle when theirs is in the garage.<br />

Of course, it is untenable for a credit hire fleet to be varied enough to meet<br />

every possible customer requirement when delivering like-for-like vehicle<br />

replacements. SUVs and EVs are a particular challenge, not least due to<br />

their higher cost. <strong>The</strong> insurer may need to intervene when a like-for-like<br />

cannot be offered, impacting the overall claims journey and customer<br />

experience.<br />

To improve the customer experience without impacting the bottom line, a<br />

combination of credit hire fleet and short-term rental can be employed. A<br />

rental partner can assist with demand in vehicle numbers and variation,<br />

ensuring the customer always receives a suitable replacement vehicle<br />

without the bodyshop or credit hire company having to hold a fleet of<br />

hundreds of vehicles, each one incurring servicing, maintenance and<br />

insurance costs. This solution also overcomes the problem of credit hire<br />

companies having fleet in more disparate locations which, in turn, means<br />

delivery to policyholders may be delayed.<br />

Moving away from sole supplier<br />

Rental can also help to avoid the pitfalls of sole supplier agreements.<br />

Insurers working with only one replacement vehicle partner are at risk of<br />

breaching their Consumer Duty if they are not helping customers to make<br />

‘good financial decisions’ by offering the best choice replacement vehicle<br />

for their needs. While some insurers see sole supplier agreements as<br />

the best option from a cost-negotiation, supply chain management and<br />

logistics point of view, they make it difficult to provide the choice a customer<br />

expects. Being tied into a contract with just one supplier could mean that<br />

customers are not getting access to the most appropriate and up to date<br />

solutions.<br />

Rental, even if used in conjunction with a smaller credit hire fleet, adds<br />

flexibility and assurance that any customer can access a suitable vehicle<br />

quickly, and for as long as they need it.<br />

Working with a panel of suppliers who recognise healthy competition,<br />

there’s an appetite to do things a little differently and work collaboratively<br />

for the best outcomes. For example, at Europcar we make it our priority to<br />

meet with insurance providers, repairer networks and key players in the<br />

industry to foster innovation. This includes looking at where improvements<br />

can be made so that the insurer can remain focused on customer<br />

satisfaction and retention.<br />

<strong>The</strong> time has come for insurers to step away from the false economy of<br />

sole supplier agreements and build a network of innovative and adaptable<br />

partners, support that is better placed to help them reach their goals.<br />

For further information, visit our website at europcar.co.uk/business<br />

James Roberts,<br />

Head of <strong>Insurance</strong> Sales, Europcar<br />

<strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong> 13


CONSUMER DUTY IS JUST THE TIP OF THE<br />

WHEN IT COMES TO MANAGING EV CLAIMS<br />

Consumer duty. Everyone in or around the<br />

motor insurance industry has heard those<br />

words. Consumer duty changes, consumer duty<br />

safeguards, consumer duty must-haves and<br />

can’t-misses. <strong>The</strong> whole industry is hard at work<br />

understanding and implementing new safeguards,<br />

new changes, working out how this will affect<br />

supply chains, auditing and customer service.<br />

So, of course it’s impacting our corner of the industry - the credit hire<br />

sector.<br />

We’re all talking about consumer duty, but here’s where I - and my<br />

company, Cogent <strong>Hire</strong> - differ. I’m prepared to come out and say that<br />

the impact of these regulations should be minimal.<br />

That’s right. <strong>The</strong> biggest talking point of the year should have a<br />

minimal impact. If you’re already providing a great service, you’re<br />

already going above and beyond the new consumer duty guidelines.<br />

If you’re familiar with credit hire, you might well remember the CMA’s<br />

Private <strong>Insurance</strong> Markets enquiry back in 2014, which made our<br />

duty to consumers clear. We’re relied upon from the point of FNOL<br />

right through to the point of settlement. We’re responsible for doing<br />

right by every customer.<br />

Consumer duty should just be a natural extension of that. If we’re<br />

not all treating customers fairly and putting that duty at the centre<br />

of our processes, then we’d face challenges much more serious<br />

than customers understanding where we fit in. We’d face courtroom<br />

proceedings.<br />

So, consumer duty shouldn’t scare our compliance teams. It should<br />

confirm what we already know, that getting the basics right matters.<br />

Consumer duty is just the tip of the iceberg. That’s true for traditional<br />

ICE vehicles, and it’s certainly true for electric vehicles. Whether a<br />

customer has chosen a PHEV or BEV, they’ve made that purchasing<br />

or leasing decision for a reason. Maybe they care about the<br />

environment, maybe it’s a focus on tech, or maybe it’s to take<br />

advantage of tax benefits.<br />

Whatever their reasons, our duty to that EV customer is to act<br />

appropriately instead of shoehorning them into a legacy ICE process,<br />

which undermines their environmental commitments and damages<br />

their PD11 returns.<br />

Our responsibility to EV customers is to take electric vehicles<br />

seriously. Not doing so puts them at a disadvantage, and undoes all<br />

of the hard work that the industry is investing in embracing consumer<br />

duty.<br />

14 <strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong><br />

<strong>The</strong>re’s more to EV duty than FNOL, mitigation and supply<br />

<strong>The</strong> easiest mistake for any credit hire company or insurer to make<br />

would be to think that an EV service is limited to FNOL, mitigation<br />

and vehicle supply.<br />

To meet consumer duty standards, there needs to be an entire<br />

electric-centric customer journey; one that guarantees the correct<br />

handling of an EV from the moment an accident happens. This<br />

means educating ourselves about the dangers of EVs, and building<br />

a knowledgeable supply chain that can handle those dangers.<br />

We need to work in partnership with suppliers and customers,<br />

because it’s the only way to return an electric vehicle to the road<br />

safely and ensure that everyone is kept from harm.<br />

Take thermal runaway – a chain of events that can lead to<br />

catastrophic battery failure. We know from experience that this can<br />

take 4-5 weeks to occur, but it’s been recorded as late as 8 months<br />

after an accident. It’s our duty to protect everyone during that period,<br />

from the recovery company loading the vehicle, to the repairer<br />

quarantining it and the technicians fixing it. It’s our duty to create a<br />

salvage solution that takes value and battery second life issues into<br />

consideration.<br />

<strong>The</strong> issues we know about are only the tip of the iceberg<br />

Every insurer, repairer and CHC can draw on over 100 years of<br />

knowledge when it comes to ICE vehicles. But on the subject of EVs,<br />

we’re all learning every day.<br />

Complying with consumer duty regulations means that we need to<br />

keep up with that learning. We need to consider the right choices for<br />

every EV customer, and take responsibility for remaining informed.<br />

This is a duty that goes further than checking prices and maintaining<br />

efficiency.<br />

Consider the Government’s report from December last year,<br />

‘Recovery Operators: Working with Electric Vehicles’. Have you read<br />

it? Have the repairers and recovery companies you work with read it?<br />

Are you sure?<br />

This report identifies the level of additional risk facing members of our<br />

industry who arrive on scene just after the emergency first<br />

responders. It outlines a SAFE technique to keep them away from<br />

danger. All of that sounds easy, but in reality, it means significant<br />

training and investment in equipment that we all need to be aware of.<br />

As a credit hire company working with vehicle recovery operators for<br />

repairable and total loss EVs, we’re invested in learning about EVs,<br />

staying up to date with developments, and passing that knowledge<br />

along to our supply chain and our customers.<br />

In their report, ‘EV Strategy: Rapid Recharge Needed,’ the<br />

Environment and Climate Change Committee identified that public<br />

perception around safety is proving a barrier to EV adoption by<br />

consumers. As providers of these vehicles, we have a part to play in<br />

reversing that issue.<br />

That’s what consumer duty means. Everyone involved needs to have<br />

the right knowledge to remain safe - especially the<br />

customer.


Our duty is also to the environment<br />

I expect to see requirements stretching into our own offices around<br />

energy and materials use, alternate fuels, recycling, and reducing<br />

plastic and paper usage.<br />

<strong>The</strong> easy way out of ‘planting a tree for every car on the road’ will<br />

show willing, but it won’t help decarbonise our supply chain or help<br />

our partners adapt to the same pressures we face.<br />

<strong>The</strong>re’s likely to be more pressure on the credit hire industry to<br />

achieve a carbon offsetting model throughout our whole supply chain,<br />

and securing certification such as PAS2060.<br />

In a world that’s subject to ever more rules, regulations and<br />

benchmarks, extra demands on our time may not be welcome,<br />

but they’re crucial. Environmental impacts are something we need<br />

to recognise and think about in order to create truly sustainable<br />

partnerships.<br />

We can tackle many challenges together<br />

Of all the challenges facing the credit hire industry, consumer duty is<br />

both the tip of the iceberg and the issue we’re most ready to tackle.<br />

But we need to look deeper. Increased electric vehicle uptake and<br />

environmental concerns require us to become actively involved in the<br />

whole motor industry’s infrastructure.<br />

Understanding is our biggest challenge<br />

Over the next 12 months, all of us will face an interesting challenge.<br />

We will come to understand the impact of electric vehicles on our<br />

customers, our supply chains and our partners.<br />

That’s because EVs are becoming more and more accessible to<br />

drivers. Sale volumes of EVs are increasing, and new manufacturers<br />

such as BYD are lowering the price points that initially limited the<br />

number of electric vehicles on the market.<br />

Our duty to electric customers should inform our approach to<br />

customer care from here on out, and that relies on doing more to<br />

understand the EV market.<br />

Yes, electric vehicles are a necessary response to the UK’s carbon<br />

emissions targets, but they’ll take some time to replace ICE vehicles<br />

entirely. According to Vehicle Licensing statistics, there were 41.3<br />

million licensed vehicles in the UK at the end of September 2023 with<br />

an average age of 9.1 years. Even if ICE manufacture stops<br />

tomorrow, we can expect to be dealing with combustion engines for<br />

at least another decade.<br />

<strong>The</strong> natural position of credit hire lies as a coordinator, one that works<br />

across a whole supply chain to create a smooth, frictionless customer<br />

journey. One that’s powered by processes built on collaboration<br />

and discussion, but doesn’t shy away from leading the way towards<br />

sustainable solutions.<br />

Our duty has always been to the customer, and new regulations don’t<br />

and won’t change that. But we have another duty too, and that is a<br />

duty to our whole industry.<br />

A duty to arm ourselves with knowledge, to think about solutions<br />

and innovations, to future-proof our services, and to work in the best<br />

interests of our work providers, our customers, and the insurers who<br />

pay the bills.<br />

It’s a duty that credit hire as a whole should be proud to take on.<br />

Are you ready?<br />

So, what does this mean for credit hire and our<br />

customer duty?<br />

We need to understand that a new EV model should run alongside<br />

an evolving ICE model that accounts for age-related vehicle group<br />

downgrades.<br />

We need to provide ICE customers with the service they require in<br />

accordance with consumer duty regulations, while still thinking about<br />

the way we service EV customers and how we minimise our own<br />

environmental impacts.<br />

For the insurers we work with, consumer duty will be the tip of an<br />

iceberg that encompasses environmental and social governance.<br />

We’ll be expected to balance the customer journey, compliance, and<br />

our actions on emissions reduction in order to provide the service<br />

levels demanded of us.<br />

Kirsty McKno,<br />

Managing Director, Cogent <strong>Hire</strong><br />

<strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong> 15


16 <strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong>


KEEPING THINGS<br />

TR Ewith<br />

Q<br />

Richard, it’s great to take some time to sit and discuss<br />

the present-day credit hire landscape with you,<br />

particularly from the perspective of an experienced<br />

law firm!<br />

Let’s start by talking about litigation in credit hire resolution<br />

cases. How are the team at TRUE Solicitors trained or<br />

equipped to deal with the complexity of these cases in<br />

particular?<br />

A<br />

TRUE’s <strong>Credit</strong> <strong>Hire</strong> team experience rigorous training on<br />

an ongoing basis, ensuring we are up to date with the<br />

latest legal developments in credit hire. In addition to<br />

formal training, our years of experience in handling a multitude<br />

of credit hire cases for some of the biggest and smallest credit<br />

hire companies has honed our expertise, allowing us to navigate<br />

the most complex cases. TRUE have helped shape credit hire<br />

law over the years; we don’t just apply it!<br />

<strong>The</strong> Damages Claims Portal (DCP) has presented<br />

a number of challenges and opportunities since its<br />

Q inception. What have you found to be most significant<br />

here, and how do you see this evolving throughout<br />

2024?<br />

A<br />

<strong>The</strong> Damages Claims Portal (DCP) has certainly brought<br />

both challenges and opportunities to the table. <strong>The</strong><br />

main challenges include quickly adapting to a more<br />

streamlined and digitised online claims process, and having<br />

to respond to new phase releases at very short notice. Also,<br />

the DCP has suffered from frequent technical glitches since its<br />

inception, which certainly has a tendency to cause frustration<br />

when deadlines are looming!<br />

U<br />

Richard Milner<br />

<strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong> recently caught up with Richard Milner, Partner at<br />

TRUE Solicitors, to discuss litigation in credit hire, the challenges and opportunities<br />

behind the Damages Claims Portal (DCP), and the importance of great CX in credit<br />

hire claims.<br />

Q<br />

A<br />

<strong>The</strong> firm has now been around for almost 30 years –<br />

an amazing achievement! Before we finish up, tell me<br />

what the next decade might hold for the business,<br />

particularly in relation to the credit hire space?<br />

As the next decade unfolds, we’re poised to navigate a<br />

rapidly evolving landscape in credit hire claims, which will<br />

include advancements in technology as well as<br />

changes in the law and dispute resolution mechanisms.<br />

Staying ahead of the curve by adopting innovative technologies<br />

will be key. We are already seeing Artificial Intelligence (AI)<br />

become increasingly mainstream in day-to-day life (not always<br />

in a good way!), and harnessing this technology for the benefit<br />

of our clients is an exciting prospect in the coming years.<br />

<strong>The</strong> next decade will require TRUE Solicitors to remain nimble,<br />

adaptable and tech-savvy, embracing change while upholding<br />

our commitment to providing the best legal advice to our credit<br />

hire clients.<br />

Richard Milner,<br />

Partner, TRUE Solicitors<br />

However, the system does present opportunities for greater<br />

efficiencies in the long run, and looking ahead to 2024 and<br />

beyond, there will be further evolution of the claims journey<br />

within the DCP. We continue to be involved in high level<br />

stakeholder discussions regarding development of the DCP, as<br />

well as simulation testing for the ‘Early Adopter’ scheme. Digital<br />

transformation is here to stay, and the DCP is likely to play a<br />

pivotal role in shaping the future of claims management.<br />

Q<br />

A<br />

How are TRUE Solicitors prioritising the customer<br />

experience as part of their approach to credit hire<br />

claims?<br />

Client management is a necessary skill for any<br />

claimant credit hire litigator. Conveying an empathetic<br />

understanding of the client’s situation - while at the<br />

same time providing clear, unequivocal advice - is a paramount<br />

element of the role. Clients need to feel supported and informed<br />

without feeling overwhelmed, so developing trust and rapport<br />

with clients is an essential tool in any credit hire litigator’s<br />

toolkit. Our Trustpilot rating of ‘Excellent’ from nearly 1,500<br />

client reviews speaks volumes about the experience our clients<br />

have with us, and we take great pride in it.<br />

<strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong> 17


REVOLUTIONISE, OPTIMISE, MAXIMISE<br />

FNOL<br />

Laird's Formula for Claims and supply chain Excellence<br />

IMAGE LINK<br />

EXPERT<br />

ENGINEERING<br />

INSTANT<br />

TRIAGE<br />

SUPPLY CHAIN<br />

AUTOMATION<br />

FNOL Instruction:<br />

Easily instruct Laird via API or<br />

AI-processed emails,<br />

triggering a branded text link<br />

for drivers without an app.<br />

ADHERING<br />

CONSUMER DUTY<br />

CLIENT<br />

PORTAL<br />

Image Link:<br />

Streamline as drivers submit<br />

vehicle details and images<br />

through a customisable link,<br />

ensuring a quick response<br />

from engineers with client<br />

branding.<br />

Consumer Duty:<br />

Keep drivers informed via text or email, utilising chatbots for<br />

efficiency and providing 24/7 voicebot service.<br />

Engineering:<br />

Blend Visual Intelligence AI<br />

with qualified engineers,<br />

supported by automated<br />

data sources for accurate<br />

reports shared directly with<br />

clients.<br />

Supply Chain Automation:<br />

Automate supply chain<br />

management, instructing<br />

repairs and keeping clients<br />

informed about estimated<br />

times, addressing delays<br />

promptly.<br />

Portal:<br />

Clients access cases, estimates,<br />

and images through our<br />

interactive portal, with<br />

customisable access levels for<br />

different users.<br />

Triage:<br />

Efficiently direct vehicles to<br />

suitable facilities for repair or<br />

salvage, confirming hire car<br />

needs, streamlining the<br />

process for clients.<br />

18 <strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong>


STREAMLINING THE CLAIMS PROCESS<br />

Nik Ellis, MD of Laird said, “We now have the ability to go beyond a simple report with<br />

intelligent data, using AI and automation to simplify the claims processes for our clients,<br />

smartly assisting in the management of the supply chain, while also providing an<br />

enhanced experience for the consumer”.<br />

In the ever-evolving landscape of the<br />

claims industry, Laird emerges as a<br />

trailblazer, committed to reshaping the<br />

future through cutting-edge AI<br />

solutions. Our relentless dedication to<br />

research and development sets us<br />

apart, ensuring that our AI capabilities<br />

remain at the forefront of innovation.<br />

laird-assessors.com<br />

What impact has technology had on the<br />

company?<br />

It’s transformed Laird. Three years ago we<br />

had over 70 staff, of which 40% were<br />

engineers, the rest non-fee earning admin,<br />

middle-managers, etc. Automating and<br />

adding AI to the latter group has enabled<br />

us to reduce to 30 staff, but more<br />

importantly more than 80% of them are<br />

engineers. We have increased the quantity<br />

of reports by over 40%, making us about<br />

330% more efficient.<br />

We’ve moved from wondering how to<br />

build something to saying “wouldn’t it be<br />

amazing if…” Technology has allowed us<br />

to fulfil some of our ‘magic-wand’ wishes.<br />

How has Laird transformed the repair<br />

management process?<br />

We’ve moved from a two-dimensional<br />

relationship simply supplying reports, to<br />

smart automation triggered by the report<br />

data. This allows for automatic<br />

authorisation of approved repairers,<br />

salvage agents, smart repairers etc, then<br />

management and interactive information<br />

including repair delays along the supply<br />

chain including the hire departments.<br />

This allows our clients to concentrate on<br />

their core business rather than moving cars<br />

around, fielding questions, dealing with<br />

the supply chain, brokering information,<br />

etc.<br />

Nik Ellis,<br />

nik.ellis@laird-assessors.com<br />

How does Laird strive to adhere to<br />

consumer duty and customer<br />

excellence?<br />

Our automation systems allow us to<br />

configure custom interactions with both<br />

our client and their end client, the<br />

consumer, to keep them involved &<br />

informed, as much or little as they wish,<br />

from start to finish. In turn this helps our<br />

clients fulfil the updated consumer duties.<br />

Adding chatbots, client portals and other<br />

interactive systems allow 24/7 customer<br />

service & assist with speeding up the<br />

process. We recognised that the human<br />

touch is important in the process, so don’t<br />

rely wholly on technology & have a core<br />

team of highly trained engineers &<br />

specialists.<br />

How can you adapt to fit different types<br />

of customers?<br />

We now have the ability to fully configure a<br />

custom client matrix. This could be<br />

multiple approved labour, paint & parts<br />

rates, to the style of the report, the<br />

accounting process, management<br />

information and other idiosyncrasies that<br />

clients need for their particular<br />

requirements.<br />

Our apps & chatbots are all white-labelled<br />

so can be configured in our clients<br />

branding and wording tone & highly<br />

adjustable to suit their approach. <strong>The</strong><br />

customer is king and we can provide the<br />

riches better <strong>Credit</strong> than ever <strong>Hire</strong> before. <strong>Supplement</strong> 19


THE VALUE OF<br />

SYNETIQ, an IAA company, is the UK’s leading<br />

vehicle salvage, dismantling and recycling firm.<br />

Working across multiple sectors, we leverage<br />

leading technologies and invest in future ones to<br />

maximise the financial and environmental value<br />

of every vehicle we process. From salvage to<br />

green parts, auction services, electric vehicle<br />

recycling, mechanical and remarketing solutions,<br />

we manage everything in-house for ultimate control,<br />

transparency, and flexibility.<br />

We’re heavily involved in the claims process from start to finish, giving us a<br />

unique industry-wide overview of the challenges and opportunities, as well<br />

as the insight required to best support our insurance clients.<br />

<strong>The</strong> vehicle salvage industry has always been fast paced, and we’ve<br />

experienced a huge amount of change in recent years which has created a<br />

whole new set of challenges.<br />

Challenges have included code of practice adjustments, shortages of<br />

new vehicles, an aging car parc, highs and lows of vehicle values – not to<br />

mention the knock-on effect from Brexit and COVID-19 on parts supply. It’s<br />

been a whirlwind, but one thing has remained a constant: our ability to be<br />

agile and adapt quickly to keep delivering a quality service to our clients.<br />

Average values for used cars still remain around 15% above where they<br />

were at the start of 2021. Supply shortages and rising values mean it’s<br />

economical for insurers to recycle vehicles through salvage auctions<br />

like SYNETIQ’s, where they can reduce the claim lifecycle and provide<br />

policyholders with a quicker settlement. And, whilst insurers still benefit<br />

from strong salvage returns, the rise of used car values also presents them<br />

with opportunities to avoid total loss claims, particularly when green parts<br />

are used for repairs. This offers cost savings of up to 75% off the new<br />

equivalent parts.<br />

Working alongside our dedicated client team, we create bespoke<br />

customer-led solutions to successfully deliver our clients’<br />

strategies - all while keeping sustainability in mind at every step. In<br />

conjunction with higher used car values, insurers are now dealing with a<br />

growing number of electric vehicle claims and the rising costs that come<br />

with them. Driven up by increasing costs of repair, materials, labour and<br />

used cars - as well as expensive personal injury claims from serious<br />

incidents - the ABI reported that insurers paid out £2.5 billion to claimants in<br />

2023. And, despite the Government’s delay, the looming ban of petrol and<br />

diesel vehicles brings with it the challenge of recycling the batteries when<br />

these vehicles are written off.<br />

With every challenge comes an opportunity, and we’re taking a<br />

collaborative approach to providing a solution to this industry-wide issue.<br />

In early 2024, we announced our collaborations with two clean-technology<br />

innovators, Allye and Altilium. Through our supply agreement with Allye<br />

Energy, electric vehicle battery packs will be repurposed for a MAX Battery<br />

Energy Storage System (BESS), whilst our agreement with Altilium will see<br />

electric vehicle batteries processed to recover the valuable raw materials<br />

(including lithium and nickel) for direct reuse in the production of new<br />

batteries. Through these collaborations, we aim to establish complete<br />

circularity in the UK, particularly in a pivotal sector for the energy transition.<br />

<strong>The</strong> collaborations have the potential to substantially diminish CO2e<br />

emissions, marking significant steps towards a more sustainable future.<br />

We’re not just committed to creating lasting, positive environmental change<br />

across our industry. We’re also committed to this cause closer to home,<br />

and after over 50% of our colleagues were recently certified Carbon<br />

Literate, we were proud to achieve Gold Carbon Literate Organisation<br />

status from the Carbon Literacy Project.<br />

<strong>The</strong>re will always be new challenges which we need to overcome, and it’s<br />

important that we work together to come to swift solutions for our clients<br />

and customers. We’re excited for the year ahead, with a commitment to<br />

continue leading in the areas that matter the most to our clients, and with<br />

some exciting partnerships to bring to the market.<br />

Tom Rumboll,<br />

UK Managing Director for IAA, and CEO of SYNETIQ<br />

<strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong> 21


Repairers:<br />

How to Navigate<br />

<strong>Credit</strong> <strong>Hire</strong><br />

22 <strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong>


When a person’s vehicle is damaged in an<br />

accident that was not their fault, they may<br />

need a replacement vehicle while the vehicle<br />

is being repaired.<br />

<strong>Credit</strong> <strong>Hire</strong> & Repair<br />

Instead of paying for the hire car themselves, they may arrange<br />

for a credit hire vehicle. In this scenario, the credit hire company<br />

provides a replacement vehicle to the customer on credit, with the<br />

understanding that the costs will be recovered from the atfault<br />

party’s insurance company (if liability is accepted). In this<br />

situation, it is not uncommon for the credit hire company to have<br />

an agreement with a network of repairers, so the accident repairs<br />

can also be managed by the credit hire company.<br />

<strong>The</strong> credit hire/repair charges often include the cost of the vehicle<br />

hire, insurance, damage caused by the accident, and any other<br />

associated expenses. However, disputes can arise over the<br />

charges, the necessity of the hire, the duration of the hire period,<br />

areas of damage repaired, and liability.<br />

It is the NBRA’s opinion that credit hire companies should take<br />

extra steps to make sure all doubt is removed from liability prior to<br />

placing the customer into credit hire. This removes a lot of the risk<br />

for the customer, who may be faced with the costs of credit hire<br />

and repair. Mitigation is essential.<br />

Benefits of Dealing with<br />

<strong>Credit</strong> <strong>Hire</strong> and Repair Companies<br />

Increased Business Volume. Partnering with credit hire and<br />

repair companies can lead to a steady stream of repair jobs.<br />

<strong>The</strong>se companies often refer clients to repairers, boosting your<br />

business volume.<br />

Guaranteed Work. <strong>Credit</strong> hire companies can provide a<br />

consistent flow of work, especially for non-fault accidents.<br />

Repairers can rely on this steady demand, reducing downtime.<br />

Streamlined Processes. <strong>Credit</strong> hire companies manage<br />

administrative tasks, including paperwork, billing, and<br />

communication with insurers. Repairers can focus on their core<br />

expertise—fixing vehicles.<br />

Challenges and Negatives<br />

Longer Payment Cycles. <strong>Credit</strong> hire companies may take longer<br />

to settle payments. Repairers must wait for reimbursement,<br />

impacting cash flow and liquidity.<br />

Higher Commissions. <strong>Credit</strong> hire companies take larger<br />

commissions than traditional insurers or work providers, often<br />

falling at around 22% of the repair cost. This can significantly<br />

impact the bottom line.<br />

Be sure to examine the terms and conditions thoroughly. This may<br />

seem standard procedure, but you will automatically be losing<br />

money if you give 22% away from your parts line when you only<br />

receive 10-16%. Make sure you understand the business model,<br />

and question whether it is right for your bodyshop.<br />

Considerations Moving Forward<br />

Diversification. While credit hire work is valuable, repairers<br />

should diversify their customer base. Cultivate relationships with<br />

private clients, fleet managers, and insurance companies directly.<br />

Contract Terms. Negotiate favourable terms with credit hire<br />

companies. Consider shorter payment cycles or partial upfront<br />

payments to mitigate cash flow challenges.<br />

Quality Assurance. Maintain high repair standards, regardless<br />

of the source of business. Satisfied customers lead to repeat<br />

business and positive referrals.<br />

Financial Resilience. Prepare for delayed payments by<br />

maintaining adequate reserves. A robust financial strategy helps<br />

weather fluctuations in income.<br />

New Age<br />

Certain credit hire companies are now diversifying and creating a<br />

simple ‘menu’ pricing structure for bodyshops, which is easier to<br />

navigate. Also, many credit hire companies are set to introduce<br />

14 day payment terms and a set fee (rather than a bottom-line<br />

discount), which makes the process very transparent.<br />

<strong>The</strong> NBRA are here to assist member repairers with any credit hire<br />

concerns, including a review of contracts to help you assess the<br />

risks.<br />

To find out more about the NBRA, including information about how<br />

to become a member, visit our website at nbra.org.uk<br />

Thomas Hudd,<br />

National Technical Manager,<br />

National Bodyshop Repair Association<br />

Dependency on Third Parties. Repairers become reliant on<br />

credit hire companies for business. If these companies face<br />

financial difficulties or operational issues, it can affect repairers’<br />

stability.<br />

Quality Control. Repairers may have limited control over the<br />

quality of replacement vehicles provided by credit hire companies.<br />

Ensuring customer satisfaction becomes challenging.<br />

Potential Disputes. Disagreements between credit hire<br />

companies, insurers and repairers can lead to delays, disputes,<br />

and legal proceedings. Repairers need to navigate these<br />

complexities.<br />

<strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong> 23


24 <strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong>


TAKING CARE OF<br />

BUSINESS<br />

with David Nash<br />

<strong>Modern</strong> <strong>Insurance</strong> <strong>Magazine</strong> recently had a chance to speak with<br />

David Nash, Managing Director of Canford Law, about the current<br />

landscape of the credit hire market, courts, litigation, and the future<br />

of recoveries in the insurance sector.<br />

QDavid, what are the current<br />

challenges within the credit<br />

hire arena, and are there any<br />

forthcoming measures which will assist in<br />

solving those challenges?<br />

A‘Current’ is an interesting word. In<br />

my opinion, industry challenges<br />

differ little to those presented 15<br />

years ago. Case law and new legislation<br />

has defined the landscape of credit<br />

hire considerably over that period.<br />

Despite this, the industry still requires an<br />

engagement in litigation to determine<br />

both liability and quantum in a credit<br />

hire claim. <strong>The</strong> overall challenge was not<br />

assisted by the lack of judicial support<br />

in the courts shortly after the COVID-19<br />

period, but that appears to have eased<br />

significantly over the last six to nine<br />

months.<br />

Previous sanctions by the Government,<br />

such as the whiplash reforms, have<br />

assisted in solving certain problems for<br />

<strong>Credit</strong> <strong>Hire</strong> Organisations (CHOs) and<br />

insurers. Considering the steady desmise<br />

of personal injury claims since the<br />

reform’s inception, CHOs and insurers<br />

have perhaps had greater periods of time<br />

to assess credit hire, as opposed to being<br />

consumed by potentially spurious injury<br />

claims and the costs associated with the<br />

same.<br />

<strong>The</strong> UK Government has recently<br />

announced that it is proceeding with<br />

plans to introduce compulsory<br />

mediation as a mandatory procedural<br />

step in all small claims in the County<br />

Court. It remains to be seen as to what<br />

effect mediation will have on litigation,<br />

but I imagine without full disclosure,<br />

the proposed ‘free short telephone<br />

appointment’ may be a short one.<br />

QWhat are the biggest contentions<br />

between insurers and CHO’s<br />

which lead to litigation?<br />

A<br />

A requirement for litigation isn’t<br />

necessarily determined by an<br />

intended contention between<br />

the insurer and CHO. Insurers are<br />

notoriously busy; post-pandemic staffing<br />

is an ongoing issue, and unfortunately,<br />

backlogs within workloads exist.<br />

Similarly, like any business, CHOs<br />

of all sizes rely on cashflow, and so<br />

a proportion of the litigation is not<br />

related to a contention per se, but more<br />

a credit control function. Naturally,<br />

contention is introduced when liability<br />

is disputed. Quantum arguments still<br />

resonate around need, rate, period and<br />

intervention, with impecuniosity standing<br />

proudly in the limelight at the moment.<br />

QWhat’s ‘impecuniosity’?<br />

A<br />

Impecuniosity is the establishment<br />

of a claimant’s financial position by<br />

way of bank statement disclosure<br />

and other documents. In turn, this<br />

determines the rate of hire which may<br />

be recovered.<br />

<strong>The</strong> principle of proving impecuniosity<br />

has remained the same for a long<br />

period of time. However, the use of<br />

Direct Banking reports is interesting.<br />

Such reports are now available and<br />

being used by some CHOs to satisfy<br />

the fundamentals of an impecuniosity<br />

claim. It will be interesting to see the<br />

development of Direct Banking Reports<br />

over the next 12 months, as Judges’<br />

interpretation of the report will play a<br />

huge role in defining admissibility.<br />

QWhat could be improved in order<br />

to streamline claims within the<br />

industry?<br />

A<br />

Lots! But as a stand-out, training<br />

in both camps would benefit the<br />

cause greatly.<br />

<strong>Credit</strong> hire can be complex. Judgments<br />

handed down can be daunting to read<br />

and difficult to understand, let alone<br />

apply. Not understanding principles and<br />

process is arguably a top contender as to<br />

why claims do not progress. Knowledge is<br />

key, application is paramount, and a lack<br />

of understanding prohibits constructive<br />

development of any claim lifecycle,<br />

especially in a discipline where the<br />

landscape changes so often.<br />

Canford regularly provides training for its<br />

clients. Additionally, Canford’s members<br />

are regularly trained internally by Senior<br />

Members, and externally by Barristers,<br />

Cost Experts and Industry leaders. We<br />

believe a greater understanding of the<br />

discipline itself, including the litigation<br />

process, would go a long way towards<br />

streamlining a large proportion of the<br />

primary reasons for dispute.<br />

As a secondary, recovery or defence of<br />

credit hire claims never needs to be<br />

contentious in a personal sense. In 2018,<br />

Canford was labelled ‘aggressive, yet<br />

wholly credible’ - a quote the firm stands<br />

by, but with an overarching integrity to do<br />

the right thing in order to promote and<br />

protect relationships between all parties<br />

within the industry.<br />

QWhat’s planned for Canford Law<br />

over the next 12 months?<br />

A<br />

<strong>The</strong> firm is seven years old in<br />

March 2024, and Canford Law<br />

Scotland opened in May 2023.<br />

We’re really enjoying the journey. Our<br />

First Party Recovery and Housing Teams<br />

continue to grow and attract new clients.<br />

<strong>The</strong> firm has plans for extended growth<br />

this year, with further diversification<br />

into other disciplines when the time is<br />

right. Currently however, our attention<br />

remains primarily on specialisms already<br />

in practice. More training is scheduled,<br />

alongside a huge investment into the<br />

firm’s case management system, which<br />

will ultimately streamline service levels<br />

further.<br />

David Nash,<br />

Managing Director, Canford Law<br />

<strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong> 25


INDUSTRY-LEADING<br />

<strong>Credit</strong> <strong>Hire</strong> Services:<br />

HOW WE DELIVER BEST IN CLASS<br />

POST-ACCIDENT MANAGEMENT SERVICES<br />

As a leader in the industry, EDAM has<br />

consistently demonstrated a commitment<br />

to delivering first-class credit hire services,<br />

making a difficult journey easier for<br />

customers in need.<br />

<strong>The</strong> Fleet Advantage<br />

One of EDAM's key differentiators is the ownership of a<br />

comprehensive fleet of vehicles.<br />

Our fully owned fleet ensures that we have access to a well<br />

maintained and diverse range of vehicles - including standard,<br />

prestige, taxis, and commercial options - guaranteeing that<br />

the needs of all customers are met.<br />

Moreover, EDAM's fleet is evolving to align with<br />

environmental sustainability, with 13% of our vehicles being<br />

hybrid and electric. This strategic choice reflects our<br />

commitment to meeting the evolving demands of customer<br />

while contributing to a greener future.<br />

Customer-Centric Service Excellence<br />

At the heart of EDAM's success is its dedicated and<br />

customer-centric teams.<br />

As a valued customer of EDAM, you will experience the<br />

advantages of having a devoted team specifically focused on<br />

meeting the needs of both you and your customers. You will<br />

have a direct line to a department manager who will<br />

personally oversee the team that will be responsible for<br />

servicing your customer. We believe that this partnership<br />

approach allows us to represent the best of you, every step<br />

of the way.<br />

That commitment extends to the delivery and collection of<br />

the customer’s vehicle. Through our nationwide chain of<br />

depots and our excellent drivers, we guarantee that your<br />

customer will only ever deal with an EDAM employee<br />

throughout their hire experience. This commitment to a<br />

direct, personalised approach distinguishes EDAM from<br />

competitors and reinforces our slogan of "making a difficult<br />

journey easier".<br />

How do we know that we are delivering on our promises to<br />

customers? Our best-in-class NPS score of +84 throughout<br />

2023 tells us that we’re getting it right.<br />

A <strong>Modern</strong> Fleet and a <strong>Modern</strong> Service<br />

We provide customers with a vehicle from the latest range<br />

of makes and models, and our modern fleet is a testament to<br />

this. With no vehicles older than 5 years, our owned fleet is<br />

reliable and goes some way to showcase our continued<br />

commitment to the provision of cutting-edge solutions.<br />

Every month, we add new models and vehicles to our fleet on<br />

a rotating basis. This ensures that customers always have<br />

access to the latest advancements in vehicle technology,<br />

further enhancing the overall service experience.<br />

26 <strong>Credit</strong> <strong>Hire</strong> <strong>Supplement</strong><br />

Convenience Redefined<br />

Our hassle-free vehicle collection and drop-off process is one<br />

of our standout features. Employees take charge of arranging<br />

the logistics from the first notification of loss, ensuring that<br />

vehicles are collected and delivered at a time and location<br />

convenient for the customer.<br />

This level of convenience reflects our dedication and<br />

understanding of the stress associated with accidents,<br />

and our proactive approach to mitigating these challenges.<br />

A Whole Host of <strong>Credit</strong> <strong>Hire</strong> Benefits<br />

Diverse and Sustainable Fleet<br />

A wide range of vehicles, including hybrid and<br />

electric options.<br />

Customer-Centric Approach<br />

A dedicated team for each case, ensuring a<br />

personalised and seamless experience.<br />

An EDAM Employee Every Step<br />

of the Way<br />

Throughout the process from start to finish, you only<br />

ever deal with an EDAM employee. This ensures our<br />

high standards are never lowered, and that your<br />

customer enjoys the very best experience.<br />

<strong>Modern</strong> Fleet<br />

No vehicles older than 5 years, with regular additions<br />

of new models every month.<br />

Convenient Logistics<br />

EDAM’s team manages the collection and delivery of<br />

vehicles at customer-preferred locations.<br />

Start Making a Difficult Journey<br />

Easier Today!<br />

Choose EDAM as your preferred partner of choice<br />

to protect your brand and deliver the very best<br />

experience to your customer for credit hire services.<br />

Efficiency<br />

Sustainability<br />

Customer satisfaction<br />

"Making a difficult journey easier" is not just a slogan;<br />

it's a commitment to every customer. Trust EDAM for<br />

credit hire services that redefine industry standards.<br />

To learn more about how EDAM can enhance your<br />

post-accident management experience, visit our<br />

website (edamgroup.co.uk), contact us via email at<br />

hello@edamgroup.co.uk or via telephone on<br />

0330 333 3344.


BOOKED IT.<br />

PACKED IT.<br />

WE’RE OFF.<br />

HOPE TO SEE YOU THERE!<br />

INSUR.<br />

TECH.<br />

TALK<br />

INSURTECH INSIGHTS | NEW YORK | 5-6 JUNE 2024 | www.insurtechinsights.com

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