Modern Insurance Magazine Issue 64

ISSUE
64
ISSN 2515-3803
EVS: BEAUTY
OR BEAST?
The Power of
Collaboration
at Direct Line
A Decent Line
of Sight
with Martin Hall, ERS
The EV
Conundrum in
Motor Claims
by Jeff Winn, Executive Chairman,
Winn Group
Europcar:
Exceeding Electric
Expectations
INSUR.TECH.
TALK
Insurtech Insights
2024 Contributors Media Partners

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WELCOME
Hello readers!
Welcome to Issue 64 of Modern Insurance Magazine, where
we’re placing ‘The EV Conundrum’ under a microscope.
Back in 2021, Covéa Insurance entered a five-year motor insurance partnership
with John Lewis. However, John Lewis have now pressed pause on marketing new
EV policies and renewals until Covéa can further analyse the risks associated with
driving electric. How will insurance be affected by this reported shift away from
EV, and how can we come together as a united industry to find a set of effective
solutions?
Amelia Barlow, Editor
Jeff Winn, Executive Chairman of Winn Group, joins us from p.8 to outline the
challenges associated with electric vehicles in motor claims. We’ve also caught up
with Martin Hall, Active Underwriter at ERS (p.14), to look at EV risk specifically
from the perspective of the underwriter. Our valued Editorial Board members join
us from p.17 - followed by several articles from our pool of esteemed industry
associations from p.31, and our growing Fraud Board of industry experts from p.39.
An issue of Modern Insurance Mag wouldn’t be complete without our valued
INSUR.TECH.TALK section - in partnership with Insurtech Insights - bringing you
the most up to date viewpoints from the world of insurtech through a series of
captivating interviews and thought leadership contributions.
As we move into Spring here in the UK, I hope this issue finds you in good spirits
and good health.
Until next time,
Amelia
Rachael Pearson, Project Manager
Rachael Pearson
Project Manager
Modern Insurance Magazine
rachael.pearson@charltongrant.co.uk
Amelia Day Barlow,
Editor,
Modern Insurance Magazine.
amelia@charltongrant.co.uk
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ISSUE 64
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

Contents
8
14
63
12
39
67
4 | MODERN INSURANCE

8
12
14
17
31
39
11
51
53
55
57
Insight
The EV Conundrum in Motor Claims,
by Jeff Winn, Executive Chairman,
Winn Group
Interviews
A Decent Line of Sight with Martin
Hall, Active Underwriter, ERS
The Power of Collaboration
at Direct Line
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.
Fraud Board
Don’t miss this issue’s instalment
of The Fraud Board, where our
collective of fraud experts convene
to discuss the key factors affecting
the fight against insurance fraud in
our industry today.
Features
In Perspective: The Truth Behind
Lithium-ion Batteries, by Professor
Paul Christensen, Chair of Pure and
Applied Electrochemistry, Newcastle
University
Post Office Scandal Teaches Us
a Lesson, by Eddie Longworth,
Director, JEL Consulting
I Love Claims / ARC 360:
EV figures don’t tell the full tale
Welcoming… Adrian Furness,
Managing Director, Motor Repair
Network
EVs: Future-Proofing the Supply
Chain, by Joseph Ashworth, TPA
Motor Director, Sedgwick
59
61
62
63
Europcar: Exceeding Electric
Expectations, by James Roberts,
Head of Insurance Sales, Europcar
Building Trust Faster with
Customer-Centric Business Models,
by Manjit Rana, General Manager, UK,
EMEA & APAC, Clearspeed
10 Mins with...
10 minutes with... George Thurman,
Business Development Manager, EV
Bodyshops
In Celebration
Insurance CX Awards 2024
Insur.Tech.Talk
Interviews
68 Welcome
Megan Kuczynski, President,
Insurtech Insights
69
Munich Re L&H
Marc Giguere, CEO, Munich Re US,
L&H
70 Empathy
Ron Gura, Co-Founder & CEO,
Empathy
72 Capgemini
Samantha Chow, Head of L&H,
Capgemini
74
76
79
Dr. Els van der Helm
Dr. Els van der Helm, Neuroscientist
Heather Majewski
Heather Majewski, FSA. Founder
& Managing Principal, VivaSure
Advisory, and Former Life & Health
Insurance Executive
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
23
TAKING STEPS TOWARDS
A CUSTOMER-CENTRIC
SERVICE
Richard Norbury, Head of Quality
Assurance, Carpenters Group
PARACODE: PRIORITIES
FOR 2024
Will Prest, Product Manager,
ParaCode
COST MANAGEMENT IN
THE EV SECTOR
Jim Loughran, CEO, e2e Total Loss
Vehicle Management
ICE VS. EV: SPOT THE
DIFFERENCE
Andrew Ballard, product principle,
LexisNexis Risk Solutions
LEADING THE WAY WITH
EV
Tom Rumboll, UK Managing
Director for IAA, and CEO of
SYNETIQ
THE IMPACT OF EVS
ON GLASS REPAIR AND
REPLACEMENT
Simon Hunt, Commercial & Services
Director, National Windscreens
NAVIGATING THE
CHALLENGES OF
ELECTRIC AND HYBRID
VEHICLE REPAIRS
Allan Wareing, Technical Training
Manager, The Vella Group
25
27
29
FROM BIRMINGHAM,
ALABAMA, TO
BIRMINGHAM, ENGLAND…
TALKING REHAB ALL THE
WAY!
Deborah Edwards, Chief Executive
Officer, RTW Plus
EVS: THE AGE OF
UNCERTAINTY
Chris McKie, Managing Director,
Vizion Network Limited
A WORLD WHERE
DIFFERENCE IS VALUED
AND CELEBRATED
Lynn Cufley, Senior Director,
Marketing Communications,
Crawford & Co.
EV PRESENTS A DISTINCT
SET OF CHALLENGES
Dave Parry, Commercial Director,
FMG
The Fraud Board
39 WELCOME
Mark Allen, Assistant Director, Head of
Fraud and Financial Crime, Association
of British Insurers (ABI)
41
WHITELK
M.O.M.’s the Word: How AI
Weaponised Fraudsters Could Treat
Digital Insurers as Cash ATMs
Matt Gilham, Director, Whitelk
Editorial Board Contributors
6 | MODERN INSURANCE

EUROPCAR
NEW BRAND BLOCK
Color gradient background
File: 20151645E
Date: 7/10/2015
AC/DC validation :
Client validation :
43 VERISK
Deepfakes: The Next Frontier of Fraud
for Insurers, and How to Fight Back
Kaye Sydenham, Product Manager,
Anti-Fraud, Verisk
45
SYNECTICS SOLUTIONS
Leveraging the Power of AI for
Smarter Claims Processing
Dr. Luke Abberley, BSc. PhD, Senior
Data Scientist and Team Leader,
Synectics Solutions
47 FRISS
Behind the Mask: Unveiling Synthetic
Identities in Insurance Fraud
Martyn Griffiths, Sales Manager UKISA,
FRISS
49
NETWATCH GLOBAL
Embracing Open-Source Intelligence
(OSINT)
David Purcell, Chief Operating Officer,
NetWatch Global
50 MARSHMALLOW
The Dual Approach to Combatting
Insurance Fraud: Looking Beyond
Technology
Ash Jackson, Head of Fraud,
Marshmallow
66
67
68
69
70
71
72
73
75
Insur.tech. talk and
Editorial Board
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
Zego - Sten Saar, CEO of Zego
Aon - Marguerite Soeteman-Reijnen,
Chairman Executive Board, Aon
Holdings
Arma Karma - Ben Smyth, CEO,
Arma Karma
Revolut A Fundamental - Balázs Gáti, Access Global to Head Justice of
Insurance,
Sue Brown,
Revolut
Chair, Motor Accident
Solicitors Society (MASS)
33 MASS
CII
BIMA - Mathilda Strom, Co-Founder
& Deputy Addressing CEO, the BIMA Expense of EV
Dr Matthew Connell, Director, Policy
WTW
and
-
Public
Pardeep
Affairs,
Bassi,
Chartered
Global
Insurance
Proposition Institute (CII) Leader – Data Science,
WTW
Insur.Tech.Talk
Editorial The EV Conundrum Board
35 NBRA
Thomas Hudd, National Technical
Experts Manager, from National within the Bodyshop Insurtech Repair
sector Association and beyond (NBRA) share their unique
insights. In this issue, we look at
balancing MGAAautomation with customer
satisfaction, MGAs set the to grow concept Broker of ‘digital
transformation’, Partnerships in and 2024 how new signals
point
Mike
to
Keating,
technology
CEO,
as
Managing
a solution
General
to
address
Agents’
economic
Association
concerns.
(MGAA)
37 FOIL
Driving Change in Uncertain Times
Pete Allchorne, President of the Forum
of Insurance Lawyers (FOIL) and
Partner, DAC Beachcroft
Dr Jeffrey Wale, Technical Director,
Forum of Insurance Lawyers (FOIL)
INSUR.TECH.TALK BOARD
MODERN INSURANCE | 7

8 | MODERN INSURANCE

The fact that insurers are looking less favourably
on electric vehicles (EVs) has been well
reported, with some declining cover altogether.
Others have significantly increased their quotes
when compared with non-electric vehicles.
It feels like the Government did not anticipate the issues which would arise
around the shift to electric vehicles, nor did they consider the potential around
additional costs and negative implications. Some time ago, in fact, I heard that
the environmental benefits of electric cars only kick in once they have clocked
up 70,000 miles, compared with that of non-electric vehicles. The assumption
was that electric vehicles would be more reliable than non-electric and would
have significantly longer life spans, meaning they would be significantly
‘greener’.
However, these assumptions are being called into question when we consider
the claims experience in relation to electric vehicles, particularly in relation to
cost.
REPAIRS
At the time of writing, EV repairs are significantly more expensive than their
non-electric counterparts. When engineers see a minor knock to the rear
of the vehicle, they are unable to identify the extent of the damage from a
visual inspection of the battery. Therefore, until they can verify this effectively,
repairers will continue to write the battery off entirely in order to protect the
driver and passengers, subsequently driving repair costs further up.
Moreover, electric parts are consistently proving to be harder to obtain,
causing delays in repairs and increased prices when it comes to parts. There’s
a lack of technicians who are trained to work with electric vehicles - driving
the rates of pay up further for those who are trained, and causing choke points
within repairer businesses.
There is also a lack of understanding around electric vehicles and the
associated risks. It will be very difficult for the repair industry to keep up with
the growth in electric vehicles and provide enough trained staff to deal with
them, which will continue to drive the repair costs of EVs. In many present
cases, vehicles have been written off even after a relatively minor collision.
STORAGE
Storage of electric vehicles has proven to be problematic. If the guidelines are
followed, one damaged electric vehicle needs to remain at a sufficient distance
away from other vehicles, so much so that it will take up the space that would
ordinarily be occupied by nine conventional vehicles. This also drives up costs,
and if a fire should occur when storage companies take a risk in parking too
close, this will likely be catastrophic for all of the vehicles in the vicinity.
REPLACEMENT HIRE VEHICLES
Whether we’re talking about credit hire or straight hire, longer repair times for
electric vehicles have a knock-on effect and feed through to result in increased
replacement vehicle costs.
RISK
These factors (and many more) result in an already high-risk profile for electric
vehicles. More recently, these cumulative factors have also had insurers
wondering about the unknown. What risks are likely to come out of the
woodwork later, and how could these risks affect premiums moving forward?
POSSIBLE RELAXATION OF THE INSURER’S
ATTITUDES TO ELECTRIC VEHICLES
Insurers have to assess the risk and cost of electric vehicles vs. other vehicles,
and price accordingly.
There was a belief that when electric vehicles were mandated, they would
come with increasing levels of technology. This technology would subsequently
reduce the rate of accidents, and higher costs would be neutralised by lower
risk. Anecdotal evidence (and what we have seen so far) suggests this hasn’t
happened. More complex electrics mean more expensive repairs, and at
present, there hasn’t been a corresponding reduction in accidents involving
electric vehicles.
There was a belief that electric vehicles would herald a new age in telematics,
which would result in companies such as ours getting an instant notification if
someone suffers a collision and may need immediate help. It was anticipated
that potentially, this could reduce severity for those injured in accidents,
particularly where passengers are too injured to make a call from the scene. In
reality, manufacturers have been slow to adapt electric vehicles to include this
feature, and telematics have been adopted by only a small number of insurance
companies and brokers.
GROUND PLAN RE-VISTED
It would be interesting to know whether the Government would still support
electric vehicles to such an extent if the realities of higher insurance premiums
and much shorter vehicle lifespans were factored into their status as the ‘green’
alternative. If the Government haven’t already done so, I believe it’s time for
them to take a fresh look, as it is extremely important to ensure that policy
decisions made on the basis of assumptions still apply when those assumptions
turn out to be wrong.
CUSTOMERS
Customers are in a difficult position. Generally speaking, they want to be green
and support electric vehicles, especially when they’ve been told that they
are the environmentally friendly alternative. However, high repair costs, high
insurance premiums and low second-hand values are all factors that are likely to
drive customers away, unless there are more Government incentives for buying
electric.
There is a fear within the manufacturing community, as well as within the wider
insurance/claims industry, that a rapid transition to electric vehicles could result
in a situation where manufacturers have to sell vehicles that customers don’t
want to buy. This could lead to a disruptive market, significantly impacting
manufacturers’ earnings moving forward.
MODERN INSURANCE | 9

WHAT CAN BE DONE TO MAKE ELECTRIC
VEHICLES MORE ATTRACTIVE?
If it was possible to properly review a battery and ascertain 100% safety,
this would have a significant impact on the repair costs of EV, not to
mention reducing the number of EV cars that are considered to be total
write offs.
No doubt someone somewhere is looking at this. It could be a quick and
easy way for the Government to invest research funding and find a solution
that could reduce battery write offs and mitigate the consequent impact
on insurance. The Government could also help with additional funding for
the training of bodyshop staff, particularly around the nuances of electric
vehicles, addressing the ongoing skills shortage at the same time as
building industry knowledge.
On the face of it, it is always a brave government that ignores the market
and insists on a certain percentage of EV vehicles being bought at certain
dates. This creates uncertainty, and increases the risk of such adverse
consequences outlined above. It would not surprise me if the extended
deadline for conversion to full electric is extended further. I also suspect
that the alternative would entail a very large amount of government
subsidy and support to persuade customers when it comes to converting
to electric, with manufacturers likely to refuse to accept the drop in price
that will be needed to support EV.
As electric vehicles become more common, replacement parts supply
may grow and delays may reduce. Better storage solutions will reduce
the dangers of crossfire between electric vehicles in storage, and
manufacturers could embrace telematics more to get help for those
involved in serious high-speed collisions, particularly beneficial for drivers
living in rural areas.
It may even be that in due course, when there are more electric vehicles
than non-electric vehicles on our roads, it could be easier to obtain EV
parts and EV trained staff than it is for non-EVs. However, we are still
a decade or so away from this ideal. In principle, electric vehicles may
possess the technology to reduce vehicle collisions, but this is by no means
certain. Everyone in the motor repair supply chain has plenty of experience
with non-EVs, and arguably, trying to gain a better outcome for EVs may
continue to prove difficult.
So, what if the Government decides that electric vehicles are no longer
the green panacea they were once seen as? Particularly in Germany,
manufacturers and government bodies are looking very closely at hydrogen
power as a more suitable replacement for ICE vehicles. Design changes
may also occur, which will offer greater protection for batteries and reduce
EV related costs.
Jeff Winn,
Executive Chairman, Winn Group
EDITOR’S NOTE:
The Department for Transport (DfT) declined to be interviewed for this edition of Modern Insurance Magazine. However, a DfT spokesperson commented
as follows: “These claims are misleading and inaccurate. We have provided grants and tax incentives for more than a decade, which has resulted in over a
million electric vehicles on UK roads. One in five technicians are now able to repair electric vehicles, and we work closely with the industry on initiatives and
free courses for mechanics across the country to become EV-qualified - already helping to upskill almost 40,000 technicians.”
FURTHER COMMENTARY FROM DfT
• The Government does not recognise the 70,000-mile figure.
• Considering the percentage of vehicles in the UK car market, it is wrong to reach these conclusions as to EV representation in car accident statistics.
• Data from the Institute of the Motor Industry (IMI) shows there are 52,000 qualified EV technicians in the UK, which is 22% of all UK technicians.
• The Government has funded research by Thatcham to understand the impact of EV transition on the repair, insurance, and salvage sectors.
• Over its lifetime, the plug-in car grant provided over £1.4 billion to support the early market for ultra-low emission vehicles. This plug-in car grant was
removed in June 2022. In 2023, new battery electric vehicles had a 16.5% market share.
• We continue to encourage the uptake of new zero-emissions vehicles through a range of tax measures and purchase subsidies including: Zero vehicle
excise duty rates for zero emission cars; Plug-in van grant of up to £2,500 for small vans and £5,000 for large vans; The continuation of generous
incentives for electric cars through the company car tax system; Generous 100% first year capital allowances for zero-emission cars and vans.
• The Government chairs a working group with several stakeholders to ascertain potential barriers to the uptake of used electric vehicles. One of the
group’s focuses is improving the availability and standardisation of information on used EVs at the point of sale.
• The Government is also part of international negotiations on new standards for electric vehicle batteries, which includes battery state of health
monitors.
10 | MODERN INSURANCE

FEATURES
IN PERSPECTIVE:
LITHIUM-ION BATTERIES
I have been offering guidance to first responders for several years, ever since I started
working on the Recycling and Reuse of Lithium-ion Batteries (ReLiB) project, funded by
the Faraday Institution.
I began by researching thermal runaway - the term used to describe
the chemical reactions that ultimately lead to a lithium-ion battery
fire or explosion - and how it thermally propagates in large battery
systems. As my team gained knowledge, I passed this along through
presentations, invitations to attend our tests, and informal advice.
I make no apologies for the fact that I set out to shock emergency
responders who are in attendance at my presentations. The
consequences of thermal runaway in large battery packs - such as
electric vehicles (EVs) - can be severe, not just in terms of flare-like
flames, but also due to the risk of a vapour cloud explosion.
Overall, EV battery fires are currently very rare and, as battery
technology continues to improve, we could reasonably expect things
to stay that way. Having said that, how an aging global EV fleet will
affect the statistics is still unknown, and it’s something that I continue
to keep a close eye on.
What remains clear is that many of the incidents involving EVs are
caused by ‘the human factor’, predominantly relating to a low level of
fire risk awareness among drivers and the automotive industry.
EVs pose new risks and challenges to our emergency responders that
are still being understood, and I set out to fully inform them of the
risks and hazards. I want to make them hesitate just long enough to
re-assess the situation, and hopefully, keep them safe.
However, I also seek to put things in context (usually after the shockand-awe
stage) by highlighting the statistics for fires and explosions
involving EVs. Since 2010, for instance, there have been 504 globally
verified incidents of fires and explosions involving road registered EVs
(cars, buses and trucks), according to statistics from EV FireSafe 1 . Of
these, circa 5% involved a vapour cloud explosion where gases build
up in the battery pack, the vehicle itself, or in an enclosed space,
creating an explosive environment.
There were more than 10 million EVs sold worldwide in 2022 alone.
Compare this to 100 fires per day in the UK from conventional
vehicles (diesel and petrol, internal combustion engine vehicles or
ICEVs) 2 , and according to EV FireSafe, this makes EVs 10-20 times less
likely to catch fire than ICEVs.
In addition, it’s an important point that an ‘EV on fire’ is not the same
thing as an ‘EV battery fire’. Data from NIPV (Nederlands Instituut
Publieke Veiligheid, or the National Institute of Public Safety) shows
118 EVs caught fire in 2022 in the Netherlands, but only 38% of them
(45 in total) involved the lithium-ion battery.
The leading causes of battery fire in road-registered EVs is collision,
submersion in flood waters for an extended period, exposure to
another fire, or a fault during the manufacture of the battery cell,
leading to the recall of that brand. There are also a number of EV
battery fire incidents where the pack has been hit by road debris
while driving, or following regular maintenance that was carried out
incorrectly by untrained people.
Professor Paul Christensen,
Chair of Pure and Applied Electrochemistry, Newcastle University
Through his research under the Faraday Institution-funded ReLiB and Safebatt projects,
Paul has sought to inform first responders of the risks and hazards of lithium-ion batteries.
He has given more than 200 presentations to first responders across the world, as well as
harnessing his knowledge to provide help and advice on an ad hoc basis.
He is the Senior Advisor to the UK National Fire Chiefs Council and serves on a number
of UK Government and British Standards Institute working and governance groups. He
was the recipient of 2022 Motorola Foundation Knowledge Event Series award from
the Australasian Fire and Emergency Service Authorities Council, and the 2023 Faraday
Institution Public Engagement Award for “Outstanding contributions to communicate
our research on battery safety to the wider scientific community, first responders, policy
makers, and the general public”.
Paul holds the Chair of Pure and Applied Electrochemistry at Newcastle University. He also
has over 180 publications in international journals, and a H-Index of 56.
Paul feels he is doing something useful for the first time in his 38-year career.
1 EV FireSafe is funded by the Australian Department of Defence to research electric vehicle high voltage
battery fires & emergency response and has built a global database of EV battery fire incident validated
by at least two independent sources. https://www.evfiresafe.com/. These are verified incidents only and
not exhaustive.
2 https://www.service4service.co.uk/news/general/car-fires/. 300 per day of which 65% involve arson.
MODERN INSURANCE | 11

A DECENT LINE
OF SIGHT
WITH MARTIN HALL
Modern Insurance Magazine took some time to sit
with Martin Hall, Active Underwriter at ERS, to look
at electric vehicle (EV) risk through the lens of an
underwriter. What challenges lie in assessing EV
risk effectively at the moment, and how can these
problems be addressed?
QMartin - from an underwriter’s perspective, what risk factors
are in place right now when it comes to insuring EVs?
ACost and length of repairs are key; if you’re the insurer
of an EV, you’ll almost certainly be preoccupied with the
Accident Damage (AD) cost of repairs in the event of a
collision. There’s an interesting report from Thatcham released
in July last year, which states the cost of repair for EVs is around
25% higher than vehicles with an internal combustion engine, with
repairs taking around 14% longer. That’s a concern for underwriters
because we must factor this into risk and pricing, which inevitably
impacts policyholder’s premiums.
Beyond AD, underwriters are trying to predict what the claims cost
could be over the next 12 months, and to ensure that premiums
are priced correctly so you’re covered if there is a claim. This has
been challenging in the last year as inflation rates have increased,
meaning that the cost of vehicle repairs, replacement vehicles or
hospital care all rose significantly after the price for the premium
has already been set. Obviously, insurers can’t turn back time and
ask customers to pay more when the claims costs increase, so it’s all
about being proactive in the first place and ensuring that we assess
that risk effectively. The more uncertainty there is, the harder it is to
get right, so it’s really important for underwriters and claims teams
to have the awareness and understanding of EVs and how they
should be repaired. Otherwise, the potential for assumptions to be
wrong can be financially catastrophic for insurers.
Q
A
Technology aside, what about the risk profile of EV drivers
themselves? Is there anything to suggest that EV drivers
are more, or less, risk averse?
EVs are pretty quick from a standing start. Ten or fifteen
years ago, you’d have to pay a lot of money for a car that
went from 0-60mph in just a few seconds. EV technology
has made much higher performance available at a much lower
price point. Of course, this is great for accessibility, but when
underwriting these faster vehicles, you have to ask if the person
driving has the experience to handle such a vehicle – similar to the
type of questions you would ask if someone wanted insurance for
a supercar. At the moment, there are a lot of drivers buying and
driving EVs that are a lot quicker than the cars they may be used to.
Inevitably, this creates a higher risk of collision.
In terms of whether or not EV drivers are more or less risk averse
than other drivers, I think that’s unproven at this stage. It’s hard to
say, especially when EVs are so different to ICE vehicles. Certainly
not everyone wants to drive an EV, often because of range anxiety
and the driving experience being so different to the traditional way
of getting around. ERS insures a large number of self-drive hire
firms, and we’ve found that when customers lack EV experience,
they are often quite reticent to select one as their choice of hire car.
Does that make them more risk averse because they’d rather stick
with what they know? There’s just not enough data to support it
either way at the moment.
12 | MODERN INSURANCE

‘At the moment, there are a lot
of drivers buying and driving
EVs that are a lot quicker than
the cars they may be used to’
QUnderwriting and pricing the risk associated with EVs
is clearly presenting some challenges for the insurance
industry.
What primary challenges are underwriters facing in relation
to EV right now, and how are you seeing these challenges
being addressed?
Cost certainty is definitely a key issue here; we need
better collaboration with manufacturers in order to
A accrue the data necessary to underwrite these vehicles
effectively. Properly understanding supply chain issues will
also be paramount; if there are parts delays, repair times take
longer and claims costs rise. We all know that EVs carry a lot
of high-end technology which can cost a lot to repair.
We also need to know about the experience level of the
customer. If you are underwriting business through a website
- as most private car insurance is transacted these days - and
you don’t know the individual’s driving experience, there is
a real possibility that insurers are underfunded as they’ve
failed to predict the claims costs accurately. ERS is a specialist
motor insurer, and we approach the underwriting process on a
more personal and bespoke basis. This gives us chance to ask
important driver experience questions, which you’re less likely
to be able to do if you’re taking a mass-market approach.
QOn the subject of gathering important data, there’s a
lack of accurate and available insight around electric
vehicles at present, particularly in relation to their ICE
counterparts.
How can the industry do more to better understand EV
risk, and what tools do underwriters need adding to their
toolkit if they are to underwrite effectively in the changing
landscape?
It’s all about getting a decent line of sight for the risk
you’re trying to underwrite. For example, ERS insure
A electric black cabs, which is reasonably straightforward
because we’re insuring a relatively standardised vehicle. There
are limited types of electric taxis, so you know what you’re
getting, and you can liaise with a network of repairers to
gauge the costs associated with repairs. In turn, this allows
us to underwrite and price these premiums confidently and
accurately.
QWith some insurers withdrawing EV cover, how do you
feel about the future of EVs in the insurance industry?
Can we expect to see premiums come down for EVs
anytime soon?
A
Ultimately, it’s a risk-based business, so future trends
aren’t easy to predict. There are so many elements
affecting EVs, and any disruption to the supply chain
will have an impact on the pricing and underwriting process.
Ultimately, there’s a strong correlation between repair costs
and the cost of premiums.
If there are more EVs on the road in future, we’ve also got to
consider the fact that collisions involving EVs will increase as
well. Any collision with a third party driving an EV means we
have to pay the EV repair costs, as well as an extended car hire
if there are parts delays.
Whilst EV data is relatively sparse, motor insurance is a tricky
area to navigate as a whole right now. Legislation will ensure
that there will be more EVs on the road over time whether we
like it or not, and the UK car park will certainly become more
EV-centric.
Insurers will find a cost-effective way to insure EVs, but it will
take time. Our primary aim is to gather more certainty on the
cost of the repairs and the frequency of collisions as drivers
get used to accelerated performance. There’s a vested interest
for manufacturers in all of this as well; if insurance premiums
for electric vehicles are too high, people are less likely to buy
them. I think a lot of the answers will be found when we see
improved collaboration between insurers and manufacturers,
and a greater set of reliable data to fall back on.
Martin Hall,
Active Underwriter, ERS
Conversely, mainstream EV manufacturers have numerous
types of vehicles, which means it becomes harder to get
a handle on the costs. The supply chain isn’t consistent in
quite the same way, and it adds far more complexity to the
underwriter’s considerations.
MODERN INSURANCE | 13

INTERVIEWS
THE POWER OF
COLLABORATION
When it comes to electric vehicles in insurance,
it’s not all doom and gloom. We caught up with
Steve Williams - Head of EV at Direct Line Group,
and Chair of the ABI’s EV Steering Group – to look
at how Direct Line are making the most of the
collaborations and partnerships which maximise
their customer offering.
QSteve, with some key insurers pulling away and even
withdrawing from the EV market completely, how are
Direct Line Group leading the way in this space and
overcoming these perceived industry challenges?
AAs a Group, we believe that we are strongly positioned
to support UK drivers who want to make the transition to
Electric Vehicles (EVs). We have strong brands that people
can trust, a range of cover levels with tailored protection for EV
owners, and 23 owned Auto Repair Centres. We also have Green
Flag recovery services, who provide swift and reliable assistance or
repairs when customers need it most.
The EV shift is still in its infancy, which means insurers don’t have
the level of data they would normally have to work with. This
presents challenges when by nature, insurance relies on data and
experience to predict future risk.
At Direct Line Group, we take pride in the valuable partnerships we
have in place that can help us succeed when it comes to providing
solutions in an everchanging market for our diverse customer
needs. Through our OEM (original equipment manufacturer)
partnerships, we’re able to collaborate and overcome some of these
obstacles to ensure a smooth transition for our customers.
In addition, we were delighted to partner with Motability Operations
in September 2023, delivering the insurance provision for over
700,000 Motability Scheme customers. This organisation has one
of the largest electrified car fleets in the UK, and they continue to
do everything they can to help their customers when it comes to
accessing independent mobility. With over 40,000 Scheme EVs
already on the road, this partnership provides us with another
fantastic opportunity to learn about the difference EV brings.
Q
How has Direct Line Group’s partnership and collaboration
with Zoom EV made this a reality? And is effective
collaboration a key part of ‘weathering the storm’ when it
comes to EV?
The collaboration between Direct Line Group and Zoom
EV has played a pivotal role in addressing some of the
A challenges posed by the EV transition. Moving to an EV is
about much more than just the car. EV drivers face new driving
techniques, unfamiliar technologies, alternative refuelling methods,
and a dynamic car manufacturing landscape.
We see this as a strategic partnership that exemplifies the power
of collaboration, where we can provide true value to our customers
who are navigating this new and unknown EV landscape. Our aim is
to help provide a smoother journey and better understanding while
also building a complete solution for our customers. What’s more,
we can add even more benefits for our customers across a range of
connected services, which can help customers decarbonise other
aspects of their life beyond that of their vehicle.
QHow are Direct Line managing expectations and adding
value for EV customers as premiums continue to rise?
AWe recognise the challenges faced by motorists over the last
12-18 months, including new car shortages, rising used car
prices, volatile fuel costs, and overall inflation. As a Group, we
remain committed to managing expectations and adding value for
all our customers.
We do this in several ways. With all our cover levels, Direct Line’s
insurance policies cover essential elements such as battery cover
and charging cable protection. This ensures that customers have
peace of mind regarding critical components. We also have at least
two EV-qualified technicians in each of our Auto Repair Centres,
guaranteeing high quality repairs for every EV in line with industry
standards.
Our collaborative approach recognises that the EV landscape is
evolving rapidly. Working with our partners and cross-functional
teams - including stakeholders from pricing, underwriting, repair,
claims, and data - we can maintain a cohesive strategy and address
change proactively.
While the transition to EV still presents some challenges, we
view this transition as an opportunity and remain committed
to supporting EV adoption, ensuring a seamless experience for
customers and a variety of insurance options that offer complete
value for money.
Steve Williams,
Head of EV at Direct Line Group and Chair of the ABI’s
EV Steering Group
The partnership with Zoom EV provides Direct Line customers
with access to a full EV ecosystem, combining access to leading
EV services (such as Octopus Energy, Octopus Electroverse and
the Osprey charging network), EV Expert Advice, EV content
and unique prize draws all via one dashboard. In addition to the
insurance cover for the EV, the battery and charging cable, Direct
Line provides an EV helpline, allowing customers to engage in
exploratory conversations with the Zoom EV team. Any general
EV-related queries find answers through this well-received service.
14 | MODERN INSURANCE

INTERVIEWS
AT DIRECT LINE
What about best-in-class EV coverage from the
perspective of tech and repairs? Felicity Harer,
Direct Line Group’s Motor Networks Technology
Specialist, provides her insight on EV skills and
training, promising new technologies, and driver
reassurance.
QFelicity, a new breed of mechanic is needed in our modern
day bodyshop, one that can deal with the complexities of
EVs as well as ICE vehicles.
How have you witnessed a growth in skilled EV repairers over
the last few years, and where does further investment need to be
made in order to improve skills and training?
AI’m not sure about this new breed of mechanic! We have
some great ones already who have taken to this new
technology like ducks to water. While our current team
has expertly incorporated the latest tech into their skill set, we
remain committed to supporting their growth and supplementing
their expertise with fresh perspectives as necessary. We are also
committed to introducing new, diverse talent into the industry and
showcasing the exciting career paths available.
Navigating the complexities of advanced technology is a journey
that requires patience and deliberate effort. In 2018, we initiated
a technical graduate scheme aimed at addressing the skills gap
by recruiting engineers with practical bodyshop training and
some industry experience. Since then, we’ve focused on fostering
a culture of technical proficiency throughout the organisation,
leveraging insights gained from this program.
Our investment in a new Technology Centre has provided a
centralised platform for knowledge sharing and collaboration.
Accredited by IMI, this facility enables us to develop tailored
training programs to meet the evolving needs of our workforce and
customers.
In response to the rise of EVs, we’ve prioritised EV awareness
training and certification for our technicians. This includes
equipping them with the necessary tools and skills to service EVs
and handle battery maintenance, a capability that is now available
at all our sites.
which will result in a much more efficient repair process.
Furthermore, collaborations with academic institutions and
industry experts continue to prove invaluable. Insight sessions
with researchers, alongside visits to battery factories, provide first
hand exposure to cutting-edge technologies and manufacturing
processes. This knowledge is then translated into actionable
insights for repair, empowering technicians with the latest
information and techniques.
Overall, embracing these advancements in connectivity,
accessibility, and collaboration is essential for staying at the
forefront of the evolving EV market. By integrating these
technologies into the repair process, we ensure that our services
remain efficient, effective, and aligned with the rapidly changing
landscape of EVs.
QWhat more can be done to reassure or educate drivers
around EVs - not just in relation to environmental benefits,
but also in terms of driving experience and concerns around
range anxiety?
AWhen it comes to reassuring and educating drivers about
EVs, it’s crucial to acknowledge the validity of their concerns.
Range anxiety continues to be a common worry among
potential EV owners. It’s important to understand that factors like
temperature can indeed affect the range, and driving habits may
require slight adjustments. However, dismissing these concerns
merely as fear, uncertainty and doubt is counterproductive.
One effective way to address these apprehensions is by
encouraging individuals to experience EVs firsthand. I highly
recommend test-driving an EV to gauge its suitability for the
driver’s specific needs. Many companies offer extended test drives,
allowing ample time to get accustomed to the driving experience
and understand the real-world range capabilities.
Moreover, fostering informed decision-making is key. Providing
balanced and accurate information about EVs - including their
environmental benefits, driving experience, and considerations
like range variability - enables individuals to make well-informed
choices. By equipping drivers with the knowledge they need, we
can instil confidence and encourage broader adoption of EVs on UK
roads.
Felicity Harer,
Motor Networks Technology Specialist, Direct Line Group
Looking ahead, we’re expanding our outreach efforts to cultivate a
sustainable pipeline of talent. By reaching out to over a thousand
individuals already this year, we aim to provide opportunities to
deserving candidates who may not have otherwise been exposed
to the industry. Our approach is rooted in a measured response to
industry shifts, ensuring that we remain equipped to navigate the
evolving landscape of automotive technology.
QWhat promising new technologies are you seeing in
relation to the EV market, and how is this being embraced
in the repair process?
Connectivity is a massive one. We’ve been working on
projects around EV battery repair and recycling for years,
A and a key enabler for this will be connected data. Connected
data provides a huge amount of detail about how the battery is
performing, without the need to plug it in or take it apart. This
non-destructive testing of batteries post-crash will be a game
changer in working out what and how to repair the vehicle,
MODERN INSURANCE | 15

YEARS OF EXCELLENCE
1994 ~ 2024
Market-Leading Outsourced Claims Services
Find out more:
www.carpentersgroup.co.uk

EDITORIAL BOARD
Taking Steps Towards a
Customer-Centric Service
As Carpenters Group enters its 30th year, we continue
to be recognised by our insurer partners for our ability
to provide market leading customer services. We
continuously find new ways to improve the customer
experience across both the insurance and legal claims
journeys.
Customer experience has always been, without exception, our primary
focus. We continue to work collaboratively with our insurer clients to
create bespoke, effective solutions for them and their policyholders.
By doing so, we continue to build long-term relationships within the
insurance industry.
We understand that first class customer service is crucial to the
customer following an accident. Our insurer partners rely on us to
provide the level of service they’ve promised, particularly during
that ‘moment of truth’. When the accident happens, we are there to
protect their brand and their reputation.
There are a number of key elements to our approach that make us the
first choice for insurance and legal services:
• We put the customer at the centre of the process.
• We place a premium on compliance and ethics.
• We own and maintain market leading technology, providing us
with scale and flexibility.
We operate specialist teams for every type of case, from a simple
excess recovery case to a complex, high-value, catastrophic injury
claim.
Our team of Serious and Catastrophic injury lawyers continue to act
for our most seriously injured customers. With emphasis on early
collaboration, immediate needs assessments, access to rehabilitation
and interim payments to relieve financial stress, our lawyers are
proactive from day one. We understand the ripple effect on the wider
family, and look to support the family as a unit from the outset. We
work with medical and rehabilitation experts who are leaders in
their field to ensure our customers are able to be the best version of
themselves post-accident.
Technology and innovation are at the heart of everything we do.
We remain an agile and forward-thinking business, working as key
digital partners alongside our insurer clients to improve the customer
journey.
All of our insurer and customer services are developed in house,
including MyClaim - a customer communication portal which allows
our customers to stay connected to their claim via their laptop,
smartphone or tablet. Over 60% of customers use the MyClaim app
to upload receipts, read letters, follow along with updates, and send
or receive messages to and from their personal claims handler.
In 2024, we remain equally focused on our valued customers and
insurer partners. We will continue to look for new and innovative ways
to provide frictionless, swift and simple solutions which enhance and
deliver our market-leading customer service.
Richard Norbury,
Head of Quality Assurance, Carpenters Group
ParaCode:
Priorities for 2024
Delivering for our customers is our top priority
for 2024. We are moving away from being a pure
technology provider and repositioning ourselves
as a reliable and predictable business partner,
where insurance knowledge is just as important
as technical knowledge. We want people to think
of ParaCode as not just a cutting-edge insurance
software provider, but as a company that truly
understands the needs of our niche broker, MGA
and insurer customers.
To this end, we have recruited product specialists. Our product
specialists come from broker, MGA or insurance company backgrounds
and typically possess CII qualifications. Their role is to sit with the
customer, understand their business (not just the products they
sell), and implement the customers’ requirements in ParaCode. They
are not software developers; they are, first and foremost, insurance
professionals who understand insurance and talk the language of
insurance, rather than the language of technology.
At management level, we have also rebalanced the team towards
experienced insurance professionals who really understand the needs
of the customer, from starting an insurance business through growth,
sale and exit.
From a technology perspective, our mission is to deliver high value
functionality to our customers around three core pillars, namely
insurance product definition, distribution, and back-office functionality.
Critically for us, all our functionality has to be configurable by
insurance professionals, rather than software developers. During 2024,
we will be delivering exciting new features to support each pillar via
our regular release schedule.
To support insurance product definition, we will be releasing our
internal enrichment functionality. This allows customers to create data
enrichments from their own datasets and plug them into ParaCode,
all without needing to use a developer. This will also allow customers
to develop their own machine learning and artificial intelligence
algorithms, before plugging these into ParaCode to support pricing
and terms decisions.
To support distribution, we will be releasing our broker portal, which
is the first step to launching the ParaCode marketplace, where every
customer and broker using the ParaCode platform can transact with
each other. To support back-office operations, we will be releasing
enhanced functionality to support insurance accounting, reporting,
claims handling, and bordereaux generation.
As a business, we also want to be more visible to our customers. So,
we’re aiming to attend more events than last year, including Insurtech
Insights, BIBA, the MGAA Conference, as well as a host of smaller
events around the country. We hope to see many MIM readers at these
events in the coming year!
Will Prest,
Product Manager, ParaCode
MODERN INSURANCE | 17

Cost Management
in the EV Sector
EDITORIAL BOARD
I recently heard of a colleague whose renewal
premium for their Nissan hybrid EV rose from
£500 to £2,500 in a single year. This was without
any special factors to drive the increase, so one
must assume that this insurer was effectively
withdrawing from the market.
The eventual premium generated by hours of searching on
comparison websites and elsewhere was settled at £1,300 – a mere
160% increase, which my colleague regarded as something of a
bargain. At the same time, figures from the Association of British
Insurers (released in late 2023) suggest that claims for EVs are 25%
more expensive for their petrol engine equivalent, and repairs take
14% longer.
Herein lies the dilemma. We all seem to want a major shift in the
environmental impact of transport, but the costs of providing it are
making this a seemingly impossible goal. The initial purchase price
of EVs is certainly greater than that of their petrol-driven equivalent,
and the longer-term savings of EVs are absolutely real. However, this
demands a five-year view on the costs of car ownership, which is not
so easy in the current economic environment.
Delivering Superior Service
Part of our role at e2e ensures that total loss claims involving EVs
are not delayed or made more costly because of their specialist
requirements. Our suppliers have invested heavily in new facilities for
the safe removal and storage of batteries, as well as the technical skills
needed to dismantle the vehicles. These additional costs have largely
been absorbed within the pricing structure of insurer contracts, and
e2e is absolutely committed to minimising any negative impact of EVs
as part of our wider Sustain 360 ESG programme.
This means that we continue to contribute positively to the changing
economics of EV purchase and running expense, whilst helping our
insurer and fleet customers deal with the inevitable increases in costs
that they face. Our focus on reducing indemnity and operational
costs whilst helping to deliver a superior customer experience applies
even more to the management of EV total losses, given the specialist
nature of this market.
Partnership Business Model
We also need to look to the broader outlook for EV total loss
management as the sector grows. Larger numbers for battery
recycling becomes more of an issue, but also more of an opportunity.
The greater effort to recycle EV batteries and the end-of-life costs
involved means that there is a compelling impetus to work closely
with partners who can bring new solutions to a potentially costly
sector. EVs will most likely underperform their market potential if
the total loss claims management sector does not fully contribute to
controlling repair and premium costs.
The EV conundrum is ultimately one of economics – not just of the
vehicles themselves, but also the broader business and personal
economy that we all live within. The market will grow, but perhaps at
a slower pace than previously thought. Here at e2e, we remain ever
vigilant on the work that we are doing to deliver new solutions for
cost management and operational efficiency, solutions that are so
desperately needed to meet the requirements of our clients in this
sector.
Jim Loughran,
CEO, e2e Total Loss Vehicle Management
ICE vs. EV:
Spot the Difference
The matter of electric vehicles (EVs) is an
area that we study closely at LexisNexis Risk
Solutions, leveraging our experience in China
where EVs now make up 31% of the car parc i .
In the US, when vehicle owners switch from
Internal Combustion Engine (ICE) cars to
electric cars, the frequency of insurance claims
rises by 14.3%. Meanwhile, the severity of
claims, or the amount that must be paid out,
typically increases by 14.5% ii .
Innovate UK and Thatcham Research iii have found that EV claims
are already 25.5% more expensive than ICE or gas-powered vehicle
equivalents, also taking 14% longer to repair. Contributing factors
include availability of parts, high costs for battery and drivetrain items,
alongside more complex repair methods. These factors drive demand
for more granular data on vehicle build, vehicle history, and vehicle
ownership timeline.
There are distinct differences between the performance and dynamic
behaviour of ICE cars and EVs, which drivers and policyholders must
become familiar with. EVs tend to provide instant torque (momentum)
with smooth acceleration. This power and increased mass can cause
more significant damage through low-speed impact than an ICE
equivalent. While EVs can excel in low-end acceleration and the ride
will be quieter, their top speed won’t match the top speeds of some
high-performance ICE vehicles. The regenerative breaking in an EV can
allow the car to slow down without applying the brake, which is also a
characteristic that needs to be experienced and learned.
Through LexisNexis® Vehicle Insights, the market now has access to
highly accurate vehicle valuations data drawn from a real-time
market-wide view. We also plan to bring in our proprietary motor
insurance policy history data to create a timeline view of an individual’s
previous vehicles owned over the last few years. It therefore becomes
possible to start comparing the key and measurable characteristics of
those cars to help inform quotes.
Through LexisNexis® Vehicle Build, our ADAS data enrichment solution,
we have identified marked differences in the presence of ADAS in EVs
– even in the same make and model. In some cases of ICE vs. EVs, EVs
can have 20% to 30% more ADAS features present, demonstrating the
hugely valuable role of vehicle-centric data.
In such a complex area, there’s some great news around consistency
and commonality in EV Platforms. Many OEMs will have an EV platform
strategy with the same battery, running gear and motor configuration,
which can be used across a wide range of models.
In the future, more research and rating could be applied at the platform
level. For now, we have seen a cooling down of new car sales on EVs iv ,
suggesting that while the early adopters and some fast followers have
already converted to EV ownership, many mainstream buyers remain
harder to convince.
Andrew Ballard,
Product Principle, LexisNexis Risk Solutions
i https://cleantechnica.com/2023/11/05/25-bev-share-in-china-china-ev-sales-report/#:~:text=Plugin%20
vehicles%20are%20all%20the,to%20continue%20this%20record%20streak.
ii https://edition.cnn.com/2024/01/18/business/why-do-people-keep-crashing-teslas/index.html
iii https://www.thatcham.org/wp-content/uploads/2023/07/Impact-of-BEV-Adoption-on-the-Repair-and-
Insurance-Sectors-report-Innovate-UK-and-Thatcham-Research.pdf
iv https://www.smmt.co.uk/2024/01/new-car-market-delivers-best-year-since-2019-as-fleets-fuel-growth/
MODERN INSURANCE | 19

The Power of Data
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EDITORIAL BOARD
Leading the Way with EV
At the start of 2023, the UK found itself on
the road to a 2030 ban on petrol and diesel
vehicles. The nation was planning for an EV
future which was less than a decade away. Fast
forward to our present day, and the urgency
to transition to a world of electrified vehicles
has hit the brakes somewhat. However, this has
not dampened our efforts to ensure that we’re
leading the market in this area.
According to the Financial Times, the EV share of the British car
market has stopped growing, with the upfront costs of electrified
vehicles deterring consumer sales. Entering the year, we expect
to see an increase in demand for EV and hybrid green parts as
warranties expire, but also as insurers continue to move towards
green parts as part of their standard repair process.
We’re creating an end-of-life solution for EV batteries, whether that
be resell, repair, reuse, or recycle. As a vehicle recycler with a mission
to maximise the economic and environmental value of every vehicle
we receive, we have established relationships to provide solutions to
our clients.
The cost of an EV repair is another factor preventing consumer sales.
Auto Trader recently reported that demand for used cars is still high,
with an increase in sales compared to 2022. This is reflective in our
own sales channels, with growth in both our salvage auction and
green parts channels year on year. The number of electric vehicles
coming our way for salvage is also indicative of repair costs driving an
increase in total loss vehicles. We have seen an increase of 55% EVs
compared to the previous year.
Looking at the year ahead, we’re expecting some real change as new
technologies develop and the car market continues to evolve. We’re
yet to experience the knock-on effect from new EV brands entering
the market, mainly from China. We’re anticipating an influx of more
varied makes and models, with new parts adding diversity to our
inventory of green parts.
This is going to come, and we’re already on the front foot in
developing a battery circularity that will feed our resell, repair, reuse
and recycling channels. It will provide a productive and lower CO2 use
for potentially unused batteries that may otherwise be gathering dust
in secure storage.
We’re excited for the year ahead, with a commitment to continue
our lead in the areas that matter most to our clients, and with some
exciting partnerships to bring to the market.
Tom Rumboll,
UK Managing Director for IAA, and CEO of SYNETIQ
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MODERN INSURANCE | 21

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EDITORIAL BOARD
The Impact of EVs on Glass
Repair and Replacement
With over a million sold in the UK since 2002, EVs
are having a significant impact on the aftermarket
glass repair and replacement industry. With
this in mind, National Windscreens have been
investing heavily over the last five years to ensure
our infrastructure is optimised for the specialist
requirements of EVs, and with the introduction of
new automotive technology showing no sign of
slowing down, this will continue to be a major focus
of our investment.
Often, technicians now require more time to complete work on these
highly complex vehicles. Moreover, EVs are, on average, 25% more
expensive to repair compared with petrol and diesel vehicles. New
working practices are also required for high voltage equipment, and
our technology must be continually updated to ensure vehicle safety
systems work as intended after glass replacement.
Almost all EVs now possess Advanced Driver Assistance Systems
(ADAS), which compounds safety considerations and the time needed
to repair or replace damaged glass. Added complexity associated with
working alongside batteries has also brought extra challenges; our
technicians always ensure the car is safe to work on by identifying and
isolating these high voltage systems before repairing or replacing the
glass.
Extended training on working practices, safety and new technology is
now a core part of our technician’s role. Teaching trainee technicians
about electrical awareness, the different sensors mounted on
windscreens or connected to body glass are now pre-requisites for the
job.
The recalibration of ADAS technology is critical to car safety systems,
something that is always required after windscreen replacement
to ensure that the integrity of the vehicle is maintained. Ensuring
all systems affected by the repair or replacement are checked and
calibrated adds time to the service, but this is absolutely crucial for
safety.
In terms of policyholder impact, the primary concern in most cases
relates to the extra time required to undertake glass replacement.
Recognising this, we have invested heavily in providing a stellar
experience for our customers. Comfortable seating with Wi-Fi, desks,
coffee and EV charging are all part of the service we look to provide in
our workshops.
We will continue to inform all of our stakeholders about the benefits
and challenges presented by EVs, ensuring clear understanding of why
so many changes to established practice are necessary. We are doing
this in conjunction with our globally respected partners from across the
automotive industry, as we strive to deliver the best possible experience
for EV drivers.
Simon Hunt,
Commercial & Services Director, National Windscreens
Navigating the Challenges
of Electric and Hybrid
Vehicle Repairs
As the automotive industry continues to evolve,
electric and hybrid vehicles are gaining an increasing
share of the vehicle parc in the UK. This shift towards
alternative propulsion systems brings with it a new set
of challenges, particularly in terms of health and safety
risks and the technical expertise required for repairs.
We recognise the importance of adapting to these
changes, and ensuring that our team are equipped
with the necessary skills and knowledge to handle
these vehicles safely and effectively.
Vehicles with electric propulsion systems can require a different
repair method, and our commitment to safety led us to mandate EV
training for all site-based staff in 2020. This training ensures that our
technicians are aware of the hazards associated with electric and
hybrid vehicles and are equipped to handle them safely. Identifying
potential damage to a vehicle battery is critical, so training for our
drivers and estimating teams is key to preventing unsafe vehicles
being stored at our sites. Properly shutting down and correctly
reinstating the electrical system on the vehicle is critical for the safety
of our team and the customer.
All of our technicians hold a minimum of a Level 3 IMI qualification or
equivalent, with some holding Level 4 qualifications. This ensures that
our team possess the technical knowledge required to handle the
complexities of electric and hybrid vehicle repairs. Two of our sites,
Chester and Skelmersdale, are also Tesla approved bodyshops.
We must also consider the implications of the weight of electric
vehicles, which can be over half a tonne heavier than their petrol
counterparts. This means that our recovery trucks need to be capable
of carrying the heaviest of EVs, and that our lifting equipment in the
workshop is sufficient to safely hold the vehicle.
Aside from safety challenges, the expectation to charge electric
vehicles is another challenge for repairers. Electric and hybrid vehicles
can lose charge over time, and most contracts stipulate that vehicles
must be returned to customers with a minimum charge level, typically
around 40%. Every site has the capability to charge vehicles, but with
rising energy prices, this can add significant costs for repairers. Storing
batteries is a consideration for repairers due to their weight, size, and
sensitive nature.
Although electric and hybrid vehicles present different challenges
for repairers, we believe that our ‘business as usual’ approach plays
a key role in our work with major insurers, as well as the efficiency of
our accident repair centres. Through investing in the right training,
technology, and equipment, it is more than possible to successfully
navigate the transition to commonplace electric and hybrid vehicle
repair.
Overall, the challenges of repairing electric and hybrid vehicles are
significant. However, with the right investment in training, expertise,
and equipment, we are confident in our ability to meet these
challenges head-on. Our commitment to safety and quality ensures
that our customers can trust us to handle their electric and hybrid
vehicles with care and precision.
Allan Wareing,
Technical Training Manager, The Vella Group
MODERN INSURANCE | 23

THE VELLA GROUP
FORWARD THINKING.
While vehicles are becoming increasingly complex to repair,
customer expectations are evolving rapidly too.
To meet these challenges, we’re making sure we’re
ready to repair all types of damage by delivering
consistently outstanding, digital customer service,
minimising claim cycle times, and controlling costs.
The Vella Group is one of the largest accident repair
groups in the UK. Our highly skilled, electric/hybrid
trained technicians and experienced support teams
are committed to delivering a consistently outstanding
claims experience to your customers, getting them
back on the road quickly and safely.
Future-focused, we’re investing in the latest repair and
calibration equipment, alongside in-house training and
apprenticeship programmes which, coupled with our
digital customer platforms, ensure that we’ll be there
to support owners of the current and next generation
of vehicles.
For more information, get in touch today and see how The Vella Group can support your customers’ needs.
Tom Hadfield M: 07867 332696 E: thadfield@thevellagroup.co.uk
www.thevellagroup.co.uk

EDITORIAL BOARD
From Birmingham, Alabama,
to Birmingham, England…
talking REHAB all the way!
Born in Birmingham, Alabama, I moved
to the UK in 1994 as a nurse case
manager, with the vision of introducing
case management to the personal injury
industry. Little did I think that all these
years later, case management delivery
would be thriving, growing, and going
from strength to strength.
In those early days, the insurance market was
uncertain of this nurse from Alabama. I recall one
meeting with a senior insurance director, asking
me to ‘tell him all about case management in 25
words or less’. That was long ago, and now case
management has the Institute of Registered Case
Managers (IRCM), where I proudly sit as one of the
Directors.
In 2004, RTW embarked on the first training
programme for case managers accredited through
Middlesex University, delivering programmes to
NHS District Nurses. That was a little too early
for good traction in private sector training;
however, case management has now become
instrumental in helping injured clients regain their
lives. The IRCM is working tirelessly to develop a
professional pathway for case managers in the UK.
We continually strive to evolve our rehabilitation
services at RTW Plus Limited, ensuring our
rehabilitation clients recover and reach their
maximum functional capability in order to return
to pre-injury levels, and to resume their life goals
and leisure activities. We do this by working closely
with the NHS and local authorities, alongside our
work in the personal injury marketplace.
RTW is proud to pioneer treatment in chronic
pain programmes that help people to understand
the mechanisms of pain, be it emotional or
physical, targeting the deeper areas of the brain
where sensory-emotional aspects of pain are
stored. Through neuroscience education of our
rehabilitation clients and an EMDR pain-focused
approach, patterns of brain activity which maintain
pain are engaged, and the client trains their brain’s
response to stress and pain to reduce its negative
impact.
Personally, I remain committed to supporting those
who have experienced the trauma of accidents or
long-term conditions, helping them to reach their
recovery potential and maximise their quality of
life. I am proud of the buzz we are creating at RTW
as we embark on an exciting new year in 2024,
with new projects and new aspirations in this
ever-changing world of technology and discovery.
I am delighted that Modern Insurance Magazine
invited me to join their Editorial Board!
Deborah Edwards,
Chief Executive Officer, RTW Plus
Modernise your
communication with ATCX
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MODERN INSURANCE | 25

EDITORIAL BOARD
EVs: The Age of
Uncertainty
The EV learning curve is steep. The unknown drives
nervousness for insurers and policyholders alike,
increasing risk, cost, and effort as a consequence.
This sense of ambiguity has been fuelled further
by additional factors, such as wavering consumer
confidence, an unstable government, infrastructure
issues, specialist costs, a lack of consistency in
technology, battery life, recovery, and storage
concerns. With this in mind, many insurers are
being extremely careful about what they offer in
terms of motor coverage at the moment.
Nevertheless, understanding EV is critical to forming a futureproof
business strategy – whether you approach this as an insurer, a
standalone repairer, or a repairer that forms part of a manufacturer
program. Of course, EV is gradually becoming ‘normalised’ as more
repair sites become EV aligned. However, a surge in EV sales could
cause imbalance if investment isn’t carefully maintained and enabled
at the right pace.
EV technology also poses a number of challenges. Battery safety,
monitoring and recharging are big questions, and sure to get bigger
as batteries age. We wouldn’t expect repairers to have a fuel pump,
for example, but we will almost certainly reach a point where they
will all need EV charging capability, maybe on mass. This growth in
infrastructure needs careful consideration as we see more EV drivers
on UK roads.
Moreover, some EV components are unique and likely to always
remain more expensive - the most extreme of which is the battery. An
EV losing around 70% of its value in the first three years is concerning;
we must expect higher total loss ratios if costs remain high, and this
trend on value remains unchecked. A mitigation in cost may come
in the form of increased parts support by manufacturers for aging
models, but only time will tell.
In terms of risk models, we have more than enough data to accurately
know what the average repair cost looks like between EV and ICE
vehicles. However, collision frequency, changes in liability profiles
and the risk of thermal runaway pose just a few of the additional
factors that come under scrutiny at the moment, with little historical
comparison. Moreover, new design elements and a general lack of
consistency in the technology will continue to bring challenges to EV
repair, supply, and cost.
Ultimately, insurer concerns around risk will only by kept in check
through open collaboration. The days of everything being insurable
and coming good in the averages are long gone, and as a united
industry, we must not wait for the problem to become chronic before
we respond.
Chris McKie,
Chief Executive Officer, Vizion Network
A World Where Difference is
Valued and Celebrated
On March 8 2024, Crawford celebrated
International Women’s Day in support of this
year’s theme, #EmbraceEquity. We recognise
that everyone has a crucial part to play
in building a gender-balanced world, and
Crawford employees are no exception.
International Women’s Day marks a call to action for accelerating
gender parity, a world free of bias, stereotypes and discrimination. A
world that’s diverse, equitable, and as inclusive as possible.
We know that leadership positions in our profession are male
dominated, but that imbalance is changing. Diversity, equity and
inclusion are increasingly viewed as a strategic imperative by a
growing number of companies in our industry.
Crawford has long recognised the value of equity in the workplace,
proudly celebrating the legacy of Virginia Crawford, the company’s
first female director. Presently, Crawford has close to 50%
representation combined of women and ethnic minorities on its
eleven-strong board, and proudly joins other leading companies who
have elected at least three women directors. In addition, our global
senior management team is over 30% women and minorities, and we
hope to continue this momentum.
International Women’s Day is a time to celebrate women’s achievements,
and for this reason, we launched the global Virginia Crawford Awards
back in 2023. Employees nominate a colleague in the following
categories:
Inspirational Leader Award – An exceptional role mode or leader.
A person who has demonstrated exceptional vision and leadership
by leading women. This individual should be educating, inspiring, and
supporting of their female colleagues; they should also be a role model
to all employees in insurance.
Agent of Change - The ultimate ally.
A person who has acted as an active role model and is committed to
encouraging, advancing, sponsoring, or championing the progress of
women and all employees in Crawford and beyond.
The award categories highlight exceptional employees who embody
Crawford’s values, advocate for inclusion, and champion the progress of
women in the workplace.
Winners were announced on International Women’s Day, 8 March 2024.
Lynn Cufley,
Senior Director, Marketing Communications, Crawford & Co.
MODERN INSURANCE | 27

Be a part of
something bigger
Helping people. Innovating an industry.
At Crawford, employees are empowered to grow, emboldened to act and inspired to innovate.
Our industry-leading team pioneers new solutions for the industries and customers we serve.
We’re looking for the next generation of leaders to take this journey with us.
You’ll be empowered to help people when they need it most, to work on things that you’re
passionate about and your ideas will matter.
To create the future you want, look at the careers available at Crawford:
www.crawco.co.uk/about/careers or contact recruitment@crawco.co.uk
www.crawco.co.uk
Crawford & Company is an equal opportunity employer.

EDITORIAL BOARD
EV Presents a
Distinct Set of
Challenges
Different technologies, repair processes and
parts availability are placing new pressures
on repairers and insurers alike. It’s well
documented that complexities associated
with EV transition drives cost into the repair
process, with the latest figures from the ABI
(backed by Thatcham Research) suggesting
EV claims are 25.5% more expensive compared
with internal combustion engine (ICE)
equivalents, and taking 14% longer to repair.
Both of these factors impact premiums and risk
appetite.
The evolving maturity of the EV data available presents its
own challenges to risk profiling and pricing sophistication,
which can lead to conservative pricing strategies or, as we’ve
seen with some insurers, refusing cover altogether. The
high-performance output of EVs means quicker acceleration
capability, which presents a higher risk of incidence, and with
advanced technology and parts, a more expensive repair or
replacement in the event of a claim.
As industry bodies call for the insurance industry to better
understand the fleet risk associated with EVs, and as more and
more drivers start to make the switch, insurers will have no
option but to keep learning and adjusting.
The steady incline of EV adoption (our own portfolio saw
just 21% in 2023) is
placing demands on repairers in more ways than that which
is immediately obvious. There’s the new motor and battery
hardware to consider, but also some added complexity in an
entirely new process that starts from the immediate aftermath
of a collision.
An EV incapacitated by a crash, for example, needs a flatbed
recovery – electric motors don’t allow for towing. Then there’s
the required storage regulation until the vehicles are deemed
safe for repair (in case the battery packs are compromised
and trigger a chain reaction of combustion). Plus, EV drivers
are more likely to expect a ‘like-for-like’ zero-emission
replacement vehicle, rather than a courtesy car with an
internal combustion engine.
Consider the core construction of the vehicle. An EV
might look the same as its ICE equivalent, but some of its
panels and bumpers are likely to be made from different
lightweight materials - such as aluminium, plastic or carbon
composites – resulting in a myriad of different repair
techniques.
We’re fortunate to work with a strong supply chain who
continue to make major and ongoing investment in
sophisticated technology. A great deal of time also goes
into training technicians, developing the specialist skills
and knowledge to deal with the associated rising repair
complexities, as well as the deluge of new makes and
models coming to market.
Delays in the availability of replacement parts for EVs have
led to a catalogue of horror stories as manufacturers focus
on meeting the demand for new battery-powered models,
rather than creating robust aftersales supply chains and repair
methodologies. We’ve seen positive progress in this area over
the last 12 months, with diversification in our parts provision.
This typically cascades from OEM parts to independent
aftermarket options, and ‘green’ parts salvaged from other
vehicles via specialists, alongside a robust ‘repair over replace’
strategy since the adoption of new techniques came into
effect, such as plastic welding and glue-pull technology.
This process expedites repairs without affecting the overall
infrastructure of the vehicle.
Ultimately, the entire EV supply chain is working to find
solutions to the current challenges. Progress is being made,
but not at the same pace in all areas.
Dave Parry,
Commercial Director, FMG
The only AI-powered call compliance
monitoring software for insurance firms
Over 30 million calls monitored, transforming
customer service and ensuring compliance
MODERN INSURANCE | 29

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’.
TAILORED SOLUTIONS
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Today, with leading insurance
companies, solicitors, self-insurers
and claims handling companies
among our clients, our founding
principles remain just as important to
us as they did all those years ago.
Proud of our heritage, clear fixedprice
services and outstanding fraud
savings rate, we deliver exceptional
value.
Believing that being ‘good’ really
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service level agreement we establish
with each client as the absolute
minimum standard we must achieve.
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Our portfolio of services is regularly
reviewed to ensure we provide
comprehensive, up-to-date and
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importantly, each service is tailored to
clients’ specific needs and fully
compliant with the jurisdiction in
which we operate.
THE INTELLIGENT CHOICE
With highly experienced, qualified and
licensed investigators, sophisticated
information databases and a
management team made up of leading
counter-fraud specialists, we offer
true insight, capability and expertise.
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,
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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:
Sue Brown
Chair,
Motor Accident
Solicitors Society (MASS)
Dr Matthew Connell
Director of Policy
and Public Affairs,
Chartered Insurance Institute (CII)
Thomas Hudd
National Technical Manager,
National Body Repair Association
(NBRA)
Mike Keating
CEO,
Managing General Agents’
Association (MGAA)
Pete Allchorne
President of the Forum of Insurance
Lawyers (FOIL) and Partner, DAC
Beachcroft
Dr Jeffrey Wale
Technical Director,
Forum of Insurance Lawyers (FOIL)
MODERN INSURANCE | 31

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

ASSOCIATIONS ASSEMBLE
Sue Brown
Title: Chair
Association: Motor Accident Solicitors Society
(MASS)
A Fundamental
Access to Justice
It is fast approaching three years since the
Civil Liability Act introduced a fixed tariff
of compensation for whiplash injuries. With
that milestone comes the first statutory
review of the tariff by the Lord Chancellor.
An upwards adjustment for the historic highs of
inflation over the last two years is inevitable, but a great
deal has changed and a more fundamental review is
needed. There has been a dramatic reduction in the
number of motor accident claims, despite the number
of road accidents. Motor insurance premiums have
increased by well over 50% for comprehensive cover,
far outstripping inflation.
The increase in the Small Claims Track Limit has
led to an exodus from the claims market, with
dramatically fewer firms offering support. It is simply
no longer financially viable to support low value
claims, exacerbated by the lack of a fully functioning
API system denying much needed efficiencies. This
is compounded by widening delays for represented
claims, compared to admitted liability self-representing
claims. There’s also the increasing backlog of
unresolved cases in the OIC, and court delays are
growing, with record highs despite fewer cases entering
the system. Claims management for professional
users, both claimant and defendant, is still a slow, time
consuming and expensive process.
Injured motor accident victims face a growing deficit
in accessing justice. Despite fewer available options
for accessing legal support, less than 10% of OIC users
are the self-representing claimants for whom the
system was designed and built. The complexity of the
process means that many self-representing claimants
simply give up, with perfectly genuine claims not being
pursued.
In 2021, the tariff was set absurdly low in the first
place, and little has changed since it was first set out
in draft form by the insurance industry in 2013. The
review says that it will assess changes to the claims
sector and the wider economic background as part of
this process. The MoJ undoubtedly intends to slap on
a modest inflationary increase and be done with the
matter, but justice
dictates that the
review should be far
more fundamental
than this.
Dr Matthew Connell
Title: Director of Policy and Public Affairs
Association: Chartered Insurance Institute (CII)
Addressing the
Expense of EV
Insurance can’t exist without trust, but
winning trust does not always mean taking
the most popular course of action in the
short term.
Right now, insurance is significantly more expensive for
electric vehicles than it is for more traditional vehicles.
Thatcham, the automotive risk experts, have suggested
that electric vehicles can cost 2.5 times more to repair
than conventional vehicles – and that figure may rise
once insurers obtain the full picture of every aspect
of repairing EVs. This disparity could even slow the
transition to greener, electrically powered cars.
But insurers will not win trust by setting unsustainable
prices. The backlash created when prices are corrected
to reflect the true risks will be far worse in the long run,
as it was with flammable cladding.
Instead, insurers must have a frank, evidence-based
conversation with consumers and manufacturers about
what is causing higher prices for electric vehicles, and
what can be done to mitigate these risks.
Insurers began this process in July 2023, with a report
from Thatcham that clearly identified the key factors
influencing these higher expenses. This included a lack
of affordable or available repair solutions, inadequate
post-accident diagnostics, and limited availability of
recycling and reusability options.
However, Thatcham also reported that ‘most, if not
all, of the outcomes highlighted by the report could
be avoided with the right solutions in place’, covering
battery cost, diagnostics, and the ‘creation of a
sustainable ecosystem for battery repair, refurbishment,
paths to second life applications, and cost-effective
recycling,’
As the cost of repairing electric vehicles comes down,
controversies around insurance will subside. But for that
to happen, insurers have to maintain the discipline of
good risk management, and tell manufacturers what
they need to hear, not just what they want to hear.
MODERN INSURANCE | 33

ASSOCIATIONS ASSEMBLE
Thomas Hudd
Title: National Technical Manager
Title: National Technical Manager
Association: National Bodyshop Repair
Association:
Association
Nationwide Bodyshop
(NBRA)
Repair
Association (NBRA)
The EV Conundrum
Traditional bodyshops have been faced
with a series of challenges when it comes
to adapting their operations to the growing
prevalence of electric vehicles.
These challenges stem from several factors unique to
EVs:
Complexity of Components. Electric vehicles have
significantly different propulsion systems compared to
traditional internal combustion engine (ICE) vehicles.
They have fewer moving parts, but the components
they do have - such as batteries, electric motors, and
power electronics - are more complex, and require
specialised training and equipment to repair.
Specialised Training and Tools. Repairing EVs requires
specialised training and tools that many traditional
bodyshops may not possess. Technicians need to
understand high-voltage systems, battery management
systems, and other electric-specific components.
Without proper training, attempting repairs on EVs can
be dangerous, and may void warranties.
Access to methods and information. Obtaining
methods for EVs can be challenging, especially for
independent bodyshops. Many manufacturers tightly
control access to repair information, which can make
it difficult for independent repairers to compete with
authorised dealerships and service centres.
Regulatory Compliance and Safety. Repairing EVs
comes with additional safety concerns due to
high-voltage systems. Technicians need to follow
strict safety protocols to avoid electric shock or
other hazards. Additionally, there may be regulatory
requirements related to handling and disposing of
lithium-ion batteries and other EV components.
Addressing ‘the EV conundrum’ requires bodyshops
to invest in training, tools, and infrastructure to
effectively repair electric vehicles. Collaboration
between manufacturers, independent repairers,
regulatory bodies and work providers is also crucial in
order to guarantee access to parts and information,
and to establish industry standards for EV repair and
maintenance.
The NBRA have written to
the Department for Transport
(DfT) regarding first
responder protocol. We have
also met with the Association
of British Insurers (ABI), who
mirror our concerns and the
measures that need to be
reviewed.
Mike Keating
Title: CEO
Association: Managing General Agents’
Association (MGAA)
MGAs set to grow
Broker Partnerships
in 2024
2023 was undoubtedly a challenging year
for MGAs, with many having to adapt
their business model in order to address a
struggling economy and ongoing political
uncertainty.
However, these challenges did provide MGAs with an
opportunity to demonstrate their ability to maintain
best-in-class service to the broking community, even
during difficult and uncertain times.
We know that this reliability and flexibility is highly
valued by brokers. This is why we’ve seen MGAs
continue to grow their broker distribution in recent years,
cementing themselves as a permanent fixture in brokers’
placing strategy.
This is not only due to the reliability and natural agility
of MGAs; it’s also a testament to their continued drive
to provide an excellent service, which larger insurers -
often tied to slow, clunky legacy systems - are just not
equipped to compete with.
This focus, combined with falling interest rates and
inflation, should enable the MGA community to feel
quietly optimistic about the coming year. After all, they
are best placed to attract the attention of brokers and
increase the amount of business that they do together!
As the market’s trade body, the MGAA is totally
committed to facilitating connections between MGAs
and brokers. This is why we held our flagship MGAA
Broker Exchange event, formally known as ‘Meet the
Market’, on 5th March in St Paul’s, London.
This annual event is always the perfect opportunity
for regional brokers to network with some of the most
exciting, dynamic MGAs operating in the market today,
building new relationships and strengthening existing
ones whilst exploring the vast number of business
opportunities available to them. Entry is free for all
brokers, and if you missed it this year, there’s always
more information to be found on the MGAA’s website
and social media channels.
MODERN INSURANCE | 35

Pete Allchorne
Title: President and Partner
Association: Forum of Insurance Lawyers (FOIL)
and DAC Beachcroft
Dr Jeffrey Wale
Title: Technical Director
Association: Forum of Insurance Lawyers (FOIL)
Driving Change in Uncertain Times
The fact that we live in uncertain times is no question. Global uncertainty persists as a result of the
Ukrainian/Russian and Israelis/Palestinian conflicts. The risk of contagion remains relatively high,
with the US/UK already being drawn into conflict to keep open shipping routes in the Red Sea. The
outcome of the recent Taiwanese election is likely to fuel further geopolitical tension in the Taiwan
Strait, and in international relations more generally. Ongoing US election turmoil and legal action
against Donald Trump will no doubt continue to dominate media headlines throughout 2024.
Domestically, things do not look any more certain. We have
a government that is actively taking on contentious issues
– from Rwanda to Justice for the Subpostmasters - as we
make the inexorable run-up to a General Election, likely to
be sometime in the second half of 2024. This wider context
means that domestic issues may not always be prioritised in
an orderly or planned fashion.
On the legal front, the Ministry of Justice (MOJ) and His
Majesty’s Courts and Tribunals Service (HMCTS) look to
be very busy in 2024, with the continued rollout of the
digitisation project; the ongoing challenges of physical
dilapidation in the court estate, and the forthcoming OIC
tariff and Personal Injury Discount Rate reviews in the
middle of the year. Inflationary pressure looks set to persist,
with possible ramifications for the next edition of the
Judicial College Guidelines for the Assessment of General
Damages in Personal Injury Claims, and the Green Book
equivalent in Northern Ireland. In addition, the mixed injury
appeal has recently been heard in the Supreme Court,
something which has been much anticipated by users of the
Official Injury Claim portal.
Insurers will remain under scrutiny as they continue to
implement the FCA Consumer Duty and explore ways to
deliver good customer outcomes. More generally for clients
and organisations, there is likely to be an ongoing focus on
the culture of business life, and how corporates can address
their obligations to deliver better outcomes on social justice,
diversity and inclusion. Transparency and good governance
are likely to be key themes for lawyers and their clients.
Overall, the domestic market is faced with a business and
operational environment that presents significant challenges,
but also opportunities for organisations that focus on
thought leadership and flexible ways of doing business.
For example, there are clear opportunities to embrace
the benefits that new technologies such as AI (including
generative AI) may offer for both the administration of
justice and business operations more generally.
Court of Appeal decision in Churchill v Merthyr Tydfil
County Borough Council has added to the volume in
this space, holding that a court may order the parties to
engage in a non-court-based dispute resolution process.
Furthermore, the MOJ is set to introduce compulsory
mediation in liquidated claims worth up to £10,000,
and has committed to integrate mediation into
higher-value, complex claims, something which will
require the engagement of third-party providers.
The Civil Justice Council’s (CJC) recent report into the role
of pre-action protocols (PAPs) proposes mandating some
form of dispute resolution process before proceedings
can be issued. Their recommendations place a greater
emphasis on the pre-action stage of civil justice, with
further extension of digitisation into the pre-action space.
Recognising that public funds are limited, the CJC sees a
role for private portals to assist parties in meeting their
pre-action obligations which, if court proceedings are
required as a last resort, can engage seamlessly with the
Court Service.
Seen together, these proposed reforms represent a
significant shift towards the resolution of disputes through
non-judicial and potentially private means. From the
perspective of the Forum of Insurance Lawyers (FOIL),
there’s an ongoing objective to identify priorities, to look
beyond the headlines, and for any decision-making or
recommendations to be grounded in clear analysis and
cogent evidence. Critically, the voices of our members and
the insurers we represent, as well as court users and key
stakeholders, must be heard in this reform agenda.
Whichever party forms the next UK government, the lack
of available funding for the justice sector will remain a
persistent issue. Despite reduced numbers of issued claims
and dwindling trial volumes over the past two decades,
significant County Court backlogs remain, exacerbated
by the recent COVID-19 pandemic. After a significant
programme of court closures, the MOJ is still struggling
to address the poor condition of the court estate. It is
therefore unsurprising that the possibility of delivering civil
justice without the need for state resources is an attractive
prospect for the policy agenda.
There is an increasing amount of noise surrounding
alternative methods of dispute resolution as a means of
delivering justice more quickly and efficiently. The recent
MODERN INSURANCE | 37

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THE
FRAUD
BOARD
In my previous Welcome message, I mentioned that insurance
fraud forms part of the wider UK fraud epidemic, with fraud
accounting for more than 40% of all reported crime. The
overwhelming majority of those frauds are now perpetrated
online, and often enabled by technology.
Technology helps insurers to get closer to their customers and deliver a
smoother customer journey. It also plays a prominent role in counter fraud,
where the industry’s strategy is increasingly digital, data-led and agile.
However, sophisticated fraudsters are simultaneously leveraging technology
to scam insurance customers, including the threat posed by fraudsters’ use of
AI.
The Government is alive to the increasing threat posed by online fraud.
Insurance is no exception - ghost brokers are offering fake motor insurance on
social media platforms, and clone investment scams continue to be promoted
online.
The Association of British Insurers (ABI) was delighted when our lobbying
efforts were rewarded by the (now enacted) Online Safety Bill being
extended to cover scams. However, the Act is a broad and complex piece
of legislation. It will not provide a ‘quick fix’ for online scams because the
regulator, Ofcom, must publish codes of practice before it can meaningfully
exercise its enforcement powers, something which is unlikely to happen until
2025.
Given this delay, the publication of the Online Fraud Charter is a landmark
development. Reassuringly, it has been signed by all the largest companies in
the tech sector, including Google, Instagram and Facebook.
While comprehensive, the Charter contains commitments which are merely
voluntary. We’ll get a better idea of the extent to which they’re being
respected once the transitional period ends in April. But ministerial oversight
of the Charter, via the Joint Fraud Taskforce, provides some comfort that the
platforms will step up and help to achieve the Government’s aim of making
the UK “the safest place in the world to be online”.
Until next time,
Mark
Mark Allen,
Assistant Director, Head of Fraud and Financial
Crime, Association of British Insurers (ABI)
MODERN INSURANCE | 39

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THE FRAUD BOARD
M.O.M.’S THE WORD:
HOW AI WEAPONISED
FRAUDSTERS COULD TREAT
DIGITAL INSURERS
AS CASH ATMS
The past is always a great pointer to the future.
I stumbled into my first organised, digitally enabled insurance
claim fraud some twenty years ago.
We’d suspected something was not quite right with a repairer,
and there was our investigation team, a mix of engineers and
seasoned fraud investigators, now on-site chatting to bodyshop
staff. Confirmation was quickly obtained about the suspected
falsified images of damage, with admissions that chalk had
been used on side-by-side panels to fabricate the need for an
‘adjacent panel blend’. So far, so very much the look and feel of
traditional fraud.
Among the interviewees was a young apprentice, who was now
proudly explaining how he’d used MS Paint to falsify cracks in
bodywork pictures. True, this wasn’t rocket science, but a solid
example to demonstrate that if a tool can be used for nefarious
purposes, it surely will be.
Put another way, if the method allows, and opportunity and
motivation exist, the emerging technology will almost certainly
be used for fraudulent purposes.
Insurance fraud and cybercrime continue to converge
Who else remembers the evolution of application fraud?
In the last millennium, as we started to use techniques such
as data matching on policy application data, insurance
fraudsters moved onto the use of stolen identities. As we began
embedding the use of data enrichment and identity scores
in fraud prevention, fraudsters shifted to the use of synthetic
identities. Then, as we moved to stop this ‘Frankenstein fraud’,
our foes moved to account takeover,
in a disturbing crossover of traditional insurance fraud and
cyber-enabled crime.
And while we can control fraud that directly attacks our
processes, we have far less ability to control AI-enabled
fraud targeting our customers. It’s reasonable to expect
volumes of compromised data, specifically login information,
to increase – with cyber-enabled attacks such as credential
stuffing only likely to rise.
While shallowfakes and deepfakes are the topics of the
moment, let’s pause and consider our ever more digitalised
claims journey – not just in claims, but also along the
end-to-end lifecycle. As we move more processes across
servicing and claims handling into the digital channel,
our online consumer facing capability will increase in
attractiveness to the fraudster. Poorly designed security
controls risk allowing weak straight-through processing
procedures to be targeted and abused. Our vulnerabilities to
Generative AI therefore risk being less around direct attacks
using documents or images, and more in the downstream
impact of Generative AI-enabled use of compromised
consumer data. This fuels customer credential compromise,
account takeover, and automation of fabricated claims
submission.
For now, we may take some comfort in the fact that other
sectors in financial services offer a higher cash-out and
remain the more likely targets. But as other sectors improve
their controls, and we add more value behind the digital wall,
we risk becoming a far greater target of choice.
Experience tells us that emerging Methods will most surely
be adopted where there’s Opportunity and Motivation. When
it comes to Generative AI, ‘M.O.M.’ is most certainly the word.
With this sort of inevitable evolution in mind, it’s easy to see
how misuse of Generative AI will surely seep into insurance
fraud. I think we’ve all been reading the huge debate about
whether misuse of AI already poses material credible threats to
the insurance sector; shallowfakes, deepfakes, voice emulation
and dashcam footage manipulation are all amongst many other
topics of discussion. For me, we know that if the cashout is
worth it, the bad actors will certainly make use of AI tools to
target insurance.
But maybe these are not the most pressing threats.
The threat lies perhaps not in what we might consider
obvious, direct insurance fraud. It materialises instead in the
downstream impact of Generative AI-enabled consumer data
compromise, which most certainly is recognised as an
in-progress threat.
There’s broad confidence that automation and Generative AI
is already enabling cyber-related fraud. Phishing emails can
now be iterated at scale, with Generative AI able to produce
ever more convincing text and graphics.
Matt Gilham,
Director, Whitelk
MODERN INSURANCE | 41

AD

THE FRAUD BOARD
DEEPFAKES:
Jonathan THE
Drake
NEXT
FRONTIER OF FRAUD
FOR INSURERS, AND
HOW TO FIGHT BACK
You can’t browse LinkedIn or attend an insurance
conference nowadays without encountering
discussions about ‘deepfakes’. And for good reason
- this emerging threat is gaining serious traction
within the industry.
Deepfakes - a combination of ‘deep learning’ and ‘fake’ - use
artificial intelligence to produce ultra-realistic fake videos or
images that are practically indistinguishable from genuine
content. One recent high-profile example was a ‘deepfaked’
video of Tom Cruise that went viral on TikTok, highlighting
how convincing deepfakes can be.
With the number of deepfake videos doubling every six
months since 2018, this problem isn’t going away anytime
soon 1 . This exponential growth underscores deepfakes’
increasing potential for fraudulent activity, which already
costs insurers billions every year. The true scale of the
problem isn’t fully understood, and the evolving nature of
deepfake technology only amplifies the need for insurers to
be proactive in their response.
By manipulating video footage or images, deepfakes can
enable a range of fraudulent insurance claims - from staged
accidents to faked injuries. As a parent to a 13-year-old who
can easily create deepfakes without needing technical skills,
it’s clear that generating convincing fake content is now
within anyone’s reach.
So, how can insurers protect themselves against this
insidious threat?
Beyond internal measures, insurers must actively engage in
industry-wide initiatives to collectively tackle the deepfake
challenge. Information-sharing platforms, coupled with
industry conferences focused on raising awareness of
emerging threats, can contribute to a more comprehensive
understanding of the evolving landscape of deepfake fraud.
Deploying AI technology
Technological advancements can be a double-edged sword;
as much as fraudsters exploit technology, insurers can use it
to aid in the detection of deepfake fraud. But the trick is to
try and stay one step ahead of evolving trends, which isn’t
always easy without the right technology.
As a partner to the insurance industry, Verisk Claims are
already developing technology to detect deepfakes,
assisting insurers with their fight against this threat. Our
‘Anti-Fraud One’ suite of products uses a blend of deep
data, AI technology and our expertise within the insurance
market in order to help insurers in their fight against
fraudsters.
As the insurance industry faces the challenges of the digital
era, addressing the threat of deepfake fraud is a strategic
imperative. Likewise, as deepfake technology grows more
advanced, so too must an insurer’s defences against this
emerging fraud threat. By combining vigilance, protective
technologies, collaboration and education, insurers can
develop organisational resilience against this challenge.
1
https://cybernews.com/privacy/report-number-of-expert-crafted-videodeepfakes-double-every-six-months/
Build awareness internally
The first critical step involves building deepfake awareness
within your own organisation. Educate your staff through
training sessions and open discussions about spotting
manipulated media. Establish clear policies for handling
deepfake threats that may arise. Run internal simulations to
create your own ‘deepfakes’, and test your response plans.
Building a culture of awareness and vigilance is key.
At Verisk Claims, we’ve created an ‘AI sandbox’ for
experimenting with deepfake tech. This equips our staff
to recognise risks, while also using the tech responsibly to
enhance things like marketing.
Data sharing is key
Creating a collaborative environment that encourages
employees to share insights and suspicions regarding
potential deepfake threats can strengthen an insurer’s
defence. Building this network of awareness can serve as
an early warning system, helping to detect and mitigate
potential risks before they escalate.
Kaye Sydenham,
Product Manager, Anti-Fraud, Verisk
MODERN INSURANCE | 43

THE FRAUD BOARD
LEVERAGING
THE POWER OF AI
FOR SMARTER CLAIMS
PROCESSING
Dr. Luke Abberley, Senior Data Scientist and Team
Leader at Synectics Solutions, reports on the ways
in which Precision, their award winning predictive
analytics software, can be harnessed in claims
processing and fraud prevention.
Innovation using Weighted Scores for Decision Making
Weighted scoring is the latest innovation in AI predictive
analytics, using a pragmatic approach in prioritising
workloads based on risk. Precision assigns a weighted score
from 0-1000 for each claim, enabling clients to prioritise
higher value cases with greater financial exposure.
For example, a £500 claim scoring 600 would previously
have been worked before a £10,000 claim scoring 599.
This simple yet clever innovation allows teams to optimise
limited resources during high volume times, saving one
insurer an additional £650,000 per year in their claims
lifecycle above their already powerful Precision model.
Reshaping the Future of Claims Processing
By providing access to sophisticated AI capabilities,
Precision looks set to fundamentally reshape how insurers
process claims and manage risk. It represents an exciting
case study in how data science and automation can create
win-win scenarios – claiming revenue back for clients
while providing fairer, more consistent outcomes for
policyholders.
Fraud teams are taking advantage of Precision by
optimising limited resources to stop more fraud and fast
track genuine claims. Plus, as the model learns more
about the customer (and as SSL labs experiment with
functionality), the weighted scoring system facilitates
further tailoring to client requirements, driving maximum
performance and efficiency in claims processing.
Driving Precision’s weighted scores is an artificial
intelligence engine trained on millions of historical
datapoints. By analysing vast datasets, the system can
benchmark the expected loss and risk associated with any
new claim in seconds.
Customisable Strategies for Targeted Results
The true efficiency lies in how clients utilise these
AI-powered insights. By combining Precision with Outcome
Orchestration capabilities, clients can tailor their fraud
strategies to specific brands with more confidence and
accuracy. The results have been game-changing – one client
achieved close to a 60% claims conversion rate, double the
figure that was in place before Precision was integrated into
their claims process.
Continuous Innovation Through AI
Precision’s AI-driven approach is also elevating fraud
prevention to new levels of efficiency and accuracy, with
ample room for innovation even now as the system’s
intelligence continues to evolve.
With ever-growing training datasets and new predictive
variables added, Precision’s weighted scores promise to
become even more precise and valuable over time. Just by
using the weighted scoring system, one insurer was able to
save an additional £140,000 over the course of a year.
Dr. Luke Abberley, BSc. PhD,
Senior Data Scientist and Team Leader,
Synectics Solutions
MODERN INSURANCE | 45

THE FRAUD BOARD
BEHIND THE MASK:
UNVEILING SYNTHETIC
IDENTITIES IN INSURANCE
FRAUD
Synthetic identities are designed to appear genuine,
and therein lies the challenge for insurers. Changes
in the distribution of insurance products in the
21st Century means that the digital fraudster does
not have to meet or converse with their insurer,
manufacturing an environment for the creative
digital fraudster to prosper.
Fraudsters will combine real and fake information to
fabricate a new, seemingly legitimate identity, making
synthetic identities hard to detect. The prevalence of stolen
information available for sale in the dark corners of the
internet means that there is plenty of real information for
the creative fraudster to use as the basis for their bogus
identities.
In the UK, we do not have a unified system of national
identity. Indeed, there is uproar when politicians suggest
the implementation of National Identity cards. Without such
a system of robust identities, insurers rely on combining
their own records with third party identity and fraud data
providers in order to verify customers’ existence. This creates
gaps for the creative fraudster to layer a fictitious name on
a genuine address or other personal information, where
they can then apply for credit and make small transactions,
forming a history that adds credibility to the false identity.
Once the identity has credibility, they will then seek to use it
in a variety of illicit ways.
So, how can insurers start to combat these fictitious
identities? There are some key themes that chime in with
the findings of our soon-to-be-launched fraud report (Fraud
Insights 2024: Emerging Trends, Threats, and Risks to the
Global Insurance Industry), where hundreds of insurance
professionals gave their input.
Insurers need to consider the key building blocks that will
help them.
1. Without clean, robust data across policy and claims, the
insurer will be vulnerable to exploitation by the fraudster.
Our survey respondents’ top concern was internal data
quality, mentioned by 61%. With the tightening of global
privacy laws, this is especially relevant. As AI utilisation rises,
without firm compliant foundations of data, insurers may
find themselves under scrutiny for the outcomes of the AI
models.
2. Third party data is key. Our survey’s second highest
response, mentioned by 53% of respondents, relates to
accessing external data. Insurers should look to identity
verification data vendors with the broadest base of data
capture in order to ascertain the entities’ footprint in
society. Address history, or a lack thereof, combined with
your own data is a key indicator.
3. Linking into fraud databases. Insurers should not restrict
themselves to insurer data alone, as the fraudster is likely
to attempt using the entity to extract money from credit
providers. CIFAS would be a good example.
Where such an entity is found, specific feedback to fraud
models is vital, particularly around behavioural patterns, in
order to ensure that this pattern can be used to spot similar
behaviour in the future.
An insurer should be mindful of synthetic identities
across both the policy and claims lifecycles. Perhaps
even scarier, this is not just a personal lines problem. The
ease with which companies at Companies House can be
created using these synthetic identities compounds the
problem of detection. A robust, data-led defence is key
to prevent and detect this fraud typology.
Having built that foundation, insurers can use data analytics
across policy and claims to spot for inconsistencies in the
data, and use network analytics to spot any connections
in the data to other entities. Using historic data is key to
this process; subtle changes or accumulations in addresses
should be picked up by algorithms. Ironically, it is often the
absence of matches that can help you find the potential
fraud; after all, the identity was crafted to look legitimate.
Have you seen a quote or policy from this person before?
Martyn Griffiths,
Sales Manager UKISA, FRISS
MODERN INSURANCE | 47

Combat Fraud:
Uncover the Real Identities
AD
Strengthen your identify verification processes
with Profile Finder+. Match applicants’ contact
details with their online footprint.
Don’t be a victim of fraud
- spot the fakes with confidence.
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EMBRACING
OPEN-SOURCE
THE FRAUD BOARD
INTELLIGENCE (OSINT)
Insurers that embrace OSINT throughout the policy
lifecycle stand to reap the rewards through a less
risky book of business.
With the advent of newer and more sophisticated fraud
techniques, it’s becoming harder and harder for insurers
to avoid risk in their book of business. These methods are
designed to circumvent traditional due diligence; insurers
must embrace new practices and technologies such as
open-source intelligence (OSINT) throughout the policy
lifecycle, in order to reap the rewards of a better and more
profitable book of business in the future.
Perhaps the best (or worst) example of this new wave of
fraud would be synthetic identity fraud, a growing and
significant threat not just in the UK, but globally. Identified by
KPMG in 2023 as ‘the fastest-growing financial crime in the
United States’, it costs their banks $6bn. If you’re not aware
of it already, you soon will be.
Synthetic identify fraud involves a combination of genuine
and false personal information, such as names, addresses,
and other personal data to create new identities. This
commonly pieces together multiple items of information
stolen from many individuals. The resultant false identities
are then used with the aim of applying for credit cards
and other fraudulent accounts. Creating an identity which
blends the true with the false formulates a persona which
doesn’t exist, but has the hallmarks of a real person. It’s these
elements of truth that make it hard to detect for traditional
due diligence processes, but this is also why it’s vulnerable to
OSINT-based techniques. More on that later!
Identity verification solutions are already well established,
but these can be taken further by making it common
practice to quickly establish whether the details provided
connect to genuine online profiles. It’s now very quick and
easy to check if an email is registered with an account on
hundreds of social platforms and apps that most people
use every day, and in what name they’re registered.
Obviously, this can make an identity verification process
much more robust.
With relative ease, these methods can be developed further
for the more adventurous. In the same way that we expect
to be able to ‘validate’ an identity by quickly seeing the
contact details link to social accounts matching the name
provided, the absence of any of these social accounts
should be a huge red flag, or potentially just a big old Jolly
Roger!
OSINT as both a sector and a discipline is here and it’s
flying - from well-established companies like NetWatch to
new startups, we’re all ready to help and work with insurers.
On the underwriting side, the challenge will be to develop
extremely rapid solutions for real time intelligence on the
huge quantities of quotes that are generated. However,
these kinds of solutions are available already and improving
all the time. On a case-by-case examination of a policy risk,
or later at claims stage, there is much more that’s possible
with OSINT, and it’s all worth exploring. Insurers that are
open to exploring OSINT will reap the rewards from a lower
risk book of business that drives the bottom line, without
being overly complicated or expensive.
So far, this type of fraud has predominantly targeted financial
services, commonly banks and credit providers. However,
insurance providers are also vulnerable and increasingly
under threat – with persons looking to falsify aspects of their
policies to obtain cheaper quotes and premiums. As well as
the obvious monetary risk losses associated with this type of
fraud, there’s also the time wasted in trying to track down an
individual who doesn’t really exist. It’s important for insurers
to take steps to harden their processes against this type of
fraud.
But how can this type of fraud be detected and
futureproofed against? One way to augment your firm’s
due diligence is by using contact details to make further
open-source verifications as to whether a person is real or
false. OSINT has been expanding rapidly over recent years,
and there are more and more players in the space developing
exciting and powerful products. Insurers have gotten used
to using bureau-type data solutions to quote on policies,
tightening their book of business and ultimately trying to
avoid becoming the victims of fraud. Sadly, we aren’t privy
to what all insurers are exploring, but there is certainly a lot
that’s possible in terms of enriching this bureau style data
with OSINT, and insurers are starting to wake up to it.
David Purcell,
Chief Operating Officer, NetWatch Global
MODERN INSURANCE | 49

THE DUAL APPROACH TO
COMBATTING INSURANCE
FRAUD: LOOKING BEYOND
TECHNOLOGY
In the ever-evolving landscape of insurance fraud - where the defences of insurance companies are
continually tested by innovative ways to exploit vulnerabilities - the role of technology has never been
more prominent.
Insurers are rapidly bolstering their arsenals with tech from
a market where seemingly, there’s a cutting-edge solution
for every type of fraud that exists. As fraud types evolve, and
as fraudsters utilise a more tech-based approach, I question
if the industry is at risk of being blinded by tech and the
buzzwords that surround it, at the detriment of tried and
tested strategic fundamentals.
While innovative technologies undoubtedly strengthen
fraud detection capabilities and play a significant part in any
fraud defence, they alone cannot provide comprehensive
protection. The danger lies in the assumption that a
tech-based solution can be the single answer to mitigating
fraud risk and achieving the cost savings required to remain
competitive, particularly in a market where every pound
spent and every point lost or gained on the loss ratio is
pivotal.
A holistic approach to combatting insurance fraud must
encompass cutting-edge technology, but it must also
include the fundamental and interlinked principles of culture,
learning and education.
In a world where a tech solution is assumed to identify all
fraud types and continually evolve to combat new threats,
a culture of fraud awareness is the first fundamental at risk
of being lost. Fraud, like water, will flow to the point of least
resistance, and failing to build a culture of fraud awareness
throughout the business presents significant risk in areas
where people-led processes and decision making is essential.
A culture of fraud awareness should not simply live at an
organisational level. The sharing of insights, best practice and
threat intelligence lives in various forms across the industry,
and undoubtedly provides significant benefit. However,
as the market becomes more competitive and many hold
their cards close to their chest, challenges lie in the form of
effective industry collaboration.
Fraud has often been dubbed a victimless crime, but this
could not be further from the truth. From victims left
uninsured and liable for extortionate claims costs, to those
induced into catastrophic losses, the realistic impacts of
fraud are far reaching. As insurers, we have a duty to our
customers to protect them throughout the entire insurance
cycle, not just at the claim stage. At an industry level, we
should challenge ourselves to build trust and educate
customers in the risks of fraud, inclusive of information
around how we (and our fellow industry bodies) are able to
protect them.
Across all of these principles, people are our one constant.
Providing our investigators, analysts and handlers with the
tools, skills, knowledge - and most importantly, the voice – to
combat fraud is an investment that will continue to deliver
significant value in the short and long term.
While technology undoubtedly plays a pivotal role in
combatting insurance fraud, it should not overshadow the
importance of a holistic approach. Insurers must strike a
balance between technological innovation and traditional
fraud detection methods, recognising that neither is able to
succeed alone.
While the approaches discussed do not set pulses racing in
comparison to the latest buzzwords across the tech market,
they are fundamentals that should play a key role in any
counter fraud strategy. By embracing a dual approach that
leverages the strengths of a comprehensive tech stack and
human expertise, insurers can effectively mitigate fraud risks
and provide the best outcomes for their customers.
An effective culture of fraud awareness should deliver
learnings from those on the front lines who are witnessing
fraud types as they evolve. Vital information can be gained
in order to build a true understanding of current exposure
to feed back into training, awareness and tech solutions.
Therefore, building a structure of continuous learning
remains essential.
Often, the catalyst for the evolution of fraud types involves
changes in legislation. These changes hold the propensity to
drastically change how we handle, investigate and attempt
to defeat fraud, opening doors to new vulnerabilities in our
defences. The ability to learn, adapt and pivot a strategy to
the changing landscape is more important now than ever.
As such, collaboration around handling best practice with
partners and across organisations is paramount.
Ash Jackson,
Head of Fraud, Marshmallow
50 | MODERN INSURANCE

FEATURES
POST
OFFICE
SCANDAL
TEACHES US A LESSON
In my social media postings on LinkedIn, I have mentioned
the current Post Office scandal more than once, and with
even more than my usual weight of condemnation of all
that is rotten in the corporate world. The whole country
has been horrified to see the extent to which those in
authority can abuse power, with little to no accountability
and consequence. If it can happen in the Post Office,
then you can be certain that it happens elsewhere,
although hopefully not with the same industrial scale of
incompetence.
My key point is that the ‘Post Office’ has done nothing
wrong – for the simple reason that the ‘Post Office’ cannot
make decisions, cannot hound sub postmasters, and cannot
generate a culture of cover-up. People are the ones who
make decisions, not corporate entities. Either collectively or
individually, we all decide on the next course of action, the
next change of policy, the next operational development…
Every hour of every day, we are faced with the need to
answer questions, sometimes simple and sometimes
complex, which could have profound consequences for
our business, our people, and our customers.
The Need for an AI Code of Conduct
It was partially this desire to see real accountability and
responsibility that led me to initiate a movement to establish
a Code of Conduct for the Use of AI in Claims. There is a
danger, however small, that the advent of AI will lead to
irresponsible design and implementation. Or, perhaps we
will see the ‘law of unintended consequences’ come to bear
as we rush headlong into the promised land of ever-greater
efficiency and effectiveness in the management of claims.
Maybe the beguiling promises of AI tech vendors will cause
us to lose our collective sense of morality and ethics, as so
clearly happened in the case of the Post Office scandal.
The Code of Conduct is therefore intended as a clear
and unequivocal ‘stake in the ground’ for all claims and
supply chain practitioners. The focus on transparency,
accountability, and clear rules of governance will act as
a safeguard for us all. The sections on client redress and
avoiding the temptations of over-reliance on the computer
who ‘says no’ will help us to strive for a better future in a
considered and balanced manner.
Core Principles Really Matter
There has never been a Code of Conduct that will trap
those who intentionally wish to cheat the system. Anyone
intent on malicious, negligent, or genuinely mistaken
deployment of AI will surely avoid accountability, unless
those around them (and the companies they are employed
by) work to a set of rules and principles that provide
protection for all stakeholders.
Hence, when the Code of Conduct attracts the support of
Allianz, Covéa, Ecclesiastical, Verisk, Questgates, and so
many others, it is a very positive testament to those in our
industry who are intent on avoiding the worst excesses of
corporate power.
It’s All About People
I began this commentary by suggesting that the ‘Post
Office’ is entirely innocent. Instead, it’s all about the people
in power who abused their authority.
As we venture into the relatively unknown world of AI
and embrace the fantastic opportunities that it provides,
we must keep in mind that the insurance industry -
and especially the claims function – revolves around
policyholders and claimants who look to us to protect their
futures. We would do well to remember that.
For further information on the Code of Conduct, please
visit: https://aicodeofconduct.co.uk
Eddie Longworth,
Director, JEL Consulting
MODERN INSURANCE | 51

2024 Upcoming events...
14/02
I Love Claims
ILC Day
07/03
Home & Property Claims
Specialist
Subsidence
Conference
25/04
Claims Essentials
New
Generation
17/05
Home & Property Claims
Networking
Lunch
03/07
(early afternoon finish)
Claims Essentials
ClaimsTech
07/11
MGA Claims
Conference
06/06
I Love Claims
Partner Day
AD
12/09
I Love Claims
Summer
Networking
Event
28/11
Home & Property Claims
Conference
27/06
Conference
03/10
Motor Claims
Exclusive
Conference
ILC
Further events dates to be confirmed soon.
iloveclaims.com

EV Figures Don’t Tell
The Full Tale
On the face of it, the trajectory of electric vehicle (EV) adoption in the UK is only a positive
sign. According to the Society of Motor Manufacturers and Traders, new EV sales increased
to 314,687 units in 2023, which is more than the total sold in 2021 and 2022 combined.
Meanwhile, in the LCV segment, EV sales jumped 21% in
2022. Even used EVs performed strongly, seeing overall
sales more than doubling from 2022 to 2023.
There are now more than a million EVs on UK roads, and
with the UK Government introducing the ZEV Mandate
(which requires manufacturers to increase the proportion
of EVs sold every year until they make up 100% of car sales
by 2035), there seems to be little sitting in the way of the
electric tide.
However, those numbers don’t tell the full story.
EV sales actually fell significantly in both November and
December last year, by 29% and 34% respectively, while
more than two thirds of dealers surveyed by the National
Franchised Dealers Association said they expected EV sales
to continue falling this year.
CHALLENGES
This comes as motor insurers face a tsunami of inflationary
challenges.
According to the Association of British Insurers, the cost of
courtesy cars rose 47% in 12 months, while average repair
costs were up 32% during the same period. On top of that,
material costs were up 16% and labour costs jumped 15%.
The ABI also reported that motor insurers paid out more
than £2.5bn in claims in the third quarter of last year, a
spike of more than 21% compared to the same period the
year before.
As a result, average car insurance premiums rose by £366
to £995 in the last 12 months, according to the
Confused.com Car Insurance Price Index, which is produced
in association with WTW.
Tim Rourke, UK Head of P&C Pricing, Product, Claims and
Underwriting at WTW, said, “The cost of car insurance
spiralled in 2023, primarily due to the soaring price of used
cars. Insurers have also had to pass on the rising cost of
spare parts and materials, more expensive repairs as cars
become more sophisticated, labour shortages, extended
vehicle loan times, and a spike in personal injury claims.”
COSTS
For EVs, these increases have been even more severe.
Gecko Risk, which is partnering with Activate Group to
deliver deep insights in EVs, reported that average repair
costs for electric models rose above £3,000 last year, with
labour costs escalating to £628 and repair times expanding
to 27 days.
Meanwhile, research carried out by Solera found that
average EV repair costs were 29% higher than their ICE
equivalents, with the cost of EV parts coming in 48%
higher. This was based on 92,000 repair estimates between
January 2021 and August 2023.
These costs have been passed down to policyholders, with
research from insurance broker Howden Group finding that
average EV premiums soared by 50% to £1,344 last year,
more than double that for petrol cars.
Faced with such pressures, some insurers have decided
that the motor market is virtually unviable.
Last spring, RSA announced it was exiting the personal
lines motor market, with Swinton Insurance taking over its
£120m annual premium. Meanwhile, Vitality - a subsidiary
of multinational financial services organisation Discovery
Limited - cited ‘unprecedented inflation’ when it said
it would no longer provide motor insurance back in
September.
However, with more than a million EVs now on UK roads,
a slowdown in uptake among car buyers will not make
the existing concerns disappear. However, we will almost
definitely see the industry adapt and evolve to ensure it is
ready for the future. EY predicted
a number of ‘marked challenges’
to the EV transition, not least
because of the disparity between
the introduction of the ZEV
Mandate, question marks around
the residual value of EVs, and the
delay to the ICE vehicles sales ban
– rising from 2030 to 2035.
MODERN INSURANCE | 53

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FEATURES
WELCOMING…
Adrian Furness
Managing Director, Motor Repair Network
Hi Adrian, thanks so much for your time today!
Q You have extensive experience in senior leadership roles
across the insurance industry, the most recent of which includes
your move to Activate Group in the latter half of 2023. How are you
settling in over at Activate, and what are the key priorities for your
first 12 months in post?
AThank you - I’ve settled in well and I’m delighted to have joined
such a welcoming team.
I joined Activate Group at a very exciting time! I’m sure many of your
readers will have seen that we recently announced a new investment
deal with a private equity firm, Elysian Capital, representing a
great step forward for the business that will really accelerate the
implementation of our strategy.
In terms of key priorities, Activate Group has a lot to offer in a very
competitive market. We have our owned capacity – nine Activate
Accident Repair sites, with another set to open in March – as well as
a fantastic UK-wide partner repair network.
Our parts supply division, Activate Parts, is also a unique proposition
at a time when parts availability is creating real challenges in the
market.
My role is to lead our insurance claims and parts teams in order to
maximise the use of our core capabilities to solve problems for key
strategic partners. As we accelerate the growth of the business, I
want to keep the customer at the heart of everything we do. Since
joining, I’ve spent a lot of time with insurers and MGAs, understanding
the challenges they face and how we could support their business
goals. That’s something I’ll continue to do as we build on our business
proposition in the months ahead.
What opportunities exist for the business as you see it
evolving in the coming years?
Q
I’ve mentioned some of the opportunities already, and I
think it’s very much a continuation of our strategy to build
A greater presence in the market. We want to be the accident
management provider of choice, and some areas of our business are
already starting to adopt that role in the industry.
And finally, tell me more about the ‘Repair-as-a-Service’ trend.
How does this align to the broader Activate Group strategy?
Q
AThe first thing to say about Repair-as-a-Service is that it’s not
going to replace the traditional approach. We have a fantastic
UK-wide network that offers great service and flexibility for our
customers. That’s our core strategy and always will be.
As I’ve mentioned, we’ve invested in our own repair centres to give us
more control over the capacity and capability we offer. Repair-as-a-
Service is about offering that owned capacity outside of our existing
client base as a flexible solution to manage peaks in demand. It’s a
strategic offer that allows chosen partners to deploy directly into our
repair centres, giving them additional options to ensure that customer
needs can be met.
We see it as a collaborative step that allows us to build business
relationships, as well as bringing benefits to the wider industry by
making the best use of available repair capacity. It’s a win-win!
Adrian Furness,
Managing Director, Motor Repair Network
The Motor Repair Network brand that works in the insurance space
has a massive opportunity for growth. It’s a business with great
experience, having successfully delivered for one of the most complex
affinity brands in the motor claims arena throughout a turbulent time
for the industry.
The processes, skills and experience gained are obviously very
transferrable to other clients, and I’m proud to say that we achieve
world-class NPS scores, a timely success given the industry’s current
focus on Consumer Duty.
Finally, I think maximising the value of data has huge potential,
particularly when it comes to parts. This presents a great opportunity
for us because of our in-house parts capability, something which really
sets us apart from our competitors.
QIs digital claims technology going to remain a key part of
your agenda? And if so, how are you hoping to approach this
in a landscape that is constantly in flux?
AThe short answer is yes! In our industry, we need to respond to
the needs and expectations of customers and clients. The key
for us is that our digital tools are flexible; we tailor our services
to meet the needs of each customer, and our technology
enables that.
It’s never one size fits all, so we invite customers to choose the digital
tools that offer the greatest benefit to them. In the last year, we’ve
expanded our capability with a new electronic notification of loss
(eNOL) web app, as well as digital triage and assessment tools that
support ‘right first time’ repair decisions. We also have an in-house
development team and a clearly defined product roadmap, so our
digital capability is constantly evolving.
MODERN INSURANCE | 55

Sedgwick’s end-to-end motor solution offers first- and
third-party motor claims management and programme
administration, as well as comprehensive assessment
and accident management services.
Count on Sedgwick to put your people and business on
the road again.

EVS:
FUTURE-PROOFING
THE SUPPLY CHAIN
With electric vehicles (EVs) set to
represent 80% of the UK’s new car
sales in 2030, now is the time to
future-proof the motor insurance
supply chain.
The Government’s target is for 80% of new cars
(and 70% of new vans) sold in Great Britain to
be zero emissions by 2030, backed by over
£2 billion worth of investment. The Government’s
zero-emission vehicle (ZEV) mandate, unveiled in
September 2023, is said to be ‘the most ambitious
regulatory framework for the switch to electric
vehicles (EVs) in the world’. (www.gov.uk)
Market Growth
According to the World Economic Forum, global
sales of EVs surpassed 10 million for the first time
in 2022, with sales leaping 55% year-on-year. As a
result, one in every seven cars purchased in 2022
was an EV, compared to one in 70 cars bought in
2017.
Annual Motorparc data from the Society of Motor
Manufacturers and Traders (www.smmt.co.uk
– 25 April 2023) shows that there are over 1.1
million electric cars on UK roads, which means
one in every 32 vehicles comes with a plug. The
second-hand EV market in the UK is also on the
rise. In Q1 of 2023, compared with Q1 of 2022,
used EV sales increased by 57%. EV charging
infrastructure is also expanding proportionately,
growing 43% in 2023 compared to the previous
year.
In the commercial transport sector, hydrogen
may be the way to go in the long term. However,
there’s little to no infrastructure in this area at
present. Therefore, at least in the domestic space,
EVs are the future for the moment.
The Betamax Moment
While the UK Government’s ZEV mandate is a
positive move towards radically reducing vehicle
carbon emissions, it’s been well-reported that EVs
aren’t trouble-free.
In 2022, JD Power quality research found that
for every 100 EVs, 239 problems were reported,
compared with 173 problems per 100 internal
combustion engine (ICE) vehicles. This confirms
that EVs are currently less dependable, a fact
which is underlined by various original equipment
manufacturer (OEM) recalls, citing issues such as
battery fire risk and faulty software.
Of course, EV technology is only around 15 years
old and still in a transition period. The next
generation of EVs is just hitting the market, with
better batteries, improved reliability and stable
pricing. So, we’re at a Betamax moment – it’s not
perfect, but it will only get better.
Adapting to Change
Insurers are increasingly starting to offer
EV-specific insurance policies in line with the
growing number of EVs on the road. We need to
understand the wider impact on claims handling
processes in order to support this shift towards
more specialist EV policies.
The repair costs and safety standards between
EV and ICE vehicles are vastly different, and
this attracts additional costs while we try to
accommodate both systems. For example, some
EV repairs involve dealing with live electricity,
and so require an additional technician.
Bodyshops must invest in ICE and EV repair skills
and processes now, all of which must be priced
into labour rates. However, once we shift from
adapting repairs and maintenance to suit EV
technology, this will open the way for motor
repair networks to develop economies of scale,
facilitating cost reductions as a result.
Risk Management
EVs are fast, with instant torque providing
immediate acceleration. As they’re heavier, they
also require a greater stopping distance, and
given their greater mass, they can also cause
more damage. An EV is much more likely to be
written off following a relatively minor impact,
considering the relative fragility of a battery pack
and the fact that damage may not be immediately
apparent. This has material implications for
claims, particularly around the FNOL and repair
triage processes.
In this emerging risk environment, many
corporates might consider educating colleagues
about EV performance, especially highlighting
how their drivers need to adapt their behaviour to
mitigate potential accidents.
Unique Opportunity
As EV adoption continues to grow, driven by
government targets, the motor supply chain has
a unique opportunity to lead the response to this
change. Repair networks will need to support both
ICE and EVs for the time being - but successfully
planning the transition to EV capability, adjusted
to consider geographical demand, will be key.
Similarly, claims departments and TPAs will need
to adapt their FNOL and triage processes to cater
for the specific impact of EVs. The motor supply
chain must grab this opportunity with both hands.
Joseph Ashworth,
TPA Motor Director, Sedgwick
MODERN INSURANCE | 57

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Exceeding Electric
Expectations
James Roberts, Head of Insurance Sales at Europcar, explains how rental can help insurers to meet their
customer expectations while simultaneously supporting the UK’s ZEV targets.
While headlines at the end of last year reported
on some insurance providers choosing to step
away from electric vehicles (EVs), there’s no
question that the automotive market has a clear
mission to accelerate EV adoption - not least
of which in response to the Government’s ZEV
mandate (which came into law on January 3rd
2024). The Government’s pathway towards all
new cars and vans being zero emission by 2035
means that at least 22% of new cars and 10% of
new vans will need to be zero-emission in 2024.
Subsequently, the onus of supporting motorists will
fall to the motor insurance sector.
Clearly, there are still a number of unknowns
that pose challenges for underwriting. Electric
vehicle repair costs are still uncertain given
the volume of vehicles on UK roads to date,
combined with a lack of skilled workforce across
the country. Residual values are another critical
factor. However, there’s another issue which
is, perhaps, less front of mind right now, but
could quickly become a big differentiator for
insurance providers who want to be part of the EV
revolution. That’s the issue of replacement vehicles.
A recent survey commissioned by Europcar
suggests that insurance providers are not yet
meeting customer expectations for replacement
vehicles. Based on responses from more than
200 electric vehicle drivers, we found that 91%
would expect their insurer to provide a like-for-like
replacement if their own vehicle needed repairs
after an accident.
Of course, in the event of non-fault accidents,
or where a policyholder has purchased a
guaranteed hire car product, insurers always
strive to provide like-for-like for the duration of
the vehicle’s repair. However, access to EVs is not
always guaranteed, and many organisations in
the replacement vehicle supply chain haven’t yet
electrified their network to provide this certainty.
Regulator scrutiny
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 1 . As EV adoption
moves into the mainstream, insurers are going to
need to keep up the pace or face reputational risk.
There are already more than 999,000 fully electric
cars – and 600,000 plug-in hybrids – on UK
roads 2 . This makes up more than 20% of the
car parc, and represents 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.
Therefore, to deliver the best possible experience
for all customers – not just those driving petrol and
diesel cars – insurers need to confidently know that
their supply chain can meet the demand for EV.
Understanding the customer experience
Drivers and businesses are increasingly prioritising
sustainability and zero emissions mobility, so
insurers need to be able to respond to these key
issues. Working collaboratively, Europcar can help
with valuable insights and learnings as our fleet of
electric vehicles grows.
We are 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, and
that commitment extends to replacement vehicles
through insurance providers.
We have invested in a wide range of electric
models, with electric making up 12% of our car fleet
by the end of 2023. The latest vehicles added to
the Europcar electric fleet include three models in
the Mercedes-EQ range, the Tesla Model 3, and
MG4, with more marques being added to our fleet
in 2024 and beyond.
Insurers selecting Europcar as an EV replacement
partner can take confidence in the fact that our
network is becoming 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 charging instructions, with a growing team of
specialist Certified Electric Vehicle experts on hand
at many locations to help customers get to know their
rental vehicle.
Real-world testing
Our ambition is to get insurers to a place where every
one of their policyholders has the option to choose
an electric replacement vehicle, whether their own
damaged vehicle is electric, hybrid, petrol or diesel.
This could be the ‘try-before-you-buy’ real world test
drive that is needed to encourage hesitant drivers to
make the switch to electric as soon as possible.
Although the vehicle landscape is changing, motorists
will appreciate a flexible insurance provider that offers
innovative solutions to sustainable driving. Working
with the right vehicle partner is a crucial step towards
making this a reality.
For further information, visit europcar.co.uk/business
James Roberts,
Head of Insurance Sales,
Europcar Mobility Group UK
1 https://www.themotorombudsman.org/press-releases/tmoreports-a-small-rise-in-ev-complaints-from-consumers-in-q2-2023
2 https://www.zap-map.com/ev-stats/ev-market
MODERN INSURANCE | 59

EMPOWERING THE
FUTURE OF REPAIR
Technology evolves and sometimes dramatically, the need to find
alternatives to fossil fuels, marks one of the biggest needs for changes the
automotive sector has ever seen.
Understanding these emergent technologies
and the associated repair, pricing, processes,
and expectations are critical. Equally critical is
the capability to remain agile to the ongoing
change within the EV market, but also for
everything else yet to come.
Combining our complete Vizion group
services, working together on EV strategies
as part of the alternative fuel revolution, we
remain a force for positive change, providing
solutions, supply chains and systems
enabling an expert network of suppliers
and skilled specialist repairers, to embrace
and collaborate on these important new
initiatives.
If you would like more information about
EVizion and what we can do to work with you,
get in touch with Vizion, today.
Quality Matters
01482 428200 hello@vizionnetwork.co.uk
www.vizionnetwork.co.uk

BUILDING TRUST FAST R
WITH CUSTOMER-CENTRIC BUSINESS MODELS
Imagine this. You’re guarding a military base, and a guy turns
up signalling that he needs to enter. He doesn’t speak the same
language as you do, he has no ID, and it’s unclear who he’s affiliated
with. You need to do a rapid risk assessment before you make a
decision - it could mean life or death.
Or what if you were part of a large sport governing body, and you wanted
to understand potential anti-doping violations by athletes in a particular
international competition, quickly and without potential influence from
coaches, judges, or other individuals?
Why should screening for application or claims fraud in insurance be
any different? While genuine customers benefit from a smooth, efficient
experience, we can be identifying bad actors or suspicious claims in the
meantime, pushing them through a different channel where trained claims
handlers and SIU teams can conduct their secondary investigations.
The situation is really about clearing genuine customers, and balancing this
with the identification of potential risks. Typically, ensuring a high level of
security means that customers get a slower, more cumbersome experience,
but speeding up the process creates the possibility of letting more risk and
fraud through the floodgates.
CX best practice is generally about understanding two things; what
customers expect, and what customers will accept as part of their customer
journey. We must then design a process that meets - or even exceeds - those
needs.
Ultimately, at the centre of all this is trust. Without trust, businesses and
relationships fall apart. No matter the ecosystem, trust as a commodity is
of undeniable value – yet trust is challenged by economic uncertainty, costs
of living, geopolitical instability, privacy threats to data, misinformation,
and more. Despite our interconnectedness in this increasingly complex and
fast-paced world, we’re challenged by a lack of foundational trust between
individuals and organisations.
When it comes to insurance in particular, trust is of vital importance.
Historically, the insurance industry has been challenged with faltering levels
of customer trust - in 2022, only 13% of British consumers trusted their
insurance provider, and only 8% had been a loyal customer for over three
years.
The need for a customer-centric business model has never been more
apparent. The latest UK Customer Satisfaction Index (UKCSI) showed a steep
decline in customer satisfaction across industries; this experience made
them trust organisations less, especially in insurance, but also in transport,
utilities, and others. While there’s general agreement that trust is important,
there’s far less agreement on how much companies are trusted. A PwC
survey shows that 84% of business executives thought that their customers
highly trust the company, yet only 27% of customers said the same. This
highlights a stark disconnect between company executives and customers.
In the UK, we’re already seeing a bigger move towards customer centricity.
The Consumer Duty and Treating Customers Fairly regulations represent a
shift in the way that financial firms operate, and will require them to deliver
a higher standard of customer experience and care across the consumer
lifecycle. Insurers in particular will need to pay close attention to avoid
prosecution for non-compliance.
Furthermore, in the insurance industry, claims management has historically
been a time-consuming, manual process where consumers face a variety of
barriers to easily filing a claim. Compliance with Consumer Duty regulations
requires insurers to provide appropriate support for claimants alongside
clear, transparent guidance.
Currently, the industry is facing the perfect storm. Firstly, we’re seeing a
cost-of-living challenge driving speculative fraud, often conducted by
individuals who would not dream of filing a fraudulent claim in normal
circumstances. This is being coupled with post-COVID customer expectations,
where people now expect more rapid responses to service requests, and a
dramatic acceleration in the availability of disruptive tech, such as generative
AI-based solutions that can easily be used to create fake images in support of
a false claim.
These next-generation challenges are
difficult to address using yesterday’s
thinking and solutions. Unless we can
find a better, faster way to close the
trust gap, we will have to introduce
more robust anti-fraud countermeasures,
or just accept a higher level
of fraud as the cost of doing business.
Both scenarios lead to an increase in
premiums for our genuine clients who
are already struggling financially.
Learn more about how Clearspeed
helps insurers optimise their risk
assessment, improving the claims
customer experience and building
trust faster, at www.clearspeed.com.
Manjit Rana,
General Manager, UK,
EMEA & APAC, Clearspeed
MODERN INSURANCE | 61

mins with...
George Thurman
Title: Business Development Manager,
EV Bodyshops
What is your most memorable career achievement?
Q
Creating a career from a passion and hobby has made me
feel fulfilled and excited for every new day. Establishing
Amy role as the Business Development Manager at EV
Bodyshops paved the way for me to create Women Drive
Electric, where I can fit my day around our boys and their school
demands without sacrificing networking opportunities or my
attendance at exciting industry events. I don’t suit 9-5 working,
so it really is the perfect scenario for me.
I was Cabin Crew for many years, and I still get a buzz from
meeting new people. As a new entrant to the industry, I’ve spent
much of my time at shows and events with LinkedIn open on my
phone, ready to spot the people I want to meet and work with.
They know who they are, and I am now so proud to be a part of
such a welcoming and collaborative community.
What has been the most valuable piece of advice
you’ve received?
Q
Make a career out of what you are good at! Love what you
do and you will never work a day. I didn’t see it coming,
A but the pioneering aspect of the EV industry, paired with
such an array of diverse talent, is an infectious place to be. I can
be myself; I completely believe in what I do, and no matter how
big or small, I’m going to make a difference, even if I inspire just
one woman to embrace the automotive sector. EV Bodyshops is
the first of its kind; not only in technology and readiness, but in
its reviews and customer service scores for accident repair too!
What has been the key positive or negative aspect of
change in your area of the market?
Q
The main negative at the moment is proving hard to
shake, and that’s falsehoods manufactured predominantly
A by tabloid media about EVs. Things like not charging in
the rain and perceived fire risk have no basis in fact, but the
industry as a whole is coming together to fight the FUD (Fear,
Uncertainty and Doubt).
On a positive note, the sector’s ambition to embrace women, as
well as Next Gen apprenticeships in automotive, is really pushing
things forward.
If you were not in your current position, what would
you like to be doing?
QProbably events or shows! Or Cabin Crew, which I did until
I had my first child. I thrive in a changing environment
A when no hour or day is the same. The British Motor Show
kindly offered a stand to Women Drive Electric last year, and we
borrowed a Dolphin from BYD. I loved every minute of it, and
it’s where I feel I belong - talking to the public and sharing real
experiences about EVs, especially with women - who tend to be
somewhat overlooked at motoring events.
What three items would you put on display in a
museum of your life and why?
Q
A
Definitely lots of Lego! I’ve loved it since I was a child,
and I really enjoy building Lego with my boys. I am slowly
trying to recreate the collection I had when I was younger;
I would start on a Friday after school, and build a city on the
lounge floor before putting it all away again on Sunday night.
I’m known for my mega diamonte lightning bolt earrings in
the industry, so those would have to be included as well. I have
several friends in the EV community, and we are always on the
lookout for clothes and accessories to wear at events that speak
for themselves!
Finally, I’d have to include my pregnancy tests. Yes, I’ve still got
them!
What three guests would you invite to a dinner party?
Q
A
George Michael. I remember hearing his voice for the
first time on the radio singing ‘Careless Whisper’, and
that began a lifelong appreciation of his music and
songwriting. He was a very fun, generous soul, and I would’ve
loved to have some laughs with him.
Dolly Parton is another favourite from childhood. A very lively,
positive and kind person; she doesn’t apologise for who she is in
her music career or as a business woman. I think we could have a
great sing song to round off the evening
Finally, my husband’s father Mike died before we got together
and I would’ve loved to have met him, to show him his
grandchildren and understand the man that made the man I love
such a great person. He was a big Diana Ross fan, but I’m sure
George and Dolly won’t mind!
George Thurman is the Business Development
Manager at EV Bodyshops, based in Enfield, UK.
Her days are split between this role and furthering
her mission to grow her community, Women Drive
Electric - a committed group of likeminded women
that have set out to demonstrate the benefits and
inclusivity of the EV automotive sector. George has
been placed as a new entrant in Greenfleet’s 100 Most
Influential of 2024, and lives a life of EV mobility in
Hampshire with her husband and two sons.
62 | MODERN INSURANCE

Modern Insurance Magazine returned to London in February to celebrate the
Insurance CX Awards 2024, a night of festivity to acknowledge the very best
standards of customer experience within our industry.
Thank you to all of our valued sponsors, and huge congratulations to the 2024
winners, highly commended, and everyone who made this year’s shortlist!
”
Carpenters Group were once again delighted to support the annual Insurance CX
Awards in London, which is now fast becoming one of the insurance industry’s
social highlights! It’s a great evening that always offers the ability to catch up
with colleagues and friends, whilst taking time out to celebrate some of the
amazing customer service efforts within the insurance marketplace itself.
Simon Smith, Director of Claims Strategy, Carpenters Group
”
Headline Sponsor
MODERN INSURANCE | 63

Results
BEST INSURER
WINNER - Zurich Insurance
HIGHLY COMMENDED - Coverdrone
BEST BROKER
WINNER - Bennetts Motorcycling Services Ltd
HIGHLY COMMENDED -
Business Insurance Solutions Limited
BEST INSURTECH
WINNER - Yulife
HIGHLY COMMENDED - Clearspeed
​
CONTACT CENTRE TECH
WINNER - SBS Insurance Services Ltd
HIGHLY COMMENDED - FMG
BEST REPAIRER
WINNER - The Vella Group
HIGHLY COMMENDED - Plastic Surgeon Fine Finisher
SERVICE PROVIDER
WINNER - APRIL International
HIGHLY COMMENDED - WNS
GIVING IT BACK TO CHARITY
WINNER - Markerstudy Group
HIGHLY COMMENDED - Ninety Innovation
BEST CUSTOMER TEAM
WINNER - Zurich Insurance Company,
Claims Customer Team
HIGHLY COMMENDED - S&G Response
​RETENTION & LOYALTY
WINNER - Bennetts Motorcycling Services Ltd
HIGHLY COMMENDED - Fluffy and Sapiens International
Corporation​
ABOVE & BEYOND
WINNER - Covéa Insurance
HIGHLY COMMENDED - Kindertons Group
BEST CUSTOMER-CENTRIC
CULTURE
WINNER - Allianz
HIGHLY COMMENDED - Bennetts Motorcycling Services
Ltd and Urban Jungle Insurance
BEST CUSTOMER SERVICE PRODUCT
WINNER - Inshur
HIGHLY COMMENDED - LexisNexis Risk Solutions
OUTSTANDING CUSTOMER JOURNEY
WINNER - Yulife
HIGHLY COMMENDED - RightIndem
FIGHT AGAINST FRAUD
WINNER - LexisNexis Risk Solutions
HIGHLY COMMENDED - Charles Taylor
LEARNING & DEVELOPMENT
WINNER - Gemini Accident Repairs
HIGHLY COMMENDED - Ascend Broking Group
CUSTOMER EXPERIENCE IN A CRISIS
WINNER - Corporé
HIGHLY COMMENDED - Clegg Gifford & Co Limited
BEST VULNERABLE CUSTOMER
INITIATIVE
WINNER - ARK Venture Studios
HIGHLY COMMENDED - BIBA
CX PARTNERSHIP
WINNER - Lloyd’s and Vitesse
HIGHLY COMMENDED - AXA & Ninety Innovation
OUTSTANDING ACHIEVEMENT
OF THE YEAR
WINNER - Hannah Gurga
LIFETIME ACHIEVEMENT AWARD
WINNER - Steve Treloar
64 | MODERN INSURANCE

“The Knowledge Group team were absolutely delighted
to support an event celebrating the successes of those
delivering outstanding customer experience in the
insurance sector. We were humbled to see the exceptional
quality of contributions towards charitable causes, as
demonstrated by many of the nominees and award
winners; they are a credit to the insurance industry. It was
equally a brilliant opportunity to showcase the talent and
expertise of the teams working hard to progress in the
industry. Congratulations to those who won and were
nominated!”
Joel Walker, Managing Director, International, The
Knowledge Group
“Handing over the Outstanding Customer Journey
award at this year’s Insurance CX Awards was a true
honour. It’s moments like these that underscore our
mission at Endava; to empower remarkable customer
journeys through innovation and technology. The
ceremony was a vibrant celebration of the industry’s best,
and it was inspiring to be part of an event that aligns so
closely with our values. My warmest congratulations to
all the winners – your dedication is shaping the future of
customer experience.’
Kevin Crawford, Global Head of Insurance, Endava
“The Insurance CX Awards were a blast! Amidst the
laughter and networking, Jen Brister’s story struck a
chord with me. It reminded me of my own journey – the
challenges, the triumphs. It’s a reminder that CX isn’t
just about technology; it’s about understanding and
empathising with the journey of others too. Thanks to
Modern Insurance Magazine for providing a platform to
connect, disrupt, and reflect on our individual paths to
success!”
Daryn Robinson, Founder & CEO, AllThingsCX
“We were very proud to sponsor the Best
Customer-Centric Culture category at this year’s
Insurance CX Awards. A big well done to Allianz, who
lifted the trophy. The venue, atmosphere and whole
experience was fantastic, and we were pleased to see
Markerstudy Group win the Giving it Back to Charity
Award!”
Claire Church, Director of Service Delivery, Auto
Windscreens
“Loved the cabaret vibe and venue! A great night
shooting the breeze with fellow judges and old and new
friends.”
Simon Fenn, Director, Pancentric Digital
“The Insurance CX Awards is a distinguished event for
celebrating all that is great in our industry. We were
delighted to support this year’s event as an award
sponsor, spotlighting those who strive to maintain
excellence as standard, despite a challenging backdrop.”
Claire Owens, Managing Director, FMG
“Absolutely fantastic evening, where Rachael and the
team did an amazing job. The partnership that’s been
created is going from strength to strength, and one that
we’ll be continuing to develop as the year goes on.”
Simon Downing, Group Business Development and
Accounts Manager, GRM Bodycraft
“Voyc loved sponsoring the ‘Best Vulnerable Customer
Initiative’ award! We have been empowering companies
within the industry for the last six years, helping them to
address and support customer vulnerabilities. So, being
able to honour BIBA for their insurance-finding service,
and ARK Venture Studios for their groundbreaking
initiative, YuBuntu, was a significant milestone for our
team.”
Matthew Westaway, Co-Founder & CEO, Voyc
“The 2024 Insurance CX Awards was a showcase of the
best and brightest in insurance. Collectively, we are all
doing the work to transform the industry and do the best
for our customers.
My highlight was Clearspeed sponsoring the Giving It
Back to Charity award. Doing good is very much a part of
our mission, as well as one of our founding principles. It
was wonderful to acknowledge the organisations creating
impact in their communities, recognising Markerstudy
as the winner in this category for its diverse initiatives in
giving back.”
Manjit Rana, General Manager, UK, EMEA & APAC,
Clearspeed
MODERN INSURANCE | 65

INSUR.
TECH.
TALK

INSURTECH
WELCOME
Greetings, and welcome
to Insur.Tech.Talk!
Dear Readers,
I hope you enjoy this very special edition of Insur.Tech.Talk. It was really
rewarding for me to curate, tapping into my background in healthcare and a
lifelong passion for wellness. My panelists, each from their own unique lens,
discuss how they are supporting the ‘whole person’ in their approach to Life
and Health.
Learn from Marc Giguere, Munich Re’s US L&H President and CEO, who was
the first to announce a major partnership with GRAIL in 2022. This partnership
supports their mission to help people live longer, healthier and happier lives,
and other major life insurers are now following suit.
Heather Majewski, who led John Hancock’s Vitality wellness program
incentivizing healthy behaviors, also discusses this new win-win paradigm.
The policyholder is engaged and motivated to improve their health, leading to
lower claims for the insurer.
Samantha Chow, Global L&H sector leader for Capgemini, discusses the
betterment of people’s lives through financial wellness, and Ron Gura, CEO
of Empathy, outlines the ‘cost of dying,’ and how Empathy is solving this by
supporting those that are going through the loss of a loved one.
Lastly, insurers are finally waking up to the importance of sleep as we hear
from world renowned sleep expert Dr. Els van der Helm, on the importance of
sleep for health, productivity and longevity.
In good health,
Megan
Megan Kuczynski,
President,
Insurtech Insights
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INSURTECH
Munich
Re
QMarc, I often hear you speak about the shifting
purpose of life insurance, and it was remarkable to see
the partnership with GRAIL referenced so frequently
at LIMRA. You are a true pioneer to bring GRAIL’s
multi-cancer early detection test to the US Life Insurance
industry in the form of a GRAIL x Munich Re partnership.
The early adoption of the Galleri test is really impressive.
Can you share how the partnership is going now that you are
two years in?
A
Our partnership with GRAIL gained major traction
across the life insurance industry last year, and
now eight carriers and distributors offer the test
to policyholders. We have always believed that lives
can be saved by screening and detecting cancer early
before it spreads, and we are now seeing gratifying
examples of policyholders coming forward to validate
this assumption. To date, the Galleri test has detected
45 cancer signals across 15 different types of cancers in
over 6,000 tests taken by eligible policyholders in our
life insurance population.
We expect the trend of policyholder engagement
to continue as major carriers look for ways to help
policyholders live longer, healthier lives by providing
wellness benefits, and differentiating beyond product
price and the initial underwriting process.
QHow else can life insurers engage their policyholders
and encourage them to live healthier lives? What
novel new benefits are you seeing across the industry?
We’ve recognized that keeping up with the latest
medical advancements and technologies is about
A more than mortality modelling. A growing number
of health and wellness startups are acknowledging the
potential of aligning with life insurance companies, and
most want to find a way to partner with our clients.
Fortunately, we have the skills to help carriers assess
which innovations have the potential to move the needle
on health and longevity.
While breakthrough technologies like GRAIL don’t come
along often, we are seeing innovations in diagnosis and
treatment across a wide spectrum, including mental
health, cardiovascular disease, general health, activity
levels, and, of course, cancer.
For example, we’ve seen wide adoption of wearables
in the US population in the last decade. Life insurers
have an opportunity to leverage this data to better
segment mortality risk and incentivize healthy
behaviors. Eldercare is another big trend as it relates
to the long-term care (LTC) industry, and we believe
there is opportunity for product innovation as carriers
tie underwriting, ongoing engagement and early
intervention into LTC offerings. Personalized genomics
could identify risk factors unique to a policyholder’s
genome, allowing carriers to tailor wellness offerings
to their needs. Munich Re is investing in data and
capabilities in all of these areas to help carriers
encourage policyholder wellbeing while keeping risk in
check.
QWhat challenges, trends and opportunities are you
seeing in the L&H industry going into 2024?
A
Over the past few years, we’ve gotten a glimpse
of the value that a more modern underwriting,
monitoring, and claims environment can bring
to our organizations. The technology and know-how
are falling into place to speed up our progress, and
we are just scratching the surface of what’s possible.
One key focus is to find ways to deliver frictionless
underwriting while still maintaining the predictive
value of it, since the US mortality experience continues
to be challenging.
On the product side, more and more companies are
looking to add wellness riders to their products.
Available at no additional cost, these riders offer
wellness benefits and rewards to policyholders who
take action to improve or maintain their health, such as
getting regular physical exams or screenings.
QAccording to LIMRA, there are more than 100 million
uninsured and under-insured Americans who say
they need (or need more) life insurance. What more
can be done to bridge the protection gap?
A
As an industry, we have tools in our arsenal that
support expanding insurability. Delivering a
more frictionless purchasing experience to the
digital native generation is one way to bring insurance
solutions to wider populations. Keeping pace with
medical advancements and updating underwriting
guidelines to reflect improved outcomes is another
way. The work that the industry is doing to bring
value-added services like GRAIL to policyholders
fosters greater trust and understanding of the value of
life insurance, and can ultimately boost the industry’s
reputation.
New products are also being developed to address
gaps. For instance, the long-term care gap in this
country is expanding, and previous coverages fell
short for a number of reasons. Combination products
that provide a long-term care benefit and/or a death
benefit are now among the fastest-growing product
categories. We are co-developing numerous products
to help carriers jumpstart their efforts to get into this
growing market, which has the potential to be a winwin
for carriers and clients alike.
Marc Giguere,
CEO, Munich Re US, L&H
Marc-Andre Giguere is
the President and CEO of
Munich Re, US (Life and
Health). Mr. Giguere is the
executive in charge of all
of Munich Re’s US Life and
Health business, driving
the leading reinsurer’s
long-term direction,
strategy investments and
unprecedented business
transformation.
MODERN INSURANCE | 69

INSURTECH
Empathy
QRon, life insurance is changing, adapting, and
innovating to address the ‘whole person’ in some
novel new ways. So, while insurance provides
financial peace of mind, how does Empathy embrace this
in order to support the whole person?
ALosing a loved one truly is a ‘whole person’
problem. However, until Empathy came along,
there really hasn’t been a ‘whole person’
approach.
When families are dealing with loss, they are faced
with hundreds of hours of paperwork, an entirely new
family situation, big and small decisions to make with
great uncertainty, as well as meaningful expenses.
They are often tired, stressed and anxious, as well
as grieving. While a life insurance payout can be a
beacon of financial support, families need so much
more to get them through this difficult time.
That’s where Empathy comes in. We meet families
where they are; whether they’re planning the funeral,
dealing with probate or trying to get through
sleepless nights, Empathy’s holistic approach
leverages technology and supplies a care team who
are trained to step in to provide end-to-end support
for families. This includes supporting families as they
come to understand what they need to do today
versus what can wait, and then working through each
individual task with them hand-in-hand.
QEmpathy recently published a ‘Cost-of-Dying’
report, where over 2,000 families from across the
US were asked how they dealt with the death of a
loved one, and how they handled the burden it placed on
them.
The results were astonishing – anywhere between
13-20 months to handle all affairs, 52% said dealing
with loss negatively impacted their performance at
work, $13k average expense falling on families, and 57%
poorer health from physical or clinical stress. What can
employers do to address this, and how can they leverage
Empathy’s technology more fully in order to support their
employees?
AWe spend so much of our lives at work that
most of us structure our days and weeks
around it. Moreover, the majority of Americans
depend on their employers for medical coverage.
Because so much of our lives focus around our work,
we often bring all aspects of ourselves to the office.
More and more, employers have come to recognize
that they can maintain happier and more productive
workforces by offering robust benefits packages that
anticipate and serve employee needs.
Supporting an employee through loss, like any other
meaningful moment in their lives, has three parts; time,
pay and benefits. Just like employers offer time off for
parental leave, a huge transition in an employee’s life
that requires meaningful time to adjust and deal with
new responsibilities, the same applies to bereavement,
often with less planning ahead.
As an employer, if you’re able to provide your
employees with bereavement leave as well as a support
system which ‘holds their hand’ through this pivotal
time – from planning the funeral to a gradual return
to work – not only are you showing up for employees
when they need you most, you’re also creating a
commitment and loyalty to your talent that has become
so rare in today’s job market.
QWhat commercial benefits can Empathy bring for
insurers and employers?
ALosing a loved one is such a meaningful moment
in someone’s life, and when someone shows
up for you, you’ll never forget it. Employers
and carriers are often some of the first entities that
are right there when the loss occurs; the carrier gets
an insurance claim, and the employer is notified
of bereavement leave. This gives them a unique
opportunity to provide value as one of the first
compassionate touchpoints for people going through
loss, and this value can be unforgettable.
Ultimately, it manifests itself in NPS scores that are off
the charts, impacting critical industry-specific metrics
– whether that’s employee satisfaction, employee
retention, asset retention, claims satisfaction, or more.
It’s quite simple. If you go above and beyond to show
up for someone when they need you most, they’ll never
forget you. And employers and businesses work so
hard to foster retention, engagement, and awareness
that having something like Empathy in a moment as
meaningful as loss is unparalleled.
QHow might Empathy improve the financial wellness
and productivity of the individual in terms of time and
money saved?
AOn average, families spend around $12,616 on
expenses related to their loved one’s passing.
Moreover, 35% are also not fully reimbursed from
the estate, meaning they have to shoulder this financial
burden themselves. Meanwhile, 28% of families were
harassed by their loved one’s credit card companies,
and 24% had to deal with medical debt – issues that
were more common among lower-income families and
adding to their already considerable strain.
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INSURTECH
In addition, the average person takes 15 months to
complete all of the administrative tasks involved, or
18 months if they were executor of their loved one’s
estate. In many cases, these responsibilities amount
to a whole second job, one that will take up massive
amounts of free time and compounds the grief, stress
and hardship for over a year.
With Empathy’s help – whether this is in the form
of initial responses that might help you to avoid
expensive professional services, getting solid vendor
recommendations, and avoiding costly mistakes –
families save an average of $3,007. We also help
families to locate sources of funding, figure out which
benefits they are entitled to, and claim them in a timely
manner. The result is an average of 189 hours saved per
family, amounting to real time back that can be spent
with their family and re-engaging with life, instead of
navigating the logistics of loss.
Ron is a tech entrepreneur who has brought his
love for developing empowering products to
startups and major international corporations
alike. He is the Co-Founder & CEO of Empathy,
the world’s leading support system for navigating
loss. Before launching Empathy in 2020, Ron held
roles as a Product Executive at WeWork and eBay.
He initially joined eBay after the acquisition of The
Gifts Project in 2011, a social-commerce startup
where he also served as Co-Founder & CEO.
QI admire how you and the Empathy team are
working hard to address the unforeseen side of
loss, supporting people with the financial, spiritual,
emotional, and practical tools needed to get through the
grieving process. How do the ways in which we talk (or don’t
talk) about loss inform the work that Empathy does with
people across the country?
AAt Empathy, the first cohort we think about is the
families. Supporting them is our top priority; they
know about loss, and working to demystify their
new reality, offering valuable, credible information in
this new situation, is key.
In order to increase the support we can provide for
families, we work beyond our remit, broadening the
conversation about loss so even people that aren’t
currently experiencing this have an understanding of
what it means to lose a loved one. In turn, this can
lead to them being better friends, family and support
systems for those currently coping. As a society, we can
always be better informed and better equipped to deal
with adverse, but inevitable, circumstances, and it is
vital that we learn how to care for each other in these
moments.
Ron Gura,
Co-Founder & CEO, Empathy
MODERN INSURANCE | 71

INSURTECH
Capgemini
QSamantha - in a recent post, you wrote “life Insurance
chose me”. Can you elaborate on the spark that lit
the flame of focus for your illustrative career?
A
I love answering this question! I mean, how many
people can actually claim that they are a selfprofessed
life insurance geek? And for good
reason!
I was fortunate to start my career at Aflac, in a
temporary HR role while someone was on maternity
leave. By the time that position was coming to an end,
the team wouldn’t let me leave and I found a role in
Agent and Customer Satisfaction. I loved data, and
have always been great at math and spreadsheets. Who
doesn’t love to know what others think?! Back in those
days, when the surveys came in (on paper, no doubt)
and were scanned, we would pull aside the handwritten
notes. You would see statements about how we had
saved someone’s partner because they could now
afford the best cancer treatments, or that we had
helped keep someone’s home even though there was no
longer a regular income in place to support the family.
It was in those moments that I knew what I wanted
to be. After Aflac, I took a break, returned home, and
eventually landed at New York Life Direct in Tampa, FL.
It was here that I went from strategy and innovation to
transformation, and now I am consulting and advising
at Capgemini. It feels good to be part of an industry
that helps so many people throughout their lives, as
well as their loved ones after they pass. Very rewarding!
QIn this issue, we are really focusing on the ‘whole
person’ from an insurance standpoint. Can you
elaborate on ‘Wellness-as-a-Service’, and what
initiatives you’re seeing in this space that you hope will
deepen customer engagement?
I love the focus on the ‘whole person’. To do
this, we need to be able to support that person
A through their entire life journey. The industry
needs to think of life insurance as ‘life’ insurance and
not ‘death’ insurance; they need to think about all
aspects of a person’s life and how to help them see the
whole picture.
Wellness-as-a-Service is a way to be there for your
policyholders, contract holders, their loved ones and
beneficiaries during the policy lifecycle, providing
support that enables financial, physical, emotional and
mental benefits to promote aging well. Some of these
benefits are not tangible, such as personalized advice
and communications on investment opportunities,
gaps in coverage, or new meditation tactics to support
mental health. Some are more tangible, like financial
incentives for being healthier or providing items that
support aging. In addition, Wellness-as-a-Service can
also be addressed in new products; products that
include services and benefits intended to support the
whole person, and not just one aspect of their life.
Wellness-as-a-Service offers a way for carriers to create
something unique for their customers or members. We all
sell the same products, we all provide the same services,
and for the most part, we all have a similar vision. By
determining how you want to support your clients
throughout their lives, carriers can create unique value
propositions at very little cost and much higher returns.
This industry needs to focus on how to support life.
Illness, challenges with aging, long term care, financial
stability, education and overall health are all factors to
consider, and unlike a policy administration system, this
can be a unique approach that provides real value for
both parties. The Capgemini World Life Insurance Reports
from 2022 and 2023 cover these topics in depth, and they
are great resources for those looking to learn more about
what action is needed in order to make change.
QHow can life insurers better people’s lives through
financial wellness?
To get to this point, I need to take a step back
and level set on generational differences. This is
A something I don’t feel most people think about, and
why I feel financial wellness is so important.
If you consider the silent generation and the baby
boomers for a moment, and the economic and world
uncertainties they may have faced in their lives – the
great recession, multiple wars, illness outbreaks, etc. – the
idea of life insurance, income protection insurance like
critical illness/cancer, and retirement products such as
annuities was very appealing. Hiding cash in a tin can was
also appealing. They didn’t know what would happen in
five years, much less in ten. Saving, and protecting their
income and assets, was their way of living.
Fast forward to the Millennial and alphabet generations,
and these individuals have not experienced a fraction of
what their parents, grandparents, and great grandparents
did. Even the pandemic of our generation did not cause
near as much financial ruin as those in the past. Insurance
products are not something they think about, because
they don’t think of death, and they don’t think of the
money in the bank just disappearing.
Most important is to educate, educate, educate. We
need to embrace personalized approaches to educating
individuals on the art of the possible, ensuring income
that is safe, protecting the retirement goals of loved ones
even in their absence, and so much more. Finally, we need
to create new products that fit these needs, products
that are more inclusive and supportive of one’s actual life,
and not just death or retirement. This is how carriers can
better people’s lives through financial wellness.
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Q
By 2050, the United Nations projects that one in six
people globally will be 65 or older. In response to
this, you have said “with trillions poised to transfer to
beneficiaries by 2040, there is an urgent call for insurers to
adapt and innovate like never before, and to innovate with
empathy and prudence.”
What insurers are getting things right, and what are the
obstacles that still need to be overcome?
A
First of all, I would say that carriers are doing very
little in this space at the moment, as claims is not
a priority. Carriers have not yet seen the benefits
of investing in claims. Well, I am here to tell you that
the process is appalling, and makes even me think twice
about the life and annuity investments I am making.
Organizations like Empathy are helping carriers transform
the beneficiary experience, but they can’t solve the
back-end problems that cause some of the major
challenges carriers have to overcome in the first place.
Legacy debt and numerous policy admin and claims
systems cause fragmented data and fragmented claims
operations, which lead to very frustrated clients. Just
a year ago, I had to make 14 different calls before I got
to the right claims group that had access to the system
my uncle’s pension was in. Every claim representative
just kept passing me to another number, saying that the
policy must be in an older system that they didn’t have
access to. In order to create a good claims experience,
carriers have to solve this legacy problem, and there
are numerous ways that this can be done. Not all
transformation equals a new platform.
To get to an intergenerational solution, carriers also
need to reconsider the role that the beneficiary plays
in the policy lifecycle and the policyholder journey. In
the past, carriers considered the beneficiary as another
source of revenue, an opportunity to cross-sell. Carriers
must reconsider the role of the beneficiary and become
customer-centric, where the beneficiary is thought of as
much as the policyholder. Making the beneficiary a part
of the policy journey builds trust and loyalty, so when the
time comes, there are no questions on who to call, how
to proceed, and how to manage the funds. Legacy debt
is also a challenge here, alongside disconnected systems,
and worse, lack of data or tools to support the beneficiary
throughout the policy lifecycle. As with everything, there
are many ways to overcome these challenges and start
building relationships with these beneficiaries to ensure
intergenerational loyalty.
Carriers need to modernize and create a microservices
environment, utilizing solutions such as a digital wrapper
to enable a more flexible ecosystem environment. This
is the first step towards modernizing and enabling
a microservices environment, setting a roadmap to
eliminating legacy mainframe systems without the risk,
and with immediate gains.
Technology vendors Sureify and Majesco are helping
carriers through this legacy transformation. Sureify’s
CoreConnect solution is being used by several major
carriers and acts as a digital wrapper around the legacy
platforms, creating a microservices-based integration
layer that interacts with legacy and modern technology,
eliminating the complexities of building an ecosystem.
Majesco also saw the challenges in this space with
their full policy administration system and the need to
integrate with legacy systems across the value chain.
They developed Digital 1st to counteract these challenges
and to provide the carrier with a microservices layer that
allows a flexible ecosystem and easy integration.
Secondly, every carrier I speak with is trying to figure out
how to attract the younger population, and with good
reason. The products available today are not marketed or
developed to gain the interest of the younger generations.
Penetrating the worksite is key to engaging with younger
individuals; this is their first exposure to insurance, and
a great place to start the education process and build
loyalty. However, it takes strategy and tech flexibility to
take that individual from a worksite client to a long-term
customer. Portability is not an inherent capability for
most legacy systems, and so many benefit providers lose
the opportunity to keep a long-term customer.
Samantha Chow is an expert in the global life, annuity, and
benefits markets, with +20 years’ experience gained from
multiple carriers, analyst coverage, and technology. She
has deep expertise in driving the growth of enterprise-wide
capabilities that facilitate transformational and cultural
change, focusing on customer experience, operational
efficiency, legacy modernization, and innovation to support
competitive advancement.
QCan you offer commentary on two new trends
discussed in Capgemini’s 2023 Top Trends in Life
Insurance annual report? What are the drivers for these
trends, and where are they headed?
Sure! First of all, let’s look at improving the
customer journey through system modernization
A and microservices that unlock new ecosystems. Life
and annuity providers can have upwards of 20 legacy
policy administration systems, and more than 100 legacy
point applications. Each of these monolithic systems
do not integrate well, creating architectural complexity.
These legacy systems prevent innovation across the board
- such as new products, new services, better claims and
underwriting – not to mention the fact that they are very
costly to maintain.
Samantha Chow,
Head of L&H, Capgemini
MODERN INSURANCE | 73

INSURTECH
Dr. Els van der Helm
QEls, congratulations on being named one of
the top 5 sleep experts in the world by Arianna
Huffington’s company, Thrive Global. What was the
first spark that ignited your life’s work on the importance
of sleep for both cognitive function and overall wellness?
AWhen I was 16 years old, I read ‘The Promise of
Sleep’ by Stanford Professor, William Dement.
This inspired me to help the world sleep better. He
describes how magical sleep is, and once I realized how
fundamental sleep can be to our health, performance, and
happiness, I had to agree. It’s crazy what goes on while we
are asleep.
After completing my Ph.D. at UC Berkeley on sleep,
performance, and cognition, I made a career switch to
become a strategy consultant at McKinsey & Company.
It was here where I first saw the potential in helping
people to get better sleep and perform better, further
sparked when I realized how much training I could
access. Leadership training, time management training,
stress management training - it was all there, yet none
of it addressed sleep. This clearly poses a huge issue for
people. How can you possibly resolve stress or be a good
leader to your team when you’re tired?
I now work with organizations globally, supporting leaders
and their teams on the matter of sleep, leadership, and
performance.
QI was fascinated by an article you wrote for
McKinsey Quarterly, ‘The Organizational Cost of
Insufficient Sleep’. My own executive performance
is so much better when I am mindful of getting enough
sleep, and I am using data from my Oura ring to improve
this.
Last year, Oura formed a partnership with John Hancock,
which could be an amazing benefit for policyholders
when it comes to tracking and improving their sleep.
Do you think L&H insurers are finally ‘waking up’ to the
importance of sleep for overall health and longevity?
AYes, definitely. L&H insurers are increasingly taking
steps to ensure that sleep is a core part of their
offering - as it should be, given the fact that most
people don’t get enough sleep. According to the Institute
of Medicine, 50 million to 70 million adults in the US have
chronic sleep disorders. In addition, a recent survey by the
Centers for Disease Control and Prevention discovered
more than 35% of people reporting that they sleep less
than seven hours per night. When people sleep better,
insurance companies also benefit.
Sleep is something that is so crucial, yet it is often severely
neglected. Good sleep lies at the core of everything we do
in our lives - it is the glue that holds everything together.
Without good sleep, all aspects of our life can suffer,
ranging from a higher risk of developing diseases - such
as cardiometabolic diseases, neurodegenerative diseases,
and cancer – right through to the quality of our general
physical and mental health, especially given the crucial role
of good sleep in our resilience to stress, our motivation
to exercise and eat healthily. Our work performance and
social relationships also suffer without adequate sleep.
Therefore, investing in sleep is so crucial in order to increase
our overall health and longevity.
There is also a direct link between sleep and safety. If
people lose just a small amount of sleep (when we switch
to Daylight Savings Time in the Spring, for example) there
is an evident increase in the number of accidents - both
travel or work-related, as well as accidents in or around the
home. The collaboration between Oura and John Hancock
represents such a proactive approach in the promotion of
sleep importance, and it’s a fantastic step towards helping
people to sleep better.
QWhat other steps can Life & Health insurers take
to support their policyholders in achieving better
sleep?
AInsurance companies are in a unique position here.
As they have direct contact with their policyholders,
they have additional health data which they can
use to personalize their approach. Given the elevated
health and accident risk associated with poor sleep,
they themselves are also financially rewarded when a
policyholder improves their sleep quality. Access to multiple
data sources also allows insurance companies to measure
the return on investment (ROI) when it comes down to their
efforts to improve sleep.
There are 5 concrete steps L&H insurers can take to start
improving sleep for their policyholders.
Education and awareness. Communication with
policyholders can focus on sharing content in different
formats around the importance of good sleep and its
impact on other areas of their lives, alongside concrete
strategies to improve sleep and the importance of sleep
hygiene. Remaining mindful of individual differences is
vital, as people suffering from insomnia need a different
communication strategy than people who do not prioritize
their sleep, or do not get good sleep for other reasons.
Offer help, and increase access to diagnostics and
monitoring. Some sleep disorders still take a long time to
be diagnosed, despite a wealth of diagnostics and sleep
monitoring devices currently available on the market. One
common example is sleep apnea, a sleep disorder that leads
to many comorbidities.
Increase access to treatment. Once a sleep disorder has
been diagnosed, insurance companies play a crucial role
in supporting patients to get quick access to the proper
treatment, whether that’s sleep apnea treatment or
cognitive behavioral therapy for insomnia (CBT-i).
Increase access to sleep support. This can come in the
form of specific technologies informing policyholders
of where and how to intervene, behavioral techniques
that individuals can implement in their daily lives to build
healthier habits, or integrating sleep management into
existing programs. This may also include support on
goal-setting, sleep challenges, and sleep coaching.
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Offer incentives for better sleep. Vitality are a great
example of an insurance company that use technology
(such as the Apple Watch) to incentivize people to exercise
more in exchange for lower premiums or other rewards.
One can imagine doing the same by encouraging people
to get at least 7 hours of sleep for several days in a row,
or to get consistently timed sleep, in exchange for similar
benefits.
Offer sleep consulting services to employers. We’re seeing
an increased demand for employers to support employees
on the topic of sleep, not just at the individual level but also
through addressing company culture and leadership
role-modeling.
Invest in R&D. Given their access to health data, insurance
companies are well-positioned to understand and
investigate the various relationships between sleep and
other crucial health factors. This could enhance, or lead
to, the development of products and services tailored to
addressing sleep-related problems.
QSo, what more can companies do to support sleep
improvement in their workforces?
AWork is a significant influence on sleep health,
particularly factors around work culture and
pressures. Therefore, organizations must start
with their leaders. They need to become aware of the
importance of sleep for themselves, and then for their
employees and the entire organization. Only then can
they be authentic role models. This starts with raising
awareness and educating; for example, I speak with
many leaders who have no idea how much sleep can
impact their health, performance, and happiness.
Once leaders are on board, we train them to be open
to normalizing the positive aspects of sleep, and
to instigate a cultural and organizational change
in prioritizing the wellbeing of employees through
a focus on promoting good sleep. This includes
addressing aspects of psychological safety, as these
topics are more accessible to approach correctly.
Simple, tangible solutions work well, solutions that
can be applied anytime, anywhere. People often have
the knowledge but don’t know how to use it; hints and
tips offered online seem obvious, but support around
how one can translate these into our bespoke daily
lives is lacking. This is all about incorporating changes
into daily habits, figuring out your optimal personal
routine and adapting it when needed.
That being said, it’s essential to understand the
underlying challenges of underserved communities,
which are multi-faceted. Some of the more
significant factors at play that contribute to
underserved communities having worse sleep
include; environmental factors, such as noise, light,
temperature, and air quality, and personal or
socio-demographic factors, such as irregular working
hours, financial concerns, and discrimination. Workers
paid under $22,500 per year are more likely to
operate on irregular schedules, and given that regular
bed and wake-up times are crucial for good sleep,
data implies that the sleep quality of those earning
less and working irregular schedules deteriorates.
Plus, on average, people with financial concerns sleep
about 10 minutes less per day than those without
those worries. Several studies have also found that
minorities experience more discrimination, and this
directly leads to more stress and worse sleep.
Obviously, these aren’t easy factors to address,
but they are good to keep in mind when creating
initiatives that may promote better sleep within
underserved communities.
Dr. Els van der Helm is a neuroscientist and adjunct
professor at IE Business School. She has been named as
one of the top five sleep experts in the world, and now
advises corporations about sleep, performance, and
wellbeing. She supports CEOs and decision-makers
worldwide to help them get the best out of themselves,
their team members, and their organization.
Els hosts keynotes, workshops, webinars, and Sleep &
Wellbeing Months, in combination with science-based
assessments. Her work has been featured in HBR,
the McKinsey Quarterly, The WSJ, TIME, The Atlantic,
Forbes, and the BBC. She is currently based in Lucerne,
Switzerland, but works with companies across the
globe.
For inquiries, please contact info@elsvanderhelm.com.
QFinally, how can we help underserved communities
improve their sleep when they might not have
access to sleep trackers?
AFirstly, a very concerning aspect of the
conversation around sleep involves the message
that sleep is a luxury, or that we need expensive
sleep trackers to get good sleep. We need to remove
the notion that sleep is a luxury and replace it with
the truth, which is that sleep is something we all need,
something that we all deserve and something that
unifies us.
Secondly, it’s important to remember that sleep
trackers aren’t a must-have to achieve better sleep.
Yes, they offer data and friendly hints about our sleep,
but real change always comes from behavior change.
A sleep tracker isn’t critical for that.
Dr. Els van der Helm
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Heather
Majewski
In the long-term, integrated wellness programs
have been highly successful. I recently co-authored
a white paper with our actuaries while working
for Swiss Re, evaluating consumer engagement
programs that Swiss Re reinsures. We found that
successful programs (engagement rates of 25% or
more) are ROI positive, and for programs with 40%
engagement, we’ve seen an increase in profitability
up to 9% due to an aggregate mortality and lapse
reduction of 3-4%.
QHeather, you have such a fascinating background,
and I would say health and wellness are themes
woven throughout your career. What sparked this
passion to view insurance through the lens of the ‘whole
person’?
A
I’ve always had a desire to provide people with
financial security products that they really
need, especially as a product development
actuary. I fell in love with incentivizing healthy
behaviors within insurance; it’s a win-win outcome
for the insured, their family and society through
living a healthier, more productive life, as well as
for the insurance company in the form of lower
claims. I was thrilled to help launch Vitality at John
Hancock, and it’s been the highlight of my career
thus far. Protecting consumer wealth while improving
consumer health is my passion, and this concept of
Shared Value - as discussed by Harvard Business
Review - is my mission now. Shared Value is not just
corporate social responsibility; it connects social
progress and business success, and as an actuary,
when an insurance product brings value to society, it
has a much greater likelihood of achieving a longterm
positive return on investment (ROI) for the
company. I will go to great lengths to make this
happen!
QAt the recent LIMRA conference, there were
definitely new themes and directions going on
in life insurance, including novel technologies or
services that engage and encourage the policyholder to
live longer, healthier, and happier lives. The John Hancock
Vitality solution is a great example, and this partnership
clearly has longevity!
What are some of the metrics of success you saw in those
early years of the partnership? And what are some other
novel approaches to wellness that you are seeing other
life insurers adopt?
A
I believe the secret to longevity with any
partnership is to have aligned interests.
Certainly the Shared Value I just mentioned
is a clear representation of this belief. Consider
John Hancock and Vitality, two very complimentary
parties, each bringing their own strengths and
combining to do better than what one company
can do on its own. The key performance indicators
we were looking for in the early years were simply
‘Adoption’ and ‘Outcomes’.
‘Adoption’ addressed the level of acceptance seen
across internal stakeholders, state compliance
departments, various forms and levels of distribution,
and, of course, the ultimate end consumer. It was an
entire team effort across John Hancock, including
testing and learning to achieve success in each
disparate area. On the other hand, ‘Outcomes’
looked at actual changes in behavior as a result of an
integrated wellness program, and improved actuarial
indicators and outcomes.
QWhat trends and opportunities are you currently
seeing in L&H?
AUnsurprisingly, a large number of carriers are
evaluating some form of wellness/customer
engagement offering. They understand such
an offering brings tremendous opportunity for
connecting with new consumers and distribution,
personalizing insurance interactions, improving
actuarial outcomes and maximizing lifetime customer
value. Interestingly, there are competing priorities
that actually set the stage well for engagement
programs. These include modernizing legacy
systems and improving underwriting efficiency and
effectiveness. Underwriting improvement often relies
on new data sources, including a growing abundance
of health and wellness data from personal devices.
As many know, cancer is one of the most common
lifestyle diseases, and this is also a trending area
for life insurers to pilot. Early detection of cancer is
key to extending longevity. Many insurers are going
to market with GRAIL’s Galleri, a multi-cancer early
detection testing program, supported by a multitude
of reinsurers based on past studies that show
improved longevity outcomes.
Genome sequencing and epigenetics have also
peaked the interest of insurers. Genomic testing can
determine likelihood or early detection of developing
diseases, and guide individuals to develop prevention
strategies. While an individual’s genetics shouldn’t
change over time, epigenetics can determine the
current state of a gene driven by lifestyle behaviors,
such as smoking or alcohol use. While both would
need careful consideration for life underwriting,
they can be used post-issue to personalize the
process for consumers when they want to become
more knowledgeable about their health. Behavioral
Diagnostics is a company that has been a pioneer in
this space lately with their Smoke Signature, Alcohol
Signature and Cardio Diagnostics tests. They are now
in the process of going to market with this through
an insurtech startup called Invive.
Q
I took note of one of your recent posts on
‘caregiver’ stress. I know many who are in that
stage of life at the moment, caring for elderly
parents and also caring for children. How can insurers do
more to support people who are in the caregiver role?
AA couple of months ago, I wrote a graphic
LinkedIn post about one of my best friends
(let’s call her Jessie) who is a 45-year-old
single mother simultaneously caring for her elderly
parents and her three kids. Following her father’s
death after a battle with cancer, she was at the end
of her rope dealing with her mother with dementia.
Unfortunately, Jessie was diagnosed with breast
cancer less than a month after that post. Is this
a coincidence, or a co-morbidity? She is still
responsible for her mother and children. Think
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about all the insurers affected in this example. The life
insurance company that paid on her father’s death, the
long-term care company paying for her mother’s assisted
living facility, the health insurer that’s now paying for
Jessie’s cancer, not to mention the future impact of both
Jessie and her mother’s life insurance. And Jessie is not
the only one out there with a story like this.
Can insurers provide value added services to their
insureds and their caregivers to alleviate the stress
of aging situations? When I was at John Hancock, we
built a business case and launched a pilot for an older
age intervention for Long Term Care insurance. I’m
happy to see that numerous long term care insurers
have been exploring and partnering in the customer
engagement space in recent years. Companies such as
TCare, Helper Bees and Wellthy are providing valuable
caregiver services, and I look forward to supporting
more innovation in this space. In fact, I’m advising a
startup called Navierre who are empowing users to
truly own their health journey, starting with centralizing
our medical records and making personalized health
recommendations. It’s like a combination of MyChart,
ZocDoc and MyFitnessPal on steroids! Navierre is
building a case to demonstrate a positive ROI coming
from better health so that more insurers will engage in
these types of digital apps.
QWhere do you see Health Engagement Programs in the
future of insurance?
AI firmly believe personalization is the future
of insurance - throughout the entire customer
journey, enabled by digitization and AI. From lead
generation, underwriting, pricing, ongoing engagement
and servicing through to new product and financial
wellness recommendations, and better claims processing
that turn beneficiaries into new customers, Health
Engagement programs are a key tool or opportunity to
accomplish this personalization.
Heather Majewski, FSA, is the Founder and
Managing Principal of VivaSure Advisory. Her firm
was founded to help grow and improve outcomes
in the insurance industry using data, technology,
personalization, and agent and customer
engagement. She has 25 years of experience in the
insurance industry across multiple product lines.
As Former Head of Americas Life & Health
Solutions for Swiss Re, Heather and her team
focused on closing the protection gap by driving
digital growth, operational efficiency, and improved
performance in the insurance industry. Before
joining Swiss Re, she was Head of Wellness
Innovation for John Hancock Insurance, where she
was instrumental in the development and launch of
the John Hancock Vitality insurance solution that
rewards people for making healthy choices. She
was also focused on the long-term care industry
and improving profitability through product design
and health engagement. Prior to that, Heather held
various strategic and actuarial roles at The Hartford
in the individual annuity and employer benefits
space.
Heather is a Fellow of the Society of Actuaries with
a BS in Actuarial Science and an MS in Mathematics
from the University of Connecticut. She also held
the prestigious honor of University Scholar and
multiple Babbidge Awards.
Knowledge gained about consumers through such
programs can be used at the front end for lead
generation, offering the right products at the right
time in their lives as well as creating a smoother, more
customer friendly claims process at the back-end. The
new abundancy of health device data will not only
support early risk classification for distributors, but it can
also be used to dynamically price products and simplify
the initial underwriting process.
I also foresee the intersection and collaboration of health
and life insurers, doctors and family members happening
in the next 5-10 years. This is being enabled by things
like the 21st Century Cures Act and HIPAA Right of
Access, where we are being given more access to our
health records. We can share our health information
with stakeholders, who can develop interventions and
programs designed to help us live longer and healthier
lives.
Heather Majewski,
FSA. Founder & Managing Principal, VivaSure
Advisory, and Former Life & Health Insurance
Executive
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EDITORIAL
BOARD
WELCOME to the Insur.Tech.Talk
Editorial Board.
Modern Insurance Magazine’s board of insurtech experts come together once again in this
latest issue, showcasing the very best thought leadership insights from the heart of the
insurtech marketplace.
This issue voices the thoughts of...
Scott Holmes,
Sales Director UK&I,
Quantee
Adam Brzozowski,
Founder,
Me.
Denise Garth,
Chief Strategy Officer,
Majesco
Ed Halsey,
VP Marketing,
Genasys Technologies
Tim Hardcastle,
CEO and Co-Founder,
INSTANDA
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INSURTECH
Is embedded
insurance all
it’s cracked
up to be?
Embedded insurance has, without question, been one of the hottest topics across the industry
in recent years. Designed to offer a high level of convenience, it is unsurprising that embedded
insurance has proven to be such a hit among customers, given that an American Express survey
of UK respondents shows that six in ten people consider convenience to be a high priority when
shopping for services online. As a result, this portion of the insurance market is set to be worth
$3 trillion by 2030.
We sat down with Scott Holmes, Sales Director UK&I at Quantee, and Adam Brzozowski,
Founder of Me., to really understand the benefits of embedded insurance products alongside
some of their challenges.
Q
Guys, let’s look at embedded insurance vs.
tailored products. Perhaps the main question is
which is best for consumers?
AB: Good question, but not necessarily one with
an easy answer. Firstly, for the purpose of our
Aconversation, we will define embedded insurance
as any insurance product that can be purchased as
part of a commercial transaction alongside another
product or service. With regards to tailored products,
we will refer to these as insurance products enabling
personalisation of cover based on the customer’s
individual circumstances.
If I focus on the word ‘best’, the answer is tailored
products without doubt. Embedded insurance is easier
and quicker to buy, but is it really what the customer
needs?
Think about buying clothes – we can buy something
online very quickly, but the size can be completely
wrong. We know it, so we check the size before we buy
it. When it comes to insurance though, what is the right
size for me? It’s certainly not one size fits all, so what
am I buying? And what will happen when I need to use
it? I think the industry could certainly do more to ensure
customers are properly protected, rather than focusing
on the ease of sale.
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.
Do we fully understand and appreciate that
embedded insurance has its drawbacks?
Q
AB: Perhaps not. Insurance products are
complicated, and I don’t think that customers
Areally get into analysing insurance cover at the
time of adding insurance on top of another purchase.
Of course, it depends on the product; whether it’s
insurance offered on top of an online purchase, car
insurance added on top of a leasing agreement, or
cover for a one-off parachute jump. But no, I don’t
think customers fully appreciate what they’re buying at
that point. In a recent report, 80% of Brits who chose
a traditional insurer or broker in the last 12 months
said they would prefer bank-embedded offers next
time, citing convenience as the reason for this choice.
However, I’d guess that’s all conditional on the product
offering remaining the same.
It’s very different on the underwriting side of things
though. The struggle there relates to the cost of
distribution, and embedded channels are expensive!
This leaves very little money leftover from the premium
the customer just paid for the actual product, or cost
of risk. Most of that premium goes to the owner of the
distribution channel, whereas the underwriter needs
to engineer some sort of a product with the leftovers.
There’s no magic here and there are only two things
an underwriter can do – remove expensive risks from
the cover and, depending on the product, assume that
most customers won’t make a claim. A good example of
this is travel insurance embedded in our bank accounts.
We end up buying another policy, either because we
realised that the original product wouldn’t do much, or
because we forgot we had it.
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Insurance products are already quite impersonal, and
the ones sold in embedded channels are even more so.
Right now, the model is based on access to customer
and ease of sale, but perhaps embedded insurance will
evolve to offer more personalised cover in the future.
Do tailored products offer a better alternative?
Q
SH: By the nature of personalising protection
to customers’ individual needs, yes, absolutely!
AOnboarding will be more challenging, but once
done, with the right business model and customer
proposition, this model can revolutionise insurance.
About Quantee
Quantee helps insurers, MGAs and brokers to improve
the granularity and accuracy of pricing models -
delivering more targeted results and enabling instant
deployment and monitoring in real time.
About Me.
Me. is a fully personalised insurance proposition,
protecting customers with whole encompassing
insurance cover. One policy, all risks, one payment.
I’m a strong believer in this model since both the
customer and the insurer are beneficiaries here. It’s no
longer a win-lose relationship. The customer gets better
protection, which fits their lifestyle at a better price.
The subscription model offers flexibility in adjusting
the cover, so there’s little motivation to switch insurers.
As such, the CAC/LTV will be so much better than
the industry’s norm. That improvement means the
underwriter can put more money into the underwriting,
and worry less about distribution expenses.
Pricing is a game changer. From my previous
experience managing a portfolio of a few million
customers, I can absolutely tell you that customerrelated
data is much more meaningful than product
specific data. Pricing architecture utilising customer
behaviour, just like what big, digital marketplaces do,
will completely change our understanding of customer
needs, attitudes, preferences, and risk. AI plays a big
role here, since we’re dealing with data not available to
conventional insurers. The accuracy of these models
will be unrivalled by conventional pricing. We no
longer look at underwriting performance per product
alone, but can explore a whole dimension of customer
lifetime value (CLTV). This requires us to rethink the
pricing architecture in order to utilise the benefits of AI
powered dynamic pricing technologies that can easily
monitor and manage tariffs.
Do we need to prioritise seamlessness over
renewal?
Q
SH: It is clear that, despite the trajectory of
embedded insurance, tailored products offer
Aa more flexible, convenient, and cost-effective
option to customers. However, not enough people are
aware of the benefits that tailored products can deliver
for them, given the perceived convenience offered
by embedded insurance. With tailored insurance,
customers simply have to select the product that they
need once and that’s it – any changes to it can be made
over time. Though embedded insurance onboarding
may appear more seamless at first, consumers still need
to deal with annual renewals, or must shop around
for multiple products every year. As such, the initial
perception of convenience that embedded insurance
promises is actually quite superficial once you begin to
scratch beneath the surface.
It comes back to the point that insurers need to
win consumer trust then?
Q
AB: Yes, absolutely. It is vital for insurers to
build trust among consumers, and embedded
A insurance only detaches them from those they are
trying to sell to. This is inconsistent with the industry’s
push to become more customer-centric, and insurers
must therefore consider how embedded insurance
fits into their long-term strategy, rather than just their
short-term growth. Is it really the direction the industry
wants to take?
Scott Holmes,
Sales Director UK&I, Quantee
Adam Brzozowski,
Founder, Me.
By offering tailored products, insurers can adopt
the customer-centric approach that they’re trying
to implement. As such, more insurers need to be
switching over to this model so that they can spread
news of the benefits that tailored products can deliver
for customers. Doing so will benefit everyone, but
especially early adopters, who are likely to enjoy
increased profits as customers seeking a better service
switch over to them.
To be clear, tailored products will revolutionise the
insurance industry, offering a brighter, more flexible
future for consumers. Busy consumers still value
convenience, but in a world increasingly designed to
meet their exact needs, whether online or off, insurance
providers must embrace the concept that ‘the customer
is always right’. If your company doesn’t give the
customer exactly what they want, a more
forward-thinking competitor will, and it will always
be to your detriment.
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2024 Strategic Priority:
Operational and Technology Conundrum
Inflation, supply chain challenges, rising interest rates and low
unemployment are not abating. Declining profitability, increased
catastrophe losses, rising loss ratios, increased claims costs, rising
reinsurance prices and tightening capacity, lower disposable incomes,
and a growing loss of talent from an acceleration of retirements, are
all converging, creating a massive wedge of operational change for
insurers and a protection gap for customers.
Denise Garth,
Chief Strategy Officer, Majesco
Insurance underpins and secures today’s uncertain world,
but it’s in the midst of its own dilemma. It faces a conundrum
around operational optimization and growth, given 2023
financial results and the continuation of these challenges into
2024 – and beyond.
The conundrum: How do we achieve operational
optimization and growth with these challenges?
The insurance industry is waking up to a realization that the
operational models and technology foundation used for
decades no longer matches today’s reality. With the new
risks, shifting customer needs, operational demands, and
a dynamic and rapidly accelerating technology landscape,
particularly with AI poised for significant adoption and
impact, the case for changing how we do business is stronger
than ever.
The challenge: Many insurers are still grappling with business
and technology transformation. Decisions are being made
that will determine new technology priorities, as well as their
ability to provide market traction. Insurers who leverage
technology to meet the converging challenges will be sought
after partners and employers due to their ability to achieve
scalability and agility. Not doing so creates operational and
technological debt that diminishes growth and removes any
chance to respond, let alone grow.
Navigating these tumultuous waters requires realignment
on where we focus and invest, likely requiring an increase in
spend. The world and its technology continue to rapidly shift,
and so the industry must as well. The slow, steady 3%-4%
of DWP technology investment is incremental at best, and
not sufficient enough to meet the pace of change in today’s
marketplace.
The opportunity: Even with these challenges, operational
optimization and growth is very possible with the right
focus. Some of today’s tech solutions eclipse yesterday’s
on-premise legacy solutions in their ability to revolutionize
business models from the core to the customer. Data
transformation, next-gen intelligent core systems, and AI
are all opening insurers up to opportunities they never knew
existed.
Majesco’s 2024 Strategic Priorities research with insurers
found that companies with a higher focus on six strategic
activities (including replacing core legacy systems, new
products, new business models, expanding channels, focus on
innovation and reallocating resources) demonstrated stronger
growth of 1.4 to 1.95 times more. Prioritizing strategic
initiatives that enable the business operating model and
technology foundation, including resources and funding, is
now more important than ever.
These companies are Leaders, standing out from Followers
and Laggards. Leaders are expanding the gap with Followers
(30% gap) and Laggards (89% gap) due to the pace of
change, but also the lack of focus and investment on key
strategic activities. This creates a significant disadvantage
competitively and financially, and ultimately results in greater
business risk for Followers and Laggards.
The Focus: Leaders keep a sharp, consistent focus on both
operations and strategy. They are forward-thinkers who
identify areas where core business operational models and
technology foundations intersect. This drives optimization,
growth, and long-term business innovation.
Elevating insurers’ business operation with a next-gen,
intelligent technology foundation built on robust next-gen
architecture is now a must-have to compete in today’s
marketplace. To meet the digital demands of today’s
market, embracing a next-gen architecture is essential. It is a
paradigm shift — a groundbreaking leap in software design
fueled by the pillars of modern innovation: cloud-native,
API-first, microservices and containerization, headless, and
embedded analytics – including business intelligence, AI/ML
models, lakehouse, and GenAI.
As 2024 unfolds, decisions will be made on priorities that will
influence which companies emerge as winners in the next
three to five years. Winners will be sought after as insurance
providers, partners, and employers due to their ability to
realign and adapt to today’s world, not yesterday’s. They will
have a next-gen operational and technological foundation to
optimize quickly, scale cost-effectively, and adapt rapidly to
shifts through innovation.
It is time to rethink, realign, and reprioritize… before it is too
late.
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Staying competitive while adapting
to the evolving EV landscape
In this uncertain world, understanding and reacting to change
and emerging risks with agility, while innovating at a speed
that meets external demands, is particularly challenging for the
insurance industry. As an emerging risk, EVs are the first step of the
technological journey to truly autonomous vehicles. Risk-modelling
conundrums, ultimately centred around who or what is liable, are
occupying many board discussions at present, alongside the impact
of EV repair costs. It’s a pivotal moment for, and within, the insurance
industry.
Ed Halsey,
VP Marketing, Genasys Technologies
We can expect the EV market to evolve significantly over
the coming years, and savvy insurance businesses know they
need to plan ahead if they’re to remain relevant in the future.
Stagnating when competitors are moving forward means
relative decline, and this simply isn’t a viable option.
Adaptability to build resilience
Businesses in the throes of building future resilience are
putting adaptability at the heart of their operations, rather
than fixing their business strategy around the state of EVs
today or the expected future EV landscape.
This pro-adaptive approach is a shift in mindset from
adapting to what we know, leaning towards preparing for
what we don’t without derailing the overall business vision
or disrupting day to day operations. It’s here that a core tech
stack with access to an ecosystem of partners is central to
businesses being able to realise innovation and flexibility.
Delivering customer-centricity
Consumers who opt to buy an EV are giving a clear
indication about who they are and what they stand for.
They’re typically early-adopters, individuals attracted to
innovation and its benefits for whom the user experience is
paramount.
Naturally, they have high expectations of the insurance
products and processes needed to protect their investment.
These are policyholders who won’t put up with clunky buying
processes or slow, manual claims processes. They’ve already
shown a willingness to move on from the traditional in pursuit
of an enhanced or unique experience, and the insurance
industry must respond accordingly.
Plugging into EV opportunities
Traditionally, insurance risk models are built on a wealth
of historical data, allowing insurers to predict risk with
a reasonable degree of accuracy. Without this data, we
inevitably become more susceptible to assumption, human
bias and misinterpretations.
The immaturity of the EV market, and the current limited
availability of data, poses a unique challenge for insurers.
However, innovative tech players are responding to the
situation, ready to support the industry in their navigation of
this unchartered territory. Insurance businesses must be ready
to plug into these opportunities.
New cutting-edge technology, including the increasing use
of AI, telematics and integrations to ingest, analyse and
understand vast amounts of data at double-speed, will
facilitate the industry’s ability to effectively handle the risk
on cover while keeping costs low. Running parallel will be the
ability to deliver the required user experience to satisfy this
customer group.
Expect to see a growth in solutions focusing on prevention
of claims happening in the first place with the gamification
of good-driver behaviours. Equally, solutions to optimise
the claims process by making the process as frictionless as
possible will also be at the forefront, reducing the time from
claim to final settlement.
Test and learn
What’s key here is that insurance businesses using an
API-first, feature-rich core tech platform can pick and choose
partners that work for them. New technologies connected to
understanding and managing the risk of EVs, alongside the
delivery of a high-quality customer journey, can be quickly
plugged in, and even unplugged, as necessary.
This becomes commercially exciting when the first stages of
test-and-learn projects can be implemented in a matter of
weeks, not months (or even years). The result? If test projects
are successful, then the processes are in place to scale, and
scale fast.
Competitive advantage
Electric vehicles are just one of the latest examples of
emerging risk for the insurance sector, representing the
intersection between developing technology and consumer
expectation. The most successful businesses are getting
ahead of the curve in their ability to react to change.
Recognising that their competitive advantage lies in their
agility and ability to respond to a changing environment -
and customer demands, however they shift – means that
businesses are putting the technology in place to plan for a
future they know they can’t fully predict.
MODERN INSURANCE | 85

INSURTECH
Re-imagining the
Digital Insurance
Landscape at
INSTANDA
Compared to just five years ago, there’s a huge swathe of
progressive insurers and Insurtechs working together to
improve every aspect of the insurance value chain, which
is ultimately having a positive impact on the customer.
As highlighted in INSTANDA’s global report, ‘Re-imagining
the Digital Insurance Landscape’, customer-centric insurers
are leveraging data and straight through processing to
price risk, manage claims, and better serve the customer.
They are using data in a very smart and accurate way to
create incredible value-adding processes and customer
interactions. Crucially, they are doing this at speed, and all
without breaking the bank.
However, this experience is not universal. There’s still
far too much friction within the insurance value chain.
Following a Censuswide survey of 1,000 UK consumers,
INSTANDA’s recent research found that most consumers
are indifferent. When asked ‘how positive do you feel
about insurance companies?’, 41.5% reported that they felt
neither positive nor negative, signalling a huge opportunity
for insurers to change the narrative.
The same research also revealed that customers
are seeking greater transparency and trust, a more
personalised experience and faster claims payment.
Customers want products that are tailored to them, to be
able to understand the terms of their coverage and have
the ability to make policy changes on their own – and at
the lowest possible price.
Tim Hardcastle,
CEO and Co-Founder at INSTANDA
This begs the question, what should insurers be doing to
meet evolving customer needs? If we bring the answer (or
should we say answers?) back to our ‘Re-imagining the
Digital Insurance Landscape’ report, there are several
calls-to-action:
1. There needs to be more acceptance of the fact that the
traditional way of designing products (from the
inside-out) must change. Insurers must get smarter about
how they leverage data and create ‘retail-like’ feedback
loops to design their products and customer experiences
through the customer lens.
2. Insurance needs to become less transactional.
Customers are seeking a more connected experience
at every touchpoint, across every channel and function.
Insurers must make a concerted effort to break down
silos and join-up their insurance value chain to meet the
customer with a seamless experience.
4. Too many assumptions are being made about what
customers want and how they wish to engage. The
industry must get better at customer segmentation
and the needs analysis part of the distribution value
chain – something that AI can facilitate. Currently, this is
happening at an insurance product level rather than the
customer level.
There is still a big challenge around how insurers order
their data estates. Turning data into actionable insights in
order to improve customer offering requires far greater
data-literacy than many insurers currently possess. The
insurance industry must also look outside of the sector in
order to acquire the cognitive data skills required to create
a customer-centric data-driven culture.
In summary, there’s no single step that an insurer can take
to become customer-centric. Delivering personalised,
contextual customer experiences involves a series of steps,
as well as a consistent effort to listen to evolving customer
needs and build from the outside-in.
86 | MODERN INSURANCE

40 insurance technology experts from
across the world share their insights.
Delve into the conversation to:
Explore the profound impact technology is having on the insurance landscape.
Uncover customer demand for greater personalisation, choice and
transparency, and learn how insurers are responding with customer-centric
products and experiences.
Understand how AI and connected technologies are positively impacting the
insurance value chain, and how progressive insurers see the opportunity ahead
of the risk.
Discover why core modernisation is rising in importance as insurers seek to
navigate aging technology and complex systems.
Visualise predictions for a future where insurers actively participate in their
customers’ lives, serving them with embedded, preventative products.
Ready for a thought-provoking read?
Download your free copy of INSTANDA’s
Global Report here.
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