Archive

  1. Trend Tracker Report – Discounted Car Body Repair Report

    Comments Off on Trend Tracker Report – Discounted Car Body Repair Report

     

    We are pleased to announce the return of Mark Bull, Director at Trend Tracker.

    Trend Tracker is dedicated to providing accurate and informed automotive industry research, specifically concentrating on the UK car body repair and the UK motor insurance sectors, including the associated supply chains.

    As a well-established business which has been around since 2003, we can confidently recommend them as the most trusted, market-leading source of accurate, in-depth market intelligence on the current and future state of the vehicle repair market.

    With a thorough understanding of the industry built of over 40-years of automotive industry experience, their industry-leading reports are a must-have tool to help your business be better tomorrow through what you learn today.

    This is specifically relevant to those of you working within the motor vehicle claims or repair industry.

    As a special thank you we are offering a discounted report rate to all of the ILC community, just click here to purchase a report and input this code to claim your discount: ILC/TT/995

    Chris Ashworth, Founder of ILC says: “We are pleased to support Trend Tracker and can highly recommend the report as the single most comprehensive source of information for anybody involved with motor vehicle claims or the repair environment”.

     

    Trend Tracker 2019 Report 4pp A4 Promo Digital

     

     

  2. Industry Leader Interview – Simon Smith, Commercial Director at Industry Insights Ltd

    Comments Off on Industry Leader Interview – Simon Smith, Commercial Director at Industry Insights Ltd

    This week we speak to Simon Smith, Commercial Director at Industry Insights which provides business consultancy services within the automotive and motor insurance sectors.  

    Their unique approach has led to the creation of a pioneering connected supply chain solution to Insurers, Fleets and Manufacturers.

    How did you get to where you are today? 

    I have been very fortunate to work with some great thinkers throughout my career, all of whom have been passionate about their roles within the businesses they represent, that sense of pride is something I have certainly attempted to harness to the best of my ability.

    Timing has also played a huge part, in 2010 I was given the opportunity to start on a brand new project within Aviva that would see the business move into the price comparison market, the exec. at the time was very entrepreneurial and encouraged some free thinking and occasional risk-taking.

    In those conditions I was able to progress with some great mentors around me, which opened the door for me to move to Nationwide Crash and more recently, to team up with Steve & Sharon at Industry Insights.

    What’s the biggest challenge facing your sector of the industry?

    Is Brexit too much of a cliché here? I guess that there are a lot of unknowns in 2019 which is an insurer’s worst nightmare because it presents a higher level of risk. So to name a few of the risks that are out there in 2019, I would suggest parts supply chain disruption would be a considerable inconvenience to both repairers and insurers and outside of motor repair.

    I believe that the regulator will have to focus attention on the way that LEI is sold to customers and the value that the policy offers once purchased.

    How are you and your business dealing with this? 

    We are fortunate to work with many leading companies across Connected Solutions who are experts within their fields, so in the parts supply chain, we have a partnership with Advantage Parts who have a number of initiatives to support parts procurement on a global basis.

    This will certainly help alleviate sourcing challenges if we are faced with a limited parts supply chain or manufacturing programme within the EU region.

    In respect of the LEI, we have partnerships with both Doctors Chambers & Carpenters who are incredibly well placed to positively influence the value proposition of LEI. I genuinely believe that we will see digital healthcare solutions, such as those currently provided by Vitality being more commonplace in 2019, hopefully linked to a more innovative LEI offering.

    Out of your achievements, what are you most proud of and why? 

    This may sound slightly banal but I guess my greatest achievement is my family, they certainly help focus the mind and are great at helping me get my priorities in the right order.

    In terms of corporate achievements, slightly more difficult – during my time at Quote Me Happy Aviva we made some huge strides to deliver market-leading non-insurance income returns to the business, in tough conditions we achieved our budgeted PIF targets in 2011, 2012 and were on track when I left in 2013. That was my first real experience of overall profit & loss on a significant scale.

    What advice would you give to anyone starting out in the claims industry?

    I think about the best advice I was given when I started out and it is still the best advice I could give to anyone is patience and the ability to play the long game. People will all work at different paces and its often all too easy to become frustrated when things don’t move as quickly as you would like, so stay calm and try not to rush.

    More recently, and this is certainly something that has come with getting older is taking a step back. My children have taught me that everyone should have a view and sometimes we need to take counsel from more people than perhaps we do – so have a moment a quiet reflection before committing to anything.

    If you could change anything what would you do to make the insurance industry “Better Tomorrow”?

    Great question, I guess my initial thoughts (having just had a step back to contemplate!) are that insurers are not charities and they are in the business they are in to make profit, and as a supply chain function, we are also in the business to make a profit, so clear dialogue on what is financially acceptable between insurers and their working partners is critical.

    I think on occasions it’s all too easy to think that either party is ripping the other off – how we recover the necessary levels of trust to tackle this is another challenge altogether.

    What’s your top tip for being productive?

    I genuinely think if you want to be successful you need to have some clear objectives for yourself, which can either be week by week or month by month. Without having a focus point for any given project it is all too easy to become distracted away from what matters.

    Once you’ve committed to your list – nail it, don’t be half-hearted and don’t make excuses.

    What gadget can’t you live without?

    Sadly, my phone and more specifically Twitter, I find myself now using Twitter for my daily news feed and sports updates. Everything is in one place and you get the occasional bit of craziness thrown into Twitter for good measure.

    Talent or Perseverance?  

    Perseverance 100%. In both my early sporting life and in my business life I have been with some incredibly talented young people, but at some stage, the talent needs to be merged with perseverance.

    The people who go onto be successful in our industry are normally blessed with a mixture of dogged determination and incredibly thick skin.

    What do you do to switch off or escape from work?

    Time with family and holidaying has become my major escape. As a family, we are trying to travel as much as possible with the children and let them see as much of the world as we can afford. My belief is that they will benefit from that as they get older and will have a greater understanding of different religions and different ways of life.

    Outside of travelling, I am a keen reader and have just finished the book “Shoe Dog” by Phil Knight, which details the history of Nike, a great lesson itself in the art of perseverance!

    Finally, anyone that knows me will be aware that I like the occasional game of golf, just no questions on what my actual handicap is these days!!

  3. ILC Motor Networking Lunch – The Best One Yet!

    Comments Off on ILC Motor Networking Lunch – The Best One Yet!

    Last week’s 9th Motor Claims Networking Lunch at the Grand Connaught Rooms can certainly go down in history as the best one yet!

    A truly memorable event with over 500 motor claims professionals coming together to network, raise money for Rainbow Trust and start the New Year on a high.

    Combining a sought after Central London location, with the massively inspirational Dr John Amaechi  OBE, fine food and wine and the charismatic auctioneer that is Jonny Gould, it was an enjoyable and rewarding day.

    As always the support and dedication of our Sponsors and Corporate Partners is invaluable so many thanks to all of you for making this such a successful day.

     

     

     

     

     

     

     

    We took the fundraising to another level this year with guests generously raising a whopping £88,403 for the Rainbows Trust, a charity that supports the families of terminally ill children.

    It means that to date the ILC community has raised over £700,000 – a phenomenal achievement and we are well on our way to reaching our ambitious 1m goal.

    Many thanks so much for all who took part and donated to the auction.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Thanks again for coming and keep a space in your diary for the next Motor Conference which will be on the 19 June at the Ricoh Arena.

  4. ARMS® Business Solutions UK Agrees to Buy EMACS

    Comments Off on ARMS® Business Solutions UK Agrees to Buy EMACS

    24/01/19

    ARMS® Business Solutions UK today announced its intention to buy Dewsbury-based EMACS, developers of an award-winning bodyshop management system. Completion of the agreement is subject to regulatory approval.

    The acquisition offers ARMS® Business Solutions UK, a wholly owned subsidiary of Enterprise Rent-A-Car UK, the opportunity to develop better bodyshop management software in the UK and to continue to grow the portfolio of solutions it provides to the collision repair market.

    ARMS® Business Solutions UK will work with EMACS sales and software teams to ensure the development of EMACS software, as well as the products developed by Bodyshop Management Solutions (BMS), which was acquired by the business in 2015. The acquisition of EMACS, for an undisclosed sum, will enable greater synergies and allow the companies to develop new products more cost effectively for the benefit of their customers.

    The agreement comes after EMACS founding members Alan and Eric Hargreaves sought a suitable buyer for the company following their decision to retire. EMACS will continue to operate as a separate entity based in Dewsbury and all remaining employees will stay with the business.

    Chris Ashworth, Managing Director for ARMS® Business Solutions in the UK, said: “EMACS is a business that has distinguished itself for the quality of its software and the commitment of its team. When we were approached by its founders to discuss a potential acquisition, the synergies with our business were immediately apparent. We are incredibly excited about the EMACS team joining our business, so we can further expand our range of solutions and continue to add value to our bodyshop customers.”

    “With the backing and resources of the wider business, this acquisition will allow us to continue to develop the outstanding EMACS software business and enhance our existing software solutions in the UK more effectively.”

    EMACS was established in 1995 by Alan and Eric Hargreaves, who together brought almost 70 years of experience in the body repair and computer software sectors. The company offers a comprehensive range of software for the bodyshop industry and is a preferred partner for a number of vehicle manufacturers. It has won many awards including the ABP Club “Repairers Choice Award” for the best bodyshop management system for the last 10 years.

    EMACS Managing Director, Alan Hargreaves, said: “Finding the right partner was our main priority when the time came to retire. ARMS® Business Solutions UK was by far the best fit given the company’s long-term commitment to the bodyshop sector. Its growing technology subsidiary complements EMACS’s systems perfectly.

    “We built the EMACS software specifically for bodyshops. It is a system that is relied on by many repairers and we are proud to have enjoyed the support of our loyal and happy customers for many years. ARMS® Business Solutions UK has shown that it will continue to invest in the further development of EMACS’s suite of products, both for employees who are dedicated to the success of the business and our customers.”

    EMACS General Manager, Chris Mortimer, said: “The acquisition of EMACS by ARMS® Business Solutions UK is a positive and exciting venture for both EMACS and its customers. The ethos of both companies are well aligned. We share a passion for the bodyshop industry and achieve results by combining extensive industry knowledge with unrivalled customer service. EMACS can utilise the resource, skill and industry knowledge of the wider business so the future looks very exciting for EMACS and its customers. The agreement allows EMACS to continue to develop the best, cutting-edge, innovative bodyshop management software solutions backed up with exceptional customer support.”

    Over the last 10 years Enterprise has invested US$2.4 billion in acquiring a multitude of technology and mobility companies across the world. The current portfolio includes driver-assistance systems, travel planning and booking technology, real-time routing, assessment and planning as well as a mobility search app that allows customers to search, compare, book and pay for journeys that involve multiple modes of transport. The company also continues to invest in technologies to support the collision repair sector.

  5. Industry Leader Interview – Kevern Thompson, Commercial Manager at CAPS

    Comments Off on Industry Leader Interview – Kevern Thompson, Commercial Manager at CAPS

    We recently caught up with Kevern Thompson, Commercial Manager at CAPS .

    CAPS functionality is designed to help everyone within the claims and repair process communicate more effectively, by sharing information in real time with all the major bodyshop management systems and claims applications.

    Here is what he said……

    1. How did you get to where you are today?

    I began an apprenticeship when I left school at the age of 16, initially as a performance car mechanic before moving into body repair. I then progressed through the workshop and estimation to eventually became a manager. I spent a short time working as an assessor for an independent company based in Chester, before joining CCC to help develop its UK business.

    When I progressed into the consultancy division I became involved in setting up the four Royal SunAlliance QRC bodyshops and later became an employee as their operations manager for RSA’s DRC project. An opportunity then arose to work with Toyota Motor Europe, rolling out its kaizen bodyshop improvement project.

    Three years later I moved back to the UK as Jaguar Land Rover’s national body and paint manager. This is when I also became chair of the SMMT Vehicle Manufacturer’s Body Repair Working Group, which I still fulfil today. I am now commercial manager for CAPS, The Common Automotive Platform Standard.

    2. What’s the biggest challenge facing your sector of the industry?

    The biggest challenge is managing all the amount of data required to keep all parties updated at the same time, which should be an automated process but isn’t always. The industry suffers from older legacy systems that have developed over years and do not always promote efficiency or communicate with each other. We suffer from poor data input. People don’t trust the validity of data and there is concern over who sees it, especially with the revised data protection laws now in place.

    3. How are you and your business dealing with this?
    We offer a data exchange service that simply exchanges information via a very robust and secure connectivity process that doesn’t store sensitive data. CAPS users have full control of who they share their data with as well as the ability to instantly turn off a connection if they need to.

    4. Out of your business achievements, what are you most proud of and why?
    I am extremely proud of the number of users we now have in the CAPS community. In under three years we have grown to over 1,000 of which 90% are bodyshops. Businesses are now coming to us on an almost weekly basis to integrate with CAPS and benefit from the service and we now have key insurers wanting to connect directly with CAPS.

    5. What advice would you give to anyone starting out in the industry?
    Make sure you have a sound plan because the automotive industry is a multi-billion-pound business and stretches across a wide spectrum of options. Execution and accurate performance measurement is key to understanding your position.

    The latter is often misaligned and valuable profit margins are lost due to cost leakage through a lack of efficiency. Let the data and statistics do the heavy lifting. Trust your analytics and correct your business direction accordingly.

    6. If you could change anything what would you do to make the insurance industry “Better tomorrow”?

    It would be for it to embrace technology and to improve data input and enable automation via a digitally connected highway. I would also train people to use data to improve performance and not simply for audit purposes. By connecting the entire supply chain including the customer, data enables all involved in a motor claim to be updated at the same time offering a single version of the truth.

    7. What’s your top tip for being productive?
    I learnt from the masters of efficiency – Toyota. They approach all aspects of business and life with simplicity using PDCA: Plan-Do-Check-Act.

    8. What gadget can’t you live without?
    My iPhone with Google Drive connecting me to all my devices and files. It’s only version 7, but I use it for both business and personal life. Ironically, I don’t use it that much as an actual telephone!

    9. Talent or Perseverance?
    We all have a talent. However, perseverance enables you to learn and become potentially multi-talented by broadening your skills.

    10. What do you do to switch off or escape from work?

    I don’t believe I truly switch off, especially with my beloved iPhone by my side. I’m always checking LinkedIn and other social media.

    I do enjoy playing golf, and it brings out my competitive streak. I’m an ex-rally driver and I now enjoy watching motorsport, though I’m still surprised by the amounts of money drivers get paid, given this is essentially a team sport.

    My three-year-old daughter fills the rest of my time so it often feels like going to work is a rest!!

  6. FRISS announced as new ILC Motor Corporate Partner

    Comments Off on FRISS announced as new ILC Motor Corporate Partner

    FRISS becomes a new ILC Motor Corporate Partner

    We’re pleased to announce that we have a new Corporate Partner. FRISS helps P&C insurance companies to detect fraud during the claims process and assess risks during the underwriting process. Their mission is “honest insurance”.

    They want to help insurers to improve the combined ratio, lower costs and enhance the customer experience. For policyholders, this results in fair premiums and a fast track process for their claims.

    FRISS has built a track record over the last 12 years in more than 35 countries and recently opened offices in Chicago (USA), Cologne (Germany) and Paris (France).

    With over 150 implementations their FRISS Score is the proven risk standard. This score is a simplified way to indicate whether a claim or applicant has a low or high risk. The score is shown as a traffic light, green being no or low risk, red meaning high risk. Based on this score, follow-up actions can be defined. A green score in claims can mean a direct pay-out. With a red score, the claim can be forwarded for investigation by the Special Investigation Unit.

    George Herber, Business Developer at FRISS:

    “One of the great strengths of FRISS is to make use of external data providers in the risk scoring process. With the high maturity in the UK market regarding data availability, FRISS expects to make a difference for P&C insurance companies to improve their claims and underwriting process.

    Lowering risks during the application process and improving the claims process by finding more fraud, lower costs and support STP initiatives. Especially with the inquiries we have received in the past months, we feel the UK is ready to fight fraud with our AI-powered solutions.

    We therefore look forward to working with ILC and meeting with UK insurers at the various ILC events this year. Together we really can make insurance more honest.”

    Chris Ashworth, Chairman & Founder of ILC, said:

    “It’s wonderful to have FRISS on board as one of our valued Motor Corporate Partners. Their breadth of experience within the fraud and risk detection field will be particularly advantageous for those attending our motor conferences and networking lunches. I know the ILC community will benefit from this great partnership.”

     At ILC conferences and events, Corporate Partners take advantage of a wide range of sponsorship opportunities to build brand awareness and recognition.

    FRISS joins 12 other ILC Motor Corporate Partners. These include Autoglass, ControlExpert, GT Motive, SureTrak , Carpenters and ThingCo.

    For more information on becoming an ILC Motor Corporate Partner, please contact Rachael Hunt (rachael@iloveclaims.com)

  7. Samantha Ramen – The Expert View on the Civil Liability Bill

    Comments Off on Samantha Ramen – The Expert View on the Civil Liability Bill

    Samantha Ramen, Director of Market & Public Affairs at Keoghs speaks to us about the Civil Liability Bill for our next insider viewpoint.

    Samantha is responsible for leading Keoghs’ public affairs and thought leadership programme. This includes keeping informed with and influencing any policy development that may affect the insurance industry through liaising with representatives within Government, Westminster and other relevant industry stakeholders.

    1. Do you think the reforms will have the desired effect on reducing the cost of claims?

    The Government driver behind the reforms was to reduce insurance premiums; you might recall that when the original announcement was made by George Osborne in the 2015 Autumn Statement, this was part of the “reducing the cost of living” agenda.

    Three years on and we have reached a point where the Civil Liability Bill has passed through Parliament and is on the cusp of receiving Royal Assent. Part 1 of this provides the framework for the implementation of the whiplash reforms.

    The detail, however, still very unclear. In my view, the effectiveness of these reforms in reducing the cost of claims will very much depend on the execution of the secondary legislation and the operation of the Litigant in Person (LiP) Portal that forms part of the Government’s implementation plan.

    2. What are the potential unintended consequences?

    The Government learned a number of lessons after the Jackson reforms were implemented through the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Act. One of these is that claimant representative organisations involved in personal injury claims industry – particularly claims management companies (CMCs) – can be very agile and fleet of foot. We have seen that many CMCs will essentially follow whichever path enables them to generate income.

    The transfer of regulation to the Financial Conduct Authority for CMCs should help to clamp down on undesirable behaviours, but given the lessons learned in the past, this is something that should be monitored closely.

    3. How will this impact the consumer?

    Any reduction in an insurer’s claims spend will be passed onto consumers – this is the reality of the economics that exist in a competitive market. The hope is that consumers will benefit from reduced premiums, but stated above, the devil is very much in the detail of how the reforms are implemented and used in practice.

    4. What impact will it have on Legal Expenses insurance products and how these are distributed?

    The value of Legal Expenses insurance products will depend largely on the perceptions surrounding the LiP Portal – will claimants think that it is easy to use themselves or will they seek assistance for the handling of their claim?

    The purpose of the LiP Portal is that the vast majority of claimants should be able to progress the claim themselves through an online process without the need to appoint legal representation. If this works as intended, the market for Legal Expenses Insurance could be limited.

    5. From your perspective in their current form, are the reforms a good thing or not?

     There is no doubt that the reforms are well-intentioned and that removing financial incentives from the process will change claimant and claimant representative behaviour.

    It is tricky to be able to predict the outcome of these reforms given that the Civil Liability Bill provides merely the framework for which the substantial policy decisions will be made. And it is important to remember that it is the detail which counts here – detail which will be taken forward by the Government of the day. In these precarious political times, almost anything could happen in the lead up to the Government’s target implementation date of April 2020!

  8. Michael Lewis – The Expert View on the Civil Liability Bill

    Comments Off on Michael Lewis – The Expert View on the Civil Liability Bill

     

    Our next expert viewpoint on the Civil Liability Bill comes from Michael Lewis, CEO at Claim Technology.

    Claim Technology is an insurtech start-up whose Claims-as-a-Service platform enables insurers and their supply chain to create digital, touchless claims processes in the cloud, without needing to change legacy claims systems.

     1. Do you think the reforms will have the desired effect on reducing the cost of claims?

    The cost of a personal injury claim is a function of the number of claims, the compensation cost per claim and the cost of additional fees such as legal costs or medical reports.  The government’s hope is for claim numbers to fall by reducing the financial incentive of a successful claim (current average of £1,850) to a tariff system (starting at £225) and by removing the legal costs that a solicitor firm can recover (a current average of £925 per claim) for claims under £5k .

    The actual reduction in claims costs will be more muted for the 50% of claims covered by a BTE legal expense policy (50% of the market).  Whilst compensation and legal costs will fall the number of claims will remain stable.   In the non-BTE market, whilst compensation will decrease, CMCs successfully advertise for travel delay compensation schemes which are in the hundreds rather than thousands of pounds, so claim numbers may not fall as much as hoped.

    2. What are the potential unintended consequences?

    The government’s intention was that by reducing claims costs, customers would see a reduction of £50 in their annual motor premium.  This has now been reduced to £35, and predicted to be only £16 by Access to Justice.  There is no obligation for insurers to pass the savings on, although some have committed to doing so.  And with motor insurers suffering loss ratios of over 100%, why should these savings have to be passed on?  I don’t foresee a reduction in premiums.

    I see it as inevitable that any decrease in costs will be offset by an increase in enquiries as insurers have to deal with uninformed litigants in person pursuing claims that would not have been taken on by solicitors.

    As money is taken out of the system, we will see both exaggerated injuries that fall outside of the tariff definitions, and intermediaries chasing marketing fees and commissions from other parts of the insurance chain, such as credit repair, credit hire and medical reports, all of which increase insurer costs.  

    Lastly, unless much smarter fraud detection solutions are in place, there is the risk that a rise in online claims will initially serve the interests of fraudsters, not insurers.

    Instead of claim numbers falling, we may see claim numbers rising as solicitors are replaced by well-positioned CMCs.

    3. How will this impact the consumer?

    Motor premiums might not fall, but the premium cost of a BTE policy will rise as insurers either transfer the cost of the legal service onto the policyholder (a cost which is currently covered by the at-fault insurer) or act to restrict/remove personal injury legal expense cover altogether.   It is highly conceivable that a majority of would-be claimants will not be able to pursue a claim via their insurer (since this is an uninsured loss), won’t be able to access high-quality legal services as solicitors exit the market, and won’t be confident enough to pursue their claim via the MoJ’s litigant-in-person portal.  I recommend that customers shop around to ensure that their legal expense policy continues to provide value-for-money and a route to justice that is appropriate for them in the event of needing to make a claim.

    4. What impact will it have on Legal Expenses insurance

    LEI insurers face a challenge.  How can they offer valuable policy benefits without increasing their premiums and losing existing customers?  Can they offer customers greater choice, where claimants choose to either entirely self-serve their claim, self-serve their claim with access to free legal advice, or continue to enjoy a traditional solicitor-managed process?  The key to all of these value propositions is re-imagining the technology that supports the claims process and being able to deploy a digital customer claims capability directly to claimants or to a law firm panel, such as the award-winning digital claims platform from insurtech disrupter Claim Technology.

    5. From your perspective in their current form, are the reforms a good thing or not?

    The reforms are a step in the right direction but didn’t go far enough.  Why did the reforms focus on removing just the legal supply cost from the system?  By keeping money in the system for repair, hire and medical reports, the industry will continue to maintain a dysfunctional myriad of marketing fee and commission schemes as well as insurer behaviours that are at the core of the problem the reforms were meant to solve.

  9. Gary Barker – The Expert View on the Civil Liability Bill

    Comments Off on Gary Barker – The Expert View on the Civil Liability Bill

    Our 3rd insider view on the hotly debated Civil Liability Bill legislation is courtesy of Gary Barker from ERS

    Gary Barker is Claims Director of ERS, a specialist motor insurer that covers every type of vehicle and distributes solely through brokers.

    1. Do you think the reforms will have the desired effect on reducing the cost of claims?

    Yes, the tariff-based system means that whiplash claims will be worth considerably less post-reform.  What is not clear is how the Bill will impact the number of claims that are made.  The Government assumes that half of all whiplash claims made where the prognosis is for a duration of 6 months or less will simply disappear, that feels very optimistic to me.

    2. What are the potential unintended consequences?

    A lot of money is made from Personal Injury claims and the hunger for that cash will not disappear because the law has changed.  Expect a sharp increase in non-whiplash personal injuries that fall out of the portal and the tariff e.g. tinnitus claims, psychological injuries etc. Inflated third party repair, total loss and hire costs.  The Litigant in Person portal appears to be on track but we know already from the PPI scandal that many consumers are unwilling to bring claims themselves and instead seek help from Claims Companies; I think it probable that the same will happen in motor and it is difficult to know what the consequences of that will be.  The potential for fraud may increase.

    3. How will this impact the consumer?

     The anticipated benefit for the consumer of a reduced premium could easily be countered by inflation elsewhere in the market.

    4. What impact will it have on Legal Expenses insurance products and how these are distributed?

     There is no doubt that LEI will become more expensive and will likely need to become more like LEI of the ‘old days’.  Policyholders with injuries will expect proper legal representation and that their LEI cover funds it.

    5. From your perspective in their current form, are the reforms a good thing or not?

    The reforms are more far-reaching than I ever imagined we would see in our market and the Government should be commended. However, the advantage we gain could soon be lessened in the hyper-competitive UK motor market and the potential for some of the unintended consequences I have described is real.

  10. Andrew Morrish, AVIVA – Expert View on the Civil Liability Bill

    Comments Off on Andrew Morrish, AVIVA – Expert View on the Civil Liability Bill

    17/12/18

    Our 2nd insider view on the hotly debated Civil Liability Bill legislation comes from Andrew Morrish, Industry Expert and UK P&C Claims Director at Aviva.

    He’s a life-long insurance guy with a passion for customers and technology. With an unusual combination of experience in IT, Change and Insurance he leads the development of digital and analytics solutions aiming to make claims service effortless, fast and fair.

    He has delivered industry-level technology change and is a regular spokesperson on industry issues and reforms.    

    Andrew is a trustee of two UK-based charities, with a particular interest in education and social care provision in Kwazulu Natal, South Africa. He is married with three children. 

    Here he shares his thoughts and views on this industry hot topic:

    1. Do you think the reforms will have the desired effect on reducing the cost of claims?

    Yes – we are already starting to see the number of injury claims fall, and premium data shows that cuts have naturally followed. All this before the bill has even become law! While there are many other factors which play into insurance premiums, this will undoubtedly be positive for consumers.

    1. What are the potential unintended consequences?

    One consequence could be that claims management companies (CMCs) try to take a more active role in bringing injury claims. With this in mind, the FCA will need to be robust from April 2019 in their regulatory approach of CMCs, as well as alert and quick to challenge a CMC which changes its focus to offer a different service in an area where they are not qualified to operate.

    A few thoughts to address this challenge:

    1. We would encourage the FCA, using its power granted in the Financial Guidance and Claims Act 2018, to impose a mandatory cap on the fees charged by CMC as early as possible. With the fee cap only applying to PPI claims, this could lead to CMCs changing their business model to exploit this loophole.
    2. Claimants should be made fully aware that they can manage a claim themselves and avoid being potentially exploited by a CMC, especially if they hold Legal Expenses Insurance
    3. A fit and proper person’s test should be carried out robustly to stop rogue directors of CMCs leaving a liquidated CMC and then setting up a new firm.

    3. How will this impact the consumer?

    There are multiple consumer benefits to the Civil Liability Bill:

    1. This legislation is expected to reduce the cost of motor insurance.
    2. This should reduce the number of ‘crash for cash’ frauds that have put motorists at risk. This will make the roads safer and reduce the impact of fraud on motor insurance premiums – a win/win.
    3.  By increasing the small claims track limit, lawyers will no longer chase low-value claims, which should lead to a reduction in the number of nuisance calls pursuing an injury for an accident the receiver may or may not have had.

    4. What impact will it have on Legal Expenses insurance (LEI) products and how these are distributed?

    We believe the LEI product will still have value to customers and will help them bring claims if they wish to be assisted in the process. LEI cover might become more valuable in supporting customers who don’t want to give up a portion of their claim payment to whoever represents them.

    5. From your perspective in their current form, are the reforms a good thing or not?

     Yes, they are a victory for consumers. The bill represents a fairer system which balances care and compensation for genuine injuries while removing excess costs. The result will help to make motor insurance more affordable for us all.

    There is more to do – the original Part 2 of the legislation needs to be progressed to avoid spurious claims moving from whiplash-type injuries to other areas of motor claims. Referral fees and the whole world of ‘non-fault’ claims still need to be addressed.

    Aviva, like most insurers, has pledged to pass on 100% of the benefit from these reforms to our customers

    Next week we will be chatting to Gary Barker, Claims Director at ERS as he gives his thoughts on this topic….