Month: July 2019

Injury Landscape Interview with Martin Milliner, Claims Director, LV=

Posted on by Rachael Hunt

We’ve caught up with one of our speakers from our recent 10th Motor Claims Conference, Martin Milliner, Claims Director at LV=. to answer a few unanswered panel debate questions. 

Looking forward, what influence do you think new tech will have on the injury landscape?

New tech will have a massive impact on the injury sector in the short to medium term. I’d expect a range of things to be in place in the next 3-5 years, including automated pain and suffering evaluation, the use of Virtual Reality based physio, CBT and other rehab related therapies, a huge step forward with technologically re-enabled claimants with neurological injuries, API based integrations with insurers and compensators to enable automated Ai based solutions to resolve lower value PI claims seamlessly.

If insurers don’t stand behind their customers with LEI post reforms could it become the new PPI!?

Possibly, it is disappointing that the MOJ and those involved in establishing the new portal/making the CLA come to life don’t appear to have LEI as an issue that needs tackling. Raising public awareness of the value and benefit of having quality LEI cover in place in the lead up to the CLA reforms is important.

The risk of hollowing out of cover or mis-selling a product that isn’t well understood by consumers is a risk and we have already seen 1 or 2 policies move worryingly in the wrong direction.

I would like to think that insurers would recognise this risk and continue to provide the existing levels of cover to their customers and would expect that in any event the FCA would intervene to protect consumers interests long before a PPI styled outcome occurred.

Are any insurers investing more into third party intervention to take care of claimants rather than dealing with the inevitable claim?

I think the answer should be yes. With the risk of “layering” in the absence of a Part 2 of the CLA and continuing bent metal cost creep post Hetherton v Coles there are many reasons for insurers needing to up their game on this.

Source: ILC

The Workshop Professional of the Future – Fleet interest in fixed cost motor insurance

Posted on by Rachael Hunt

Fleet interest in fixed cost motor insurance is on the increase because newer vehicle technologies are raising premiums.

That’s according to leasing company Arval, which cites a report from the Association of British Insurers that shows repair costs in the first quarter of 2019 were the highest on record. 

This is attributed to features on new vehicles that are costly to repair, such as advanced driver assistance systems and sophisticated headlight designs. 

Arval UK head of insurance Ian Pearson said: “There is little question that the advanced equipment being fitted as standard to even mainstream vehicles is having an impact on repair costs which, in turn, is starting to have an effect on premiums.

“While we are in favour of the fitting of most of these devices, which are generally designed to promote safety, they do make the repair process more expensive in terms of both parts and the time taken to fit them.”

According to Pearson, the situation is having an impact even on fleets that employ advanced and successful risk management strategies, and therefore have low accident rates.

He said: “There are fleets that work very hard at controlling their risk and have improved safety and reduced their premiums as a result but even they can have little influence over repair costs. 

“Of course, those fleets that already have a poor claims record are being even more adversely affected.” 

Pearson claims that these factors have led to an increase in demand for fixed price insurance products such as Arval’s own Total Care, and that these could form a blueprint for a new fleet approach to insured vehicles.

He said: “Certainly, we are seeing interest from fleets growing in Arval Total Care. It does mean a shift from the normal fleet insurance mindset but there are a whole range of advantages to securing cover in this way. 

“It is our belief that it represents something of an innovation and that other companies in the sector may soon start to offer something similar.”

Source: Business Car
 

UK commercial insurance market enters more disciplined phase

Posted on by Rachael Hunt

The commercial European insurance market is at the cusp of a more consistent shift towards firming market conditions that will have a strong impact on buyers, a new report by Aon has claimed.

The report, Navigating a Changing Insurance Market, released today (June 4) by Aon, has found that this shift is being driven by insurers’ responses to high-levels of manmade and catastrophe losses, increased operational costs and evolving buyer demands and risk exposures.

In 2017 and 2018 alone, global natural catastrophe losses reached record levels of $247 billion. This unprecedented rise in catastrophe claims has been coupled with increased uncertainty surrounding future losses, as buyers place greater importance on evolving exposures such as reputational risk, intellectual property, cyber and non-damage business interruption, where there is limited historical data and fewer mature risk models.

For commercial insurance buyers, in certain areas of the market, this shift in market conditions is likely to mean increases in rates, capacity constraints, tightening terms and conditions and a more critical attitude from insurers towards risk selection and risk management practices.

The extent to which buyers are experiencing these effects varies from country to country across Europe and by line of insurance. The report has found that there are more challenges where buyers are not providing enough underwriting information or allowing sufficient time for their renewal process.

Conversely, if a business has a good loss record, supporting data, proactive risk management programmes and a thought-through strategy, there are still deals to be done in the market. In the UK, the commercial insurance market is entering a more disciplined phase, and the report finds that buyers will need to focus on providing sufficient risk information and allowing enough time for the renewals process.

Directors & officers, marine cargo, and professional liability are the business lines most impacted by the changing market, while food and waste are challenging sectors for property and business interruption, with a focus on risk management quality.

The 2017 Grenfell Tower fire has triggered challenges for professional liability, leading to rate rises in design, construction and other similar professions.

Aon’s Hugo Wegbrans, chief broking officer EMEA, said: “Commercial insurance market conditions have been very favourable for buyers in the past decade, underpinned by a prolonged soft market period.

“This, along with continuing loss activity, has led to a consistent change in insurers’ attitudes with a renewed focus on profitability. How we respond to the changing market as an industry is critical.

“The market is firming, and buyers need to rethink their approach, ensuring there is an increased exchange of information between parties throughout the year to avoid surprises at the time of renewal.”

Airmic, Aon, Commercial European Insurance Market, Navigating a Changing Insurance Market, Report, Catastrophe, Insurance, Reinsurance, Risk, UK

Source: Intelligent Insurer

Almost half of home owners in the UK fail to insure outside possessions in their gardens

Posted on by Rachael Hunt

Nearly half of home owners in The UK do not consider garden contents when buying home insurance, new research suggests.

Three quarters of people value garden items at less than £5,000 and those in Northern Ireland are most likely to not include their garden possessions, according to the study by AA Insurance.

It points out official data published by the Office for National Statistics shows that there were 595,000 thefts from gardens in 2018, up 23% from 2017 and it says that just because possessions are outside, it does not mean they should not be insured.

Overall 48% of home owners do not consider the items in their garden when buying home insurance and 64% of gardens in Northern Ireland could be underinsured as they did not consider any aspect of their garden contents when buying their home insurance.

More than half of home owners in London, some 54%, and 53% in the North East of England also did not add their garden items to their insurance.

Three quarters of the 15,500 strong AA-Populus Panel who have both home insurance and a garden believed that their shrubs, pots, garden tools, chairs, tables and garden toys would cost no more than £5,000 to replace.

More expensive gardens could be found in Eastern England, the South West and Wales where more than one in 10 believed their garden contents costs between £5,000 and £10,000.

Separate AA research shows that 36% of households plan to spend more than £150 on garden tools and 9% spending £900 on a hot tub this summer.

‘As a nation we love our gardens, and we spend a lot of our hard earned cash improving them each year. Garden theft has seen such a sharp increase last year so it’s good to protect yourself,’ said Janet Connor, managing director for AA Insurance services.

‘A few minutes spent in the garden will give a good idea of how much you’d need to spend should the worst happen. When faced with filling out an insurance application, the term contents can be misinterpreted to just the things within the home. Even though it’s outside, you should still insure it,’ she added

Source:  Property Wire