ILC ARTICLE

Breakfast news 1 September

31st August 2021

Motor Claims

ILC and MIM partner to enhance sector insights

I Love Claims (ILC) and Modern Insurance Magazine (MIM) have partnered to enhance access to market intelligence across their respective events and publishing operations. 

The move will see the businesses act as “media partners” complementing each other’s product portfolios and adding further value to their respective audiences.

Rising Star interview with Rachael Czaja – Multi-Track Case Handler, Davies

“Over the next five years, I would like to see an improved database that insurance companies and their panel solicitors have access to, which shows more case specific details: previous road traffic accidents that claimants have been involved in, key facts such as compensation received, details of their injuries and prognosis (to assess overlaps), details of what they did for transport after an accident and if they hired a replacement vehicle the cost and whose services they used.”

McKinsey explores market rebound

Insurers are likely to confront three persistent challenges that can be addressed – at least in part – by transforming claims management to improve profitability according to a new McKinsey insight.

The insight – Are motor claims in Europe about to rebound? – explores how as mobility – and insurance claim volumes – ramp back up after the pandemic slowdown, insurers can return with a stronger claims value proposition.

It highlights three key areas: top-line pressure will continue; digital is here to stay; and inflation will affect claims costs.

Car manufacturing suffers summer slump

Car manufacturing in July fell for the first time since February, with output dropping a significant 37.6%.

According to the Society of Motor Manufacturers and Traders (SMMT), just 53,438 units were made during the month, representing the worst July performance since 1956. The SMMT attributed the decline to the global shortage of semiconductors and staff shortages as a result of the ‘pingdemic’.

However, more than a quarter (26%) of all cars made in July were either battery electric (BEV), plug in hybrid (PHEV) or hybrid electric (HEV), their highest share on record.

Thieves thriving post-lockdown

Car thefts have surged nearly a third (32%) in the first half of the year, according to stolen vehicle recovery experts Tracker.

It recovered over £4.2m-worth of stolen vehicles from January to June, of which 4x4s accounted for £2.6m. 

Meanwhile, the company’s latest data has found that 92% of the stolen cars recovered during this period were taken by thieves interrupting the signal from the vehicle’s key fob.

IMI invites industry insights on new NOS

The Institute of the Motor Industry (IMI) is developing National Occupational Standards for vehicle recycling, and is inviting industry stakeholders to help make them fit for purpose.  

The standards describe what an individual in a certain role should be able to do and the knowledge and understanding they need.

Phase 1 of the feedback will be takeplace via Teams and/or Zoom from 6-9 September, while Phase 2 will be in the form of an electronic questionnaire sent out to the wider industry.

Mitchell links with Inspektlabs AI

Mitchell has linked with Inspektlabs artificial intelligence (AI) to enable insurers to automatically generate an appraisal from photos or videos of collision-damaged vehicles.

Inspektlabs is the third AI provider to integrate with Mitchell Intelligent Estimating through the Mitchell Intelligent Open Platform. The claims automation solution also supports computer vision technology from Tractable and Claim Genius.

Home claims

Catch up on: Agricultural claims – a niche area of insurance specialty

We discuss:

– What changes have there been in the approach to managing agricultural claims over the last 5 – 10 years? And what are the key differentiators that customers, insurers and brokers are looking for?

Burglary fears grow as lockdown lifts

Reported burglaries in the UK rose 6.2% from Q1 to Q2 2021, according to Churchill’s Burglary Barometer.

This equals 3,600 more burglaries between April and June than January to March, and adds up to £169m worth of stolen goods.

The lifting of lockdown has been blamed for this rise, with the research suggesting that the most concerned group are the four million people returning to work, with 69% (2.7 million) admitting they are worried about being burgled while out.

Worryingly though, 34% of burglaries happen when the resident is in the property.

Hippo grows with Israeli expansion

Home insurance company Hippo has announced it is opening its first international office with a new global technology hub being set up in Israel.

The site will be a centre of innovation for the company, focusing on the development of talent and technologies to drive products and services across Hippo’s business.

The office will be led by general manager Shahaf Shakuf, who previously established the Israel subsidiary for online learning company Chegg.

Cyber attacks on home workers ramp up

New research has estimated that cyber attacks on home workers in Germany has cost companies €53bn worth of damages.

The Cologne Institute for Economic Research found that overall damages hit a record €224bn last year, more than double the value reported in a 2019 survey.

Remote working accounted for about a quarter of the increase, with home WiFi connections typically easier to hack than company networks.

Tokio Marine secures new cyber partner

Global property and casualty insurance group Tokio Marine has announced a new partnership with cyber analytics provider CyberCube.

As part of the deal, Tokio Marine will gain access to CyberCube’s full suite of products, including Account Manager, Portfolio Manager and a range of other modelling solutions.

Tokio Marine Group currently writes cyber insurance via TMNF in Japan, TMHCC in US, Europe and Asia, SNCC and PHLY in the US, and TMK in the Lloyd’s market in London.

Knowledge lacking when it comes to escape of water

Research has found that 45% of people do not know where their stopcock is should they need to stop the flow of water when faced with escape of water.

The survey of 18-44 year olds, carried out by Surestop, also found that 75% had tried to find their stopcock but it couldn’t, whilst 25% stated they had never tried to find it.

Escape of water claims costs in the region of £1.8m a day with speed of stopping the flow of water having the greatest impact on claims costs. Research suggests the potential water loss from a burst pipe in a typical house can equate to 400 litres (two baths full of water) if the water supply is stopped quickly. However, if left unchecked for a full day, as much as 9,600 litres of water (48 baths full of water) will flow into the home.

Claims tech

Lloyd’s announces two-year MIS partnership

The specialist Lloyd’s insurance and reinsurance marketplace has entered into a two-year partnership with McKenzie Intelligence Services (MIS) to deliver a faster claims service through its geospatial (GEO) technology platform.

The GEO platform will provide the Lloyd’s market with real-time analysis of global threats such as storms, wildfires and flooding, enabling its insurers to assess damages following a natural catastrophe.

This is part of Lloyd’s ambition to become ‘the most advanced’ digital and technology-led insurance marketplace in the world.

Zurich names new data boss

Zurich Insurance Group (Zurich) has named Peter Kasahara as its new Chief Data Officer (CDO).

In this role, he will oversee all aspects of data management and to help drive the group’s digital transformation, developing new data analytics capabilities and products, while also expanding Zurich’s machine learning competencies.

Data and digitalisation key to risk management

Data and digitalisation will be fundamental in helping insurers tackle uninsurable risk.

That is the opinion of Christian Mumenthaler, chief executive officer (CEO) at Swiss Re, who warned that the pandemic has exacerbated the gap between economic and insured losses, which could pose serious risks to society, particularly in emerging and developing countries.

Writing in a blog, he said, “I see big data as the fertile ground to create new markets and to diversify risks that up to now were considered uninsurable. I think it’s no surprise that data is sometimes referred to as the new gold.”

Munich Re commits to digital workplace

Munich Re has appointed HCL Technologies (HCL) to create a digital workplace for its staff.

Munich Re employs a workforce of more than 16,000 people in 40 different countries.

As part of the deal, HCL will adopt a ‘glocal’ strategy to support Munich Re’s global workforce in multiple languages, including German, Spanish and Mandarin, from near-shore locations.

Market news

FCA warns insurers over new product governance rules

Insurance firms may not be ready to implement new product governance rules there to ensure insurance provides fair value, according to a review published by the Financial Conduct Authority (FCA).

Part of the FCA’s ongoing work to ensure consumers receive fair value, the review looked at how firms designed, sold and reviewed their products to ensure they met the needs of their customers.

The FCA found too many firms are not fully meeting the FCA’s standards. In addition, many firms are likely to be unprepared to meet new enhanced rules on product governance, which come into force on 1 October 2021. These new rules are part of a wider package of remedies introduced by the FCA to tackle the loyalty penalty and ensure that firms focus on providing fair value to all their customers.

Quotall to support WHSmith’s insurance move

WHSmith will launch a range of digital first insurance products this year, including travel, home and pet insurance, after entering into a strategic partnership with insurtech ecosystem specialist Quotall.

Quotall’s insurance ecosystem delivers a full cycle, comparative insurance platform with API-enabled multi-channel distribution services.

It has said that products and regulatory services will be sourced through it’s new strategic partnership with insurance brokerage Acrisure.

UK second on global M&A list

Mergers and acquisitions (M&A) in the global insurance industry dropped three per cent in the first half of 2021, according to Clyde & Co’s Insurance Growth Report mid-year update.

It reported that 197 deals had been completed worldwide, down from 206 in the second half of 2020. Meanwhile, 201 deals had been completed at the same point last year.

The Americas led the way with 116 deals, up from 102, and although deals in Europe remained largely static, the UK market is now the second most active in the world, ahead of Spain and Germany.

Deals fell from 37 to 18 in Asia Pacific, while only five deals were completed in the Middle East and Africa in the first half of this year.

Swiss Re signs groundbreaking green deal

Swiss Re and carbon removal specialist Climeworks have signed the world’s first long-term purchase agreement for direct air capture and storage of carbon dioxide.

Swiss Re said the deal, worth US$10m over 10 years, is a major milestone toward its goal of reaching net-zero emissions by 2030, and a clear sign of its support for the carbon removal industry.

It will send an important demand signal to developers, investors and other buyers, said Swiss Re.

Digilog offers discussion with CEO

Digilog UK is offering the chance to hear from CEO, Lior Koskas during a special “To tell you the truth…” discussion on Thursday 9 September in London.

With more than 20 years of military, security, and private sector (financial services) experience, Lior will explore the concept of lie detection through body language. Covering subconscious indicators with a focus on human intuition and our innate capabilities to detect deception using the latest Voice Risk Analysis (VRA) technology.

To find out more or secure your place click here. (chris.edwards@digiloguk.com)