Claims Newsletter Tuesday 1st August 2023

Claims News

DAC Beachcroft has concluded almost 200 organised, multi-claimant motor fraud claims for Aviva Insurance over the last 12 months. The law firm’s counter fraud team, which sits within its claims solutions group, tackled claims spread across 47 separate organised fraud networks. The team recorded an average of £12,000 of fraud savings per claimant, and fully or partially repudiated 76% of all claims for reasons of fraud. (Mark Dugdale, 26/7/2023, Claims Mag, 'DAC Beachcroft and Aviva defeat around 200 organised motor fraud claims')

RSA Insurance is expanding its professional indemnity offering with the launch of an excess of loss product. The product, which is now available to brokers and commercial lines customers throughout the UK via RSA’s regions unit, is aimed at a range of businesses with annual professional fees of £1.5 million and above, including accountants, engineers, building contractors, surveyors and IT companies. It provides cover when an ‘underlying’ or primary layer insurer is unable to provide the insured with the full limit of indemnity required. (Mark Dugdale, 24/7/2023, Claims Mag, 'RSA launches excess of loss product')

An annual increase in comprehensive car insurance premiums of 40% is outstripping CPI inflation, held at 8.7% in May, Confused.com has revealed. The record 40% increase, representing a rise of £222 over the last 12 months, means motorists are now paying £776 on average. Car insurance premiums are at their highest ever recorded levels since the Confused.com Car Insurance Price Index, where the increased have been revealed, launched in 2006. (Mark Dugdale, 20/7/2023, Claims Mag, 'Record 40% rise in comprehensive car insurance premiums')

Insurance law firm HF has saved four insurer clients a huge amount of money while holding credit hire companies to account. The potential costs saved, calculated after defeating high-value credit hire claims that would have forced payouts from Admiral, Hastings Direct, KGM Underwriting Services and LV= General Insurance had they been successful, reached around £650,000. HF also won cost orders worth £100,000 from credit hire companies in litigation over the claims. (Mark Dugdale, 19/7/2023, Claims Mag, 'HF secures big wins for insurers in credit hire claims litigation')

PwC has predicted that continued extreme heat could see claims settlements on subsidence insurance policies increase to £1.9bn by 2030. In a new risk analysis, based on modelling the insurance impact on increased weather-related losses under the high end of the range of future pathways (Shared Socioeconomic Pathways 5-8.5), the professional services firm also found that extreme winter weather from 2019 to 2020 saw economic losses of £333m due to flooding. It predicted that this figure could soar to £500m in 2050 if flood-management approaches and expenditure remain unchanged. (Mark Dugdale, 12/7/2023, Claims Mag, 'Continued extreme heat could cause high subsidence payouts, predicts PwC')

MX Underwriting Europe is rolling out Gamma Location Intelligence's Perilfinder platform. The specialist insurance intermediary (formerly Blackrock Insurance Solutions) is rolling out the windstorm risk assessment solution to improve accessibility to and visibility of, detailed risk insights, and to create efficiencies in the quote generation process. Richard Garry, Chief Commercial Officer, Gamma Location Intelligence, said: “Collaborating with a forward-thinking company like MX Underwriting Europe, which actively seeks to assess emerging risks like windstorms, allows us to be at the forefront of innovation."(Staff Reporter, 28/7/2023, CIR, 'MX Underwriting rolls out Gamma LI Perilfinder')

WTW has announced the launch of Climate Vista, a new engagement tool designed to help company boards and senior management better understand their exposure to ESG and climate-related risks and opportunities. According to a recent survey conducted by WTW and the Nasdaq Center for Board Excellence, roughly half of respondents (48%) reported that their boards lack the skills and expertise needed to provide effective oversight of the climate risks facing their companies. While it is expected this will improve over the next three years, gaps will likely persist. (Staff Reporter, 26/7/2023, CIR, 'WTW launches Climate Vista')

Climate pressures and net zero goals are hampering efforts to safeguard critical national infrastructure from cyber security threats. This is amongst the conclusions drawn by research carried out by cyber security services firm, Bridewell, whose investigations suggest that eight in ten of the 500 are concerned about the cyber/climate agenda clash. Eight in ten of the 500 cyber security decision makers polled in the transport and aviation, finance, utilities, government and communications sectors believe that newly implemented, and so-called sustainable technologies and tools will become a major new pathway for cyber attacks within CNI in the next five years. (Staff Reporter, 24/7/2023, CIR, 'Net zero 'undermining' cyber security in UK CNI')

The Chartered Insurance Institute has published a new guide to help small and medium-sized brokers develop and incorporate ESG strategies. Research for the guide was carried out by the 2022/23 CII Broking Community New Generation group, which sought to understand how ESG strategies are being implemented and how they may be adopted by other SME brokers to strengthen their sustainability, accountability and performance. Results from the group’s research showed the majority of larger brokers already have an individual or committee within their organisation that is responsible for considering ESG, while this was not the case for SMEs. (Staff Reporter, 24/7/2023, CIR, 'CII publishes ESG guide for SME Brokers')

Lockton Re has launched a new research series examining storm dynamics and the impact of climate change on the ability to predict future trends. Part one of the series assesses storm dynamics and the reinsurance industry and explores the outlook for hurricanes, tropical cyclones, and typhoon patterns and trends. The research focuses on the hurricane peril, including tropical cyclone and typhoon patterns, impacts to climates that could alter the nature of this peril, and Lockton Re’s view of storm trends and their potential development. (Staff Reporter, 21/7/2023, CIR, 'Lockton Re launches research on storm dynamics')

Three disposable vapes are being binned incorrectly every second in the UK, causing a surge in fires in council refuse trucks and waste processing plants, according to a study by Zurich Municipal. Research by the public sector insurer found that 78% of the 138m single use vapes sold every year in the UK are dumped in general waste, instead of being recycled. It means more than two million single use vapes are thrown away improperly every week. The study reveals widespread consumer confusion over the correct way to dispose of spent vapes, with three out of four (72%) users unaware the devices cannot be binned in household waste or recycling. As a result, 107 million disposable vapes a year are ending up in the general waste stream, where they are being blamed for a sharp rise in fires. (Staff Reporter, 19/7/2023, CIR, 'Single use vapes spark surge in blazes warns Zurich Municipal')

Claims inflation is likely to remain a feature for the remainder of 2023 and into 2024, and insurers may not be able to increase rates enough to fully offset their rising expenses. This is according to Bloomberg Intelligence's Europe P/C Insurance Mid-Year Outlook, which shows that, while 17 European P/C insurers' net earned premiums climbed 7.5% on average in 2022, the European building-materials index rose 16% in H1 2023. The consumer price index for auto parts has jumped in the past three years, in a trend that looks set to continue, with input costs seemingly on an upward trajectory. (Staff Reporter, 14/7/2023, CIR, 'Claims inflation likely to remain pronounced - report')

Specialist insurer, Beazley, has announced the next phase in the development of its ESG Consortium, with capacity moving fully to syndicate 5623 from January 2024, subject to regulatory approval. Beazley established the ESG Consortium and syndicate-in-a-box 4321 in January 2022. The SIAB structure, it said, proved an effective test bed for the additional capacity model, which is now ready to move on to specialist follow only Syndicate 5623. The ESG Consortium will also explore how additional capacity for clients that perform well against ESG criteria, can be offered via Beazley’s European and US domestic insurance companies. (Staff Reporter, 11/7/2023, CIR, 'Beazley ESG Consortium continues growth trajectory')

Enterprise risk management software provider, Protecht, has launched its new Vendor Risk Management module. The new tool enables vendor managers to risk rank vendors and prioritise their workload, monitor third parties on an ongoing basis beyond onboarding, and integrate vendor risk management with the broader organisation's objectives, performance and risk profile. Vendors can also respond to governance and security questionnaires in a dedicated vendor portal. (Staff Reporter, 10/7/2023, CIR, 'Protecht launches enhanced vendor risk management module')

DUAL Asset has agreed a long-term collaboration with Chaucer in the UK and Europe, as part of which, Chaucer will provide £100m of quota share capacity for DUAL Asset’s UK and European commercial real estate risks, including legal indemnity, title to property, and shares. Chaucer has joined DUAL Asset's existing binder with RSA, Liberty and AXA, increasing the quota share capacity to £225m. (Staff Reporter, 6/7/2023, CIR, 'DUAL Asset announces partnership with Chaucer')

Former city minister and outgoing chair of Flood Re, Mark Hoban, has warned that the UK must urgently adapt to climate change and prepare for an increased risk of flooding. Speaking at the launch event of Flood Re's new Transition Plan, Hoban said that whilst the UK has been fortunate enough to have escaped widespread flooding in recent years, the risk will "inevitably return", becoming more persistent in the UK as the climate gets wetter and warmer. The organisation's new Transition Plan sets out the actions the UK needs to take to make sure it is flood resilient by 2039, including making sure flood risk and climate change are included as central principles in planning and environmental policy; and maintaining and increasing investment in civil flood defences. (Staff Reporter, 13/7/2023, CIR, 'Increased risk of flooding 'inevitable' – Flood Re chief')

Mergers & Acquisitions

HCML has acquired CA Case Management (CACM), a specialist brain injury case management and expert witness provider. The acquisition will allow HCML to bolster its case management offering across serious and catastrophic injury, building on the clinical and medical expertise and experience of the existing team along with the specialists at CACM. (Mark Dugdale, 27/7/2023, Claims Mag, 'HCML bolsters case management offering with acquisition')

Aviva is acquiring the entire home insurance portfolio of Barclays. The deal will bring 350,000 customers to Aviva, supporting the insurer’s ambition to further grow its retail insurance business. It will not in any way affect Barclays Travel insurance customers. Aviva already administers, underwrites, services and provides claims management for Barclays home insurance policies, making this acquisition a natural next step.(Mark Dugdale, 25/7/2023, Claims Mag, 'Barclays deal to bring 350k home insurance customers to Aviva')

ARAG Group is acquiring DAS UK for an undisclosed sum. The deal, subject to regulatory approval, will see ARAG Group acquire the UK legal protection insurance business from its current owner, the Germany-based property and casualty insurer ERGO Versicherung. DAS launched more than 40 years ago and now runs a legal expenses insurance company and a law firm servicing legal expense claims. They are both supported by an administrative services company. (Mark Dugdale, 18/7/2023, Claims Mag, 'ARAG agrees to acquire DAS')

QuestGates Ltd has announced that it has strengthened its professional building services proposition with the acquisition of Ramsay McMichael Consulting Ltd, who are headquartered in Glasgow. The deal is another step towards the company’s goal to enhance its position as the preeminent provider of specialist loss adjusting and related services by becoming one of the leading insurance-led professional building services firms. (QuestGates Ltd, 18/7/2023, QuestGates Ltd LinkedIn)

Movers

Keoghs has bolstered its credit hire offering with the recruitment of a new Partner and team from Plexus Law. Anne Chapman and the team of five lawyers join the Keoghs tactical credit hire division. Plexus Law was recently acquired out of administration. Chapman has acted for insurers in credit hire claims for more than two decades. She has worked on some of the most high-profile cases, including Zakir Ali v Spirit International, Pattni v First Leicester Buses and Kadir v Thompson. (Mark Dugdale, 14/7/2023, Claims Mag, 'Keoghs recruits credit hire team')

The Association of British Insurers (ABI) has appointed Zurich UK Chief Executive Officer Tim Bailey as its new President. He replaces Barry O’Dwyer and will hold the role for the next two years. The ABI has also appointed Clare Bousfield, Chief Executive of Retail and Savings at M&G, as its Deputy President. She replaces Cristina Nestares, UK Chief Executive Officer at Admiral Group. (Mark Dugdale, 13/7/2023, Claims Mag, 'ABI names new president')

Markerstudy has appointed Amanda Fox to the newly created position of Chief Customer Officer. Fox, who joined Markerstudy in 2020, will oversee customer outcomes, product governance and broker management at the group of insurance businesses, as head of a 30-strong team. She will also work to ensure products and services that are offered are fair value. (Mark Dugdale, 10/7/2023, Claims Mag, 'Markerstudy creates chief customer officer role')

The Chartered Institute of Loss Adjusters (CILA) has appointed John Bissell as its Executive Director. An accomplished Executive Director with extensive experience in the insurance industry, Bissell was most recently Chief Operating Officer of the Chartered Insurance Institute (CII). He has also held several leadership and board-level roles at Acord, Pro-Global Insurance Solutions, Capita Insurance Services, Miller Insurance Services and Aviva. (Mark Dugdale, 7/7/2023, Claims Mag, 'CILA appoints former CII COO to executive director role')

Sedgwick has opened a new power and energy subsidiary in the UK, led by David Ward. The division will concentrate on claims affecting the energy and power sectors. As Head of Power and Energy, Ward will oversee the division. He brings more than 30 years of experience in loss adjusting, energy, and construction. Ward will lead a team of experts from across Sedgwick who cover a wide range of power and energy verticals. (Billy Simons, 6/7/2023, Claims Mag, 'Sedgwick opens new power and energy subsidiary')

The British Insurance Brokers’ Association (BIBA) has named current Executive Director Graeme Trudgill as the successor to Steve White. Trudgill becomes the association’s Chief Executive with immediate effect, following an evaluation of external and internal candidates by an independent third party. He has been a member of BIBA’s main board for 10 years and has led the policy team, which includes corporate affairs, technical services, and communications. Trudgill has been personally responsible for BIBA’s public affairs lobbying and has a thorough understanding of member issues through authoring of the association’s annual manifesto and serving on its advisory boards. (Billy Simons, 5/7/2023, Claims Mag, 'BIBA names new chief exec')

Nick Hobbs has been named Allianz Commercial’s Chief Distribution Officer in the UK. He is uniquely qualified for this, drawing on more than 30 years of industry experience. Hobbs has worked for the Allianz group since 2091. Before joining Allianz UK in 2011 as Head of Strategic Account Management, he held several positions at AGCS in the UK, Europe, and North America. He later served as Director of Broker Markets. He was made Chief Distribution and Regions Officer in July 2021 for Allianz’s Holdings' commercial operations in the UK. (Billy Simons, 4/7/2023, Claims Mag, 'Allianz Commercial announces new chief distribution officer')

Re/insurer Chaucer has promoted Chris Baker to Head of Global Reinsurance, overseeing all lines of its reinsurance business and territories. Baker has been with Chaucer for almost 20 years, joining in 2004 as a Marine and Energy Reinsurance Underwriter. In 2016, he was appointed Head of Specialty Reinsurance before being promoted to Head of International and Specialty Reinsurance in 2020. He is a Charted Insurer and recently served as Deputy Chairman of the LMA marine reinsurance committee. (Staff Reporter, 19/7/2023, CIR, 'Chaucer promotes Chris Baker to head of global reinsurance')

Canopius has launched an in-house cyber threat consultancy. The practice will provide an enhanced level of support for insureds, including expert support and counsel on appropriate enhancements to cyber security defences. Isabel Finn has joined the company to co-lead the new practice as a Senior Cyber Threat Intelligence Analyst. Finn joins Canopius from FTI Consulting, where she was a Threat Intelligence Consultant. Prior to this, she was a Cyber Threat Analyst at Darktrace and Consultant Cyber Analyst at government advisory firm Francis Maude Associates. (Staff Reporter, 13/7/2023, CIR, 'Canopius launches cyber threat consultancy')

For an informal chat on how IDEX Consulting can support your business needs and professional career goals, please contact Michelle Paish, Business Manager on 07983 055 279 or michelle.paish@idexconsulting.com