Claims Newsletter Tuesday 5th September 2023

Claims News

Statistics have revealed that approximately 134 million unsolicited calls and text messages related to personal injury compensation have been made within the United Kingdom in the past year. An exclusive study conducted by YouGov on behalf of the Association of Personal Injury Lawyers (APIL)indicates that over 20 million people received unsolicited cold calls or texts promoting claims for injury compensation. APIL’s Chief Executive, Mike Benner, expressed the need for an outright prohibition on intrusive and distressing cold calls: “It’s time for an outright ban on intrusive and upsetting cold calls about personal injury claims, which is what the public wants." (Josie Miller, 31/8/2023, Claims Mag, 'UK hit by 134 million unsolicited personal injury compensation messages in one year')

Static caravan and lodge owners in the UK have been cautioned about the growing threat of amplified storm damage due to climate change, according to Compass Insurance, a specialist provider of caravan and leisure insurance. The insurance provider noted a 16% rise in claims arising from storm damage between 2021 and 2022. The insurer has emphasised the importance of ensuring caravan storm readiness and comprehensive insurance coverage. Statistics from 2022 indicate that storm-related issues accounted for 32% of Compass’ static caravan claims during that period. (Josie Miller, 30/8/2023, Claims Mag, '16% rise in storm claims stoke caravan concerns')

Admiral Group, a leading provider of car insurance and other financial products, has announced a remarkable growth in profits and customer base in its 2023 Interim Results Highlights report. The company reported a 4% year-on-year increase in Group profit before tax, an impressive £233.9 million growth. In a surprising turn of events, Admiral managed to achieve this growth despite insuring fewer vehicles during the year. The company covered 380,000 fewer vehicles, marking a substantial reduction in its active vehicle base. This decline was more pronounced than the 300,000 decrease observed over the entirety of the previous year.(Josie Miller, 25/8/2023, Claims Mag, 'Defying the odds? Admiral Group announces profit surge and customer growth despite vehicle coverage dip')

The British Insurance Brokers’ Association (BIBA) has unveiled a groundbreaking initiative in collaboration with FullCircl, the Customer Lifecycle Intelligence platform. This novel member facility provides insurance brokers with a wealth of comprehensive company information and insights for businesses in the UK and Ireland. FullCircl SmartBroker is tailored to assist brokers in targeted prospecting, efficient outreach, refined underwriting, bolstered client retention, and optimised management of existing portfolios. The platform will bring together super-connected enriched data and insight on companies and the officers inside them. This tool uses a graph to connect billions of data points from official and premium third-party sources. This information can then be integrated via API into platforms like Acturis, Salesforce, and other operational systems. (Josie Miller, 24/8/2023, Claims Mag, 'BIBA and FullCircl launch precision broking tool')

Another gain for data in the insurance market: e2e, a frontrunner in total loss vehicle management, and Incited, a data analytics leader, has announced their collaboration to reshape total loss data’s role for insurers. With Incited’s expertise, e2e has revamped its management info and reporting, offering clients interactive access to refreshed total loss data every 24 hours. The partnership anticipates a transformative shift in insurance, converting data into actionable insights for informed decisions. In a recent press release, the companies said the new offering: “Clients will be able to dynamically interrogate and cross analyse all this data on the single platform, gaining a truly holistic overview of their total loss motor claims; enabling strategic reviews, process engineering, cost reductions and improved efficiencies.” (Josie Miller, 23/8/2023, Claims Mag, 'e2e and Incited set to transform total loss data for insurers')

Insurers and shipping companies are closely monitoring developments as they navigate the complexities of providing coverage in an increasingly uncertain environment. Merchant ships navigating the Black Sea region have encountered significant delays as a result of a recent incident involving a Russian warship, according to a report by Reuters. Ports in the area have been grappling with backlogs, causing unease among both insurers and shipping companies. The incident in question involved a Russian patrol ship, Vasily Bykov, which fired warning shots at the cargo vessel Sukru Okan, flying the Palau flag. (Josie Miller, 22/8/2023, Claims Mag, 'Backlogs in Black Sea shipping raise concerns among insurers')

In light of recent data highlighting a significant surge in driving incidents during the Glastonbury Festival, USwitch has unveiled its “Festival Temporary Car Insurance” service. The price comparison site and credit broker says new cover be arranged in just 30 seconds. According to a recent Freedom of Information request submitted to the Avon and Somerset Police, drink-driving incidents increased by over a third during the Glastonbury weekend held from 21 June to 25 June. The rise in incidents has raised concerns about road safety. (Josie Miller, 21/8/2023, Claims Mag, 'USwitch introduces “Festival Temporary Car Insurance”')

Specialist medical negligence lawyers at Irwin Mitchell have taken on the complex task of representing the parents affected by the harrowing incidents at Countess of Chester Hospital. The case has left families devastated and raises important questions about hospital accountability for employee actions. Tim Annett, a Medical Negligence lawyer at Irwin Mitchell, expressed the gravity of the situation: “This is a truly shocking case which has seen families ripped apart by the death of a baby or their child being left with serious injuries in the most horrific circumstances." (Josie Miller, 21/8/2023, Claims Mag, 'Irwin Mitchell specialists take on Lucy Letby medical negligence case')

Davies, a specialist in professional services and technology for insurance and regulated markets, has announced a strategic collaboration with UCAS. The aim is to provide more comprehensive apprenticeship opportunities to young people across the UK, particularly in the insurance and finance sectors. (Josie Miller, 18/8/2023, Claims Mag, 'Davies collaborates with UCAS to expand apprenticeships in insurance and finance')

The incident highlights a growing trend shedding light on insurers’ responsibilities in tackling climate change. Protestors from Money Rebellion disrupted play at the AIG Open on the Walton Heath Old Course to highlight AIG’s insurance of fossil fuel projects, including the East Africa Crude oil pipeline. The protestors rushed the green on the 17th hole, while tournament leaders Lilia Vu and Charley Hull were on the green.(Josie Miller, 17/8/2023, Claims Mag, 'Protesters disrupt AIG-sponsored event over climate concerns')

Allianz Group‘s half-year financial report highlights a robust 12% revenue growth in the UK compared to the previous year. Overall, Allianz Group’s total revenue in the UK reached £3,280.0 million in H1 2023, marking a noteworthy 12.6% increase.(Josie Miller, 16/8/2023, Claims Mag, 'Allianz Group announces revenue of £3.28bn and UK growth')

The United Kingdom is taking decisive steps towards establishing a resolution framework designed to effectively address the potential failure of major insurance companies. The UK boasts the world’s fourth-largest insurance sector, making a substantial annual contribution of £29.1 billion to the nation’s economy. While the industry operates under robust oversight by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), unanticipated financial turmoil can lead to insurer collapses, impacting policyholders and the broader economy. The current approach involves the PRA overseeing a distressed insurer’s recovery plan, potentially suspending new business activities, and winding down operations. The UK government’s IRR aims to address limitations in current insolvency procedures, offering tools to navigate complex insurer failures, particularly in scenarios involving major firms or specialized coverage providers.(Mark Dugdale, 7/8/2023, Claims Mag, 'UK Government goes forward with critical Insurance Resolution Regime')

Ikram Rafique, 31, of South Road, Romford, has been sentenced for his involvement in a fraudulent motor insurance scheme that targeted more than 900 unsuspecting motorists. Rafique was found guilty of money laundering and acting as an unlicensed broker. He has been given a 24-month imprisonment sentence, suspended for two years, and ordered to carry out 220 hours of unpaid work. Additionally, his cousin and former co-worker, Mohammad Hamad, 31, of Ashley Avenue, Ilford, was also found guilty of money laundering and received a 15-month suspended sentence, along with 180 hours of unpaid work. (Mark Dugdale, 4/8/2023, Claims Mag, 'Ghost broker sentenced for £302,000 insurance policy scam')

Businesses have been warned to be vigilant of the potential risks from integrating AI-driven chatbots into their business, with research suggesting that they can be tricked into performing harmful tasks. The National Cyber Security Centre warns that understanding is still limited about the potential security threats posed by algorithms that can generate human-sounding interactions – known as large language models (LLMs). Specifically, it points to a potential security weakness for LLMs in their vulnerability to ‘prompt injection’ attacks, which is when a user creates an input designed to make the model behave in an unintended way. This could mean causing it to generate offensive content, reveal confidential information, or trigger unintended consequences in a system that accepts unchecked input from the LLM. (Staff Reporter, 31/8/2023, CIR, 'NCSC warns of the hidden risks of AI chatbots')

Tysers has rolled out the Tconnect platform across the business, reducing the average time to process client queries by 60%. Tconnect uses a common Tysers data set that integrates with e-trading platforms such as PPL Next Gen and Whitespace and through a digital gateway, the platform is compatible with Blueprint 2 and the market’s Core Data Record. “As a forward-thinking broker, we wanted to improve our working practices and provide a digital link between our front-and back-office teams. Tconnect has achieved this and resulted in much more accurate and efficient processing,” said Steve Jolley, CIO Tysers. “In addition, the platform provides a stream of data that links our clients and markets providing risk transfer services for a digital insurance market alongside a superior client service.”(Staff Reporter, 30/8/2023, CIR, 'Tysers rolls out Tconnect')

In the first half of 2023, ransomware attacks rose by 87% in the UK, and by 37% globally, with a particular focus on financial services, insurance and IT companies. This is according to research from cyber consultancy, JUMPSEC, whose data suggests that the UK is the most targeted country outside the US, and that 20% of all European ransomware attacks occur in the country. These numbers follow reports of ransomware growth slowing at the end of 2022. Victims refusing to pay, higher security spending, or threat actors focusing on Russia-Ukraine were all theories for the slowdown, according to the research. (Staff Reporter, 30/8/2023, CIR, 'Ransomware attacks back on the rise')

The time and effort needed to secure cyber insurance is increasing significantly, with the number of companies requiring 6 months or more to do so rising each year. This is amongst the findings of PAM provider, Delinea’s, latest State of Cyber Insurance report. Based on surveys of over 300 US-based organisations, the report sets out to uncover the latest trends and evolving patterns since last year’s report, which established that the demand for cyber insurance was "at fever pitch". (Staff Reporter, 29/8/2023, CIR, 'Process for securing cyber cover increasingly time consuming')

Insured losses from natural catastrophes in H1 2023 point to this year being the third consecutive year of weather-event claims topping US$100bn, with much of these coming from secondary perils such as floods, hail and wildfires – all of which are becoming more frequent as global temperatures rise. This is amongst the findings of a new report from Bloomberg Intelligence, which also shows that insured losses from wildfires have doubled over the past 30 years. (Staff Reporter, 24/8/2023, CIR, 'Nat cat losses top US$100bn for third consecutive year – report')

Fusion Risk Management has unveiled its new generative AI-powered assistant, Fusion Resilience Copilot. The new tool operationalises Fusion expertise to create an advisor within the Fusion Framework System platform that enables users to more efficiently resolve questions, gain deeper insight into incidents, and quickly act on them. Fusion is inviting customers to apply to join the beta programme. (Staff Reporter, 23/8/2023, CIR, 'Fusion introduces AI-powered assistant')

Markel has developed a new product for the UK construction sector. To help develop the product, consultation with brokers and end clients confirmed the sector’s most pressing current needs and features, among them price-sensitivity; difficulty placing PI and PI availability in a package; and significant increases in disputes. Markel also found the market to have issues with cashflow and bad debt and noted issues around regulatory uncertainty and health and safety. (Staff Reporter, 21/8/2023, CIR, 'Markel launches new construction offering')

DWF has agreed a global claims management outsourcing contract with Aspen, following a six-month selection process. Paul Cowen, Head of Claims Management and Adjusting at DWF, said: "We're delighted to be working with Aspen to help them manage a proportion of their claims across a number of business classes. The selection of DWF as a partner is a testament to the work of our global claims experts, the breadth of our expertise across multiple lines of business and our global footprint. We operate as a seamless global team on a single global platform, which offers Aspen additional value, flexibility and depth in alignment with their operating model and growth plans."(Staff Reporter, 16/8/2023, CIR, 'Aspen selects DWF as global claims partner')

The Institute of Risk Management has been awarded accreditation by OFQUAL for its internationally recognised International Certificate in Enterprise Risk Management. The IRM can now expand its portfolio and develop, deliver and award qualifications from Level 3 to Level 7. The International Certificate in Enterprise Risk Management has now been registered on England’s Regulated Qualifications Framework and sits at Level 5 which is equivalent to Year 2 of a 3-year bachelor’s degree, Higher National Diploma or a foundation degree.(Staff Reporter, 9/8/2023, CIR, 'IRM achieves OFQUAL accreditation')

Howden has launched a blended insurance product offering PI, crime and cyber liability cover under one policy and limit. A cyber event can trigger multiple insurance products, which can cause delays in accessing the support and funds needed at the crucial time, particularly when dealing with multiple insurers. By combining the coverages into a fully blended product with a single set of policies and one limit, Howden hopes to improve claims responsiveness. (Staff Reporter, 9/8/2023, CIR, 'Howden launches blended PI, crime and cyber policy')

NeuralMetrics has added lessor’s risk only capabilities to its risk-quality data platform. Powered by generative AI and large language models, the platform offers detailed, dynamic information on tenant occupancy risks, enabling insurers to advise property owners on suitable occupancy coverage and precise policy pricing. (Staff Reporter, 8/8/2023, CIR, 'NeuralMetrics launches AI-powered solution for underwriters')

The UK government has published a new edition of the National Risk Register. Risks are assessed in importance according to factors such as fatalities and cost, and probability is determined using data modelling and analysis. The new Register, the first since 2020, also places a chance of another pandemic at between 5% and 25%. Deputy Prime Minister Oliver Dowden said in the document that “crucially, the Register is more transparent than ever. For the first time, it is based directly on the government’s internal, classified National Security Risk Assessment”. (Staff Reporter, 4/8/2023, CIR, 'UK government publishes National Risk Register')

Movers

In a significant move that promises to reshape the landscape of medical indemnity, Altea Insurance (Altea) has welcomed Will Marshall to its ranks. Will Marshall, a distinguished figure in UK healthcare litigation law with nearly three decades of experience, takes the helm as the Head of Legal and Risk Management for AlteaPlus. With nearly 30 years of experience as a prominent UK Insurance Healthcare Litigation Lawyer, Will brings a wealth of knowledge and expertise to his new role. Marshall’s career spans prestigious roles within London’s top insurance law firms, where he championed the rights of both Insureds and Insurers. Prior to his tenure at Altea, he held a pivotal role as the Partner in charge of the Insurance in Healthcare practice team at the renowned law firm DWF. (Mark Dugdale, 8/8/2023, Claims Mag, 'AlteaPlus launches with new hire Will Marshall at the helm')

The British Insurance Brokers’ Association (BIBA) has made new appointments to its main board and broadened access to it. Reflecting one of the most pressing priorities for members, regulation, David Sparkes has been appointed to the role of Regulation Director in a new main board position. Emma Chapman has also been appointed to the main board, as Conference Director, following two successful annual BIBA conferences after the postponement of events during the COVID-19 pandemic. Lindsay Campbell, who was previously in that role, remains in the conference team as Conference Manager on a part-time basis. The organisation has also made provision for other Senior Managers, including Head of Commercial Nicola Maguire and Head of Insurance Alastair Blundell, who now have wider remits, to attend certain main board meetings. Recognising the growing importance of environmental social and governance matters, Vannessa Young is assuming responsibility for sustainability alongside her compliance and advisory boards management roles. She will be driving forward BIBA’s support for members in this area. Finally, BIBA intends to recruit two new team members to bolster its regulation and public affairs activities. (Mark Dugdale, 1/8/2023, Claims Mag, 'BIBA makes changes to main board')

Aon has bolstered its Risk Capital capability with the appointment of Joe Peiser as CEO of Commercial Risk Solutions and Paul Shedden as Head of Advanced Risk Analytics for Risk Capital, effective immediately. Peiser joined Aon in 2021 as Head of Commercial Risk for North America. He has decades of industry experience across broking, consulting, underwriting and claims management. He succeeds Lambros Lambrou, who was named CEO of Human Capital, leading Aon’s Health, Wealth and Talent Solutions. Shedden most recently served as Head of Global and UK Analytics for Aon’s Reinsurance Solutions and has nearly 20 years of experience in actuarial, pricing and analytics and underwriting roles.(Staff Reporter, 15/8/2023, CIR, 'Aon strengthens Risk Capital capabilities')

Bridget Rosewell has been appointed as Non-Executive Director and Chair-Designate for Flood Re. Ms Rosewell's career has seen her working across infrastructure, utilities, financial services and transport. She also served as Chief Economic Adviser to the Greater London Authority between 2002 and 2012, Deputy Director of Economic Affairs at the Confederation of British Industry and Lecturer in economics at the University of Oxford. Ms Rosewell's current roles include Non-Executive Chair of Audit and Risk for the UK Infrastructure Bank, NED of Northumbrian Water, Chair of M6 Toll, the UK’s only tolled motorway and Chair of challenger bank, Atom. Previous roles also include Commissioner of the National Infrastructure Commission (2015 to 2023) and Member, Independent Review of Finances of TfL.(Staff Reporter, 1/8/2023, CIR, 'Rosewell named new Flood Re chair')

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