INTERVIEW
Natural catastrophes can result in large volumes and large claims – meaning claims management can quickly turn into crisis management
Q A
What are the specific challenges associated with handling large losses from a UK and international perspective?
Large property losses, whether they are UK or international, are by definition complex. It is vital to have the right team of experts assigned to the loss, in some cases assigned pre-loss such that in the event of a loss the team is ready to respond immediately. Coordinating both the adjustment team and the panel of insurers (to whatever degree possible) is of paramount importance as is understanding any local customs and practices. It comes down to having the right people on the ground, representing the insurers. Natural catastrophes can result in large volumes and large claims – meaning claims management can quickly turn into crisis management. Together with having to handle thousands of claims efficiently and accurately, insurers have to cope directly with the effects of a catastrophe that make claims handling more difficult, such as ruined infrastructure and inoperative communication networks. Even what could be called ‘normal’ natural catastrophes are having an ever-increasing impact due to increased density of population and the accumulation of high-value assets in, for example, industrialised areas in more and more hazardous regions.
Q
Are there any potential changes on the horizon in the property claims marketplace which insurers and their clients should be watching for?
A
Technological advancements will change the way that property losses are assessed and adjusted. Drones are already being utilised to access and photograph damage in areas that would otherwise be inaccessible after a loss, satellite imagery can be used to ascertain the extent of flood damage, 3D scanning can be used to recreate entire loss scenes, and loss adjusters have the ability to show real time damage to claims handlers via video links. Claims adjusters will effectively have the ability to sit at their desks and view damage on a real time basis. Satellite imagery immediately post a catastrophic event would allow the areas affected to be properly ascertained and therefore the correct resources to be deployed in a timely manner. All of this can only assist in the handling and settling of valid claims. Telematics, utilised primarily by motor insurers, is something that can and will impact both household and commercial property insurance. “Smart” homes will allow policyholders to monitor for electrical issues, be alerted remotely of a fire, or a change in weather conditions that may put the insured property at risk. There is a wealth of data that could and should be utilised, but for that to happen the right systems need to be in place to share, validate and capitalise on that data. It is absolutely vital that the property insurance market grasps the technology available and realises its benefits both to the client and to the companies themselves.
March 2016
Stuart Wright Stuart Wright is the Property & Casualty Claims Manager for Lloyd’s Syndicate 1414, Ascot Underwriting Ltd. He has responsibility for all complex Property, Casualty, Natural Resources and Renewable Energy losses emanating from Ascot’s global book of business.Ascot Underwriting has the largest North American open market Property underwriting book in Lloyd’s of London. Stuart has over 19 years’ experience within the insurance industry, of which the last 14 years have been spent working for various syndicates at Lloyd’s of London. Having joined Ascot Underwriting in 2011, Stuart now chairs the LMA Property Insurance Claims Group (PICG), and sits on the LMA Worldwide Property Business Panel. The LMA PICG is a Lloyd’s Market Association sector panel providing a representative forum which allows, where appropriate, discussion of common issues and concerns within the property market. The role of the group is to take the lead to identify and investigate property related issues with an objective of producing solutions for the benefit of the Lloyd’s market and the market in general, to initiate projects or sub-groups, where appropriate, to address specific issues and to advise and provide feedback to the Lloyd’s Market Association Claims Committee where property issues have a wider impact on the market.
Modern Claims 19