Industry Insights hosts inaugural partner meeting

Leaders from Industry Insights and Connected Solutions (CS) businesses met in London on Thursday, 13 June for a comprehensive sales review of the 23-Partner strong motor claims supply chain solution ahead of the first in a series of biannual insight sessions hosted by Industry Insights, called ‘Insights & Canapes’.

Celebrating notable milestones in the phenomenal three-year growth – including 90 live contracts and a range of interactions in place with the top 15 motor insurers – the Partner-only morning session included a number of significant announcements as the Connected Solution (CS) proposition continues to streamline and drive efficiency in the UK claims market.

The goal – to touch one in 10 motor claims – remains firmly in sight. CS currently touch about seven per cent of all UK motor claims, on average utilising five CS Partners on each claim.

From May 2016 – the first ever Partners meeting held in London, a year of growth 12 CS Partners – to 2017, when a further three businesses joined, an incredible 2018 saw us grow from 15 to 22 CS Partners and, in 2019, II are pleased to confirm there are 23 CS Partners. Whilst Partner growth has inevitably matured, the steady growth in the Connected Purchasing (CP) offering continues, including new CP businesses: Growth Partners and Dynamic Messaging, who both presented to the group. Further CP businesses were also announced, namely Junair and The Hail Network (Paintless Dent Repair Specialists).

Sharing a unique insight on the millennial vs generation X employee dynamic, Dale McManus, Growth Partners, shared a number of academic and anecdotal case studies to endorse the employee engagement firm’s Growth Pro smart employment model.

Gleaning five years’ relevant experience with insurer, Admiral, the latest CP Partner – a creative Voice & SMS company – take customer communication way beyond traditional and now-outdated B2C approach, said Oliver Gee from Dynamic Messaging.

Concluding the closed group morning session, CS Training Partner, Peritus Learning, gave an update on their online training platform – which is supporting an increasing number of fellow CS Partner business with web-based learning – and now spans 600 modules, with API and single sign-on for 40,000+ cross-sector users.

Additionally, Peritus is working with Apprenticeship Levy-paying business and has jointly developed a management training solution with the Institute of Learning and Management (ILM) to deliver a bespoke ILM-Level-3 Certificate in Leadership and Management. Soon to be launched are Saas-based training modules with improved pricing, said Steve Walker, Chief Executive, Peritus.

During a networking lunch, guests from the motor insurance sector joined Connected Solutions Partners for the inaugural ‘Insights & Canapes’ event.

Steve Thompson, director, Industry Insights, gave a headline view of the key sector challenges and short-term change predictions.

‘The insurance sector is in the midst of – and will continue to face – a period of rapid change, especially those in the motor arena. Remember, motor claims encompass everything from a broken wing mirror to a life-changing personal injury claim. With complex legacy systems and supply chain models, all stakeholders want more yet, more than ever, there’s a constant drive to maintain or even reduce costs during a time when technology is driving up costs, which often end up with the bodyshop. The costs need to be recognised in order to maintain sustainable claims fulfilment.’

This need for innovation is now more urgent than ever, said Steve, who put forward six actions and five predictions: ‘We need equitable innovation, change of mindset, supplier (repairer) key part of delivering your strategy, bodyshop must align strategy with the insurer, but on mutually equitable commercial terms, with focus on the customer being number one, clear objectives and greater efficiency and reduction of operational spend across insurers and the supply chain.

‘We’ll see, legal reforms – with a rise in the number of claims management companies (CMCs), greater prevalence and application of artificial intelligence (AI), rise in Uber-style of business model and an increase in a freelance workforce, plus a drive to get underwriters in touch with advanced vehicle tech.

‘There are 500 companies operating crowd sourcing business models, the Uber model is here to stay. It is important to us as a business that we share both our insights and visions for the future of motor claims in the UK amongst our peers so, today, we have carefully selected a small group of professionals from insurance, supply chain and industry bodies to attend this inaugural session.’

Steve introduced Paul Sell, formerly of Aviva (23 years), who is CCO RightIndem, director of Service Certainty and who supports Industry Insights on a consultative basis. During a session on insurtech, Paul said there is unprecedented demand for technology with significant investment continuing for insuretechs.

Insurers have innovation teams, budgets and desire with a blend of investment in start-ups and in-house driven initiatives, but are hampered by their own internal demands, being mindful of restrictions on resource, risk agenda and changing priorities, said Paul.

‘Innovation is just one of many pressures insurers are facing,” said Paul. “Remember, insurers need to cut costs whilst also reacting to customer and workforce changes in order to continue to compete. Needing to adapt to a changing market which, according to KPMG, it is 2019 where the tide turns for them.’

Finally, Paul focused on the claims value chain with simple examples from digital claims notification to using media to digital payments. 

“Innovation is available from businesses in this room to digitise the whole claims experience.’

In a fast-paced and academic session on change, LV=’s Keith Misson illustrated with contemporary socioeconomic and political ‘action’ how and why we are hardwired as humans to have a ‘visceral reaction to change,’ and how group dynamics – such as those working on projects or in change teams – will naturally inhibit progress despite the processes and frameworks that companies put in place. We all have an innate need to find order in the chaos – ‘our brains are fantastic at finding patterns and logical solutions, but our ‘animal’ response to encountering difficulty in change is what slows progress.’

Keith’s application of neuroscience to explain how the goal of empowering staff to enact change runs counter to the majority of current HR practices, where we manage people as a functional resource. In addition, claims teams are critical to change as they are ‘the people [within the organisation] in constant contact with the customer’. But in a world of greater automation and machine-driven decision making, there’s a real risk of losing that insight and taking away autonomy from the very people we’re looking to empower. It was a thought-provoking discussion for all in the room.

Bob Linwood from AutoRaise spoke passionately to guests in the room, many of whom already support the charity as CS Partners, and participation in this month’s AutoRaise REAL Rally, and thanked those who have helped them ‘uncover talent and turned around lives of some young people. ‘Together, we can continue to shine light on industry, and spread the word on career potential, earnings and the need for technical skills in our sector.’

AutoRaise now reach 100 affiliated repairers, have introduced 85 repairers to training providers, work with 12 cadets, impacted on over 150 new apprentice starts and boast 216 live apprenticeships, said Bob.

Finally, Industry Insights were proud to welcome Zurich’s global chief claims officer, Ian Thompson, for a session that pushed a truly holistic approach to drive a different culture in motor claims. Ian agreed with Steve’s earlier comment – that, as motor claims professionals, the sector has been ‘managing ecosystems for decades,’ and that ‘hyper convenience’ is nothing new.

At Zurich, insurtech is and has been on the agenda with hackathons and start-up boot camps, including the Zurich World Championship to take local start-ups national. ‘Fintech investment in insurance is phenomenal, yet the challenge isn’t the finance – it’s the clash of cultures and, in insurance, that often means recently flattened structures and legacy systems.’