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THE Standard Volume 3 – November 2018 EMBRACE OPPORTUNITIES TO IMPROVE EFFICIENCIES AND REDUCE ENVIRONMENTAL IMPACTS Page 6 TO BECOME MORE SUSTAINABLE, THE INDUSTRY NEEDS BETTER KNOWLEDGE Page 14 THINK BEFORE YOU DRY! Page 2203 CONTENTS Notes from the Chairman & Events Diary 05 Inside the Head of Jonathan Davison, our Strategic Development Director 06 Embrace Opportunities to Improve Efficiencies and Reduce Environmental Impacts Residential Loss 07 Opinions and Expertise from the Executive Board Commercial Loss 08 Opinions and Expertise from the Executive Board Specialist Loss 09 Opinions and Expertise from the Executive Board Guest Feature 11 Why Maximising the Benefits of Resilience During Floods Requires Education and Co-operation by Ian Gibbs – Sedgwick The Standard Insight (Feature) 12-13 The Movement Towards a Further Sustainable Industry Guest Feature 14-15 To Become More Sustainable, the Industry Needs Better Knowledge by Chris Edwards – Plastic Surgeon Learning & Development 16 Inside the BDMA e-Academy – Construction Techniques BDMA Membership 17 Continuous Improvement with a BDMA Membership Guest Feature 19 Driving a Change for Sustainable Claim Footprints by Des O’Connor – Revival Our Industry in Action (Case Study) 20 Top Marks for Primary School’s Fire Damage Restoration Sponsor Showcase 21 Humidity Response Ltd Guest Feature 22-23 Think Before You Dry! by Andrew Bussey – Smithers Purslow Member Showcase 25 ChemDry Excel Limited New BDMA Members 26 BDMA Enquiries & Correspondence The BDMA, Harborough Innovation Centre, Wellington Way, Airfield Business Park, Market Harborough LE16 7WB Phone: 01858 414278 | Email: info@bdma.org.uk Website: www.bdma.org.uk Keep up with us on social media… @TheBDMA @TheBDMA BDMA (British Damage Management Association) DISCLAIMER: The BDMA accepts no responsibility for the views expressed by contributors within The Standard. Advertisements are accepted at the discretion of the editor and The BDMA and do not imply any endorsement of goods or services. Editorial Enquiries Olivia Miller olivia.miller@realia.co Advertising Sales Paul Williamson paul.williamson@realia.co Design & Production Realia Marketing paul.williamson@realia.co 01303 262101 The Standard is published quarterly by The British Damage Management Association. The Standard is written in collaboration with our members, showcasing industry thought leaders and success stories to the wider community. We are delighted to present the opportunity for our members to broadcast their expertise to the broader insurance industry by submitting opinion pieces and case studies for inclusion in The Standard. Please feel free to submit your content for consideration. ® Creatively yours www.realia.co What do you want from your marketing agency? Creatively yours, without compromise. Quality Agility Intelligence Value Insurance industry expertise I want it all! P04 Raising Industry Standards The British Damage Management Association (BDMA) facilitates technical and corporate training, technical support and advice on standards and represents its members’ interests in the public, industry and commercial domains. Accreditation is at the heart of the BDMA’s structure and sets the standard of how professionals in damage management and related sectors can prove their competence and commitment to delivering industry best practice. Accredited Membership is achieved by examination and is open to all who work in this field. Associate Membership is available to those with an interest in damage management who do not qualify for accreditation. Corporate Associate Membership status is open to any organisation wishing to show support for the BDMA and the damage management industry. Corporate Accredited Membership is available to organisations who meet strict criteria and have a specific percentage of staff who are Accredited Individual Members, in the relevant categories. Online learning Our online learning resource, The BDMA e-Academy, can be accessed via the new BDMA Learning Management Portal. Members can download a Course Catalogue at: www.bdma.org.uk/bdma-lmp Upcoming training courses 21 st – 22 nd November – Market Harborough Core Damage Management – Technician 22 nd – 23 rd January – Market Harborough Core Damage Management – Technician 6 th – 7 th March – Blackburn Core Damage Management – Technician 10 th – 11 th April – Market Harborough Key Elements of Damage Management for Insurers and Loss Adjusters Our structured training courses can also be delivered in-house along with bespoke training designed to meet your requirements and schedule. www.bdma.org.uk/training-and-education Directors Simon Ford (Chairman) chairman@bdma.org.uk Adrian Jolly John Thompson Mike Waterfield 01858 414278 Emails to: info@bdma.org.uk unless otherwise stated. Strategic Development Director Jonathan Davison strategicdevelopment@bdma.org.uk 01858 414278 Executive Committee Members & Constituencies Greg French DM Practitioners (Commercial) commercial@bdma.org.uk Phil McVay Claims Practitioners claimspract@bdma.org.uk James Parsons Insurance Technicians instechs@bdma.org.uk Kathryn Rodgers Specialists specialists@bdma.org.uk Support Personnel BDMA Administration Sophie Bennett Office Manager info@bdma.org.uk 01858 414278 Marketing Paul Williamson Realia Marketing paul.williamson@realia.co 01303 262101 Through partnership working and involvement in industry wide initiatives, the BDMA executive is also informed by the Association’s relationship with The Association of British Insurers (ABI) and the Chartered Institute of Loss Adjusters (CILA). The BDMA Executive from April 2018 We’re Recruiting Now!! Come and join The UK’s Leading Disaster Recovery and Specialist Commercial Cleaning Company visit www.rainbow-int.co.uk/careers/ for more information on the roles available05 Welcome! This is the third edition of The Standard, the quarterly magazine from the British Damage Management Association (BDMA). As we head into the tail-end of autumn, we reflect on how we as an industry fought Storm Ali, Bronagh and Callum earlier in the season. Whilst we also consider how far through the Storm alphabet we may get during the unpredictable winter months! It has certainly been a challenging year for the damage management and associated industries, with the effects of climate change leading to storm outbreaks, flash flooding, and as a result, many damaged properties. Communities experienced devastation and insurers were faced with big payouts. It has been pleasing to see how our industry has dealt with both surges and business as usual. We have also seen a more collaborative approach within the industry for improved customer service from our industry, and further support provided for vulnerable policyholders. Flood Re and Pool Re have vowed to make premium reductions this year and support policyholders and insurance companies more, moving forward in relation to claim costs and policy insights. This is a really positive move for the industry. It is pleasing to see the growth of members from the commercial damage management community, with the adoption of the CDMP course being released on the BDMA e-Academy, please remember to drop in and take a look! This November edition of The Standard focuses on the environment and how the wider insurance industry can make a positive difference by committing to sustainable claims management and business operations. We explore both the challenges and sustainable solutions. However, moving on, I'm looking forward to seeing some of our members at the ILC Home Claims Conference in November. We hope you enjoy this issue. Please let us know your thoughts! Simon Ford, Chairman, BDMA. Notes from the Chairman Upcoming Industry Events BCI World 2018 Novotel London West 6 th -7 th November 2018 www.thebci.org I Love Claims – Home Claims Conference 2018 Ricoh Arena, Coventry 14 th November 2018 www.iloveclaims.com ABI Annual Conference 2019 155 Bishopsgate, London EC2 26 th February 2019 www.abi.org.uk/events/ annual-conference-2019 FLOODEX UK 2019 Peterborough Arena 27 th -28 th February 2019 www.floodex.co.uk BIBA Conference 2019 Manchester Central 15 th -16 th May 2019 www.biba.org.uk Sponsorship The BDMA offers a number of sponsorship opportunities aimed at organisations wishing to promote their support for the Association. Find out more about becoming a sponsor by emailing info@bdma.org.uk or calling 01858 414278. Gold Sponsors Edge Equipment Hire Silver Sponsors Legend Brands Europe ServiceMaster Clean Bronze Sponsors CRL Fire & Flood Damage DBK Drymatic Humidity Response Ltd Ideal Group Response CleanSafe The Forshaw Group06 inside the head inside the head Jonathan Davison (Strategic Development Director of the BDMA) Embrace opportunities to improve efficiencies and reduce environmental impacts The message that we need to better our business efficiencies to reduce environmental impacts is not new. Businesses are aware of the need, whether it is being heard from a regulatory point of view, or from customers, suppliers and other stakeholders. Many companies have already adopted sustainability initiatives, whilst many are in the process. This is great to see for the damage management and wider industries. Those who haven’t yet begun to reduce environmental impacts in the fulfilment of claims may not know where to start, or have limited resource to get the ball rolling, or maybe the real opportunities are not yet realised… Reducing environmental impact can be approached in many ways. From sustainable material usage, on-site energy, travel, technology, to waste and water management – businesses can make a difference. Meanwhile, the damage management industry’s vision of restoration over replacement should always be aimed for to reduce landfill waste and imported raw material usage. Committing to a sustainable claims process requires companies to identify and prioritise the areas they would like to improve environmental efficiency. What are your stakeholders doing? What areas are important to them? You could look to set similar targets and align your environmental interests. Planning is critical for bringing your processes to the forefront. Review existing plans and policies and ensure your initiatives are well communicated between all internal and external stakeholders, and through your marketing communications. We cannot underestimate the value of working with suppliers, contractors and clients to shape our initiatives. For example, we can consider combined purchasing power to push change, improve resource efficiency, contemplate new technologies and in turn reduce carbon emissions. As we all know, the satisfaction of the policyholder is our priority. Reductions in environmental impact, such as restoring over replacing damaged property or items, can lead to a decreased claim life cycle – shortening the claims fulfilment process and reducing policyholder disruption. Whilst for insurers, it can generate potential cost savings in indemnity spend and cycle time, and lead to quicker claim settlements. Damage management companies can also add value by providing advice to stakeholders on initiatives and building materials which have a lower climate impact. Collating and reviewing your environmental initiatives will aid your reports on progress. Don’t do the hard work to then not get the satisfaction of seeing how your business has performed with improving sustainability. Agree variables to be monitored and analysed, identify individuals to be responsible for the task and ensure there is a constant process of recording data throughout the year. As an industry we have the power to make a real difference to the environment, and we should thrive from the opportunities for us to do so. Let’s continue to pull together and reduce the climate impact in our fulfilment of claims. 07 RESIDENTIAL LOSS residential loss OPINIONS AND EXPERTISE FROM THE BDMA EXECUTIVE BOARD How is the wider insurance industry supporting sustainability? Mike Waterfield: •Damage practitioners by the very fact of the work they carry out support sustainability – we have long utilised energy efficient equipment, provided methods for reducing power usage during drying, environmentally friendly chemicals for decontamination and recycled waste materials through our waste removal suppliers. Still, we see excessive stripping out instead of restoration, cash settlement using IVP’s and use of high excess figures are becoming the norm – the focus is more about cost reduction than sustainability. James Parsons: •There feels like a greater interest and momentum in reducing hard strip-out, and more consideration of the carbon footprint taken when it comes to disposing over restoration. I have recently been to a BDMA Specialist Masterclass which showcased the various contents restoration initiatives that members offer, and I have come away with a renewed determination to try and support and promote contents restoration opportunities. Changing the mindset of the customer is now the greater barrier to finding sustainable and environmentally responsible solutions to claims. How do you see the industry adapting further to environmental changes and unpredictable climate change in the next five years? Mike Waterfield: •It is clear that the two largest economies, USA and China, could do more to facilitate change. It is unlikely that the 1.5-degree target will be achieved. •There are lots of questions of which scientific-based evidence has not been established. We will all therefore continue to see unpredictable weather events – Will insurers continue to cover residential property for such flood events? How will Flood Re develop as our climate changes? •As day-to-day claim volumes continue to be driven ever lower how will damage management companies maintain the capacity to respond to major events? It has been clearly demonstrated that certain companies within the wider supply chain cannot respond in times of surge. How will the government respond now that austerity is officially over and how will funds be generated to pay for the improvement in infrastructure to cope with flood events? Predicted growth in the economy continues to be below 2% so this will not generate •income to cover the increased costs even if the government prioritised flood protection over the likes of the Health Service or Policing. •Governments will have to respond to a mounting pressure from unhappy homeowners and insurers unwilling to see profits fall. The damage management world is certainly going to be interesting during the next five years. James Parsons: •In 1987, Weather Reporter Michael Fish responded on the BBC to a caller who had heard a hurricane was on its way, with “Well I can assure people watching, don’t worry, there isn’t”. The UK was then battered by the worst weather for centuries with winds of up to 115 mph and 15 million trees were flattened. In July 2017, the Met Office’s super computer predicted “10 years of record rain in the UK”. In recent years we have had record-breaking global temperatures recorded, driven partially by the influence of an El Niño reaccelerating the warming trend. What does this tell us as an industry that has to respond to weather- related events? •I think a prudent underwriter must understand future climate predictions, by having a detailed understanding of the current climate and how it affects the weather experienced in the UK. With the UK lying in the Northern Hemisphere mid- latitudes, it gets highly variable weather, bringing different claim-related challenges. •The current record-breaking summer of 2018 now brings a surge in subsidence claims as the pay back. •The challenge is working out the predictable trends and then considering how to mitigate the risks. Mike WaterfieldJames ParsonsAt the top of our game Polygon, the global expert in property damage control and temporary climate solutions. 01480 442327 | www.polygongroup.co.uk 08 COMMERCIAL LOSS commercial loss How is the wider insurance industry supporting sustainability? Greg French: •In commercial claims there is a big focus on reducing costs. With this in mind, not only is it theoretically cheaper to clean and restore a building over replacing materials, it is in turn more sustainable. On the other hand, speed is the primary objective to get businesses back up and running sooner. Claim cycle time is critical, and in some cases, it can be cheaper to buy replacements, as a longer time frame of restoration can cost more. This doesn’t always seem sustainable, but the reality is that if the company is back up and running quicker, there are more sustainable and economic benefits in the long run. How do you see the industry adapting further to environmental changes and unpredictable climate change in the next five years? Greg French: •Climate change is unpredictable, and unfortunately this makes it difficult to assess future work load. Many companies in the insurance industry find themselves struggling to balance recouping and retaining staff for business as usual, and also surge events such as storms or floods. The ultimate dilemma is how can damage management companies and associated sectors, cope in these scenarios without the preparation and employees with the right knowledge and expertise. It is not feasible to simply ‘hope to cope’. With recent floods, some commercial companies were overwhelmed with work, by no fault of their own, but with the demand required of them. With recruitment an issue for some in the industry, it is likely that more project managers from external industries have to be called in, and without prior expert knowledge it takes time to get them up to speed. This is difficult when the main need to bring new people in is to react with quick responses to surge. •In conclusion, we work in a response- based industry, and have to be ready for all scenarios. Planning to have the right people at the right time can be a guessing game, but we have to manage the process somehow. If more is done to train people within organisations to have more versatile skills this would help. Equipment and technology can only evolve so far, to help with labour demand, but we will still always need professionals on-site to communicate and reassure policyholders and those involved in incidents. OPINIONS AND EXPERTISE FROM THE BDMA EXECUTIVE BOARD Greg French09 specialist loss specialist loss How is the wider insurance industry supporting sustainability? Kathryn Rodgers: •The damage restoration industry actively advocates sustainability with its reinstatement over replacement mantra. Yet this approach can be taken much further with specialist contents restoration, which is often overlooked. If we think about the environmental impact and carbon footprint of replacing the contents of a house, it is mostly not as environmentally friendly as restoration. If there are cost-effective opportunities to successfully restore contents, then insurers and core damage management practitioners should certainly consider the available options rather than replace or cash settle. How do you see the industry adapting further to environmental changes and unpredictable climate change in the next five years? Kathryn Rodgers: •It is not easy to judge how the next five years will be for the industry, but we must pull together to ensure we are prepared for both surges and business as usual. If damage management practitioners, loss adjusters and insurers have strong established relationships built with specialist restorers before claims arise, quicker action can be taken when it comes to involving them in the claims process. There is no time like the present to cement these partnerships and adapt for more sustainability and cost- effectiveness in the supply chain. This may well have a positive effect on the specialist restoration supply chain in the next five years. OPINIONS AND EXPERTISE FROM THE BDMA EXECUTIVE BOARD Restoration and conservation of artwork and antiques FIRE, FLOOD AND ACCIDENTAL DAMAGE RESTORED • Operating nationwide • PACR and ICON accredited conservators • Conservation reports produced Telephone: 01228 915 231 info@fineart-restoration.co.uk www.fineart-restoration.co.uk FOLLOW US AT /fineartrestore @fineartrestore Kathryn RodgersNext >