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Volume 5 – June 2019 How professional damage management adds value to the claims process Page 6 Why betterment should be the future in property claims Page 11 Ensuring Resilient Fire Engineering Building Design Page 20Raising 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 open to any individual with an interest in damage management and the wider industry, and is a requirement for practitioners wishing to gain accreditation in the damage management sector. 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 2019 2 nd July – Blackburn Core Damage Management – Senior Technician (Refresher) 3 rd -4 th July – Blackburn Core Damage Management – Technician & Claims Practitioner 4 th -5 th September – Market Harborough Core Damage Management – Technician & Claims Practitioner 25 th -26 th September – Market Harborough Key Elements of Damage Management - 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 02 Available positions: • Technicians • Senior Technicians We’re Hiring! You will work within a vibrant, growing team completing work in the following scenarios: Fire and Flood restoration, Trauma and Biohazard cleaning, Oil and Chemical spill cleaning. In order for us to deliver our 24/7/365 disaster recovery service you will be required, at times, to be flexible in sharing unsociable working hours, working away from home and weekend working with colleagues. Required: • Full clean UK driving license • Prior damage restoration experience or experience in a related industry such as construction or specialist cleaning. Advantageous: • BDMA or Dewpoint Fire and Flood qualifications Ideal Response is part of the Ideal Group and a leading supplier of emergency and planned specialist cleaning and restoration services to clients across multiple sectors in London and the South East. Competitive salary OTE team bonus structure About the company Maidstone www.idealresponse.co.uk CV’s to: jobs@idealresponse.co.uk Or call: 01622 735 071 Company pension scheme Continued professional development £03 CONTENTS Notes from the Chairman & Events Diary 05 The BDMA’s View 06-07 How Professional Damage Management Adds Value to the Claims Process Residential Loss 08 Opinions and Expertise from the Executive Board Commercial Loss 09 Opinions and Expertise from the Executive Board Specialist Loss 10 Opinions and Expertise from the Executive Board The Standard Insight (Feature) 11 Why Betterment Should Be the Future in Property Claims Learning & Development 12 What Can Specialised Commercial Damage Management Training Do for You? Guest Feature 13 Guidance for Water-Damaged Artworks: How the Supply Chain Can Help by Julia Stockdale – Fine Art Restoration Company BDMA Conference 2019 14-15 Our Industry in Action (Case Study) 16 Quick Response Saves Vital Documents Guest Feature 17 Modern Methods of Construction by James Dalton – Association of British Insurers BDMA Membership 18 It’s Never Too Late for a BDMA Membership... Sponsor Showcase 19 DBK Drymatic Guest Feature 20-21 Ensuring Resilient Fire Engineering Building Design by Dr. Peter Wilkinson – Pyrology Limited Member Showcase 22 BioSweep® North East Limited New BDMA Members 23 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. 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. 04 IAN WILLIAMS CELEBRATES NATIONAL APPRENTICESHIP WEEK 2019 IN STYLE! To coincide with National Apprenticeship Week 2019, leading property services specialist Ian Williams held its third Qualification Celebration Lunch at Bristol’s Ashton Gate Stadium. The event which was the largest yet and attended by 43 people, celebrated the company’s apprentice, trainee and staff achievers and recognised the vital contribution they make to the business. Ian Williams is committed to direct delivery of its services and has pledged that 10% of its total workforce is made up of apprentices. This programme is managed by the Ian Williams Academy which delivered over 4,000 days of training and personal development in 2018. Ian Williams’ Training & Development Manager, Sian Pearce, welcomed delegates with warm congratulations: Now in its third year, the Qualification Celebration Lunch has truly become a high point in the Ian Williams calendar and we look forward to gathering everyone that has gained a qualification through the Ian Williams Academy together, along with their peers, to celebrate their achievements. By completing one of our Academy programmes, not only has everyone obtained a formal qualification which will stay with them throughout their career, they have also developed a deep understanding of our business and our culture which means, from day one of their formal employment, they are making a massive contribution to our business and we would not be able to do our work without them. The BDMA e-Academy provides individuals with access to carefully selected course content from market-leading training providers, specially developed by the BDMA. The online courses accompany the BDMA’s existing instructor-led training to provide a fully blended learning experience. Online courses are available in: • Compliance and Soft Skills • Construction Techniques • Damage Management • Health and Safety • Commercial Damage Management Accredited BDMA members even have access to some damage management e-Learning free of charge via the BDMA e-Academy! Learn in your own time, at your own pace. Register now via our website link: www.bdma.org.uk/bdma-lmp THE NEW LOOK BDMA E-ACADEMY05 Hello readers, Welcome to our fifth issue of The Standard, which we are very excited about as it is now predominantly digital! From our readership survey last year, we discovered that the majority of readers prefer to access and read the magazine online, so we listened. This means the magazine is more readily available to you at the click of a button! It is also more interactive, and easier to share with your peers. Please do keep us informed if you have any feedback to share on this. We have recently launched the BDMA Certificate in Commercial Damage Management on the BDMA e-Academy (find out more on page 12), and I would like to congratulate Gus Bishop from Davis French & Associates for being the first person to complete the certificate! Since our last issue, the BDMA Conference 2019 planning has been well underway. In line with our 20-year anniversary, the conference theme of ‘Defining the 21 st Century Landscape’ will explore real issues and successes across the industry (past and present), and constructively bring to light how the damage management sector can drive the change necessary to secure a bright future for the market. More information can be found on our website, where delegates can sign up for tickets, applications can be made for exhibition space and sponsorship opportunities, and speakers can submit their pitches. Applications for the BDMA Awards are now open too. Refer to page 15 for more details on this. The theme of this June 2019 edition of The Standard is Restoration, Resilience and Replacement. It will broadly explore how damage management benefits the wider insurance industry; the benefits of restoration over replacement; and how resilience plays its part in damage management. Enjoy! Simon Ford, Chairman, BDMA. Upcoming Industry Events Flood&Coast 2019 Telford International Centre 18 th -20 th June 2019 www.floodandcoast.com Facilities Show 2019 ExCeL London 18 th -20 th June 2019 www.facilitiesshow.com The Claims Awards 2019 The Brewery, London 19 th June 2019 www.postevents.co.uk/claimsawards The British Insurance Awards 2019 Royal Albert Hall, London 10 th July 2019 www.insuranceawards.com The Flood Expo NEC Birmingham 11 th -12 th September 2019 www.thefloodexpo.co.uk I Love Claims ClaimsTech Event QE11 Events Centre, London 19 th September 2019 www.iloveclaims.com/events /claimstech-event CILA Conference 2019 Nottingham 19 th September 2019 www.cila.co.uk/cila/events Notes from the Chairman 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. 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 Chris Edwards Surface Repair Networks surfacerepair@bdma.org.uk Support Personnel BDMA Administration Sophie Bennett Office Manager sophie.bennett@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 June 201906 THE BDMA'S VIEW THE BDMA'S VIEW Cost savings Damage management professionals contribute significant cost savings on properties impacted by water and fire incidents in particular. Without the professional capability and innovative techniques, more homes and businesses would have building fabric unnecessarily stripped out resulting in unnecessary expenditure and a huge disruption for homeowners, landlords and business owners. Sometimes damage management activity and involvement occurs too late in the value chain, and as such opportunities are missed therefore leading to increased spend and claim life cycle. Timely and accurate routing by insurance companies or appointed supply chain partners, is crucial. Utilising the right skills at the right time, as appropriate to the claim or incident will optimise overall spend, providing value for all. Supporting insurers with policyholder service and collaboration When an insurer truly understands what matters to each customer after a claim, they can respond to the demand by appointing the right personnel with the necessary skills to have the most positive and economic impact. On occasions transactional operating models can push a standard onto customers that can cause delay, duplication and significant waste in the process. Customers need a ‘right first time’ professional service, with varying parties in the supply chain working together in the background without putting any burden, delay or confusion onto a customer who just wants to get back to normal as quickly as possible. Damage management companies can add significant value to the claims process by assisting to achieve this. Reducing claim life cycles The first phase of the claim life cycle is the most significant phase for minimising disruption for policyholders and costs for the insurer. The nature of water and fire damage makes the first few days and certainly the first week critical for stabilising the environment, reducing consequential loss and avoiding secondary damage beyond initial impact. We need to be careful when looking at aggregated whole life cycle durations as these can be misleading if durations are coming down slightly, but the overall spend is increasing due to significant strip-outs or increased cash settlements. With the FCA further clamping down on treating customers fairly, this couldn’t be more important. When the insurance companies and supply chains measure value steps and what matters to the customer, the efficiencies tend to follow. Sustainability The potential carbon footprint/landfill is minimal with a streamlined restoration process. Advancements in the use of energy saving equipment, targeted drying and remote monitoring enables a far more sustainable carbon-reduced solution. Reduced strip-out and increased restoration massively reduces the carbon When a policyholder faces property damage, as far as they are concerned, their insurer is the route to their solution. Their reliance is completely on the insurer - and the damage management company contracted then has the insurance company’s reputation in its hands. With so much at stake for the insurer, the rationale for the companies they decide to work with is critical. Damage management can often feel like the ‘unsung hero’, and here are just a few reasons why working closely with a professional damage management company will add value to the claims process. HOW PROFESSIONAL DAMAGE MANAGEMENT ADDS VALUE TO THE CLAIMS PROCESSTHE BDMA'S VIEW THE BDMA'S VIEW 07 footprint via the removal of unnecessary manufacture, transport, reinstatement and skip use. There are many hidden savings in carbon usage as keeping people at home or at least reducing the need for lengthy alternative accommodation, for example, can enable a reduction in families’ associated carbon footprint. Community support Businesses and communities are given huge benefit through professional damage management activity and others in the supply chain. During events such as floods and fires, damage management professionals play a fundamental role in getting businesses back up and running and help the wider community, for example, getting the local shop or community centre up and running. They are generally the first on-site and have a visible presence within the communities, meaning a positive connection is built and locals can see the long hours and dedication the teams give to help them. People also no longer need to leave their homes for too long due to advancements in drying and minimal strip-out, and 21 st century restoration and cleaning technology. The progress of how we respond to flood, water and fire events has continued to improve year-on-year. It is no coincidence that as professional standards have improved year-on-year, we can now respond within hours and be stabilising properties with a tailored approach combining best technical standards with the customers unique needs, to target dry or isolate rooms, when traditionally customers would have to leave the property or face huge disruption. An early co-ordinated response is vital for this with the professional damage management teams a crucial component from the outset. Conclusion Although building reinstatement is critical, damage management companies care about many other matters. We can do so much more to prevent undue reinstatement and disruption. Furthermore, the social, mental and physical wellbeing of individuals, families and communities is positive when we do the right thing. Insurers and their supply chain can afford massive value and working together means we can get people back to where they need to be - sooner.08 residential loss residential loss James Parsons Are you seeing a bigger shift from replacement to restoration? If so, please explain further. James Parsons: Imagine you have your own insurance claim, and that you have a 10-year old kitchen that has been flooded at low level. It’s in reasonable but slightly tired condition. Putting aside individual policy wordings for one moment that will specify the basis of settlement, let’s suppose: Insurer A says we can replace the base units (re-using your existing doors/draw fronts) and the end panels and plinths where they have water damage, we’ll try and save your work top but might need to replace that if we can’t get the units out without disturbing it. We’ll do this work while you remain living in your home. It will be a bit messy, disruptive and we’ll do our best to keep your sink working while we complete repairs. Insurer B says your kitchen is beyond repair, we will replace it with a new one. We’ll provide you with accommodation while you are without use of your kitchen. If you ask the question which solution sounds more appealing, I suspect a lot of consumers would favour option 2 liking the sound of a new kitchen and being willing to live with some disturbance around re-location in order to achieve this. This is the mindset we are looking to challenge and change. We need customers to get on board with reducing waste and being more open to repair and finding ways to execute the repairs in a more efficient way. On smaller claims the surface repair specialists are proving excellent in offering in-situ repairs that are usually completed in a day, with minimal disruption for a customer together with significant savings for insurers. This option cuts down on unnecessary waste and brings claim life cycles down. I think there is still more to do around customer expectations and education on how successful repair can be. Flood resilience is a priority for many in the wider insurance industry. What positive trends are you seeing, and what areas of the initiative need more focus? James Parsons: Not enough, sadly, feels the reality of this at present in the home market. There aren’t enough insurers providing ‘resilient repairs’ cover. Since 2016 we’ve had Flood Re to help support homeowners in high flood risk areas achieve cover and with reasonable premiums, but this doesn’t prevent or guard against flooding. Building in flood resilience often involves the substitution of materials, the changing of floor and wall coverings, water resistant insulation materials, one-way valves on drains, elevating services, etc, which all likely attract an increase in cost versus conventional construction methods. Often a customer who has a flood can fall into vulnerable circumstances. They are likely homeless, perhaps unable to continue working to their normal routine, maybe under increased financial pressure and then we are hoping that they might want to invest, beyond the like-for-like repair cost, to introduce flood resilient or flood protection measures to the repairs required in their home. I’m sure all flood customers would welcome improving the performance of their home against the risk of flooding, but who pays remains the real challenge to overcome to get a more positive move towards embracing flood resilience and protection. OPINIONS AND EXPERTISE FROM THE BDMA EXECUTIVE BOARD 09 commercial loss commercial loss Are you seeing a bigger shift from replacement to restoration? If so, please explain further. Greg French: There hasn’t been a shift as such, as in the commercial landscape it very much depends on the project and the damaged goods. It has been a fact of life for a long time that the fastest way to get companies back up and running sooner is to restore what they already have. Bigger, more specialised equipment has a greater likelihood of being restored rather than being replaced, as lead times for replacements can be many months which will often be too long for a company to survive without a manufacturing capability. If the existing equipment is unique to the business or bespoke, then most often restoration is the only option. Furthermore, replacement can be less productive in the short-term for companies to get back into business. Restoring their existing equipment reinstates operational familiarity, whereas new equipment can require staff to go on training courses and takes time to get used to. Business efficiency can therefore be reduced by replacement in these cases. With smaller pieces of relatively low value, everyday equipment, e.g. backed-up desktop computers, it is often cheaper to replace rather than to restore. With insurers looking for the most cost-effective approach to a claim, it can be a ‘no brainer’ decision. A rule of thumb is that if the restoration cost is 60% of the total replacement cost, then replacement will usually take place. What trends are you seeing in commercial insurance, and what needs more focus? Greg French: There has been a drive for insurers to proactively tackle the rising costs of escape of water claims. Their priority must be to understand why the building is wet and how specific problems can be fixed to reinstate the property. A lot of money is thrown at escape of water claims, which could be avoided if the appropriate approach to the claim is carried out at the start – and quickly, i.e. by fully identifying and understanding the cause of the damp. By the entire supply chain working together to educate on investigating cause and implementing appropriate solutions for escape of water claims, we could see significant developments in this area. OPINIONS AND EXPERTISE FROM THE BDMA EXECUTIVE BOARD Greg FrenchNext >