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THE Standard Volume 8 – March 2020 tomorrow's world Page 8 Digital shift in the relationship between policyholders and the supply chain Page 2002 'Techs and Toys' Programme 2020 Date: Tuesday June 9 th Time: 13.00 to 16.00 Venue: Edge Equipment Hire, 26 Stockwood Business Park, Redditch B96 6SX Capacity: 25 Subjects: Specialist Restoration (Fine Art, Antiques / Furniture) – Farcroft, The alternative to dry ice / soda cleaning / blasting – JF Enterprises & French Polishing & Restoration – Terry Waters Further speakers / venues may be added and the programme is subject to change. Date: Tuesday September 15 th Time: 13.00 to 16.00 Venue: Legend Brands, 22 Plover Close, Interchange Park, Newport Pagnell MK16 9PS Capacity: 25 Subjects: Restorative drying techniques & Air quality – DriEaz & Specialist Restoration – Harwell Restoration Further speakers / venues may be added and the programme is subject to change. Date: Tuesday December 8 th Time: 13.00 to 16.00 Venue: Dantherm UK Ltd, Unit 12 Galliford Rd, Heybridge, Maldon CM9 4XD Capacity: 25 Subjects: Drying Methodologies – Dantherm UK Ltd, Asbestos awareness, remediation and sampling – bSure & Specialist Recovery – Fine Art Restoration Further speakers / venues may be added and the programme is subject to change. Register your interest: www.bdma.org.uk/bdma-events/ The BDMA is delighted to announce its new masterclass programme for 2020, ‘Techs and Toys‘. The programme explores a number of topics, from specialist restoration to asbestos awareness. Each session is worth 4 CPD points and costs £25 + VAT. Due to the ongoing outbreak of COVID-19, the BDMA have decided to cancel the first Techs and Toys Masterclass which was taking place in March. If you are booked onto a training course within the next few weeks, we will contact you. We will be assessing the situation with ongoing training courses and masterclasses and will provide further information.03 CONTENTS Editorial Enquiries Becca Collier-Cook becca.collier-cook@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. Notes from the Chairman 05 The BDMA’s View 06 How technology is changing the Damage Management industry Meet the BDMA Executive 07 Board Meet James Parsons Guest Feature 08 Tomorrow’s world – Q&A with Insurtech & Insurance Innovation thought leader - Manjit Rana Commercial Loss 11 Opinions and Expertise from the Executive Board Residential Loss 12 Opinions and Expertise from the Executive Board Specialist Loss 13 Opinions and Expertise from the Executive Board Our Industry in Action 14 (Case Study) The case of the flooded florist Guest Feature 16 Moisture mapping for damp specialists, water damage practitioners and budding surveyors with Russell Rafton – Dryfix The Standard Insight 20 (Feature) Digital shift in the relationship between policyholders and the supply chain Sponsor Showcase 21 Ideal Response Member Showcase 22 Furniture Clinic Learning & Development 23 Setting the standard for Commercial Damage Management Guest Feature 24 What lies beneath? – Is the market prepared for the increase in disaster restoration issues with Andrew Greatorex – DASA New BDMA Members 26 BDMA MEMBERSHIP Have you recently moved premises? Or have you recently moved to a different company? If so, please remember to send an update of your new details to info@bdma.org.uk SPECIALIST CONTENTS RESTORATION Call 0800 019 9990 for a no obligation quotation www.harwellrestoration.co.uk Supporting BDMA members throughout the UK Documents Books Photos Artwork Ceramics Antiques 04 Raising Industry Standards Directors Simon Ford (Chairman) chairman@bdma.org.uk Adrian Jolly (Strategic Development Director) strategicdevelopment@bdma.org.uk Kathryn Rodgers John Thompson 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 Adam Waters Specialists specialists@bdma.org.uk Chris Edwards Surface Repair Networks surfacerepair@bdma.org.uk Marie Stearn DM Practitioners (Residential) dmresidential@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 March 2020 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 or peer review 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. Upcoming training courses 2020 Due to the ongoing outbreak of COVID-19, please note that if you are booked onto a training course within the next few weeks, we will contact you. 21 st – 22 nd April – Market Harborough – Key Elements of Damage Management for Insurers & Loss Adjusters 12 th – 13 th May – Market Harborough – Core Damage Management – Technician & Claims Practitioner 9 th June – Market Harborough – The Correct Use and Interpretation of Moisture Meters 10 th – 11 th June – Market Harborough – Buildings and Construction Through the Ages www.bdma.org.uk/training-and-education05 Notes from the Chairman Hello readers, Welcome to our eighth edition of The Standard. As we step into the next decade, we have some interesting and challenging times to face as an industry that continues to be commoditised for the services that our members deliver. This edition, we’re also taking the opportunity to consider what the year ahead will bring with a special focus on technology and how this will impact our industry’s future. From claims handling to restoration techniques, technology continues to transform processes and approaches across the insurance sector. It’s a subject we addressed at the BDMA Conference last November, and we’re delving deeper into some of those issues within the following pages. I’m also happy to report that the growth of the BDMA membership is allowing us to further invest in member benefits, especially investment in the e-Academy, which will allow the association to deliver more content to support our members and the public alike. I have been challenging the executive team to ensure we continue to support our members, constantly looking for the next level of member benefit to be delivered. I've also been raising the subject of succession planning, as we need to see fresh faces within the BDMA. I believe it is my duty to ensure we see rotation at the highest level to ensure we remain agile, fit for purpose and supportive of the whole membership. We’re also sad to announce that Mike Waterfield has retired from the board. We would like to say a heartfelt thanks to Mike for all his work with the BDMA over the past few years. Due to the ongoing outbreak of COVID-19, please note that if you are booked onto a training course within the next few weeks, we will contact you. We will be assessing the situation with ongoing training courses and will be providing further information. We hope you enjoy this issue. Please let us know your thoughts! Simon Ford, Chairman, BDMA. Upcoming Industry Events BIBA Conference 2020 Manchester Central 13 th – 14 th May 2020 www.biba2020.co.uk Facilities Show 2020 ExCeL London 19 th – 21 st May 2020 www.facilitiesshow.com Flood & Coast 2020 Telford International Centre 2 nd – 4 th June 2020 www.floodandcoast.com The British Claims Awards 2020 Leonardo Royal Hotel St Paul’s, London 4 th June 2020 www.claimsmag.co.uk/british-claims- awards Airmic Conference 2020 Edinburgh International Conference Centre 8 th – 10 th June 2020 www.airmic.com/events Dr Barry White Memoriam Dr Barry White sadly passed away at the end of December after a brave battle with cancer. Barry was instrumental in setting the Standards within the BDMA and worked in the damage management industry for over 20 years. His sister described his passing as a ‘great loss‘ and that ‘he was a very gentle and intelligent man‘. Barry had multiple qualifications and was a doctor of Material Science and Philosophy. The BDMA will now have a dedicated BDMA award named after Barry, which will focus on individuals in the industry who have demonstrated and attained a consistent high achievement over an extended period of time. Barry will be missed by the BDMA and the damage management industry. He will always be fondly remembered for his love of cigars and real ale!06 THE BDMA'S VIEW THE BDMA'S VIEW A history of innovation New technologies are clearly a big driving force behind the developments we are seeing across our members’ businesses, but invention and innovation have always been in the industry’s DNA. Damage management as an industry sector, emerged a quarter of a century ago into the vacuum of a previously undefined space in the market and has grown rapidly ever since. It’s fair to say that the systems and processes back then could not be described as state-of-the- art. Loss adjusters were equipped with neither mobiles nor laptops when dealing with claims and reports were typed up by a typing pool from hand-written notes. There were no supply chain networks. Drying requirements were typically fulfilled by enlisting the help of a carpet cleaner, who had access to dehumidifying equipment. Remote monitoring and video calling Much has changed since the emergence of the damage management industry, and advances in technology are at the heart of this, as technology has enabled improved access to data and information. Remote monitoring has the potential to revolutionise our approach to the drying process. From the perspective of the restoration contractor, it provides a 24-hour flow of reliable information on equipment performance and moisture levels, enabling better decision-making and use of technicians’ time. From the perspective of the homeowner, it means on-site visits can be scheduled at optimal points to minimise disruption whilst communication is improved through access to drying reports. Video is another area of technology bringing communication benefits to damage restoration applications. Video calling, now available to us all via the smartphones in our pockets, is being used to facilitate real-time visual inspections for some lower-value claims, even paving the way for in-call settlements. Taking a bird’s eye view with drones Drones are also starting to play a major role in the insurance industry, both in terms of underwriting surveys and supporting the claims process. In commercial environments, drones can reach places that surveyors physically can’t, making them a valuable data collection tool for risk assessment surveys, monitoring and post-claim inspections. As a result, commercial use of drones is booming. In 2013, there were 110 commercial permissions for drone operation in the UK and in August 2018 this number rocketed to 4,530. In the US, the Federal Aviation Authority (FAA) predicts the commercial drone market will triple in size in the five years to 2023, with the insurance sector currently accounting for 17% of this demand 1 . Accelerated trends such as this underline the industry’s future. Insurtech specialist Manjit Rana did exactly that for delegates at this year’s BDMA conference, highlighting the impact of today’s trends, such as artificial intelligence (AI), alongside the concepts of tomorrow, which included the futuristic vision of a mobile hotel room 2 . Moving with the times Whether futuristically designed concepts come to fruition, only time will tell. What we can be sure of, is that efficiency will be the motivation behind the relentless stream of new technology-driven ideas that will come our way. To continue to thrive, and ensure the industry stays master of its own destiny, the damage management sector must stay true to its innovative roots and maintain efforts to stay ahead of the curve. After all, as C. William Pollard also said: “Those who initiate change will have a better opportunity to manage the change that is inevitable.” In his book The Soul of the Firm, C. William Pollard, the former CEO of The ServiceMaster Company, said: “The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.” Pollard’s words certainly ring true today, when rapid change has become the new constant. Across all industries and sectors, damage management included, companies are being forced to think and continually rethink their services to ensure they are adapting to shifting market expectations and new opportunities. HOW TECHNOLOGY IS CHANGING THEDAMAGE MANAGEMENT INDUSTRY 1 Publications Parliament UK: https://publications.parliament.uk/ pa/cm201719/cmselect/cmsctech/2021/2021.pdf https://www2.deloitte.com/content/dam/Deloitte/us/Documents/ financial-services/us-fsi-infocus-drones-for-insurance.pdf [accessed Thursday 30 January 2020] 2 BGR: https://bgr.com/2019/01/01/hotel-on-wheels- autonomous-travel-suite/ [accessed Thursday 30 January 2020] 07 MEET THE BDMA EXECUTIVE BOARD NAME: James Parsons Dip CILA, Dip CII, BDMA Insurance & Commercial Technician BDMA executive BDMA EXECUTIVE James Parsons Your background: I started my working life on a youth training scheme in 1991, which was two weeks unpaid work experience with Legal & General in their admin department. There were two of us and the other person had a smart C&A suit whereas mine was brown pinstriped, had been acquired from a charity shop and looked like it came from a 1970’s Bruce Lee film! I was 16 years old at the time. Two weeks in and despite the hindrance of the world’s worst suit, I got offered a job in their home claims department. After 5 years of working claims from a desktop perspective, I managed to get a job as a loss adjuster at the age of 21, getting my hands on a Ford Mexico in blue, which I actually crashed on my first day while driving home. I spent the late 90s as an overworked loss adjuster, I can remember once doing 8 visits in a day and driving around as if I was a part of the RAC rally course. I do look back fondly on this period of time, as you had to quickly learn a little about everything in order to get by – it also helped to have some luck on your side! I then had a stint as a recruitment consultant working in the city, it was a job of musical chairs, swapping people between companies and jobs. I then moved on to working for insurance companies and spent time with two large home insurers before joining Halifax in 2003. I have been here ever since, with it now being Lloyds Banking Group. Your role & responsibilities: Since 2010 I have specialised in major loss claims, which are typically high value or high complexity losses. My day job is to visit these claims and provide face-to-face support for our customers during their time of need. Within Lloyds Banking Group, I’m also part of a quorum where key stakeholders review the most challenging claims, to ensure decisions are fair and consistent for our customers. I’ve also been a member of the BDMA executive committee since October 2017 and enjoy the wider exposure this role brings and how it has improved my own understanding of the damage management industry, which has helped me in my day job enormously. I’ve been a member of the CILA special interest group for property claims since October 2018 and contribute by providing technical material for the members, having co-authored CILA’s first paper on oil spills. I am currently drafting material on mould best practice. I’m also part of the UK CMB’s working party number five and am keen to see how the UK CMB will develop this year. Following his eye-opening talk at the BDMA Conference, innovation expert Manjit Rana shares his thoughts on how the insurance sector can stay one step ahead in the face of disruptive change. Manjit is currently consulting on a range of insurtech innovation projects and is also the ‘Entrepreneur in Residence’ at the University of Nottingham. How is the relationship between insurance and innovation changing? The insurance industry has always been innovative – price aggregators, the Insurance Fraud Bureau, online selling and telematics are all good examples. The problem is that the market has not been demanding the kinds of propositions that we now see as innovative or disruptive, like peer-to-peer or on-demand insurance models. Why is there a need for greater innovation? There are numerous factors. A key aspect is that consumers are now accustomed to services being delivered in new ways across so many areas of their lives, whether that’s the convenience of online shopping or the benefits of the sharing economy through companies such as AirBnB and Zipcar. There is an expectation that insurance-related services can be offered in similar ways. What is technology’s role in this change? Globally, we are seeing a rapid increase in the pace at which new technologies are being introduced. Most of these involve better connectivity, between both humans and technologies and also between technologies themselves. Our homes, cars and TVs are constantly connected, changing the way we create and consume services, and generating greater volumes and varieties of dynamic data. With the cost of data storage getting cheaper, organisations are encouraged to use this to develop increasingly intelligent and innovative solutions, often with the help of AI. What is the risk of not innovating? Quite simply, without innovation some insurers will have propositions that are just not relevant to the customer of the future. What have Insurtech companies done well on the innovation front? In my experience, innovation generally comes from frustration – either at the way something works today or if you can see a logical improvement. First generation insurtechs were mainly focused on distribution and were led by entrepreneurs frustrated with the difficult and cumbersome process of purchasing an insurance product. They didn’t really understand the underlying complexities, but they had access to the latest technologies and were looking at the problem through a completely different lens. They had no legacy systems or thinking to hold them back and no organisational boundaries. There are now over 4,000 insurtechs covering practically every element of the insurance ecosystem and, having attracted experienced industry people, they have a much deeper understanding of the internal workings of an insurance business. Where do you see disruption coming from in the future? There is a useful analogy here where the traditional insurer or carrier is the elephant and the insurtechs are the other animals buzzing around it. Some are an irritant – insects feeding off the skin – while others, like the Oxpecker birds, work in harmony with their host. The real problem is that most incumbents are so engrossed with the insects and birds that they miss the lion sitting in the long grass waiting to pounce. And the lions? They are the players from adjacent industries encroaching into the insurance domain. These are global organisations with access to capital, a significant client base, a trusted brand and data know-how; they are seeking to develop their own ecosystems and supply chains or create entirely new risk-mitigation solutions. In the face of this growing threat, insurers need to take the lead and drive their innovation programmes to generate more relevant and compelling risk-management solutions. 08 guest feature GUEST FEATURE TOMORROW'S WORLD Q&A with Manjit Rana, Insurtech & Insurance Innovation consultant and thought leader Manjit Ranaguest feature GUEST FEATURE 09 What has innovation looked like to date in more traditional areas of the industry? Insurers have created small innovation teams or hubs to improve internal innovation, to act as an interface to the plethora of start-ups, and to demonstrate to shareholders that they are participating in the innovation game. Unfortunately, they are often made up of people from within the insurer’s business and led by people with no innovation management or entrepreneurial experience, meaning there is very little scope to challenge traditional thinking. Is that picture changing? As the numbers of insurtechs and the variety of their offerings have increased, insurers have grasped the opportunity to start replicating some of the models and create their own internal propositions – although we don’t see many that would be classified as game-changers. Do you see innovation – or the potential for it – in the damage management sector? We are already seeing innovation in the vehicle damage assessment and estimating space through the emergence of insurtechs such as Tractable and Xtract360, Servify in the gadget repair space and Smartzone in the water-leak-damage management space. Where does good innovation like this come from? The whole basis of innovation is that you need to experiment, try things which in most cases will fail, take those failings and make improvements until you achieve the desired outcome. If you are not failing more often than you are succeeding, you are not truly innovating. What are the pitfalls to avoid? Don’t rely on an innovation team to do the innovating – just as you wouldn’t rely on your HR team to manage team performance. They are there as a supporting function for a core competency across the entire business. To innovate effectively, people need the relevant platforms, processes and guidelines to feel comfortable experimenting. What’s a good starting point? Talk to the people closest to the particular process to understand their frustrations and what they would do to fix the problem. Talk to the end customer to better understand what aspects of your service or proposition they don’t like or find most annoying – this will give you clues on where to focus your horizon. Next >