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How Stricter Regulations Can Positively Impact the Wider Insurance Industry Page 6 Making Digital Transformation a Reality in Insurance Page 12 BDMA Conference: Speaker Spotlight Page 18 Volume 6 – September 2019 – Conference EditionFLOOD EXPO THE WORLD’S LEADING FLOOD EXHIBITION AND CONFERENCE FREE TICKETS CONTAMINATION EXPO SERIES 2019 RUNNING ALONGSIDE 11 & 12 SEPTEMBER NEC BIRMINGHAM VISIT WWW.THEFLOODEXPO.CO.UK 150 SPEAKERS 3000 + VISITORS 200 EXHIBITORS Fire and Explosion Escape of Water Personal Injury Electrical Engineering Mechanical Engineering Chemical Engineering Product Liability Gas Engineering Metallurgy Marine Engineering Marine Cargo Contamination Assessments Ports and Terminals Aquaculture Petrochemical Pharmaceutical www.if icforensics.com +44 (0) 141 639 6611 instructus@i c.co.uk Scalable service supporting clients’ individual values, philosophies and processes Effective, e cient forensic investigations across the UK, Ireland and internationally Highly trained, quali ed staff with proven expert witness credentials Personal, professional and jargon free customer service Conclusive forensic reports of the highest technical standard www.if icforensics.com Warrington 0203 CONTENTS 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. Notes from the Chairman & Events Diary 05 The BDMA’s View 06 How Stricter Regulations Can Positively Impact the Wider Insurance Industry Commercial Loss 07 Opinions and Expertise from the Executive Board Residential Loss 08 Opinions and Expertise from the Executive Board Specialist Loss 10 Opinions and Expertise from the Executive Board Guest Feature 12 Making Digital Transformation a Reality in Insurance by Steve Gargano – Sedgwick The Standard Insight 13 (Feature) Securing a Bright Future for the Property Insurance Market Our Industry in Action 14 (Case Study) Is Modular Construction Going to Change the Way We Deal with Claims? BDMA Conference 2019: 16 Preview BDMA Networking 19 The Benefits of Business Networking Learning & Development 20 Enhancing Your Regulatory Compliance BDMA Sponsorship 21 The Benefits of Becoming an Annual BDMA Sponsor Guest Feature 22 The Truth about Moisture Meters (Protimeter) by Russell Rafton – Dryfix Preservation Ltd. Member Showcase 25 Lloyds Banking Group New BDMA Members 2604 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 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 2019 23 rd -24 th September – Market Harborough Buildings and Construction Through the Ages 25 th -26 th September – Market Harborough Key Elements of Damage Management for Insurers & Loss Adjusters 3 rd October – Market Harborough The Correct Use and Interpretation of Moisture Meters 19 th November – Market Harborough Core Damage Management – Senior Technician (Refresher) 20 th -21 st November – Market Harborough Core Damage Management – Technician & Claims Practitioner 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. 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 201905 Notes from the Chairman Hello readers, This is our sixth issue of The Standard, as we head into Autumn 2019. With unpredictable winter weather pending, it’s not unlike the changeable weather we’ve seen throughout the summer months with flash flooding, storms and subsidence claims keeping the industry very busy. We are in a position where we must always be prepared for surges and business as usual, and I think that the wider insurance industry is managing this well. In August, many of our members faced the aftereffects of the Whaley Bridge rupture in Derbyshire. This was an unprecedented time in the UK. With so many residents and business owners having to evacuate their properties due to the risk of the dam wall collapsing further, seeing the community of Whaley Bridge took me back to dealing with a restoration project in China in the late 1990’s where a dam collapsed. The work from our members alongside the emergency services, Environmental Agency and other stakeholders, to support and reassure policyholders during this time is highly commended by the BDMA. Elsewhere we’ve seen Pool Re add non- damage business interruption coverage to its programme, and Flood Re received a boost in funding from the government. This is really positive and demonstrates the recognition on a national scale that vulnerable policyholders need more support moving forward. The theme of this September 2019 edition of The Standard is Regulation, which delves into how regulations can affect our industry, policyholders and future work. This edition is also our BDMA Conference 2019 issue. We have included exclusive conference insights, including showcases from some of our exhibitors, speakers and sponsors. We hope you enjoy this issue and the BDMA Conference! Simon Ford, Chairman, BDMA. Upcoming Industry Events 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 CILA Lunch 2019 London 11 th October 2019 www.cila.co.uk/cila/events/social- events/717-cila-lunch-2019 BCI World 2019 Novotel London West 5 th -6 th November 2019 www.thebci.org/event-detail/event- calendar/bci-world-conference--- exhibition-2019 ILC Home Claims Conference 2019 Ricoh Arena, Coventry 14 th November 2019 www.iloveclaims.com/events/hcc19 Claims & Fraud Summit Guoman Tower, London 21 st November 2019 www.postevents.co.uk/ claimsfraudsummit Specialist Restoration Solutions Call 0800 019 9990 for a no obligation quotation www.harwellrestoration.co.uk Supporting BDMA members throughout the UK Before After DocumentsBooksPhotosArtworkCeramics 40 YEARS OF EXCELLENCE 1979 – 201906 THE BDMA'S VIEW THE BDMA'S VIEW Environmental regulation The impact of climate change has pushed the need for stricter environmental regulation. From sustainable material usage to technology, waste management and carbon footprint, we are seeing more damage management companies prioritising environmentally friendly initiatives. Yet, we are already ahead of the game in our approach of restoration over replacement, which encourages a further sustainable claims process for the wider insurance industry. Building safety regulation Plans to implore stricter building regulations are looking more likely in the next few years, especially in regards to material performance and safety. This is a positive movement as for example, the current focus is mainly on the stability of a building following a fire incident, yet better material performance will aim to enhance building protection and limit damage from the offset. This could support insurers with potentially lower property damage costs and payouts. The push for combustible materials to be replaced on existing buildings is prominent. This presents many opportunities for the enhanced standard of materials on buildings which is positive for the insurance market. Buildings can then be made more resilient to widespread damage, which works in line with the aims of the wider insurance industry to advocate better solutions and lower risks for consumers and businesses. Treating Customers Fairly Since the Financial Conduct Authority (FCA) introduced its TCF policy, we have seen a positive shift in the ways that insurance companies go about ensuring fairer policyholder outcomes. Damage management companies play a big role in this by being at the forefront of providing claim solutions. The approach taken to restore property damage affects the claim life cycle and therefore the potential time that policyholders can face disruption. This should be seen as an opportunity to ultimately provide better policyholder experiences and to impress the wider insurance industry for further collaborative work. Health & Safety The health and safety of professionals on construction sites has become more regulated, especially since the Construction Design and Management (CDM) Regulations 2015 became mandatory. Beyond the obvious fact that these regulations help to further reduce the risk of injury or damage on site, it has also enhanced the quality of our work. With more attention to detail and care taken to deliver safe solutions, the wider insurance industry has in turn come together to ensure consistent best practice. While the damage management industry is not directly regulated, it is still affected by broader legislations and policies. Working with the wider insurance supply chain, damage management companies’ daily work is influenced by regulations that present potential challenges. Yet, these challenges present opportunities to positively impact the industry as a whole and should therefore be embraced. From environmental regulation, to health and safety and Treating Customers Fairly (TCF), we explore… HOW STRICTER REGULATIONS CAN POSITIVELY IMPACT THE WIDER INSURANCE INDUSTRYIn your view, how has the commercial damage management sector progressed over the past 20 years? Greg French: Over the past 20 years, the fundamentals of commercial damage management have remained the same in terms of the work carried out to mitigate damage after fires and floods. The approach to stripping out and restoring has continued. From an industry-wide perspective the biggest change has been the introduction of damage management consultants. In the past, loss adjusters would have asked damage management companies for prices. There was a comparative approach; each company would have a different cost and methodology to resolve property damage. Whereas now the scope of work is more understood, and damage management consultants make direct comparisons instead. This has led to an uplift in skills and cost control, as damage management companies have more competition and demand for upskilled technicians and faster project deliveries. How have regulations had an impact on the damage management sector in recent years? Greg French: Health and safety has seen a lot more focus, especially with the introduction of the Construction (Design and Management) Regulations 2015 (CDM 2015). This has had a positive impact on making sure people are safe and carrying out actions in a safe manner on site, whilst also considering other people around them. This has had a very significant effect on commercial damage management, not only for technicians but for all on-site professionals. The CDM 2015 has not reduced the risks within damaged properties, but it has made sites far more controlled and there have been fewer accidents as a result. Waste disposal has also improved for the better. More control of how the likes of damaged electronics and materials are segregated and disposed of has led to safer working environments and better sustainability. What are you most looking forward to about the BDMA Conference 2019? Greg French: I am looking forward to the opportunity to meet up and reminisce with old friends and colleagues. It’s always good to catch up about what’s going on in other areas of the industry, and the conference brings everyone together to do this. I am also looking forward to discovering new innovations from suppliers, and to listen to some exciting talks about the industry. 07 commercial loss OPINIONS AND EXPERTISE FROM THE BDMA EXECUTIVE BOARD Greg French commercial loss08 residential loss residential loss Mike Waterfield In your view, how has the residential damage management sector progressed over the past 20 years? James Parsons: In answering this I am having to jump into the hot tub time machine and go back to 1999 and ask how different my job was then to now! I still see customers face-to- face, I still guide them through the journey of making a claim, I still drive a car to see them, I still work with a similar supply chain. I used to have my reports typed; I now type them myself in the main. Email has replaced letter writing. The phone remains. Has it really changed much at all? Emerging technology is going to see the biggest gains in the short-term future, to enable quicker and more efficient settlement routes for customers. Further examples are self-service check outs, 24/7 contact via chatbots and easy-to-use web portals that enable all claim types to be notified at a time convenient to customers, and which drive immediate solutions. How claims are visited has changed. We have contractors preparing scopes, IVPs validating liability and quantum. Adjusters now feel like they are more utilised for large and complex losses. So, ultimately the question is – have these changes enhanced service or has the drive for cost reduction led to these changes? Mike Waterfield: I am uncertain about how much the sector has progressed during this time. On the positive side certainly the advent of the BDMA has resulted in a recognised accreditation for those working in the sector; along with this has been a definite raising of the standard of work/service that is delivered by damage management (DM) practitioners. Standards exist where they did not previously: BS1299; PAS 64; CIRIA C623; BDMA Standards. These provide clear guidance for the sector whether client or financial owner, practitioner or end-user. We now see a range of membership categories in addition to Damage Management Technician, Insurance Technician, Claims Practitioner and Specialist Restorer. We now have people representing different organisations speaking the same language and working towards shared goals, with a wider and better understanding of the claims journey. With the exception of remote monitoring, technology has changed very little, but manufacturers have packaged their products in a more attractive manner making equipment more user-friendly and they certainly actively sell the benefits to insurance companies. Less positive, 20 years ago restorers and loss adjusters worked more closely together to produce the best solution for the claim, working in the interest of both policyholder and insurer. Procurement methods have placed cost saving at the front of the decision-making process; fixed room/ square metre rates and the drive to reduce costs have driven down the quality of service for the policyholder. It is still the case that money spent on restoration in a timely manner will reduce the overall claims cost, but few in the industry take the longer view. Over time we have seen builders brought to the forefront with the focus shifting to reinstatement and the benefits of restoration being less valued. Insurers have rightly demanded that there is a reduction in the cost of responding to escape of water claims. The focus on driving down the number of such claims has been relentless with increases in policy excess; improved claims validation; improved risk assessment; better handling of fraud to name but a few. OPINIONS AND EXPERTISE FROM THE BDMA EXECUTIVE BOARD James Parsons09 residential loss residential loss Cash settlement has grown, and some would say it is the preferred method especially when claim costs can be reduced by 50%. But where does Treating Customers Fairly (TCF) fit with this? How have regulations had an impact on the damage management sector in recent years? James Parsons: The damage management sector doesn’t currently have regulation as such. Yet, GDPR required a lot of changes around how we look after customer data. Legislation around health and safety continues to rightly receive close attention and be at the forefront of activities on site. The BDMA’s Health & Safety Certificate has been a good fit in this regard. Mike Waterfield: The sector is not regulated at this time, although insurers and associated organisations are via the Financial Conduct Authority (FCA). This in itself has ensured that the DM sector has responded - especially in the area of complaints management. What are you most looking forward to about the BDMA Conference 2019? James Parsons: A beer or two is perhaps the first answer that springs to mind! It’s always a great networking event, providing the chance to spend time with colleagues, suppliers and friends that otherwise you might not see for an age. The learning opportunities are always fascinating. I like hearing about things that aren’t even on my radar and something new always tends to come out in the wash. I recently heard about the US approach to drying, dumping loads of equipment in, visiting daily and getting most properties dry in a week. I would hope to hear some insight into what the UK market is doing to improve drying timescales. Mike Waterfield: In my view there are always one or two speakers that stand out from the rest, so I always have a few takeaways that provide me with inspiration/ ideas for improvement. The various suppliers always do us proud giving a quality exhibition demonstrating the capability of our industry to reduce claims spend. It’s also always good to see who wins the coveted awards.Next >