Eco-Properties & Insurer Risks
As we are becoming more aware of our impact on the climate and environment, property owners will be looking to implement new technologies and products. Insurers and the wider industry need to be aware of potential issues at policy inception and the impact these products may have in the long term on potential risk.
Understand the potential risks of eco-techonolgies by using our interactive eco-house.
Concerned about your property damage claims portfolio?
We understand the current issues affecting insurers, brokers, property developers, property owners, as well as residential and commercial landlords within the property damage space.
Fire Podcast Series
We have worked with a number of experts to bring you a series of conversations around Modern Methods of Construction and the fire risks associated with them covering domestic and eco-properties, timber framed buildings, modern facades and the impact on repairs.
Fire Fraud
With £1.3 billion being paid out to customers during 2018, fire is one of the most expensive categories of property insurance claims. The majority of claims are genuine, however property fraud is a significant and growing problem for Insurers. ABI research shows that dishonest property insurance claims detected in 2019 rose 30% from the previous year, with a value of £124 million so it’s never been more important to spot a fraudulent claim.
Property Damage E-Zine issue 3
Flood Podcast Series
With Climate Change having a direct impact on flood occurrences and with 1 in 6 properties at flood risk, it has never been more important for insurers to focus on this issue.
Property Damage E-Zine issue 2
Escape of Water Fraud
Escape of water claims fraud can be both domestic and commercial. So, if you’re an insurer, what are the key fraud indicators that you need to watch out for, both when a claim is submitted and during an on-site investigation? At BLM, we are regularly involved in advising insurers on escape of water claims and helping them navigate the claims process where fraud indicators are present.
Building on the best practice we developed in conjunction with Zurich and based on our experience, we’ve created our Key fraud indicators for Escape of Water Interactive Tool to help insurers identify where insurance fraud might be present. Click the image below to access our tool.
Property Damage Task Force
We have formed a new industry-wide property damage task force, bringing together insurers, brokers, loss adjusters, legal specialists and corporates to identify emerging issues in the property claims sector and to help drive change. To find out more, click the image below:
Escape of Water
Escape of water claims are consistently the most expensive for insurers, with the number and cost of these claims rising. The Association of British Insurers believes that members pay out approximately £2.5m every day on escape of water claims. In 2018, the ABI say that the industry dealt with 287,000 EoW claims at a cost of £950m.
A high number of these claims, both domestic and commercial, have been found to be fraudulent. IFIC Forensics have estimated that “EoW claims represent approximately a one in eight fraud opportunity”.
Escape of Water case studies: Find out how our expert team has helped our clients ►
Fire
The ABI suggest that fire is one of the most expensive categories of property insurance claims, with £1.3 billion being paid out to customers during 2018.
There have been a number of significant, high-value claims in recent years regarding timber frame-constructed properties. We expect to see more if the government and the market continue to see timber framed construction as a solution to the housing crisis.
Insurers will need to adapt accordingly, as this method of construction poses a particular fire risk, given the presence of cavities within the finished structure, both during construction and thereafter.
Fire case studies: Find out how our expert team has helped our clients ►
Flood
Legal & General suggest that the average cost of flood damage to a home is calculated to be £30,000. Dealing with repairs during the social distancing restrictions required by COVID is likely to increase costs for insurers.
The impact of extreme weather events on businesses will exacerbate an already difficult time for insurers, home owners and businesses alike. Damage to homes and businesses across the UK has been extensive in recent times and property insurers are now beginning to count the cost of their exposure arising from these extreme weather events.
Flood Re reported that for their financial year 2019/20 they incurred claims at a gross cost of £160million - ten times higher than the previous year - in the wake of Storms Ciara and Dennis. Climate change is making storm and flooding events both more frequent and more devastating, meaning we could be on course for further costly years for insurers in respect of flood claims.
Looking to the future, extreme weather events only seem likely to increase. Flood Re’s research suggests that if climate change is proceeding on a two degree Celsius line then by 2039 the number of homes at risk of flooding will have increased by nearly 30%. Insurers also need to be alive to the fact that the increased financial distress caused to businesses and individuals by COVID-19 may serve as a driver for fraudulent activity.
Flood case studies: Find out how our expert team has helped our clients ►
How BLM can help
Our property damage dispute resolution practice is one of the biggest names in the property sector. We have a well-established and respected team that has vast experience advising some of the UK’s largest insurers, specialist Lloyd’s underwriters and corporates within the property sector on all types of property damage claims, on issues such as:
We also have dedicated in-house fraud experts, technology, advanced analytics and intelligence resources which offer insight and assistance to both aid prevention and identification of all property damage fraudulent claims. Read more about our tools, Foresight and Fraud Edge.
In addition, the team have considerable experience of managing bulk low-value property damage and liability claims recovery schemes and operate highly efficient subrogated recovery schemes for a large number of insurers and corporate policyholders.
To find out more and how we can help, contact the team opposite.
