BLM partner and head of claims solutions, Vivienne Williams, and Cunningham Lindsey client partnerships director, Mark Gilbert, have brought the two organisations together to launch Profecta, a service for corporate and professional indemnity claims. They tell us why the industry is ripe for innovation.
Any Star Wars fan will know the famous line: "You can't stop change any more than you can stop the suns from setting." Shmi Skywalker had one thing right and the same can certainly be said for the insurance claims landscape.
According to a paper prepared by KPMG earlier this year, insurers will have to "embark on bold business model transformation to succeed. Redesigned target operating models, risk transformation and having the right talent to deliver change are crucial."
Despite a tough year for the market, it has adapted well. Legal advisers and loss adjusters are no different and the expectation to support corporate clients, insurers and the broker market as they adapt to changing business models is crucial. Anything which makes life easier for the market has to be a good thing.
The landscape in insurance claims is also changing. Alternative business structures, the Legal Aid, Sentencing and Punishment of Offenders Act 2012; the Civil Justice Reforms and the Insurance Act have been catalysts for this shift.
It's easy to see why the industry is crying out for innovative products which deliver solutions that take advantage of and embrace those changes and which support and recognise business pressures; something Profecta aims to do. Delivering better outcomes, cost reductions and improved life cycles that support insurers, self insureds and brokers should be the aim of claims companies. It helps clients retain and win new business as well as insuring giving their customers greater financial confidence.
The need for innovation from the sector and those servicing it grows daily. A number of joint ventures are hitting the market in different forms but it's those that have the ‘edge' that get the most traction. Partnerships which provide clients with more options to control the way their claims are managed are key; by combining legal support, claims management and loss adjusting expertise they can deliver an integrated and streamlined service, to give clients greater financial confidence and reduce the time they spend managing claims.
Services such as Profecta provide brokers and their corporate clients with all the support they need for casualty, motor and property claims end to end, from incident to conclusion and everything in between. For professional indemnity matters, offering access to the right experts who can be brought in at key stages is also vital. This prevents clients from having to seek input from external experts which is both time consuming and costly, and gives the opportunity for a swift, early expert opinion to enable an accurate and early reserve to be set.
One recent instruction illustrates its effectiveness perfectly. We were instructed on a professional indemnity matter relating to a significant building dispute. Within 28 days we provided advice that combined a legal opinion and that of an expert surveyor enabling the client to assess its position quickly - and at 50% of the usual cost. We believe this is the way ahead in providing the best value for our clients.
With continued pressure on income and margins, and insurers tackling the complexity of insurance for customers, now really isn't the time for its partners to be standing still.
The article above was published in Post Magazine.