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Where are we now? - Thoughts from the Society of Claims Professionals

News article

Publication date:

28 May 2020

Last updated:

18 December 2023

Author(s):

Jeremy Trott

The ‘lockdown’ is fast approaching its third month, and here at the Society of Claims Professionals we continue to examine the key issues facing the sector.

Whilst typically our Advisory Board meets on a quarterly basis, we have started to meet virtually every month to respond to the fast-moving business environment.

Naturally, we see a wide range of issues and concerns amongst our members. The debate around business interruption (BI) continues in earnest, and we await the outcome of the FCA’s upcoming test case with interest. The case aims to resolve contractual uncertainty in a number of selected BI insurance policies. Whatever the outcome, the clarity that it will provide will surely be welcomed by all stakeholders. 

Early evidence of the impact of the coronavirus on claims trends is being seen as well. With fewer cars on the road and more people staying at home, claims on motor and household policies have fallen dramatically in some areas. The current situation has also offered a host of opportunities for criminal activity, including an increase in scams and cyber-crime

There is no doubt that the insurance sector faces reputational risks from its response to the pandemic, and it would be naïve to assume there will not be difficult conversations and disputes in the months ahead. That’s why it is especially important that we continue to place the best outcomes for our customers and clients at the heart of what we do. It has been pleasing to see many insurers displaying remarkable flexibility and supporting the public in innovative ways, including discounted or reduced premiums, and extending cover and support to medical staff and key workers.

Since our launch in early 2019, customer vulnerability in its many different forms has always been a key theme for the SOCP. The coronavirus crisis has seen more people than ever before facing financial difficulty, as well as sharp increases in bereavement and mental health issues. The Society’s Good Practice Guidance is hugely important, setting out clear principles in recognising and handling vulnerability alongside ensuring an organisational culture that promotes fair treatment.

Like most sectors and industries, the claims sector has had to adapt to a completely new way of working over the last couple of months. The unique nature of working remotely has highlighted the diversity of our workforce. Some of our members are juggling home-schooling with working, previously close-knit teams are now being managed entirely remotely, and applications such as Zoom, Skype, and Teams have become a part of everyday life for many. It’s been encouraging to see how quickly and effectively many of our members have been able to adapt to the new environment, and continue to efficiently handle claims and maintain the highest levels of service.

At our latest meeting, the Advisory Board also began to discuss the longer-term impact of coronavirus on the ways we work. Whilst this is undoubtedly an intimidating task, over the coming months, we will be considering what the new ‘normal’ could look like for the claims sector, and considering the skills and knowledge professionals will need to not only navigate the challenges that lie ahead, but to also identify opportunities for improvement and advancement.

 

I firmly believe the strength of our Society lies in the professional community we provide. If there is a theme you wish to see explored in more detail, or you have knowledge and insight that could be valuable to our membership, please do get in touch here – we would love to hear from you.

Finally, from all of us at the Society of Claims Professionals, we wish you and your loved ones continued good health. Stay safe!

 

This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.