Mactavish, the specialist outsourced insurance buyer and claims resolution expert, says many commercial policyholders have faced drastic premium increases this year as insurers look to improve margins in a hardening market, sometimes of up to 800%....
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Dec 15, 2020 • News • insurance • Covid-19 • Leadership and Strategy • EMEA • Mactavish
Mactavish, the specialist outsourced insurance buyer and claims resolution expert, says many commercial policyholders have faced drastic premium increases this year as insurers look to improve margins in a hardening market, sometimes of up to 800%. This is coming in addition to a greater focus on newer risks such as the increase in cyber crime that has been spurred by the pandemic and the rise of remote working.
As insurers also look to protect their reserves and minimise claims payments, Mactavish says it has also seen considerable erosion in the quality and extent of the insurance cover offered to policyholders. This is often buried in T&Cs without being flagged by either insurers or brokers, meaning that policyholders may not be aware of their increased exposure.
INSURANCE RATES ARE EXPECTED TO CONTINUE TO RISE IN 2020 AND SOME COMPANIES MIGHT BE UNABLE TO PAY FOR THEIR COVER
Market surveys are showing 34% increases in premiums across the board, but this masks a much more complex picture. Lines such as Crime, Professional Indemnity, Pension Trustees’ Liability and Directors’ and Officers’ insurance have risen far in excess of this. In addition, some industries have suffered much more than others. Firms in the construction, energy, food and beverage, travel, manufacturing and waste sectors will be experiencing particularly challenging renewals.
Mactavish warns that it expects rates to continue to rise in 2021 and says that some companies will be unable to pay for their cover, meaning they will be forced to reduce operations, lay-off employees or even go into administration.
Mactavish is one of the largest independent ‘buyers’ of commercial insurance in the UK, and this year it has helped clients cut the cost of their insurance premiums by 50% in some cases by using a unique approach that runs brokers in head-to-head competition along with their preferred insurance partners. In addition, while cost is an important area of focus, Mactavish has also improved the quality of its clients’ cover by negotiating critical changes to policy wordings.
Bruce Hepburn, CEO, Mactavish said: “For years, the insurance industry has sold its cover on the basis of price as opposed to quality and this has pushed premiums down, when in many cases they should have been higher. The insurance market is hardening now, and premiums are rising dramatically as insurers seek to make up lost ground quickly. The timing couldn’t be worse for firms that are still being battered by the economic fall-out from the pandemic. For some businesses, these unexpected cost increases could be the final nail in the coffin.”
“Aside from playing a role in pushing price increases, COVID-19 has also exacerbated many risk areas. As just one example, there has been a marked increase in cyber crime as employees moved to home-based working. This creates a double whammy effect where policyholders need to buy more insurance at precisely the moment that prices are spiking.”
Hepburn added: “While brokers naturally prefer exclusive relationships, our work shows that you get a much better outcome when there is real competitive pressure between competing suppliers. Since many brokers receive premium-linked commissions from insurers, policyholders should be wary of taking cost increases at face value.”
Mactavish cited a recent engagement in which a financial services firm had been badly let down by its broker. Even on the day its insurance was set to renew, the incumbent was unable to confirm that it had secured 100% of the capacity the firm required. Worse, a number of exclusions had crept into the policy wordings that had removed vast swathes of essential cover. Working at speed, Mactavish was able to put in place all of the required capacity, get rid of the onerous exclusions and achieve a double-digit cost saving.
Mactavish specialises in helping employers enhance their chances of securing reliable insurance policies at competitive prices, and resolving claims disputes.
Further Reading:
- Read more about Leadership and Strategy @ www.fieldservicenews.com/eadership-and-strategy
- Read more about Mactavish on Field Service News @ www.fieldservicenews.com/mactavish
- Find out more more about Mactavish @ www.mactavishgroup.com
- Follow Mactavish on Twitter @ twitter.com/MactavishGroup
- Follow Mactavish on LinkedIn @ www.linkedin.com/mactavish
May 29, 2019 • News • management • Cyber Security • insurance
Mactavish urges brokers to challenge insurers more over the quality of their cyber policies.
Mactavish urges brokers to challenge insurers more over the quality of their cyber policies.
In November last year, Mactavish published a report entitled ‘Cyber Risk & Insurance Report’, which identified eight common flaws in cyber insurance policies. This includes, for example, cover being limited to events triggered by attacks or unauthorised activity and excluding cover for issues caused by accidental errors or omissions.
Another flaw is only providing systems interruption cover for the brief period of actual network interruption, as opposed to the more significant knock-on revenue impact during the period after IT systems are restored but the business is still disrupted. In the last two weeks alone Mactavish has reviewed cyber insurance policies for a large British business and a medium sized business. Both of these policies had three or more of the flaws. Mactavish warns that despite insurance industry denials, the eight flaws are widespread.
Bruce Hepburn, Chief Executive Officer, Mactavish, commented: “Many in the industry have challenged our findings but we continue to find these issues affecting the actual policies we review that are being offered to UK businesses, and we will be publishing a second paper on the sector next month providing more details on our findings. “However, in the meantime, we are calling on brokers to challenge insurers more on the quality of the cyber cover they provide and push for improvements. If they can’t achieve this, they need to warn their clients of the omissions in their policies to give them a better understanding of what they are buying.”
Mactavish has issued a challenge to insurers and brokers to guarantee that the eight common flaws it has identified in policies will never be used as reasons to refuse pay-outs on cyber insurance claims unless they can show that a client has been informed but decided not to buy the additional cover. The eight flaws outlined in the Mactavish Cyber Risk & Insurance Report are:
1. Cover can be limited to events triggered by attacks or unauthorised activity – excluding cover for issues caused by accidental errors or omissions;
2. Data breach costs can be limited – e.g. covering only costs that the business is strictly legally required to incur (as opposed to much greater costs which would be incurred in practice);
3. Systems interruption cover can be limited to only the brief period of actual network interruption, providing no cover for the more significant knock-on revenue impact in the period after IT systems are restored but the business is still disrupted;
4. Cover for systems delivered by outsourced service providers (many businesses’ most significant exposure) varies significantly and is often limited or excluded;
5. Exclusions for software in development or systems being rolled out are common and can be unclear or in the worst cases exclude events relating to any recently updated systems;
6. Where contractors cause issues (e.g. a data breach) but the business is legally responsible, policies will sometimes not respond;
7. Notification requirements are often complex and onerous;
8. Businesses are forced to choose IT, legal or PR specialists appointed by their insurer.
In November last year, Mactavish published a report entitled ‘Cyber Risk & Insurance Report’, which identified eight common flaws in cyber insurance policies. This includes, for example, cover being limited to events triggered by attacks or unauthorised activity and excluding cover for issues caused by accidental errors or omissions.
Another flaw is only providing systems interruption cover for the brief period of actual network interruption, as opposed to the more significant knock-on revenue impact during the period after IT systems are restored but the business is still disrupted. In the last two weeks alone Mactavish has reviewed cyber insurance policies for a large British business and a medium sized business. Both of these policies had three or more of the flaws. Mactavish warns that despite insurance industry denials, the eight flaws are widespread.
Bruce Hepburn, Chief Executive Officer, Mactavish, commented: “Many in the industry have challenged our findings but we continue to find these issues affecting the actual policies we review that are being offered to UK businesses, and we will be publishing a second paper on the sector next month providing more details on our findings. “However, in the meantime, we are calling on brokers to challenge insurers more on the quality of the cyber cover they provide and push for improvements. If they can’t achieve this, they need to warn their clients of the omissions in their policies to give them a better understanding of what they are buying.”
Mactavish has issued a challenge to insurers and brokers to guarantee that the eight common flaws it has identified in policies will never be used as reasons to refuse pay-outs on cyber insurance claims unless they can show that a client has been informed but decided not to buy the additional cover. The eight flaws outlined in the Mactavish Cyber Risk & Insurance Report are:
1. Cover can be limited to events triggered by attacks or unauthorised activity – excluding cover for issues caused by accidental errors or omissions;
2. Data breach costs can be limited – e.g. covering only costs that the business is strictly legally required to incur (as opposed to much greater costs which would be incurred in practice);
3. Systems interruption cover can be limited to only the brief period of actual network interruption, providing no cover for the more significant knock-on revenue impact in the period after IT systems are restored but the business is still disrupted;
4. Cover for systems delivered by outsourced service providers (many businesses’ most significant exposure) varies significantly and is often limited or excluded;
5. Exclusions for software in development or systems being rolled out are common and can be unclear or in the worst cases exclude events relating to any recently updated systems;
6. Where contractors cause issues (e.g. a data breach) but the business is legally responsible, policies will sometimes not respond;
7. Notification requirements are often complex and onerous;
8. Businesses are forced to choose IT, legal or PR specialists appointed by their insurer.
Jun 21, 2017 • News • FLS • Loss Adjusters • fast lean smart • field service • insurance • scheduling • Software and Apps
Three of the largest insurance companies in the UK and Europe have deployed FLS’ appointment scheduling software to improve service and enable efficient field service scheduling and routing of field based resources.
Three of the largest insurance companies in the UK and Europe have deployed FLS’ appointment scheduling software to improve service and enable efficient field service scheduling and routing of field based resources.
FLS, Fast Lean Smart, a leading provider of workforce scheduling software and mobile workforce management solutions with UK offices in Reading and Warrington, announces that three major general insurance companies have recently deployed FLS VISITOUR for workforce optimisation, appointment booking, workforce scheduling and routing of their claims assessors, including motor engineers and property surveyors, in total more than 500 field based employees.
The challenge
Insurers each operate a criteria upon which they determine when an insurance claim needs to be assessed by a surveyor, either a review of photographs at their desk or a field visit.
Some perform these assessments using employed resources, others outsource this to third-party service providers, often there is a combination of these to best cover the country and cope with ‘surge’ events, for example a flood in Devon can result in an extraordinary number of claims to be managed in that area.
The Insurers objective is to detect fraud whilst also resolving genuine claims quickly and so build a reputation for good service. Insurers use key performance indicators to monitor each stage of the process from first contact to closure but in parallel to this is the continuous need to control and reduce costs so they can offer competitive insurance policy premiums.
The business need
For each of these FLS customers the requirement was to speed up the appointment booking process to visit and assess claims and to gain efficiencies for office and field based staff. VISITOUR achieves this by enabling a central claims liaison team to instantly offer a flexible choice of time slots which are also the most cost efficient to achieve with the available field based resources (and in some cases desk based resources using images) and whilst ensuring previous appointment commitments must be kept.
The approach and benefits realisation Each Insurer took advantage of the FLS offer for a Software-as-a-Service ‘try before you buy’ pilot. FLS VISITOUR was configured and used live for a region of the country to prove the suitability of the solution and return on investment, before the choice was made to continue from pilot to rollout.
One insurer determined as much as 50% reduction in average mileage and 2 hours a day driving time could be saved
Mobile App for real-time communication and reporting two of these insurers have also deployed FLS MOBILE which enables paper-free provision of case information, capture of assessment reports, and real-time appointment status updates.
This field information also makes it possible to track that progress is on-time, to automatically message customers with estimated arrival times, and to book new ‘same day’ appointments based on this progress – further advantages to offering market leading customer service. FLS UK Managing Director, Jeremy Squire, comments “We are very proud of the success and benefits achieved using VISITOUR by our customers. In partnership with these insurance market leaders, FLS will continue to develop the unique capabilities of VISITOUR to their advantage”.
For those attending Field Service Management Expo FLS are exhibiting on Stand Q770 visit them to find out more
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Jul 15, 2016 • Hardware • News • hardware • insurance • TCO
A staggering 3.1 billion has been spent on fixing or replacing broken gadgets in the last five years, a new UK study has revealed, which whilst focussing on the consumer sector should highlight the fragility of consumer grade devices for field...
A staggering 3.1 billion has been spent on fixing or replacing broken gadgets in the last five years, a new UK study has revealed, which whilst focussing on the consumer sector should highlight the fragility of consumer grade devices for field service organisations..
Mobile phones are the item most likely to meet an accidental end, with 8 million of the fragile gadgets damaged in the last five years.
A survey of 2,000 homeowners revealed that, across British households, 5.3 million laptops and PCs and 4.1 million cameras have also fried at the hands of their uncoordinated owners in that time.
Water damage is the greatest phone-killer, accounting for 23 per cent of mobile phone and 7 per cent of laptop claims.
Kat Robinson, Head of TSB Insurance, who commissioned the research, said: "Now more than ever we rely on our gadgets to get through the day, so it’s unfortunate when they are taken out of action unexpectedly.
The research revealed more unusual ways to destroy your digital appliances. One unlucky respondent had their phone consumed by a hungry horse, while another had it slip out of their hands and into the toilet bowl while trying to take a selfie in the loo.
But the research revealed more unusual ways to destroy your digital appliances. One unlucky respondent had their phone consumed by a hungry horse, while another had it slip out of their hands and into the toilet bowl while trying to take a selfie in the loo.
An over-enthusiastic fan totalled his phone at a football game after Gareth Bale scored the winning goal for Tottenham at White Hart Lane, and another had their TV destroyed when it was struck by lightning.
The study also revealed our typical 'walking wealth' – the cost of the gadgets we carry around with us on a daily basis – at an average of £288 per person.
When asked to choose which gadget they consider most precious to them, a third chose their mobile phone, while just over a quarter chose their laptop or PC.
Almost a fifth of mobile users have experienced a smashed or broken screen. In the event of ‘the dreaded drop’, one in ten immediately returned to the provider they were insured with to get the screen fixed, while 6 per cent powered through with a broken display.
Kat Robinson, Head of TSB Insurance, continued, "When it comes to insurance, having a flexible policy that works for you can really cut down on the hassle should you ever need to claim.
"Whether you want to protect the bricks and mortar of your home, the contents, or your latest piece of tech, it’s important to pick insurance cover that protects you and adapts to your needs."
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Jul 11, 2016 • Fleet Technology • News • fleet technology • insurance
According to a new research report from the analyst firm Berg Insight, the number of insurance telematics policies in force on the European market reached 5.3 million in Q4-2015 and 6.3m in North America.
According to a new research report from the analyst firm Berg Insight, the number of insurance telematics policies in force on the European market reached 5.3 million in Q4-2015 and 6.3m in North America.
In Europe, annual growth rate (CAGR) is predicted to be 37.2 percent, with the number of policies expected to reach 25.8 million by 2020. In North America, the number of insurance telematics policies in force by 2020 is expected to grow at a CAGR of 45.8 percent to reach 42.1 million in 2020.
The European insurance telematics market is largely dominated by hardwired aftermarket black boxes while self-install OBD devices instead represent the vast majority of all active policies in North America. Several major US providers of UBI have recently shifted to solutions based on smartphones. Berg Insight now expects a rapid increase in the uptake of solutions based on smartphones and also embedded OEM telematics systems in all markets in the upcoming years.
“Canada, the US and Italy in particular have seen a significant increase in the use of telematics-based auto insurance during 2015”
Renowned telematics suppliers active in the insurance field for example include Octo Telematics, Vodafone Automotive and LexisNexis Risk Solutions. Intelligent Mechatronic Systems, Cambridge Mobile Telematics, Modus, Baseline Telematics, DriveFactor and The Floow are also notable players on the market. Automotive OEMs are increasingly taking an active part in the ecosystem. Examples include General Motors, Ford, Renault-Nissan, BMW, Daimler and Fiat. In addition, mobile operators such as Vodafone, Telefónica, Verizon and Sprint are offering insurance telematics solutions, commonly working with telematics partners.
The insurance telematics market is currently in a phase of strong growth in both North America and Europe. “Canada, the US and Italy in particular have seen a significant increase in the use of telematics-based auto insurance during 2015”, said Jonas Wennermark, IoT/M2M Analyst at Berg Insight.
He adds that the UK is also one of the front-runners and that uptake is expected to increase in a number of additional countries in the coming years. Telematics-based insurance has already been introduced in a number of European countries including Spain, Austria, France, Switzerland, Germany, Denmark, Belgium and the Netherlands.
Differentiated telematics offerings are predicted for a broader range of segments, and insurers are increasingly expected to embrace usage-based pricing as well as claims-related insurance telematics and various value-added services. In North America, smartphone based solutions are growing rapidly whereas Europe still largely favours device-based solutions. “We are also seeing a growing involvement from OEMs. Progressive and OnStar are about to launch what might become the first major PHYD offer using OEM data. There are also recent attempts to share OEM data through intermediaries such as Verisk and the Floow”, concluded Mr. Wennerma
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Dec 12, 2013 • News • masternaut • insurance • telematics • Parts Pricing and Logistics
Cavalier Carpets, one of the UK’s premier carpet manufacturers, has increased the number of appointments its insurance team ‘Renew’ makes by 25% using Masternaut’s Three X telematics solution.
Cavalier Carpets, one of the UK’s premier carpet manufacturers, has increased the number of appointments its insurance team ‘Renew’ makes by 25% using Masternaut’s Three X telematics solution.
With a large team of mobile inspectors responsible for verifying claims for damaged flooring and furniture items, Renew brought on Masternaut’s telematics solutions to support logistics and improve efficiency, as well as to generate an audit record of all information recorded on jobs.
Masternaut’s Three X solution addresses the Renew team’s scheduling needs in one. It is fully integrated with the company’s UNIX platform software and is used by both the mobile workforce and staff based at Cavalier Carpets’ Service Centre in the North West.
Chris Sutton, Services Director, Renew says: “With an average 25% increase in the number of appointments taking place each day, Renew is able to process insurance claims more quickly, to the obvious advantage of our clients.
“From an HR perspective, the solution helps us manage the performance of our inspectors and identify where pressure points are for strategic resource planning.”
Masternaut’s chairman and CEO, Martin Hiscox, adds: “Our team of expert consultants configured the solution to provide Renew with real-time prompts; ensuring employees gather the correct level of information when on site, creating a full audit trail should customer queries later arise.”
Purchases were made per license user and Masternaut offered a support team which worked with Renew’s IT team to make sure the integration ran smoothly.
Masternaut’s Three X solution also provides managers at the Renew Service Centre with instant access to inspector reports as soon as they have left a site visit. This allows rapid response in the event of a customer query.
Dec 05, 2013 • Fleet Technology • News • fleet technology • KPN • machine to machine • masternaut • insurance • telematics
KPN and Masternaut have recently announced an agreement to jointly develop and market telematics-enabled fleet management and telematics enabled insurance products for businesses looking to provide a step-change in customer service, employee safety...
KPN and Masternaut have recently announced an agreement to jointly develop and market telematics-enabled fleet management and telematics enabled insurance products for businesses looking to provide a step-change in customer service, employee safety and operational efficiency.
The agreement provides KPN’s M2M (Machine-to-Machine) teams access to Masternaut's leading telematics products and services helping the company accelerate its goal of providing M2M services beyond connectivity to KPN customers.
According to the terms of the agreement, the two companies will market joint products designed to target the fleet market with proven products including driver behaviour management, vehicle telematics to improve efficiency. The agreement also delivers enhanced vehicle expenses management modules, live vehicle tracking as well as products and services that reduce corporate and consumer risk in the insurance market.
The products will be distributed under the KPN brand, powered by the technology provided by European leader Masternaut. Masternaut will provide software services, applications, platforms and technical support, while KPN will contribute with its commercial network, including pre- and post-sales support, consultancy and customer care. Everything deployed over the best in class global networks of KPN.
Jimmy Wind, M2M Director of KPN:
"With this agreement, KPN are demonstrating our response to customers’ needs in the growing M2M market. We can leverage our experience and knowledge of our customers and provide them with telematics-based products and services that solve many of their problems and have the ability to transform their businesses”.
Martin Hiscox, Chief Executive Officer of Masternaut:
"We are delighted that this partnership with KPN allows us both to deliver the most comprehensive service to KPN’s core business market. The combination of KPN’s brand and values with our technology delivers a clear and valuable proposition for both large enterprise and mid-sized companies”.
According to industry analysts Berg Insight, approximately 2.5 million commercial vehicles have telematics deployed. They forecast that the installed base of fleet management systems will reach 5.7 million in Europe by 2016 – with the market in the Netherlands, Belgium currently only 18% penetrated. The agreement provides KPN and Masternaut a twin-market strategy targeting both businesses that have not started on the telematics journey whilst targeting 1st-generation users with new and innovative products delivered in a consultative environment.
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