Claims Review 2022 – A Leader’s Perspective – Paul White, Sedgwick International UK

I’ve approached several Executives from different areas of the claims market, to share their thoughts and opinions on a number of topical issues impacting the sector throughout 2022 and looking at the key challenges and opportunities for 2023 and beyond.

Today’s review is with Paul White, CEO, Sedgwick International UK         

It feels like we’ve reached a period of stabilisation when it comes to remote working. Would you say your organisation’s views on hybrid/remote working have changed post covid?

Pre-pandemic, Sedgwick had already begun introducing remote working and Covid-related restrictions just advanced our plans for wider roll-out across the business.  Over two years on, its operational success has consolidated our views rather than changed them.

We want Sedgwick to be a great place to work – a place where colleagues can be themselves, do their best and enjoy their jobs – and that’s why we’ve introduced our ‘flexible first’ programme.  Flexible first is more than just a remote working initiative.  It’s about allowing people to work flexibly and appropriately within a range of options that enable them to choose the best fit for individual roles, their home working environment and personal circumstances.

Office ‘anchor’ days encourage interaction, exchange of ideas and the sharing of technical expertise.  And hybrid working arrangements are crucial to attracting new talent, particularly if you want to secure the best people.  Flexible first equips colleagues with the independence to reap the benefits of both working environments.

With ongoing supply chain shortages and the rising prices of goods, what measures are being taken to protect service and response times?

In turbulent times, everyone looks for stability, and with Sedgwick’s scale, global reach and solid financial backing, this is something we can offer without hesitation – business-wide.

I’m confident Sedgwick can consistently deliver a sustainable service in the current climate.  We have an extensive workforce, which can be mobilised to focus on managing any type of claims surge. And, together with the priority arrangements we have with our nationwide building contractor network, I know we’re ready to respond to any extreme weather events throughout 2023 and beyond.

More recently, in a bid to support our clients in protecting their own service and response times, we’ve launched our resource solutions division.  This was developed to help clients overcome the industry skills shortage caused by the volatile recruitment market in the aftermath of Brexit and exacerbated by the pandemic and Russia-Ukraine war. Launching resource solutions differentiates Sedgwick and diversifies our service range in a mature market. And we’re responding directly to the needs of our clients and to market demand.

What more can be done to validate the ESG credentials of insurance supply chains?

With climate change now a given, having a robust company ESG framework in place is non-negotiable. All businesses, irrespective of size or industry, have a moral obligation to adopt and uphold ESG principles as a mainstay of their corporate strategies.

For credentials to be valid, company responsibility extends to ensuring these are embedded within their supply chains.  Not only is it the right thing to do, but insurers justifiably expect service partners to be able to demonstrate positive change in the three pillars of environmental, social and corporate governance.  The most effective way to evidence advancement is through accurate measurement.  Independent verification via organisations such as the British Standards Institution, for example, ensures no potential ‘greenwashing’.

Last year, our repair solutions division created, promoted and monitored a new firm-wide carbon management plan – including remote site visits to reduce fuel usage and minimising energy consumption of equipment, lighting and heating. As a result, we achieved carbon-neutral status, having secured PAS 2060 certification.  PAS 2060 is the only internationally recognised certification for organisational carbon neutrality, verified via the British Standards Institution.

What is the greatest impact the cost-of-living crisis has had on your organisation, and how have you responded?

While, as a business, we continue to budget for escalating energy and fuel costs, we’re also monitoring ongoing building contractor price increases, as well as the rising cost of various materials used in building repairs.

Adjusters and insurers can’t control market forces, but we can react to them with pragmatic and nimble solutions.  Planning is crucial, as is awareness of potential delays and bottlenecks in the supply chain.

From considering different building reinstatement methods and materials to early cash settlements and single contractor approaches, while worldwide economic uncertainty continues, it’s more important than ever to ensure that we’re fully equipped to manage the challenges ahead.

On the colleague front, we’re acutely aware of the challenges people face at present. We’ve taken action to ensure our renumeration packages are competitive in the current climate and also made sure wellbeing programmes are readily available across the organisation to support colleagues through this difficult period.

What event or reforms have had the greatest impact on claims during 2022?

During 2022, there were a number of matters that impacted on claims, rather than one particular issue.

Claims inflation has been a big concern as have the challenges around global supply chains.

And attracting and retaining talent is an industry wide issue, not just specific to Sedgwick.

We’ve also seen significant examples of extreme weather across the UK, including windstorms and floods. We’ve experienced record temperatures and prolonged dry spells ending the year with a deep freeze event across the whole of the UK. Over the last 12 months, these events have produced a significant number of claims for adjusters and insurers to manage.

What key recruitment challenges have you faced this year and how have you addressed these issues?

The ‘great resignation’ and the ‘war for talent’ are some of the most talked-about issues in every industry.  The recruitment market is increasingly competitive, and we’ve widened our talent pool by looking beyond the insurance sector for strong candidates with transferrable skills.  This approach injects new ideas and fresh perspectives into the business.

We’ve also introduced a comprehensive and multi award-winning colleague professional development programme that’s setting new standards in the industry.  Recognised by CILA as ‘world class’, it’s unmatched in the claims management market, and it’s helping to create the loss adjusting experts of the future.

What more can the industry do to attract talent into the claims sector?

Loss adjusting and claims management have always been one of the best-kept secrets in the jobs market – it’s a meaningful vocation, and once people join, they rarely leave.  It offers a vast range of excellent career development opportunities, regionally and globally, but truly suffers from a lack of promotion and poor profiling.

We need to do more to improve the overall recognition and perception of loss adjusting at entry level by working closely with universities and colleges and impressing potential candidates with engaging and compelling graduate training programmes that chart clear and stimulating career progression pathways.

To attract talent at all levels, every business must offer a wide range of skills development opportunities and commit to investing in colleagues’ well-being and future.  This cannot be understated.

What is the greatest challenge facing the claims market moving into 2023 and beyond?

Uncertainty is the greatest challenge currently facing the claims market.  It’s very likely that many businesses will struggle to cope with the current economic conditions, and the prospect of further consolidation in the insurance market is very real.

During previous periods of financial hardship, we’ve seen an increase in fraudulent claims activity, and this is another potential issue we’re monitoring closely. Our investigation services team has invested in new, innovative counter-fraud technology, which accelerates the detection of fraudulent behaviours and provides real-time insight into emerging fraud trends.  This will be an invaluable tool in the months ahead.

We’re alive to the general backdrop of challenges we face – climate change, talent shortage, supply chain disruption and a potential recession – but we’re well equipped to deal with these and remain cautiously buoyant about growth in 2023.

Right International are market leading recruiters to the Loss Adjusting, Claims and wider Insurance market

If you are looking to add to your team now or in the near future or are considering your next career move, please contact myself or one of the team

All the best,

Gary Pike

Founder & MD Right International