Modern Insurance Magazine Issue 60

FEATURES
Making Efficiency
Gains in
Subsidence Claims
A critical aspect concerning subsidence claims revolves around the
timeliness of their resolution. On average, a subsidence insurance
claim can take 18-24 months to conclude. Subsidence claims, being
relatively complex, demand thorough investigations in order to devise
appropriate solutions. In the wake of the surge in 2018, out of the
40,000 successful insurance claims, only half had been resolved
within a two-year timeframe. Given the 2022 summer heat surge
that the insurance sector experienced, it’s possible that it could
be 2024 before some of the claims from last summer are settled.
The claims process commences when the
customer notifies their insurer about the
presence of cracks or movement in their
property. At this stage, the insurer will
handle the claim in-house, or they will
assign a loss adjuster to handle the claim
on their behalf. The adjuster conducts a
comprehensive inspection, organising a site
investigation (SI) and monitoring program
if appropriate to do so, before reporting
their findings to both the insurer and the
customer. After analysing the results, the
adjuster determines whether additional
information is required and looks to propose
a repair solution and programme of works
for the claim.
The response to claims was efficiently
coordinated using video technology. By
meticulously analysing available information,
Geobear could design and undertake a
ground improvement scheme within 90 days
of claim notification. Using an approach that
only takes an average of 1-2 days to complete
on-site, Geobear can stabilise and strengthen
the subsoil beneath affected foundations,
effectively halting further movement. This
innovative approach eliminates the need
for prolonged and complex investigations,
monitoring, and mitigation phases - enabling
the insurer and loss adjuster to proceed
directly to final superstructure repairs.
The key to all of this lies in expediting
the claims process. Enhancing efficiency
throughout the process reduces
administrative time and uncertainty, leading
to improved customer understanding and
satisfaction.
Efficiency improvements in subsidence
claims can be achieved by working in
partnership with insurers and loss adjusting
clients. Geobear serves as a case study
in efficiency improvement, benefitting all
stakeholders involved through an innovative
approach to resolving subsidence issues.
Subsidence repair contractor Geobear
worked with a Top 10 UK insurer and leading
global loss adjuster to revolutionise the
subsidence claim lifecycle by aiming to
reduce the time taken for such claims by
one year, all without incurring additional
costs. Research indicated that costs rose
as claims extended beyond 90 days, while
customer satisfaction declined. However, it
was found that these outcomes could largely
be avoided. Armed with this understanding,
the partnership collaborated to develop, test
and implement an innovative solution for
subsidence claims.
The solution incorporated ‘smart triaging’,
resulting in a streamlined claims process
and a novel approach to repair. This new
methodology was rapid and non-invasive,
effectively curtailing ground movement
to allow prompt commencement of the
repair phase.
Within a remarkably short timeframe of just
six months, the partnership successfully
devised an entirely new approach to
managing subsidence claims. By minimising
the number of works in progress, adjusters
could concentrate their resources on a select
number of claims, enabling the delivery
of a superior level of customer service.
This reduction in overall claims volumes
alleviated pressure on the extended supply
chain, ensuring smooth operations. Complex
claims were also resolved at an earlier stage,
reducing internal administrative costs and
emotional distress for the policyholder.
In addition, the Geobear solution eliminates
the necessity for tree removal, safeguarding
the surrounding community environment.
Furthermore, homes are stabilised with the
treatment, accompanied by a market leading,
insurance backed guarantee and a certificate
of structural adequacy to provide that extra
layer of reassurance.
Collaboration within the supply chain delivers
unparalleled benefits to customers. Given
the increasingly dry climate in the UK, the
likelihood of subsidence surges has risen
from 10% to 25%. To prepare for the growing
probability of such events, a proactive and
collaborative approach must be fostered.
Building efficiency today ensures timely,
cost-effective, and satisfactory outcomes for
tomorrow’s customers.
Chris Carlton,
MRICS, New Business &
Key Account Director, Geobear
MODERN INSURANCE | 45