This is not a total loss It’s my pride and joy and the most expensive item I have ever bought. It’s the family taxi that keeps the kids safe and sound at night. It’s my driving holiday in France. It’s mine. Behind every vehicle that an insurer declares as a total loss there is an owner, perhaps a family, or a vulnerable customer, or maybe someone lucky just to be alive. At e2e we never ‘write off’ your customers . For all those total loss claims when the Customer Experience and Consumer Duty really matter. Contact us: mia.constable@e2etotalloss.com www.e2etotalloss.com
Consumer Duty Defines the Role EDITORIAL BOARD Contrary to popular thought, e2e is not a salvage company. Of course, our supporting network members are some of the best salvage agents in the country. Bringing that array of talent and capability together, working on behalf of our insurer and claims manager clients, is a real privilege. Providing vehicle auction, a reclaimed parts portal, and national initiatives such as our Sustain 360 ESG programme gives us and our supplier members the opportunity to provide our clients and customers with real added value. However, these platforms are merely a ‘means to an end’. It’s clear to us that we form an integral part of the Consumer Duty chain, and our fundamental role is to help our clients and consumers alike when it comes to maximising returns from an otherwise wasted asset, and minimising the massive inconvenience that a total loss causes for everyone. In that sense, it is the Consumer Duty that defines our real purpose. It’s often easy to get lost in the technicalities of managing the consequences of a total loss decision and, of course, we can never forget that there are indeed a vast number of issues that need to be managed - from the safe and environmentally compliant disposal of vehicles, through to the best practices of our auction site and automated matching of reclaimed parts supply with demand. Customers Drive our Behaviours But we must always see the end-user customer as being our ultimate point of reference. Insurers, their claims managers (if they outsource) and their suppliers are always working on behalf of policyholders. In our case, every last pound of realised sales revenue from auctions goes towards keeping premiums lower than they otherwise would be. Maximising the use of reclaimed parts helps to keep repair costs down, which, in turn, reduces upwards pressure on costs. Countering fraudulent claims not only helps to catch criminals but also, once again, provides protection for the end customer. Thought of this way, the Consumer Duty is not a set of obligations, regulations, or policies. Instead, it is the very definition of who we are as a business – and it should define every business in the financial services sector. We only exist to service the needs of our customers, and if we get this right, then sustainable profits will naturally flow. Of course, there are some who will put the pursuit of profit ahead of almost every other consideration. There are those who will seek to bend the rules. There are those who resent the Consumer Duty. Here at e2e, we don’t work with those people. Jim Loughran, CEO, e2e Total Loss Vehicle Management Reacting to 2024’s Key Trends This year, we’re seeing a heightened focus on controlling claims costs, improving operational efficiency, and tackling fraud. This is where data enrichment - for both the individual and the vehicle or property, through increasingly granular realtime data - has the power to reduce loss costs for insurance providers, and lower premiums as a result. In motor insurance, knowing to what extent the safety technology on a car cuts accident risk is crucial, and it is becoming even more critical as car technology evolves. It’s why we have already taken huge steps to ensure the insurance sector understands this technology in order to price effectively through our award-winning advanced driver assistance system (ADAS) data enrichment solution – LexisNexis® Vehicle Build. Furthermore, our strategic alliance with Thatcham Research means insurance providers will have streamlined and automated access to Thatcham Vehicle Risk Data (VRD) 1 for the first time, something which is integral to insurance pricing and consistency over the matching of vehicles to Thatcham VRD. The more intelligence that insurance providers can access on the specific vehicles they are insuring, the more accurate the premium will be. They will also be more likely to deliver a swift claims experience. From a fraud perspective, email address intelligence through LexisNexis® Emailage® Rapid is being used to flag the risk of fraud for insurance providers in a seamless and frictionless way at the point of quote. Highly granular cross-market claims data coming from LexisNexis® Precision Claims later this Spring will add further detail to the picture, helping insurance providers identify fraudulent behaviours at quote through to claim. Fraud prevention also extends to quote manipulation. Responding to this challenge, it is now possible to uncover changes between quotes in key fields prone to manipulation. This helps protect insurance providers from inaccurate pricing and potential fraud, while consumers avoid their policies being rendered null and void if deliberate misstatements are uncovered at claim. Finally, in a recent report from data consultancy firm Sagacity titled ‘Missing Billions: The Impact of Revenue Leakage on UK Business’, 95% of the insurance providers surveyed said revenue loss comes from the wrong policy for the customer or charging the wrong amount. This is likely to be down to the vast volumes of customer data insurance providers typically manage, increasing the chances of the same individual appearing multiple times across different databases within an insurance group without the dots being joined up. This can lead to inaccurate pricing at renewal, the risk of fraud, wasted marketing budgets and increased operational costs, as well as lost cross-sell and upsell opportunities. <strong>Insurance</strong> providers can gain a comprehensive real-time view of the customer at each stage of the journey - but most importantly, at the point of quote - using linking and matching technology to create a single customer view. This can help guarantee that the right product is being offered for the risk presented, and at the right price. Tom Lawrie-Fussey, senior director of product management, UK and Ireland, LexisNexis Risk Solutions, <strong>Insurance</strong> 1 Thatcham Research Vehicle Risk Data is a live and extensive, industry-standard dataset that contains key information about insurable cars, LCVs and motorcycles. Thatcham Research is solely responsible for maintaining this dataset with each vehicle containing more than 100 individual data points. Using data exclusively supplied by vehicle manufacturers and checked by Thatcham Research’s expert data team, each vehicle is assigned a unique eight-digit ABI identification code. This translates into a standardised description of the vehicle that is used by the entire insurance industry. Directly sourced data is also used to generate a Group Rating score for every vehicle. Ranging between 1 and 50 for cars and 21 to 50 for LCVs, scores indicate the level of insurance risk associated with the vehicle. MODERN INSURANCE | 19
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