Crossing the Floor - a view from the other side Phil Anderson enjoyed a 35 year career working in insurance

companies, predominantly in Claims. From training with Zurich he rose to Claims Director and ser ed with a num!er o" the largest players, including #ishopsgate$Fortis %as they were then& Direct 'ine, Churchill, ()uity *ed +tar and 'i erpool ,ictoria. During -./-, he decided to step down. Anderson e0plains that he simply wanted a !etter work$li"e !alance and that was not possi!le at the helm o" a large and dynamic insurance claims operation. 1e retains a passion "or the su!ject and his e0perience is keenly alued !y those on all sides o" the industry. 2ntroduced to Anthony 1eaton, owner and 3D o" 4he #rownsword 5roup, Anderson took on a newly created role as 1ead o" the Ad isory #oard. 4his was a !old and creati e mo e !y 1eaton who recognised that i" he was to present a rele ant and compelling proposition to his insurer and solicitor clients, it would !e !oth power"ul and alua!le i" he had insight "rom someone who had sat on the other side o" the ta!le. Anderson was also known and respected in the community and had access at le els not generally open to new !usiness teams. A"ter !eing acclimatised to the world o" in estigations and sur eillance, Anderson !egan a dialogue with his insurer colleagues. 4he "irst thing to strike a note when Anderson looked at the relationship !etween suppliers and pro iders was a common air o" suspicion rather than cooperation. 2t is not unnatural "or an insurer to hold a predisposition against the principle o" outsourcing o" any work. 2ndeed it is a position with which Anderson himsel" would empathise. 4here is the o! ious "inancial consideration. A third party re)uires a pro"it margin on their work, which does not apply in6house. +econdly there is the concern o" relin)uishing control and the )uestion o" 7skin in the process8 that may !e num!ed outside the !usiness. Finally, an inert sense o" pride that says 92 run this department and 2 should !e capa!le o" doing it mysel":. #ut "or all this, Anderson "ound that gi en the right justi"ications to utilise specialists dedicated to a task, with the capacity and capa!ility to deli er results %and a clear return on the in estment& then the use o" a supplier was accepted as the right choice. During his tour Anderson realised that the relationships were o"ten "unctional in nature. 4here was not a sense o" shared purpose. 4he emphasis was all around per"ormance to +'A8s and too little around the !igger picture and cultural alignment. 4here was minimal in estment in sharing e0periences ; what had per"ormed 7!elow par8 would !e pulled up "or correction, !ut what had worked well was ne er e0ploited "or "urther gain or wider application. Critically, in Anderson8s iew, the two sides o" the ta!le looked independently at the climate and speci"ic challenges o" the day ; or those on the hori<on. +uppliers would look through their own personal lens %generally internally "ocused& and would create solutions %products& looking "or a pro!lem %a sales hook "or the !uyer&. =hat should !e happening is that ser ice suppliers spend more time listening and pro!ing, gaining conte0t and detail, !e"ore they engage in design and pricing, ultimately deli ering products honed "or purpose and tailored as re)uired. 4he ne0t o! ious hurdle was access to the decision6maker. As a Claims Director, Anderson descri!ed his day as "ull o" strategic decisions and tactical choices !ased on urgency or scale. 3atters o" more routine day to day operation were, necessarily, le"t in the hands o" the supporting management team. 4hat included supplier appointments where his role was generally limited to sign o"" o" a recommendation, hitting his desk only a"ter a lengthy process conducted in the line.

+upplier panels are not o"ten created "rom scratch. 4hey are passed down though the years ; with the original judgements in selection and appointment lost in time. >nce on the inside track, "ailing catastrophic error or repeated su!6optimal per"ormance, "amiliarity and loyalty would commonly de"end the status )uo. Anderson recognises that is not a !ad thing o" itsel". 1e says 9?nowing the culture and the people who represent you is not an easy or )uick journey, so upsetting that lightly is not recommended:. 1owe er, there has to !e a !alance. #ased on his own e0perience and that o" his year in the "ield, Anderson concludes that to allow other 7more important8 considerations to restrict acti e Director le el engagement in these appointments, is a "alse economy. ( aluations and tenders do take place, and he is )uick to allay any implied criticism o" the teams in procurement and supply relationship management. @ot so long ago these "unctions were widely populated !y sta"" seconded in ; keen, !ut in truth, gi"ted amateurs. 4oday highly trained and )uali"ied sta"" ha e !rought a new le el o" pro"essionalism to this discipline. =hat is needed is "or these people to !e closely supported !y their senior managers. 4here could not ha e !een a more historic time to join the world o" in estigation. 4he market is red hot. @o6one would seek to de"end the appalling conduct o" a small !ut highly damaging sector o" the media. 2t is ine0plica!le and ine0cusa!le that they engaged in phone taping and impersonating others to gain in"ormation. =hat is disappointing is the apparent ease with which they appear to ha e di erted the "ocus on to the world o" insurance claim in estigations. Certainly mistakes ha e !een made. 4he ideo "ootage o" the young girl changing on the !each alongside her mother, who was the legitimate su!ject o" the in estigation, was clearly wrong. #ut can anyone suggest it was deli!erateA @o. 4houghtless, sloppy, poorly controlled and checked, all o" the a!o e accepted. And changes should !e en"orced to raise standards. 4here will !e two resultsB one reasona!le and understood. 2" implemented with perspecti e and "orethought it will !e a "orce "or good. =e ha e already seen a tide o" en)uiry and re iew. Although not yet "inalised and pu!lished, the conclusions are not hidden "rom us. 4here will !e a deluge o" *egulation and control aimed across all aspects o" in"ormation gathering, data storage, data sharing, in estigation and sur eillance. 4he intent o" these changes is not resisted. =e must see impro ed conduct and controls and create standards which will dri e out the unwanted element "rom the sector and create !arriers to entry "or others who may undermine our am!itions. 4he days o" the single operati e working out the !ack o" a an, must go. 4here must !e clear guidelines on why and when an in estigator is appointed. 4here must !e an audita!le trail o" all acti ity. 4here must !e transparency %not an easy !ed"ellow in a world that is !y necessity co ert&. And there must !e pro"essionalism, )uali"ication, registration, accounta!ility and sanction. =hile this is desired and welcomed, there is ine ita!ly a cost attaching to it. *ising operating o erheads directly impacts margins and thus pricing. =e ha e to e0plore ways to achie e the outcomes we aspire to !ut retain commercially accepta!le to our paymasters. 4he other conse)uence "rom the media co erage and re iew is potentially counter6 producti e, harm"ul, and with conse)uences reaching !eyond the o! ious. Anderson has e0perienced ner ousness in the insurer community. 4here is an unease that a well intended instruction might lead to un"oreseen ad erse press criticism, damaging more than the indi idual claim or handler, !ut potentially the !rand itsel".

'ess risky to a oid that e0posure. 4he result will !e "ewer in estigations. As it stands today, "ewer cases are !eing put to appropriate le els o" e0amination. 4here is only one outcomeC claims met when they should ha e !een declined, or in"lated settlements paid, when a lower compensation was just and e)uita!le. 4he "inal link in the chain will !e more pressure on insurer loss ratios that already show year a"ter year o" underwriting loss, rising premiums and yet more criticism "rom the 5o ernment who should !e doing more to help rather than accuse. 4he correct response should !e more consideration with supporting e idence "or the instructions. Anderson highlights these conditions as a per"ect storm, with no more power"ul illustration o" the need "or "ocused and purpose"ul dialogue !etween insurer and supplier. 4he in"ormed and aligned iew o" li"e 7across the "loor8 has empowered 1eaton to adapt his team, philosophy and approach. Passion and pro"essionalism in deli ery were ne er lacking, !ut now 1eaton had gained a new perspecti e. 94he #rownsword 5roup ha e maintained their historic alues !ut ha e added "urther strings to our !ow: says 1eaton. 4hey are acti e in contri!uting to industry6wide issues, not least in the arena o" *egulatory change. 4heir philosophy is one o" sym!iotic e0istence ; so !oth parties share in the challenges and the successes. 2t is an open relationship, with regular and structured and purpose"ul dialogue, conducted at the appropriate le el to achie e decision6 making and action. 'istening is prioritised o er telling. @ew ser ices are designed with a targeted and agreed outcome in mind and are "it "or purpose in cost, operation and deli ery. A change o" perspecti e, it seems, can produce surprisingly "ar reaching iews.