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welcome to the latest edition of news & views
news in brief
fire regulations to be consolidated
partnerships aim to improve efficiency
housing providers embrace new roles
asbestos - tighter controls come into force
risk management takes centre stage in CPA process
tackling insurance fraud
failure-to-educate can be a costly lesson
more pressure for reform of ELCI
supporting loan workers
hertfordshire County Council scoops Council of the Year Award
ALARM in action
Zurich joins force with Princes Trust and Premiership Rugby Clubs
cover available on land and property transactions
going for a check up - the Corporate Safety Inspection Review
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welcome to the latest edition of news & views
With the recent Government drive towards promoting partnerships between public service providers and the private sector and also between the public and voluntary sectors, we are seeing an increasing number of organisations considering the practicalities and benefits of forming this type of business relationship.
In the case of Zurich Municipal, we have a strong tradition of working in partnership with the public sector to provide insurance and risk management solutions. We continually seek to identify new and interesting approaches to our working relationships even down to the production of News & Views, which aims to educate and inform on issues of mutual interest.
One area where partnership arrangements are developing very rapidly is the housing sector. The Government has shown a real desire to see housing providers diversify their activities to play a pivotal role in multi-agency partnerships. Our report in this edition focuses on a survey recently commissioned by Zurich Municipal that highlights the issues facing housing providers with specific emphasis on their delivery of new services to their communities through partnerships with other organisations.
Of mounting concern to public service providers (and their insurers) is the escalating problem of insurance fraud. Research by the Association of British Insurers (ABI) shows that nearly 50% of adults would not rule out the notion of making an exaggerated claim reinforcing the argument that the potential for insurance fraud is rapidly increasing. To assist in combating this risk, Zurich has made significant investment including a new computer-based system to improve the early detection of fraudulent claims.
Finally, the challenges of change never cease and come, in part, through evolving Government legislation. In this issue we discuss the regulations on asbestos and fire safety, which have both been tightened in an attempt to reduce the risk of potential accidents, illnesses and subsequent claims occurring. It is encouraging to see that the importance of assessing and managing risks in the workplace continues to be the message that shines through in all such health and safety legislation.
We are always interested to hear your views on any of the items in News & Views. If you have any feedback please email info@zurichmunicipal.com or contact Paul Allen on 01252 387061.
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news in brief
managing health at work partnership information network
A Partnership Information Network (PIN) guideline has been produced by an NHS development group, consisting of members from management, trade unions and professional associations. The aim of the PIN Guideline is to achieve fair and consistent best practice standards for occupational health management of staff across NHS Scotland.
The opening chapters of the Guidance set out the general principles that are applicable across NHS Scotland, such as the promotion of employee health and well-being and health and safety framework.
A range of topic-specific guidelines are covered by the following sections, including, dealing with stress at work, promoting safe manual handling, protecting lone workers and incident management.
Copies are available from www.show.scot.nhs.uk
sickness absence soars
Workers took an average of 9 days off sick in 2002 compared with 6.5 days the year before, according to a report from the Work Foundation.
The problem of sickness absence was particularly high in the public and voluntary sectors, where the absence rate has more than doubled from 2.97% in 2001 to 7.86% in 2002. The top five reasons given by employees for time off are colds/flu (93%), food poisoning/stomach upsets (77%), headaches/migraines (64%), stress/emotional/personal problems (54%) and back problems (47%).
However, managers believe the most common reasons for absence are cold/flu (59%), stress/emotional/personal problems (58%), Monday morning blues/extending the weekend (39%), sickness of other family member/childcare problems (36%), the concept of taking sick leave entitlement (31%), and low morale/boring job (31%).
It has been suggested that flexible working practices could be one way to reduce sickness rates, by giving employees the opportunity to effectively `manage their responsibilities'. New maternity and paternity rights, which took effect in April, may also help reduce absence rates by introducing more `family friendly' working practices.
report on anti-social behaviour in Scottish schools
The Scottish Executive Education Department has published the results of a survey on incidents of violence and anti-social behaviour against local authority school staff in 2001/02.
Violence and anti-social behaviour is defined as physical violence, verbal abuse or intentional damage to personal property, including threatening behaviour with or without a weapon.
The main findings are outlined below:
- there were 5,412 incidents reported against local authority school staff (both teaching and non-teaching) during 2001/02
- 37% of the incidents occurred within the primary sector, 30% in the secondary sector, and 32% in the special sector. Two per cent occurred in pre-school centres of education
- teaching staff were involved in two-thirds of the reported incidents. There were 64 incidents against teaching staff per 1,000 teachers
- 237 incidents were notified to the police
- 98% of incidents were recorded as occurring in school hours, and 50% taking place in the classroom
- 44% of incidents reported involved physical violence, 26% involved physical violence and verbal abuse, and 29% involved verbal abuse alone
- racially motivated incidents accounted for less than 1% of incidents, with a similar number for sexually motivated incidents
- in 94% of all incidents reported, the perpetrator was a current pupil of the school, translating to six incidents per 1,000 pupils. Where information was available, 60% of these incidents involved pupils with special educational needs (SEN).
Scotland gets statutory best value
The modernising agenda in Scotland has taken a major step forward with the approval in January 2003 of the Local Government Bill, by the Scottish Parliament.
The package of measures includes a duty of best value which will sweep away Compulsory Competitive Tendering (CCT); a statutory duty for community planning which will encourage partnership working together with communities in the planning and delivery of services and the power of `well- being', giving councils a can-do capacity to promote and improve the well-being of their area.
The power of well-being gives local authorities the legal right to do anything likely to promote or improve the well-being of their area, as long as it is not expressly restricted by legislation.
Community planning will place on a statutory footing, the need for local authorities and other bodies to work together in a joined-up and cross-cutting way. It will also formalise procedures to ensure communities are fully involved in the planning and delivery of services.
Putting the framework of best value on to a statutory footing will improve accountability and make sure that scrutiny of best value is rigorous. The Accounts Commission's powers to set performance indicators and monitor performance will be updated and they will also be given the power to set indicators which look at cross-cutting `quality of life' issues.
market research improves service
Zurich Municipal has undertaken detailed market research with a number of local authorities and registered social landlords (RSLs), the aim of which was to find out what our customers want from their risk management and insurance provider and to bring their voice into our business planning process.
In both markets a key factor proved to be price, although not simply in terms of the cheapest policy but also in relation to overall value for money. Commenting from a district council perspective one customer said, "We are dealing with public money and so have to get best value. The price is important but it is also what you get for your money." A valuable point to come out of the survey is the ability to negotiate with the insurer to ensure that the total insurance package fits your overall needs. You want a high level of support and value specialist advice and efficient administration from qualified staff who know and understand the specific risks inherent in your area, and who have the knowledge of the products and services to provide the maximum flexibility and choice. This point was illustrated by a comment from a housing association, "We are looking for good insight into how we work and what our requirements are. We need people who understand."
The survey also showed that you are looking for a claims service that runs smoothly, quickly and competently, providing a prompt and reliable response. Reinforcing this view, a county council respondent said, "We need to know when claims are going to be paid; we want to be kept informed."
You also want to feel supported by your insurer. This sense of well-being is developed through products and services that fit your needs but also through good working relationships with individual members of your insurer's staff.
The reputation that Zurich Municipal has as an established provider of risk management and insurance for public service customers is undoubtedly an important point. The availability of risk management support and training is also given as a reason for selecting your provider.
Commenting on the value of the research, Patricia Davies, Zurich Municipal's Research and Data Consultant said, "This is a new approach for us and we feel we have learned a lot. It will enable us to develop new products and strategies which meet our customers' needs and which are delivered in the style and language that they want. We are grateful to those who took part in the survey for the insight they have given us."
changes to Zurich Municipal email claims
Do you send e-mails or electronic claims forms to Zurich Municipal claims offices? If you do, then there are some changes in the pipeline, which will affect you and your organisation.
We are currently bringing our e-mail system in-house, upgrading it and supporting it within Zurich. As a result, the addresses you were using changed during April and May. We have written to all customers about the change. The new addresses are shown below.
Motor Claims
zmmotorclaimsoffice@uk.zurich.com
Property Claims
zmpropertyclaims@uk.zurich.com
Newcastle
zmnewcastleclaims@uk.zurich.com
London
zmlondonclaims@uk.zurich.com
Leeds
zmleedsclaims@uk.zurich.com
Glasgow
zmglasgowclaims@uk.zurich.com
Farnborough
zmfarnboroughliabilityclaims@uk.zurich.com
Community Insurance Centre
zmcicclaims@uk.zurich.com
Chelmsford
zmchelmsfordclaims@uk.zurich.com
Cardiff
zmcardiffclaims@uk.zurich.com
Birmingham
zmbirminghamclaims@uk.zurich.com
Southampton
zmsouthamptonclaims@uk.zurich.com
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fire regulations to be consolidated
The Government's proposal for a single piece of legislation to cover all aspects of fire safety in public and private buildings, has been welcomed by Zurich Municipal.
The Government is currently consulting on a draft Bill which aims to consolidate over 150 different pieces of legislation and to give fire authorities new powers to investigate the cause of a fire. Zurich Municipal believes such a Bill, which is due to be implemented in Spring 2004, is long overdue and that it presents an opportunity to increase the level of protection offered to public and private buildings. Concentration on risk assessment as a central element of the proposed legislation, is particularly welcomed.
Commenting on the proposed consolidating legislation, Zurich Municipal Senior Fire Engineer, Mark Barry said, "All regulations in the UK have come about as a result of something going wrong, from the Great Fire of London to, more recently, the Bradford City Football Club fire. It is the first consolidated piece of legislation for 200 years and as such is long overdue."
Zurich Municipal has taken a lead in fire prevention, particularly in schools where arson is now a serious and expensive issue. New figures reveal that the cost of school fires in 2002 hit a record high of £96.6 million, more than double the cost of four years ago. It is estimated that 90% of school fire claims are as a result of arson attacks.
Scotland is one of the hardest hit areas in the country, suffering 34% of all school fires. Zurich Municipal has just published its schools guidance in Scotland, a document which is aimed at reducing risks of fire in new or refurbished buildings. Dennis Davis, Her Majesty's Chief Fire Inspector for Scotland, writing in the foreword to the document, said, "Adopting a strategic approach to meeting the challenge posed by the rising incidence of school fires is clearly important. This practical guidance from Zurich Municipal is welcome. The common sense and useful advice given in this publication will help all those who have direct responsibility at a local level to find working solutions to the problem of school fires and the damage they cause."
Zurich Municipal is urging the Government to take advantage of the new fire legislation to ensure that all new schools built through public finance initiatives (PFIs), include sprinklers. They also propose that legislation should be modified to ensure that schools designate and fully train fire safety officers who should be on the premises throughout daytime and evening usage. Schools and local education authorities (LEAs) should also receive adequate funding to cover training, maintenance and risk assessment needs.
Jan Peake, Zurich Municipal Loss Control Surveyor pointed out that although fire risk assessments are a legal requirement, not all schools carry them out, as she discovered during a recent School Risk Ranking exercise. "Out of the first 20 schools I visited only one had done a fire risk assessment. The main reason they had done so was because one of their governors was a fire officer."
Increasingly caretakers have a critical role to play in the battle to prevent school fires. This is perhaps why there has been a high take-up by LEAs for Zurich Municipal's Caretaker's Fire and Security Awareness Training courses.
Plymouth City Council recently commissioned the course for their 17 secondary school caretakers and the response was so good that it is now intended to offer it to the Council's primary schools. Mike Hocking, Risk & Insurance Manager of Plymouth City Council commented, "Our caretakers found the course content extremely valuable, but in addition to the information they gained, they also appreciated the opportunity to get together with colleagues. It is not something they routinely have the chance to do and as risk managers we always promote the importance of networking."
For further information on the School Caretaker Seminars, please contact info@zurichmunicipal.com
The Scottish School Design Document is available on www.zurichmunicipal.com
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partnerships aim to improve efficiency
Partnerships between public service providers and the private sector and also between the public and voluntary sectors, are actively encouraged by the Government. Successful partnerships can improve efficiency and service delivery, however, there are some concerns that joint-working can result in loss of control. It is therefore important to address the issue of ownership of risk when embarking on such partnerships.
Public private partnerships are now an accepted part of public service delivery but increasingly the Government is encouraging partnerships between public service providers themselves. The Department of Health wants to bring together health, social care and education under one roof in `children's trusts'. The Department believes that these trusts will enable local partners to jointly plan, commission and finance services for children.
In March 2003 the Government announced that it planned 240 `extended schools' over the next three years to bring health and social services together under one roof on school premises.
Local strategic partnerships have been in place for several years in England and Wales, and bring together local authorities, health, the police and the voluntary sector to develop a vision for services geared to local needs. They are in the process of publishing community strategies which will provide a blueprint for the next 5 10 years.
There is an obvious advantage for public service providers in partnership working. Best value demands that services are economic and efficient and one way of achieving economies of scale is to set-up joint operations for specific tasks. The two West Sussex councils of Adur and Worthing have embarked on just such a public/public partnership with a six- month pilot scheme involving the councils' transport workshop teams. They are now operating from the same depot as a single joint team, maintaining both Adur and Worthing's vehicle fleet. Engaging in the pilot will enable the councils to test whether services can be improved and if any savings can be made. `Partnering Adur and Worthing Services (PAWS)', has received Government recognition as a Pathfinder Scheme and aims to make the most of two neighbouring councils working together. Direct services such as waste collection; building and vehicle maintenance will be amongst the first areas of joint working to be investigated.
To achieve this, the councils, which are under different political control, have established a joint member forum that meets quarterly and where councillors are briefed together, but vote separately.
Paul Kempsell, Head of Contract Services at Worthing Borough Council, told News & Views, "We have been able to increase efficiency and get economies of scale, which fits well with the concept of best value. The Government wants us to go in this direction and it works particularly well in public service areas such as maintenance, which the private sector is not really interested in."
There are issues to sort out when setting-up partnerships, for instance who employs the staff, who is in control of disciplinary procedure and who takes responsibility for risk. In the case of Adur and Worthing Zurich Municipal is the insurer for both councils and has taken the view that they will be treated as one for the purposes of a claim.
John Rodway, Corporate and Public Safety Manager at Adur District Council said, "The early stages of the project were the most demanding in terms of risk assessment and management. The integration of safe working practices into different management regimes, changed environments and new risks were essential to the process. Such changes can only work in an environment of openness and honesty between all parties involved."
Zurich Municipal Business Consultant, Paul Smith, points out that even in the absence of a contract, the existence of a legally binding agreement has insurance implications. He recommends that the two parties agree a written summary of the responsibilities of the group.
"In respect of two local authorities working together, the obvious way to arrange insurance is for each party to agree to extend their own insurance policy to cover their liabilities and risks arising from the working arrangements. A proviso should be included in the agreement (or a `hold harmless' clause) that neither authority will seek indemnity from the other in respect of any claims arising from this activity. This effectively maintains the insurance position and obviates the need for any professional indemnity insurance," he said.
The Adur and Worthing pilot scheme is being watched with interest. If the efficiencies and savings are shown to be significant, it seems likely that other public service providers will follow suit.
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housing providers embrace new roles but not without concerns
by Mick Kelly, Zurich Municipal Housing Manager
The pace of change affecting public services shows no signs of slowing. The current state of the housing sector has placed housing right at the top of the public services agenda, a fact reflected in recent announcements from the Office of the Deputy Prime Minister. The Government also increasingly expects housing providers to play a role in multi- agency partnerships and to diversify their activities.
Beyond these bigger strategic issues, the day- to-day task of delivering high-quality social housing remains tough. Tight finances can make it difficult to keep up with repairs and maintenance. At the same time an increasingly litigious society and a number of different legal reforms appear to be fuelling an increase in the number of compensation claims made against housing providers.
In anticipation of these challenges being major topics for debate at the National Housing Federation (NHF) Conference in March, Zurich Municipal commissioned a survey to investigate these issues. It was sent to NHF member organisations 34% of respondents represented housing stock transfers, and 66% represented established housing providers. The survey aimed to highlight the opportunities and challenges facing housing providers, particularly as they try to deliver new services to their communities through partnerships with other organisations.
The survey results showed that housing providers are embracing new roles in which they are partners in the delivery of a wider range of services:
- over two-thirds of respondents (71.2%) are working in partnerships with local health and social service providers
- half (50%) are involved in initiatives to tackle crime and anti-social behaviour
- nearly one-third (32.7%) are involved in regeneration partnerships
- over a quarter (26.9%) are renting property at market rates.
Further developments of this kind are expected in the future, with one in five housing providers planning to diversify their activities further within the next three years. This is perhaps influenced by the fact that the majority (61%) see the public's perception of housing providers as being enhanced by the development of new services and partnerships with other service providers.
The survey also revealed that housing providers see these developments as far more than just sidelines. The vast majority (89.3%) of respondents felt that partnerships with other local service providers and the private sector are essential if their own roles are to be guaranteed in the future.
However, there is also the fear that diversification into new areas of service delivery could affect the delivery of core services to tenants, with 61% of respondents highlighting this as a risk to be taken increasingly seriously. Last year's survey showed only 54.4% to be satisfied that they had processes in place to effectively identify and manage risk when diversifying into new areas, this figure has increased to 79% this year. The Government's Decent Housing Target has also encouraged a focus on strategic planning for the future and 68% have been prompted to conduct a full review of risks and opportunities to help them meet the new requirements.
Despite this growing confidence amongst housing providers in their abilities to diversify, and to manage the risks associated with such moves, many feel that the true potential of the sector is not being realised. Innovation in the sector is being hampered by a general aversion to risk, according to a third of respondents. Financial constraints are also hampering progress here, with almost half the respondents saying that their ability to develop new services or greater partnerships with other service providers is being restricted by the deteriorating financial position of the sector.
Some respondents also cited that human resources was an issue, with 73% saying that the future provision of new services and formation of local strategic partnerships could be hampered by a shortage of staff with these necessary skills. Even at board level similar concerns apply, with one in five respondents indicating that those with executive responsibility in their organisation do not have a sufficiently broad range of experiences and training to meet the governance challenges that diversification brings. The recruitment and retention of staff with well developed financial and business skills is therefore likely to be a priority for many respondents in the coming months.
The survey shows that housing providers are playing a growing part in the delivery of a diverse range of services, through an ever more complex network of partnerships. Many are engaging in public private partnerships to improve services to local communities and these changes offer real opportunities for housing providers to develop enhanced roles.
The housing sector has been operating in an increasingly challenging and competitive marketplace for some time and has had to adapt to a number of changes. As a result, the sector has been quite proactive in putting corporate governance procedures in place to meet Government objectives and is well advanced in strategic risk management measures. The merged Housing Inspectorate is aiming to make regulation more efficient and effective and elsewhere, standards of governance in the housing sector continue to be praised.
But with opportunities come challenges and risks. Concerns remain in some quarters about the processes in place to manage the risks involved in diversified service delivery and the establishment of complex partnership arrangements. It is important that fears surrounding the impact of these new roles on core service delivery are recognised and planned for. A strategic approach to risk management will play a key part in ensuring that opportunities are identified and grasped, without putting at risk the delivery of core services for tenants and the wider local community.
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asbestos tighter controls come into force
Changes in asbestos regulations could leave public service organisations open to prosecution if precautionary measures are not put in place soon. Zurich Municipal is urging employers to implement risk management plans to clearly demonstrate measures taken to manage asbestos on their premises.
Currently a staggering 83% of 500 organisations surveyed do not have asbestos management plans in place according to research completed by Zurich Municipal's sister company Zurich Risk Services. Under the Control of Asbestos at Work (CAW) Regulation, all employers, local authorities and property owners are now required to exercise and illustrate a greater duty-of-care. With an 18-month lead-in time for mandatory compliance with the CAW Regulation, all employers and property managers must prepare and implement asbestos management plans by early 2004.
Along with Zurich Risk Services, and in partnership with The National Britannia Group, Zurich Municipal has designed a programme to identify and manage the risks associated with asbestos. The programme is a practical solution which ensures that the necessary precautions against asbestos have been taken and the CAW Regulation is complied with. This new service consists of four stages a status audit, initial survey, sampling survey and training.
Zurich Municipal Loss Control asbestos consultant, Gavin Chalmers, said, "The dangers of asbestos are severe. Complying with the CAW Regulation will ensure that these dangers are minimised. Asbestos related diseases kill 4,000 people a year in the UK alone, a figure which could rise to 10,000 deaths per year by 2024. The CAW Regulation is a step towards ensuring that the dangers of asbestos are controlled. The deadline to conform to the regulation is approaching. Only with a concerted effort will the public sector ensure that public buildings are safe against the risks of asbestos."
For further information, please contact your local Business Consultant.
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risk management takes centre stage in CPA process
by Sarah Richards, Senior Partner Zurich Municipal Management
A new survey suggests that risk management has the capacity to improve an authority's chances of being highly graded in the Comprehensive Performance Assessment.
Risk management helps make you excellent. A bold statement but one that appears to be borne out by the results of a new survey investigating the role of risk management in preparing local authorities for Comprehensive Performance Assessments (CPAs).
In the survey of chief executives, directors of finance and risk managers, commissioned by Zurich Municipal Management Services, 61% of authorities assessed in last year's CPA process said risk management played a key part in their preparations. Crucially, however, of authorities graded excellent 82% agreed that it played a key role. Amongst authorities not graded excellent, 28% viewed risk management as an insignificant element in the CPA process. This view was not expressed by a single authority that received an excellent grading.
All this suggests that authorities that take risk management seriously, and recognise the key part it has to play in the achievement of top level strategic objectives, are more likely to satisfy the inspectors that their authority is an excellent one, deserving of greater freedoms and flexibilities.
Authorities not graded excellent last year appear to be reaching the same conclusion. These authorities are already looking to risk management for help in the future, with 84% stating that they will be reviewing and updating their approach to risk management in preparation for their next assessment.
District councils, now gearing up for their first CPA assessments, also seem to be recognising that corporate governance arrangements will be carefully examined by the inspectors. Of those responding, 61% say they are confident they will meet the required standards in this area. However, 14% are not yet confident and a further 24% admit to being unsure at this stage. For these authorities there is still time to learn the lessons of the first set of inspections and move corporate governance issues such as risk management up to the forefront of planning for the assessment.
Of course, risk management is about far more than ticking boxes in the CPA assessment process. It is also important to recognise that we are not only talking about operational risks the trips and slips, and day to day accident prevention about which most managers are aware. Crucially, we are also talking about the big picture strategic risks an authority faces. The reason risk management can play such a key role in achieving a high grading is that it is really about identifying and dealing with the obstacles that stand in the way of the delivery of overall business objectives and improved services. If an organisation is not able to deal with strategic risks effectively, it will be unable to satisfy the inspectors that it is equipped to reach its goals. This is one of the key reasons why risk management arrangements and other aspects of corporate governance are so crucial within the assessment regime.
Risk management must also be shown to be embedded within the organisation at all levels. If it is to deliver its true potential, it is essential that risk management is not just left to one or more individuals. Instead, it must be driven from the top, with the management team fully bought into the process. Senior managers need to be regularly involved in the systematic identification of risks that threaten the council's objectives, and in the ongoing management of those identified as posing the greatest threat. Risk management needs to play a key role in the strategic management planning and control of the organisation.
This imperative is made greater by the increasingly complex landscape of public service delivery. As the best local authorities find themselves truly assuming the role of community leadership, and as a consequence working in partnership with an ever wider range of partners to deliver an ever growing range of services, so the number of opportunities for things to go wrong increases too. In a partnership, responsibilities and liabilities need to be carefully assessed, so that all partners are clear about who is accountable for what. More importantly, all partners need to be clear about what the shared objectives of the project or initiative are. All too often it can become clear once a project is underway, and with budgets committed, that different partners have different aims and objectives. This is just one example of the kind of problem that can arise if risk management is not placed at the heart of what a local authority is trying to achieve.
The integral part that strategic risk management plays in delivering a local authority's business and service objectives has never been in doubt amongst risk management practitioners or many other senior managers. However, this survey has highlighted the extent to which the CPA process has begun to focus the minds of many others on the key role it has to play.
This article recently appeared in Municipal Journal.
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tackling insurance fraud
Zurich Municipal is to tackle the escalating problem of insurance fraud in the public sector using a new major fraud detection programme. Research by the Association of British Insurers (ABI) shows that nearly 50% of adults would not rule out the possibility of making an exaggerated claim and Zurich Municipal's existing systems have also picked up an increase in the number of potentially fraudulent claims being investigated since January 2000.
The new programme is designed to improve the detection and combating of fraudulent claims. The approach has already proved to be a success; four suspicious claims were discovered on the first day the system went live.
The initiative revolves around the Claims & Underwriting Exchange Personal Injury database, known as CUE PI. Built on a new computer system, CUE PI aims to share data on insurance claims to help identify people submitting multiple claims, or who appear to be serial claimants. The bespoke electronic data capture platform collects and collates a wide range of data from identified suspected fraudulent claims. In order to deliver this new anti-fraud service, Zurich has joined forces with other leading insurers.
Customers will not be charged Zurich is investing in the system on your behalf. Zurich Municipal believes this is particularly important for public service organisations, where many claims are self-funded, with the costs falling directly on the tax payer.
Alan Hunter, Zurich Municipal Claims Manager, said, "While insurance claims fraud can at times be highly organised and is a serious crime, quite often the fraudsters aren't that sophisticated. Instead, they are frequently shown to be `amateurs'. However, some are still successful in their dishonest activities.
"Simply by cross-checking data using the CUE PI database, we believe that many fraudsters will be caught, and many more will be deterred.
"This database is just one of the steps we are taking to crack down on the problem of claims fraud, which in the case of the public sector is taking money from front line services and ultimately from the taxpayer. Insurance claims fraud in any form is unacceptable. Fraudsters should know that we are actively seeking to identify them and when we do, we will dedicate time, energy and specialist resources, geared to prevent them successfully defrauding our customers.
"By capturing this data on a daily basis, we will be able to analyse a wide range of features of suspect claims. We will also be able to measure the effectiveness of our anti- claims fraud procedures and practices, and to enhance them where necessary."
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failure-to-educate can be a costly lesson
Speculative claims against public service providers have proliferated in recent years, John Barrett, Zurich Municipal's Education Manager investigates this growing cause for concern, as the damages awarded can be substantial.
We have reported in News & Views in the past on the increase in the number of questionable claims for housing disrepair and personal injury against local authority housing departments and registered social landlords (RSLs). Cases are generally brought by specialist firms who `cold-call' housing tenants and then pursue the case on the basis of `no-win, no-fee'.
The practice has now extended to the school playground as specialist firms approach parents asking if they wish to claim for school-related incidents such as bullying or inadequate levels of education. There have been instances of firms contacting parent teacher associations (PTAs) through mail- shots and also speaking to parents directly outside the school gates or in shopping precincts.
Parent's concerns over bullying have prompted the Government to fund research into this growing problem by the children's charity, ChildLine. It has also committed £470 million to a `Behaviour and Attendance' programme to help secondary schools put in place anti-bullying strategies from Autumn 2003.
Bullying has been cited in claims against schools because of the damaging effect it can have on an individual's educational prospects and general welfare. There has been a significant rise in all `failure-to-educate' cases, prompted in part by the success in the House of Lords of Phelps v London Borough of Hillingdon. Phelps suffered from dyslexia, which went unrecognised by the school and by its educational psychologist. The case went to the House of Lords where it was held that the authority was vicariously liable for common law negligence by its educational psychologist.
In this case, negligence was established on the basis of failure to adopt the appropriate method of testing and failure to reconsider the diagnosis at a later stage when the pupil had continued to fall behind her peers.
Just as this case was a landmark in the field of special educational needs, so the case of Norfolk v Hurstpierpoint College has sent something of a tremor through education circles. The former pupil of the independent school claimed that her poor Latin result could be blamed on an inexperienced teacher and that her chances of becoming a top City lawyer were irrevocably harmed. The High Court action for loss of potential earnings, school fees and mental distress has been settled by the insurers concerned and it is feared it could lead to a flurry of similar claims from students who feel they have been unfairly treated or incompetently taught.
Despite the success of these cases, it is not easy to prove `failure-to-educate' in court, a point illustrated in Liennard v Berkshire County Council. The 29-year-old claimant was unable to prove that a diagnosable and thus potentially treatable condition had been missed by the school. Although he had undoubtedly underachieved, the detailed judgment found that the school was not at fault.
It should be remembered however, that even when cases are successfully defended, the costs can be enormous. Zurich Municipal has experienced costs of more than £150,000 for cases going all the way to trial. It is not just the financial impact, there are implications for head teachers and other staff in terms of the time taken to prepare for such cases.
It had been thought that the Human Rights Act, which came into force in October 2000, may provide additional weight in `failure-to- educate' cases. Article 2 of the European Convention of Human Rights enshrines the individual's right to education but in general it appears that the convention does not guarantee children or their parents, rights to any particular form or content of education.
In order to establish that the school has failed in its duty to educate, a litigant will need to demonstrate negligence, and this is hard to prove. The medical negligence case of Bolam v Friern Hospital Trust, established a principle which applies to all professions, including teaching. This demonstrated that negligence cannot be found if conduct falls within acceptable parameters of professional competence. Therefore a teacher cannot be considered negligent if their conduct, although questionable, is nevertheless deemed to be reasonable within professional limits.
Nevertheless claims can still arise from a `failure to educate'. These can come in two forms. The first will be resulting from an injury, which includes mental illness. The second will be as a result of a financial loss, for example where current or future employment prospects may have been effected. For injury claims, indemnity is provided for under the public liability cover, whereas for pure financial loss such claims will either be dealt with under the officials indemnity cover or the financial loss extension of the public liability cover. This will depend upon the type of product in force.
Educational establishments can protect themselves from civil actions by taking sensible and reasonable measures to reduce the risks. Such measures should involve regular consultation with the child and parents and if necessary involve specialists such as educational psychologists. Staff must be kept informed of any decisions and carefully briefed on the specific needs of the individual. Most importantly any documentary evidence should be filed. This can include letters from the parents, professional reports, academic assessments and records of behaviour. In the case of Hansen v Isle of Wight County Council, which involved both bullying and dyslexia, the school was able to defend their case through written evidence of the steps they had taken to deal with the situation.
Given the importance placed on exam grades both for University entrance and for future employment, students who do not get their predicted grades are increasingly likely to seek redress. It is not yet clear what the outcome will be of the exam grading fiasco in the summer of 2002, when a number of pupils had their grades adjusted by the exam board and as a result failed to get into the University of their choice.
There may also be a change in attitude by higher education students as the cost of obtaining a degree rises steeply in the next few years. Faced with debts on graduation of £20,000 or more, students may well become more demanding consumers, examining the competence of their lecturers, the number of hours of tuition they receive or the relevance of the material taught to job expectations.
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more pressure for reform of ELCI
Further calls for the reform of Employers' Liability Compulsory insurance (ELCI) have come from three authoritative national bodies, The Royal Society for the Prevention of Accidents, the Institution of Occupational Safety and Health, and the British Safety Council.
They want the Government to radically reform the way insurers provide cover to compensate employees who are injured or made ill at work. The three safety organisations are calling for stronger links between Employers' Liability Compulsory Insurance (ELCI) and health and safety management.
In recent issues of News & Views we have reported on some of the concerns surrounding ELCI which are shared by Zurich Municipal and the Association of British Insurers. The Government is now carrying out a review which is looking at the scale and nature of problems faced in relation to ELCI.
There are concerns that some businesses, who cannot afford escalating premiums, may be trading illegally without insurance. The Government is reviewing the current ELCI arrangements, which tend to be based on the claims record of a particular industry sector rather than the company's health and safety management performance. Assessing long- term disease risks and future claims, such as asbestos cases, is also a factor.
The safety organisations want the Government to help insurers address the uncertainties associated with long-term disease claims and want insurers to recognise individual businesses' health and safety management performance. All concerned with the issue agree that there must be a strong focus by employers on preventing accidents in the first place, through sound health and safety and risk management practices.
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supporting lone workers
The potential risks for public service employees working on their own are frequently not recognised until an incident occurs that reveals gaps in the systems.
Lone workers are particularly vulnerable to unforeseen accidents and spontaneous acts of violence. A recent survey by the TUC revealed that workplace violence is now one of the main fears among workers in all sectors. Overwork and stress are said to be the main health and safety concerns (55%), followed by repetitive strain injury (37%), display screen equipment (34%) and back strains (31%). However, this is the first year that violence has been ranked as one of the top five perceived workplace hazards.
Supporting this concern, recent research carried out among 5,000 workers in jobcentres and benefit offices revealed that 49% of staff had personally experienced violence at work in the last year. This figure increased to three-quarters (76%) for staff who have constant contact with the public.
Acts of violence in the workplace are unpredictable and therefore difficult to anticipate. The potential risks are greater for those who work on their own and for that reason it is vital to ensure, firstly that a proper definition of who are lone workers has been established, and then that policies have been thought through and clearly transmitted to staff through discussion and training where necessary. They should also be regularly reviewed.
Zurich Municipal has a product which addresses this. The Lone Worker Review provides a comprehensive and independent critique of an organisation's arrangements for managing lone working activities.
The review analyses the risks and current procedures in the working environment to identify any weaknesses and ensure that the correct procedures are in place and understood by employees. To this end useful information is provided by questionnaires completed by staff and interviews with managers.
Reports cover every aspect of the work that the organisation carries out where there are potential risks to lone workers. It is likely to include establishing an agreed definition of what constitutes lone working, assessing how well panic alarms work, safety in reception areas, procedures for out-of-hours working and for the use of equipment in isolated situations, dealing with cash, incident reporting and staff training.
The Hyde Group is one of the largest housing associations in the South East with over 1,000 homes and over 800 staff, many of whom are lone workers for all, or part of the time. When the Group carried out a review of their lone working practices, two Zurich Municipal Consultants assisted them.
"Zurich Municipal assisted with a working group and provided reassurance that we were taking a responsible approach with regard to lone workers," explained Hyde's, Health and Safety Officer, Julian Rayner.
As a result of the review, staff have been offered opportunities for extra training, for instance on managing aggression and violent incidents. "This all helps to give our people confidence to enable them to handle any situation," he said.
Zurich Municipal is able to tailor the report to the requirements of the customer. Loss Control Consultant, Shelley Marshall, said, "This could range from offering either a comprehensive in-depth report to providing simple guidance and support for an organisation which is in the process of doing the work themselves."
One of the real benefits of an external review is that it brings a fresh and objective view to any given situation. It also checks that the policies and procedures exist not just on paper but are known and understood by staff. Questionnaires can reveal where there are gaps, either in the procedures themselves or how they are carried out on a day-to-day basis. A thorough risk assessment may well prevent a minor incident becoming a major event.
For further information on the Loan Worker Review, please contact you local Business Consultant.
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Hertfordshire County Council scoops Council of the Year Award
Zurich Municipal has congratulated Hertfordshire County Council for winning the Council of the Year Award. Sponsored by Zurich Municipal the Awards, which are organised by the Local Government Chronicle and are now in their seventh year, are amongst the most coveted prizes in local government.
The Award aims to reward outstanding performance in local authorities across the country. Entrants must provide detailed submissions of their work, which is then subjected to a rigorous judging process, involving meetings with the authorities and their local partners. Winners are chosen on the basis of their overall management ability as well as their approach to delivering services.
Hertfordshire County Council was congratulated for a number of successful initiatives and its modernisation drive. Over the past year the council launched several major initiatives including:
- Hertfordshire Together, to develop the future of the county
- the launch of integrated health and social services for adults, which supports adults with mental health problems
- completion of the first year of its ground breaking Children, Schools and Families service, which has created a child-centred service.
The council also led the public service response to the Potters Bar rail crash and hosted an international conference on managing disasters post-11 September.
Commenting on Hertfordshire County Council's achievement, Guy Munnoch, Managing Director of Zurich Municipal said, "I would like to congratulate Hertfordshire County Council on winning this prestigious award. The council has been extremely innovative in its approach and has clearly demonstrated its commitment to working in partnership to deliver services that truly meet local needs. They have also dealt admirably with the aftermath of the Potters Bar crash and have gone on to demonstrate their determination to learn and share the lessons of crisis management.
"As sponsors of this award, Zurich Municipal continues to be extremely impressed by the way councils rise to meet the challenges. Over the past 12 months there has been an inevitable focus by local authorities on the comprehensive performance assessment, however the quality of the entries for this year's awards demonstrate that it has not deflected from the ability of local authorities to deliver excellent services to the public."
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ALARM in action
by Sheila Boyce, Chief Executive of ALARM
Risk managers in both the public and private sectors will be beating a path to Manchester this month. There are two major conferences, the Airmic Conference for commercial risk managers and the 11th annual ALARM conference for the public sector on 23 25 June.
The ALARM conference is now the biggest international public sector risk management conference and exhibition in Europe. The theme, `Risk Management Express, are you on board?' focuses on how dynamic and important risk management has become in public sector organisations.
Keynote speakers are Roy Bishop, the Acting Commissioner and Director of Operations of the London Fire & Emergency Planning Authority, Matt Dickinson, a filmmaker and writer who successfully climbed Everest in 1996 and Caroline Hamilton, the record- breaking polar explorer and business woman.
In addition, the conference provides top level speakers in 40 thought-provoking workshops and sessions on a range of issues of topical concern to risk managers, such as risk profiling and combating fraud to specialist blue light and health service sessions. Zurich Municipal will bring their experience to the conference through Alan Hunter, Technical Claims Manager, who will speak on such issues as stress in the workplace and education liabilities, and Larry Stokes, Underwriting Manager, who has considerable authority on the growing problem of arson, particularly in schools. There will also be a joint Zurich Municipal and Society of Local Authority Chief Executives (SOLACE) presentation on Strategic Partnerships. The speakers are Pam Dukes, from Zurich Municipal Management Services (ZMMS) and Mike Bennett from SOLACE.
One of the highlights of the conference is the annual dinner and awards ceremony when those who work to promote risk management in the pubic sector receive the recognition they deserve amongst their peers. Guy Munnoch, Zurich Municipal's Managing Director, will be among those presenting awards at this high-profile event.
While the conference is the highlight of the year, ALARM holds regular seminars and training sessions around the country. Fraud is an issue of growing concern and was explored at a recent ALARM seminar at the Reebok Stadium, Bolton (1 May). Fraudsters cost UK local authorities an estimated £1 billion in personal injury and accident claims, and when investigation and defence costs are added to actual financial payments, the real cost to public services of false claims is several times this amount. `
Gatherings such as the ALARM conference provide an excellent opportunity to raise the profile of such subjects which sabotage the efforts of all those working in the public sector to provide an efficient service. For more information on the conference, please contact the ALARM administration office on 01395 223399.
about ALARM
The national forum for risk management in the public sector represents over 1,300 members across the UK public sector. Sheila Boyce can be contacted on 01494 459166 or email
ch.exec@alarm-uk.com Sheila Boyce, Chief Executive of ALARM
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Zurich joins forces with The Princes Trust and Premiership Rugby Clubs
School children who are not fully engaged with traditional class- based activity and need extra encouragement have benefited from an exciting new pilot partnership between Premier Rugby and the Princes Trust, supported by Zurich, who sponsor the Premiership.
Called the `XL' programme, the initiative involves working with XL clubs. There are 450 such clubs throughout the country, providing young people with an accredited personal development programme that is linked to the skills and competencies of the national curriculum.
As rugby sponsors, Zurich recruited Premiership teams Newcastle Falcons and London Wasps to lend their support to local XL clubs during the Spring 2003 term. With many of the team-based values needed to deliver the programme, the clubs and players can set a good example for young people, acting as role models and mentors, as well as teaching by experience.
An inspiring and motivational programme of coaching sessions and club stadium visits was developed by the clubs for the youngsters, giving them the chance to meet the players, watch them train and even take part in a game of tag. As an added bonus, they also saw their club in action at a Premiership match at the end of the programme.
"The involvement of the premiership clubs and players gives the XL scheme a real boost, adding an extra dimension to the curriculum," explained Zurich's Community Affairs Director Chris Staples.
"It's a truly pioneering project that brings together the team-based values of rugby to deliver the skills and competencies of the XL programme, helping vulnerable youngsters improve their educational and social skills level and, more importantly, their self- esteem and self-motivation"
The pilot is now being monitored and assessed. If the results prove positive, Zurich hopes to engage more Premiership clubs in the XL programme next season.
For more information about this, or other Zurich sponsorships, please contact
sarah.mckean@uk.zurich.com
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cover available on land and property transactions
Legal problems relating to the development, purchase or re- mortgaging of land or property can be wide-ranging and extremely complex. Cases of restrictive covenants, lost documents or defective titles can prevent what would otherwise be perfectly sound transactions taking place. Frequently the details are only discovered at a late stage in the proceedings.
Legal indemnity insurance is a single premium contract (minimum premium of £250 plus insurance premium tax) to protect the purchaser from the possibility of third- party claims arising from the shortcoming of the conveyance. It is particularly useful for landowners, local authorities, housing associations or any other public sector provider wishing to embark on a property transaction.
Securing legal indemnity insurance may enable a transaction to take place that would otherwise fail on a legal technicality. A case in point involved a housing association, which had adverse possession on a small part of a site where there was no documentary evidence of title. The legal indemnity policy enabled the association to borrow the necessary funds and proceed with the development.
In another instance, an NHS Trust wished to sell a former hospital site to a developer but there was an issue of `rights of way' in and out of the site. The legal indemnity policy satisfied the bank that was lending the funds, and therefore the development was able to proceed.
There have also been examples of local authorities encountering problems with possessory title and restrictive covenants when selling property under the right to buy legislation.
Zurich Legal Indemnity insurance is designed for anyone who is developing, buying or re-mortgaging property on which a problem regarding legal title is discovered during the conveyancing process.
For further information please contact John Lear, Contingency Manager, Zurich Commercial, The Grange, Bishop's Cleeve, Cheltenham GL52 8XX. Telephone 01242 630618 or email john.lear@uk.zurich.com
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going for a check up the Corporate Safety Inspection Review
The increase in claims against public service providers for trips, slips and falls has shown a sharp increase in recent years. Such instances occur not just in the more obviously hazardous places, such as on pavements and roads, but also to members of staff within the office environment.
Zurich Municipal's own figures indicate that the cost of compensation has risen on average over the last ten years by between 10% and 12% per year. Some latest industry figures indicate that is expected to rise almost immediately to at least 15%.
Many claims could be challenged if public service providers have in place corporate inspection regimes to identify and deal with defects and maintenance. Such systems should not only be laid-down and documented; they should be systematically followed by staff and recorded as such.
The Zurich Municipal Corporate Safety Inspection Review is designed to look at both the actual inspection procedures and the necessary response levels. Defending an action successfully depends on showing that not only had the defect been discovered but also that repairs had been carried out within a reasonable length of time.
Since the introduction of the Corporate Safety Inspection Review two years ago over 50 Local Authorities, as well as a number of housing providers, have taken up the service and have received the benefit of risk management advice.
Ashley Mason, the Insurance Officer at Weymouth & Portland Borough Council, commissioned the review in 2002 and commented, "The Review was clear and precise, highlighting areas of concern and making recommendations as to what was required to improve the safety work being undertaken at the time.
"Managers are now fully aware of the need to undertake safety inspections and the financial consequences of not doing so. The recommendations contained in the report were, wherever possible, adopted, and the resultant effects on the number of claims received were clearly evident within a relatively short period of time."
The risk management bonus of having a good, provable inspection regime is that if defects are found and repaired before they become safety issues, then the level of claims is likely to show a substantial improvement, with all the cost benefits that brings for a public service provider.
For further information on the Corporate Safety Inspection Review please email info@zurichmuncipal.com
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