Zurich unveils long-term sustainability aspirations for UK Claims
The insurance industry has a key role to play in achieving environmental sustainability and enhancing the integrity of the financial services market. At Zurich, we understand the risks caused by climate change, and are committed as an organisation to sustainable development in order that our planet, our employees our partners and our customers can prosper, today and in the future. However, sustainability risks to society bring challenges as well as opportunities. Meeting the balance of client needs, regulatory requirements and operating in a sustainable manner, without a doubt presents one of the biggest challenges for claims. Evolving towards sustainability will require changes within our operations and we are working with like-minded partners and suppliers to help us to achieve environmental-related goals, whilst complying to industry regulation and meeting customer aspirations.
Paul Dixon, Head of Claims Proposition and Market Insight, Zurich UK, talks through some of the most important changes which are taking place, in order for the UK Claims operation to become more environmentally sustainable.
Restore not Replace
The average UK household produces more than a tonne of waste every year. This equates to 31 million tonnes per year, which is the equivalent weight of three and a half million double-decker buses, a queue of which would go around the world two and a half times. The impact of a superfluous, single-use, throwaway society is at a crossroads, as the burning of the waste sent to landfill produces hazardous carbon dioxide (CO2) emissions and causes environmental destruction.
’Damage to a building as part of the claims process can result in the fixture or fitting traditionally being discarded rather than restored, only to be sourced and purchased all over again. Zurich is bucking this trend and has partnered with a surface repair and restoration specialist to quickly repair hard surface damage - saving time and reducing the disruption customers may experience in having to move to temporary accommodation for example, whilst a part of a bathroom or kitchen is replaced. With the emerging global challenge of material shortages and skilled contractors bringing about some delays to the claims reinstatement process, the restoration route may also prove to be a viable alternative to a traditional replacement route.
“The customer is put back in the position prior to the loss or damage occurring quicker than the traditional replacement route meanwhile this process reduces the strain placed on the environment as new parts do not need to be made and it reduces waste sent to landfill.”
Recyclable Motor Parts
Zurich aims to use ‘green parts' in non-mechanical motor repairs, which cuts down on the production of CO2 emissions. Other benefits to using green parts include the fact that it can prevent delays in the repair process when new parts are not immediately available. As well as cutting emissions directly and tracking this, we’re also exploring other ways to reduce and off-set our carbon footprint in claims.”
Increased Remote Assessments and the use of Drones and Tech
A recent report states that UK financial institutions are responsible for 1.8 times the UK’s annual net emissions of CO2. Therefore as an industry, we need to challenge existing behaviours and invigorate the ways we service our customers to reduce our emissions.
Drone usage is traditionally connected with our handling of major loss claims where access to site is restricted or widespread damage such as flood. Earlier this year we have extended the use of drone inspections into the lower value buildings claims space to help with validation and assessment to roof damage claims usually after a windstorm. This removes the need to deploy a contractor to site along with any scaffolding requirements to physically carry out the inspection.
Along with desk top assessment tools as part of the household claims process which allow our handlers to ‘see the damage’ at FNOL by connecting to the customers smart phone or device - we are available more quickly to provide real-time assistance and support to the customer. By removing the need to travel to the customer’s property, we are also preventing harmful emissions, such as CO2, from entering the atmosphere
Electric Vehicle Replacement
As more of our commercial customers are moving across to Electric Vehicles to help to protect the earth against climate change, as an optional extra, we now offer a hassle-free service to provide ‘like for like’ replacement EVs following damage to a vehicle.
Loss Adjuster Toolkit – Post Flood
If a customer has experienced damage to their home or business caused by flood water, Zurich will continue to cover the cost to replace or restore flood damaged items on a like for like basis. However, as is often the case in areas which are susceptible to flooding, the customer may need goods or surfaces to be replaced several times after repeat flooding
While it can be tempting just to start again and build back as before this doesn’t help to prevent future problems. Our loss adjusting partners will work with customers to assess how we can help mitigate future damage, by considering building back with property flood resilient measures so customers can avoid repeatedly experiencing the distress and upset which flood damage can cause.
One solution we are looking to provide to policyholders, is the option to use part of the insurance settlement payout towards future flood-proofing. Every loss adjuster will work with each customer on a case-by-case basis, to determine if this is the right solution to meet their individual needs. The implementation of this solution where appropriate, also helps sustainability, by reducing the production of short-lived goods which will need repairing or disposal as a consequence of another flood.
Widen Scope of Zurich Support Services
With five million people in England at risk of flooding, and climate change intensifying the frequency and severity of extreme weather, a mental health crisis is looming. Announced earlier this year, we are offering free counselling sessions to customers that make a claim. Under the initiative, existing customers who are forced to make a claim, will be entitled to five counselling sessions with a qualified mental health expert. The benefit extends to their immediate families over the age of 18. Zurich is currently looking at how it can go beyond helping policyholders and how it can support those in the wider community too.
