THE CHARTERED INSTITUTE OF LOSS ADJUSTERS · The Chartered Institute of Loss Adjusters 2 Claims...

FORTHCOMING EVENTSInternational SIG Seminar

Monday, 18th February 2019Four Points by Sheraton, Sheikh Zayed Road, Dubai

High Net Worth & Specie SIG Seminar

Tuesday, 26th February 2019Manchester Art Gallery, Moseley Street, Manchester

Women in CILA event

Thursday, 28th February 2019Edwin Coe LLP, 2 Stone Buildings, Lincoln’s Inn, London

Claims Management SIG workshop

Thursday, 7th March 2019Hyatt Regency Birmingham, 2 Bridge Street, Birmingham

CLAIMS FOCUSTHE CHARTERED INSTITUTE OF LOSS ADJUSTERS • January 2019 Issue • Read and gain one hour of CPD

Contents

All CILA exams will be computer based and on demand by Spring 2019From 1st April members will be able to schedule their CILA exams for a date and time that suits them and all exams will be typed.

3 CILA Qualifications 2018 4 Qualification Success 6 Artificial Intelligence in Construction 8 What role does FUEDI play?

10 Problematic Attitudes and Insurance Fraud 12 Hot Work Clearing

the Smoke 14 Managing the Subsidence Surge

So, what are the benefits? 1. Flexibility – members will have

greater flexibility around when they choose to study for and sit CILA exams and will be able to set timelines that fit with other aspects of their life.

2. Choice of location – Pearson VUE has over 5000 test centres throughout the world and so this will provide our members with lots of choice for where they choose to sit a CILA exam.

3. Prompt resits – members will no longer have to wait 6 months to re attempt an exam and so resits can be scheduled whilst study is still fresh in the candidate’s mind.

Providing computer based, on demand exams is already a well-tested approach within the CILA as our Certificate and Diploma level exams are already delivered by this method. This latest development refers to our Advanced Diploma and Associate level exams, which were previously delivered through written exams with just two exam sittings per year.

All CILA exams will now be facilitated through the exam provider, Pearson VUE.

Continued on page 2

The Chartered Institute of Loss Adjusters

2 Claims Focus January 2019

4. Secure and prompt handling of exam scripts – paper exam scripts were previously handled by post. Computer based exams can be handled more quickly using secure software solutions.

5. Alignment with daily working practices – typing and use of computers is standard practice within most work places and so completion of exams by this method, rather than hand writing on paper, is more reflective of modern working life and the equipment used.

We will update members when the exam vouchers for the Advanced Diploma and ACS exams are available to purchase, via Mindhub. All qualifications remain under the careful and appropriate scrutiny of Council and Bournemouth University.

Our Qualifications and Membership Administrator, Bianca Brezzo, supports CILA members with their exam

Bianca can be contacted by telephone on 0203 861 5726 or via email [email protected]

Continued from page 1

“I want to help our members to achieve their qualification goals and I know that having flexible options for when and where exams can be taken can make a real difference to individuals who are considering whether to attempt a CILA exam. I wish all exam candidates the best of luck in 2019 and look forward to issuing their qualification certificates!”

Please note that from 1st February 2019 the price for every CILA exam entry will be £200.

application enquiries and is delighted to be able to now offer on demand exams at all levels.

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Claims Focus January 2019 3

Congratulations! 278 Members Achieved a CILA Qualification in 2018

A huge congratulations to those members who were successful in attaining a CILA qualification in 2018. We are particularly proud to announce that 52 members reached Chartered or Certified status.

“Congratulations to all CILA members who passed their ACS in 2018!

This is a significant achievement as the ACS is a challenging qualification that was evaluated by Bournemouth University as being equivalent in level to a Masters qualification.

Congratulations also go to the CILA examinations team who have worked hard to develop this qualification in terms of the format of assessment and support provided to studying students whilst at the same time ensuring quality standards were maintained.”

Dr Julie Robson of Bournemouth University has passed on her congratulations to the 52 members who reached Chartered or Certified status: 52

By Gender

Male

200Female

78Total

278

UK 219

United Arab Emirates 7

Hong Kong 6

Ireland 6

Kenya 3

Malaysia 3

Saudi Arabia 3

Singapore 3

Australia 2

Bahamas 2

Bahrain 2

Guernsey 2

India 2

Indonesia 2

Korea 2

Kuwait 2

Qatar 2

Tanzania 2

Vietnam 2

Ethiopia 1

Ghana 1

New Zealand 1

South Africa 1

Turkey 1

Zambia 1

By Location Accreditation for Chartered Status (ACS)

SPECIALISM

Property Domestic 25

Property Commercial 16

Business Interruption 6

Liability 2

Subsidence 2

Aviation 1

TOTAL 52

Qualifiers at each level

Certificate

134Diploma

61Advanced Diploma

31Associate/Certified

52



• James Anderson Sedgwick

• Wing Cheung

• Hoi Yee Evian Chiu

• Paula Cook Marine Reporting (International)

• James Fairbairn QuestGates

• Thomas Frain Crawford & Company

• Tata Gunawan

• John Kennedy Williams Pitt Ltd

• Joseph Laryea

• Deirdre Leonard

• Ashley Martin Basil Fry & Company

• Hossein Moarefi

• Aaron Pollin QuestGates

• Fiona Simpson Cunningham Lindsey International

• Greg Wakeling Fusion Insurance Services Ltd

• Jason Wakeman QuestGates

• Niall Welsh Aviva Insurance Limited

New Diploma Holders

Qualification Success Elevations since the November 2018 edition of Claims Focus

New Associate & Certified Members• Desmond Bradshaw TopMark Adjusters Ltd

• Dave Clare QuestGates

• Gary Eaton Towergate MIA

• Ewart Hodge Direct Group

• Alastair Kidd John Kidd Chartered Loss Adjusters

New Advanced Diploma Holders• Andrew Beckett McLarens

• Anthony Hutchings McLarens

• Jennifer Jones Sedgwick

• Craig Jones Crawford & Company (Australia) Pty Ltd

• Stuart Lean Crawford & Company

• Lorna Martin Crawford & Company

• Vincent McHugh Thornton & Partners

• Christopher Pettet McLarens

• Zuhaib Saif Cunningham Lindsey Saudi Limited

• Ehsan Shaeri Charles Taylor Adjusting

• Gurbi Sian Crawford & Company

• Andrew Siva Chandra Davies Group Limited

• Damien Webster Sedgwick

• Philip McManus QuestGates

• Michael Murrell Sedgwick

• Aaron Slattery Channel Islands Adjusters Limited

• Paul Whitehouse Sedgwick



This publication has been made available by the Chartered Institute of Loss Adjusters solely for the use and convenience of the reader. By making this publication available the CILA does not offer any endorsement or recommendation of the views and opinions expressed therein. For a full explanation of the terms and conditions upon which the CILA provides this publication please see our full disclaimer available on the Institute website.

Correction: In the November 2018 edition of Claims Focus we incorrectly displayed the company name of Toplis & Harding Ltd against member Christopher Kimari who had achieved his Certificate qualification. Mr Kimari works for Mardee Loss Adjusters & Insurance Surveyors.

New Certificate Holders• Claire Ashton Direct Group

• Robert Barrett Sedgwick

• Donna Beet Morrison Insurance Solutions

• Louise Carter Morrison Insurance Solutions

• Karin Clark Lycetts Insurance Brokers

• Kory Cook All Trades Network Ltd

• Karen Couse Crawford & Company

• Ahmed Elbayoumi

• Ryan Forrest Crawford & Company

• Luke Gilbertson Woodgate and Clark Limited

• Karen Greig Crawford & Company

• Jessica Grenfell Quadra Claims Services Ltd

• Marcus Hanson Sedgwick

• Stephen Hayes Sedgwick

• Aaron Herdman Davison & Associates

• Brett Hinton Williams Pitt Ltd

• Alex Hoyle Davies Group Limited

• Jooyoung Hwang

• Sunghoon Jin

• Heather Keenan Lucas Associates Loss Adjusters

• Omar Khan Crawford & Company

• Rachel Lewis A E D Adjusting

• Peter Macpherson Crawford & Company

• Kevin Marriott QuestGates

• Ashley Martin Basil Fry & Company

• Kathrine Martin Davison & Associates

• Louise McGuinness Crawford & Company

• Simon Melhuish Sedgwick

• Karoki Njeru Claim Care Uganda Limited

• Dale O’Hara Crawford & Company

• Alexander Owen

• Luke Pipes Crawford & Company

• Erin Poole Sedgwick

• Derek Ross Crawford & Company

• Judith Rowntree Sedgwick

• Peter Sheridan Lloyd Warwick International

• Adam Smith

• Jenna Stuart Davies Group Limited

• Rahul Thakur AIG MEA Limited

• Malcolm Trotter Delta Claims Services

• Rhian Vickers QuestGates

• Doanh Vu Duc

• Christopher West

• Selina Wilson Crawford & Company



Speaking earlier this year, Google’s Sergey Brin warned us of the dark side of artificial intelligence (AI) and said that “serious thought” must be given to a number of issues, including the impact on employment and the challenges of making unbiased algorithms. As AI gains more applications, the insurance industry knows it needs to keep pace in order to address the risks associated with its rise.

The growing use of AI in construction The construction industry - which was condemned to “modernise or die” by the Farmer Review in 2016 – has started to recognise that, as recommended, its R&D and innovation priorities need to embrace use of site based automation techniques, such as robotics and drones. Construction equipment firms (including JCB and Komastu) are substantially investing in automated plant and equipment that will eventually replace labour activities on site.

“The new spring in AI is the most significant development in computing in my lifetime. Every month, there are stunning new applications and transformative new techniques. But such powerful tools also bring with them new questions and responsibilities”

Drones are anticipated to become a common feature on construction sites, replacing tower cranes, helicopters and other surveying equipment to create 3D site models, monitor the works, produce progress reports and conduct building inspections.

This is just one example of how the construction industry will no longer be dependent on human experience and expertise for design, programming, site supervision and labour only activities. Not only will this reduce on-site fatal injures by replacing the workforce, it will also begin to replace workers for repetitive processes and low-level tasks.

The changing roles of construction professionalsThe roles of many construction professionals, contractors, sub-contractors and their suppliers will also change. In the future, the plant will replace or supplement the labour and, increasingly, the skills of the on-site plant maintenance technicians, robotics engineers and soft and hardware developers will be key to the nature of the risk being insured.

Artificial Intelligence in construction: time for Alternative Insurance?



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ContactJohn Farrell, Partner

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It is, however, unlikely that AI will replace all humans from construction sites in the future. This, in turn, means that humans will still be required on site to supervise the human workers and their interaction with the plant to ensure safety standards are not compromised.

Developments in professional indemnity insuranceThese changes come in tandem with the development of single project professional indemnity policies, covering all professional service providers including contractors, architects, engineers and surveyors. In time, we are likely to see claims arising under these new policies from common errors in the AI across numerous sites, software failures causing damage and failures to adequately survey or consider hazards when creating a 3D site model.

These changes will result in the production and retention of more data. This will be another shift for the industry which currently isn’t capturing enough meaningful data to sustain a fully functional AI program.

Insurers need to be aware of gaps in cover and the possibility of picking up the substantial liabilities of the software developers; a negligent survey or flawed software has the potential to run up sizeable construction claims a few years down the line.

Comment While AI may, in many sectors, reduce risk – and may even eradicate human error – the risk will not disappear entirely but will change. If, for example, the collapse of the steelwork on site is caused by an error in software used to programme the automated plant, will the project managers’, the manufacturers’ or the software developers’ insurance respond to the claim?

Another consideration will be the security of the increased volume of data that will be generated by the adoption of AI. This will mean that security systems and cyber cover will become even higher priorities.

As the level of human touch in programming is continually reduced, not only will questions over liability have to be re-examined but insurers will also have to consider the potential inability to insure against a pre-determined outcome. As AI moves from human input to machines learning from other machines, there may be no way of testing the risk of the final outcome.

AI offers many opportunities, including a reduction of certain risks. Insurers will need to accommodate the shift in allocation of risk and new policies will need to reflect the changes in behaviours to enable the insurance market to benefit from all that AI can offer.

John Farrell, Partner, Kennedys



Q&AMutual recognition of loss adjusting qualifications in Europe What role does FUEDI play? In May 2018 the CILA Executive Director, Malcolm Hyde, was elected President of FUEDI, the European Federation of Loss Adjusting Associations. The federation was set up almost fifty years ago, with the UK and Ireland joining several years later, but what is FUEDI? What do CILA members gain from our participation? And what’s on FUEDI’s agenda for 2019?

What are the objectives of FUEDI?

• The Federation aims to promote the independent/ impartial profession of loss adjusting for the insurance industry and other areas of commerce.

• The maintenance of high standards of professional conduct and competence are of primary importance.

• Co-operation amongst professional associations in member countries will ensure unification of standards of expertise throughout Europe.

What countries are represented by FUEDI?

FUEDI is made up of 14 member associations representing UK & Ireland, France, Germany, Netherlands, Belgium, Denmark, Sweden, Portugal, Spain, Luxembourg, Russia, Greece, Italy and Austria.

Is FUEDI membership linked to membership of the European Union (EU)?

The answer is no however membership of FUEDI has provided the CILA with a platform to make representation to both the UK Government and the European Union.

For example, the Right Honourable Sir Nicholas Soames MP recently arranged for Malcolm, as FUEDI President, to provide insight to UK government officials on the importance and benefits of recognition of CILA qualifications across Europe post Brexit. We were the first professional body to provide evidence to these government officials and mutual recognition of qualifications was indeed part of the agreement put forward by Theresa May in her proposals to the UK Parliament.

What do UK and Ireland members gain from CILA membership of FUEDI?

Mutual recognition of qualifications that assists our members to work in other European countries is highly beneficial. It allows cross border co-operation in the event of catastrophes and on a more personal level assists members who wish to relocate or work regularly in other European countries.

Post Brexit our qualification will continue to be recognised by FUEDI and this is of particular importance to those CILA members who work in EU countries such as Ireland where a minimum level of competence must be evidenced.

FUEDI membership and recognition of CILA qualifications by FUEDI has assisted us in raising awareness and promoting the technical expertise of our members in Europe and beyond.

Is there a FUEDI qualification and how can I achieve this?

FUEDI has two levels of qualification but only the FUEDI-ELAE title is used in the UK and Ireland. To be entitled to use this designation you must have completed the CILA Associate level qualification.


Mutual recognition of loss adjusting qualifications in Europe What role does FUEDI play?

Is the FUEDI qualification benchmarked like the CILA qualifications?

FUEDI set minimum standards for the entitlement to use the FUEDI-ELAE title and these are set as a minimum of a degree level qualification and 7 years’ experience. The CILA Associate level qualification is assessed by FUEDI to meet the minimum standard.

Is loss adjusting similar across Europe?

No! Loss Adjusting as a term is perhaps an “Anglo Saxon” title with many Europeans using the title “Expert”. In many countries these are Court Experts who restrict their role to quantum rather than policy liability. Being Court Experts or Expert Witnesses, these Experts are highly qualified in specialist areas which is often very different from the more generalist approach adopted in UK and Ireland and the common requirement to comment on Policy liability.

What’s on the FUEDI agenda for 2019?

FUEDI is currently developing a new website to publicise its members to European bodies such as Insurance Europe (who represent European Insurers) and BIPAR who represent European Broker Associations and FIRMA who represent European Risk Management Associations.

The future of the European Adjuster is firmly on the agenda with succession planning a strategic aim. This will be the subject of a workshop at the next FUEDI General Assembly in May.

Finally, the benchmarking and recognition of qualifications is of utmost importance and FUEDI are considering the best ways of managing this internally to ensure continued external understanding and appreciation of the depth and degree of competence required to carry the FUEDI-ELAE title.

Who will be the next FUEDI President?

The FUEDI Constitution sets out the order of Presidency and the next in line will be Denmark. Christian Leif Hansen will take over in May 2019 at the General Assembly in Lingfield Surrey, followed in 2020 by Pia Lundberg of Sweden.

The FUEDI President would like to invite a small group of CILA members to attend the FUEDI General Assembly in Lingfield, Surrey on 23rd May 2019. The intention of this invitation is to provide young members with an opportunity to learn about loss adjusting in Europe and to meet key figures from other European loss adjusting associations.

You will be required to participate in a workshop on the future of the European Adjuster, ask questions and record what you learn at the event. Your commentary will subsequently be used to produce a feature article for the CILA membership magazine, Claims Focus, along with FUEDI publications, and your individual contribution will be recognised.

We are looking for volunteers aged 18-35 who are inquisitive, confident, able to communicate with others and write creativity.

If you are interested in this opportunity, please email [email protected] explaining why you would like to take part and what relevant skills or knowledge you would bring. The closing date for applications is Friday 22nd February 2019.

The future of the European Adjuster – Volunteer opportunity for members aged 18-35



Problematic attitudes and insurance fraud: The issue with consumer moral intensityThe following article has been drawn from a Masters dissertation that was undertaken by Ewart Hodge, an Associate member of the Institute. The dissertation was entitled ‘Risk, rationalisation, and reward: An evaluation of insurance fraud in respect of decision making, contract type and consumer attitudes’.

Traditional economic theories of crime suggest that an individual deciding whether to file a fraudulent claim will compare the magnitude of the potential gain from successful fraud with the costs of the claim filing plus potential penalties if the fraud is detected.1 Alarmingly, consumer attitudes are becoming generally more tolerant of insurance fraud.2 Consumer attitudes towards acceptability increases the incidence of insurance fraud; though this is dependent upon an individual’s attitudes towards insurance institutions, i.e. insurers, brokers and loss adjusters.

What is the problem?Insurance fraud acceptability increases when consumers are not confident in the financial stability of their insurer. Consumers who feel that premiums are financially burdensome are more than likely to find recouping excesses acceptable1, usually through the course of claims padding. Tolerant attitudes, or lack thereof, towards insurance fraud are closely linked to negative perceptions of insurance institutions. Negative attitudes toward institutions are essentially a problem of trust.

Consumer trust in the insurance market is essential as the quality of insurance products and services cannot be adequately assessed before purchase. Quality will only become apparent when using the product, or it will never become evident at all should the consumer never claim.3

An interesting aspect of the problem with insurance fraud is the willingness of consumers to commit insurance fraud and to the extent that this willingness stems from negative perceptions of institutions. It could be argued then, that the insurance environment itself contributes to the problem of fraud.

Studies found that there are issues with consumers’ attitudes regarding their perception of harm towards insurance institutions. Differences in consumers’ perceived harm between a fraud against a large insurance company with millions of customers and one against a small local company, may just be perceived to be ‘a drop in a bucket’ for a large insurance company in terms of both magnitude and social consequences, with a slim probability that it has any real negative impact.2

The moral intensity of MillennialsExperimental evidence has found that the age of consumers plays a significant role in moral intensity, i.e. acceptance towards insurance fraud. Millennials have particularly been shown to present less moral intensity. For millennials, moral intensity is found to be significantly lowered when dealing with a large insurer. Similarly, moral intensity is greatly diminished when the fraudulent claim was made to help a friend, as opposed to padding the claim to recover an excess.2 New and future generations of consumers seemingly perceive fraud differently to that of older generations.

There is a dichotomy between Millennials’ lower moral intensity and acceptance of insurance fraud: as it has been found that highly educated consumers are more disinclined to commit insurance fraud; but, the Millennial generation is on track to be the most educated generation in history.4

This dichotomy is most likely due to the fact Millennials exhibit more situational and more leniency based judgments of collaborative versus unilateral ethical violations.2 Situationalism also accounts for specific buying situations, i.e. online versus in-person, also impact perceptions of moral intensity for Millennials.2

Ewart Hodge



What can be done?Insurance institutions can better serve themselves through improved education regarding insurance processes and clearer insurance contracts with consumers.

Acceptance attitudes towards insurance fraud appear to be related primarily to factors which determine the general social fabric rather than to problems with institutions themselves.1 Institutions could consider investing in consumer education that particularly targets younger consumers, i.e. Millennials, to correct their understanding of insurance fraud and potential implications.2

Future social marketing campaigns may consider focusing on social norms, perhaps emphasising on the ultimate cost of insurance fraud (i.e., an increase in insurance premiums) as a way to avoid situation-sensitive rationalisation.2 Another focus that institutions could emphasise is that of marketing ethics: for example, removing high fraud-risk products and cheating opportunities and temptations; re-educating insurance sales staff; and focusing on consumer values. In the end, marketing ethics is probably the best and perhaps the only way of changing consumer moral intensity, itself being insurance against customer dishonesty.5

Consumer insurance education has not only shown to improve knowledge of the insurance mechanism but also results in more positive attitudes toward institutions.6 Individuals with favourable views of the insurance are significantly less likely to find insurance fraud acceptable than those with neutral or negative attitudes.6

Ewart Hodge MSc, FCII, ACILA, CFE

Ewart recently qualified as a Chartered Loss Adjuster and currently works as a Claims Adjuster for Direct Group. He has experience in dealing with various types of property claims and insurance fraud at both insurance companies and loss adjusters.

Citations:

1. http://bit.ly/Tennyson1997

2. http://bit.ly/IshidaChangTaylor2016

3. http://bit.ly/VanRaaij2016

4. http://bit.ly/McCorkindaleDiStasoSisco2013

5. http://bit.ly/BrinkmanLentz2006

6. http://bit.ly/Tennyson2002

The Women in CILA group were delighted to receive a Silver Award at the Insurance Times Awards on 6th December.

This second award of 2018 recognises the effort and impact of our Women in CILA group in:

• Highlighting the gender imbalance in CILA qualification progression

• Increasing female participation in Institute activities• Raising the profile of female role models in loss

adjusting• Creating opportunities for networking and focus on

personal development

Women in CILA win second award for Diversity & Inclusion

Our congratulations to Candy Holland and all the members who have championed this valuable and important work. Thanks also to Crawford & Company, Sedgwick and JLT for funding attendance at the awards ceremony.



Hot Work Clearing the SmokeBy Deon Webber, Senior Investigator, IFIC Forensics

Whoever we are, be it business owners or homeowners, sooner or later there comes a time when we have to invite in contractors to carry out work for us. They might be fixing a boiler, repairing or replacing a radiator, re-felting the flat roof, carrying out a check of electrical installations or just doing some decorating. Whatever the reason, we place great trust in what are usually strangers to look after our property and belongings.

At IFIC Forensics, we regularly deal with fires started during construction related work and from our experience, an all too common feature is hot work.

Defining Hot WorkSo what do we mean by hot work? It is often misunderstood, worryingly sometimes even by those carrying it out! Hot work is basically any process with the potential to generate sparks or create heat.

It is an inherently dangerous process and all of the available guidance states that where there is an alternative to hot work, the alternative should be chosen in preference to the hot work, though in practice this is rarely the case.

Hot work refers to methods of work, primarily in construction and refurbishment, which produce heat in the form of flame, hot surfaces or sparks.

Sources of heat commonly involved in hot work processes include:

• Gas/electric welding and cutting apparatus; • Blowlamps/blowtorches; • Grinding wheels and cutting discs; • Brazing and soldering.

Fires involving hot works are a major concern and recent analysis of Zurich’s claims data reveals that hot works are responsible for up to 15% of all fires in commercial and industrial properties. Zurich states that over a ten-year period, accidents involving hot works caused 164 major fires, resulting in total losses of £69.8m – an average of £425,000 per incident. This is a major problem!

Guidance on Hot Work safetyThere is a plethora of guidance documents produced by insurers, industry groups and government bodies relating to ‘Hot Work Safety’. They all detail relatively similar procedures which represent good practice in hot work. Most policy conditions are based on this guidance.

Apart from complying with policy conditions, anyone failing to follow these procedures will be working against recognised industry guidance. These documents are important and along with the policy can form the basis of a third-party recovery, or a repudiation, whichever side of the claim you find yourself on.

In a nutshell, the guidance means that those carrying out hot work need to:

• Be suitably trained;• Be properly equipped;• Follow industry guidance and policy conditions;• Undertake extensive risk assessment;• Be prepared for the possibility of a fire;• Be aware of the possibility of smouldering fires.



Questions to consider when attending a Hot Work claim sceneWhen attending a hot work claim scene, in the first instance, it will be helpful to consider the following:

• What is the nature of the hot work?• Is there a Permit to Work Scheme in place on the site?• Does the property owner’s Fire Risk Assessment cover

the risks of contractors on site? • Are there any indications of poor housekeeping on site e.g.

combustibles left to build up constituting a fire hazard?• Is there any evidence of other fires on site, deliberate

or accidental?• Are equipment and tools stored properly to prevent

damage?• Are there indicators of a tidy and well-run construction

site or otherwise?

Hot Work PermitThe instigation of a Permit to Work Scheme is vital when considering hot work. These are the responsibility of the ‘Responsible Person’ at the premise. Permits to Work are a process that should result from a Fire Risk Assessment.

Where contractors are likely to be visiting and carrying out work of a potentially hazardous nature, the permit to work system should be introduced to supervise the contractor and control the risks. A Hot Work Permit should be produced for every period of work. They last a maximum of one day and cover only the area detailed in the permit!

They should be signed at the start of the task and at the conclusion of the task by those completing the work and those authorising the work.

Fires occurring where the correct level of control is applied and Permit to Work Schemes are operating properly are rare. More commonly found are the fires where the contractors are untrained and therefore may not appreciate that the work they are carrying out IS hot work and the recommended precautions DO apply!

Clues to understanding the approach of a contractor Those dealing with claims involving hot work, particularly when involving high value properties, should be checking job quotations; method statements; risk assessments. Do they demonstrate a professional approach? Do they show the insured is aware of their obligations under the policy?

In addition, looking for evidence of the training, experience and competence of contractors will give an indication of whether the contractor is fully aware of industry expectations of good practice. Also, the type of equipment being used can have a bearing on the quality of workmanship. Is it in good condition? Is it appropriate for the job and regularly tested?

Contractors with memberships of related trade organisations can be seen as a further indication of a professional approach.

Where incidents or near misses occur refer to any available CCTV and interview witnesses. This can be used to confirm timings such as the commencement and finish of fire watch periods. Interviewing witnesses as soon as possible after an occurrence will maximise the opportunity to obtain accurate and truthful accounts.

At the earliest opportunity, it is vital to obtain copies (or original documents) of any Hot Work Permits, time sheets, risk assessments for the relevant tasks.

The monitoring of construction sites, particularly on large value projects, can assist in the prevention of hot work claims. Periodic and unannounced visits to contractors on site will provide evidence of whether guidance is being followed and could be a more cost-effective option to waiting for the claim to come in.

Case study: Hot Work fire at a Grade II Listed Building

In 2013, a Grade II listed building which was used as a municipal building and local museum in South London reported a leak from the roof. The appointed contractor was contacted, and they mobilised a sub-contractor who had worked for them for many years.

He made his way to the roof and found a missing slate. Not having slates with him he arranged to return, telling his bosses he had fixed the leak. However, when he returned some days later, he realised that the leak was the result of a hole in roofing felt on a section of flat roof. He had a dilemma, he wasn’t covered to carry out hot work, but he had told his bosses that he had already carried out the job and so couldn’t request another team to do it.

So, he went to his van, brought up his gas torch and a piece of ‘torch on’ felt and he carried out the repair. No assessment of the area for nearby combustibles, no provision of a fire extinguisher and no one hour fire watch after the work was completed, in fact he was off the roof within five minutes.

Some hours later, 15 fire engines with four aerial appliances fought a roof fire which destroyed the upper part of the building and seriously damaged the lower parts, including the museum. The damage ran into almost eight figures.

The cause? A lack of training, a lack of control of contractors and a lack of laid down procedures for the carrying out of hot work.



The summer of 2018 will be remembered for a six-week spell when temperatures in parts of the country consistently topped 30C (86F). Following the record-breaking summer, the insurance world is currently faced with a ‘subsidence surge’ after receiving an unusually large number of subsidence related claims. The heatwave played havoc with many buildings due to the sustained warm weather causing water from subsoils to dry out, resulting in shrinkage.

Due to this sudden surge in claims, insurance providers will be keen to close off any straightforward cases, such as those due to pipe washout or poor construction, to allow stretched resources to be better focused on larger, problematic claims. In order to assist insurance professionals to quickly and efficiently repair simple subsidence claims, there are a number of advanced solutions available that offer an alternative to the traditional invasive and time-consuming method of concrete underpinning.

Mainmark’s resin injection processFor example, Mainmark’s proprietary resin injection process, Teretek®, requires little to no excavation, creates minimal mess, and often allows the policyholder to reside in the property while the work is carried out. The resin is injected into the foundation soils beneath a structure’s footings, in a process likened to key-hole surgery. The unique two-in-one solution can improve ground bearing capacity and re-level structures. This technology will allow the claim to be resolved in a quicker time frame compared to traditional methods. Other technologies including Mainmark’s JOG Computer-Controlled Grouting process can also reduce the length of the claim process, especially for larger industrial buildings. The multi-point cementitious grout, which is used for level correction and stabilisation, is recognised for its accuracy and its ability to lift a large targeted area gradually under computer control.

Reducing the lifecycle of claimsThese advances in technology are a real game changer when it comes to claims, as it benefits the insurance provider, the loss adjuster and, most importantly, the policyholder.

Early intervention by means of the advanced solutions now available to adjusters, engineers, and insurers allows a cost and time efficient restoration of the policyholder’s most prized and valuable asset; their home. Traditional repair processes and methodologies, coupled with long term monitoring, are drawn out (at least from the policyholder perspective) resulting in considerable delay and stress, often because the policyholder needs to sell or revalue their property.

Loss adjusters can also benefit from the use of advanced subsidence solutions when managing large claim volumes. By recommending solutions that reduce the repair process and timings, loss adjusters can close off an increased number of claims, allowing more efficient use of stretched resources. This helps to spread their resources more effectively, reducing the overall number of outstanding cases and allows them to invoice their early submission fees.

In order to process this current surge in subsidence claims in the most effective way and to help reduce any backlog, insurance providers should consider some of these more advanced solutions for tackling ground problems.

For CILA members wishing to learn more about these advanced ground engineering solutions, or to learn more about Mainmark, please either visit Mainmark’s website: https://mainmark.com/uk/, project profiles page: https://mainmark.com/uk/news-resources/project-profiles/ or YouTube channel: https://www.youtube.com/channel/UC7A4DuCz0SjBhIGq2UzCbpw

Mainmark are lead sponsors of the CILA Subsidence & Surveying SIG

Managing the subsidence surge by resolving straightforward cases

https://mainmark.com/uk/

https://mainmark.com/uk/news-resources/project-profiles/

https://mainmark.com/uk/news-resources/project-profiles/

https://www.youtube.com/channel/UC7A4DuCz0SjBhIGq2UzCbpw

https://www.youtube.com/channel/UC7A4DuCz0SjBhIGq2UzCbpw

THE CHARTERED INSTITUTE OF LOSS ADJUSTERS · The Chartered Institute of Loss Adjusters 2 Claims...

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