Sustainable Claims
We have taken a number of steps to reduce material, energy usage and waste when handling customers’ claims. Such measures often reduce the timescale for repairs and the overall cost; which benefits us, the repairer and the customer.
We started offering customers the use of recycled parts in motor claims, in 2008. This reduced time and cost of repair, as well as reducing energy and waste. We also offer a mobile motor repair service for minor or cosmetic damage. This reduces energy in the repair process because the vehicle is not taken to a factory and eliminates need for a courtesy car, which reduces cost and is more convenient for the customer.
Recycled parts for vehicle repairs
We use fewer new parts per motor claim than any other UK insurer. We offer customers the use of recycled parts at claim notification and point of repair.
This service has multiple benefits:
- greater time and energy efficiency;
- reduced repair/claim costs;
- better profit margin for repairer, which encourages greater uptake; and
- “total loss” settlement can be avoided where damage is “cosmetic”; which reduces waste.
Mobile motor vehicle repairs
Minor accident damage can be repaired by using a mobile service provider at the customer’s choice of location. The benefits of this are:
- reduced energy in the repair process because the vehicle is not repaired in a factory using machinery;
- energy is eliminated from collection and delivery as a courtesy car is not used;
- the service fits in with the customer’s routine, giving them choices; and
- reduced claims costs.
In partnership with a specialist waste recycling company, SWR, we offer our approved repairers the opportunity to opt for a greener and cheaper approach to managing their waste. SWR commit to deliver and report on a recycling ratio of 75% by weight of all wastes produced by customers, within 3 years. By the end of 2010, around 22% of our repairer network had signed up to SWR.
We are now exploring ways to take these principles of energy efficiency and waste reduction across a wider range of claims lines, including property. However, there are several barriers to implementing wide scale changes across all claims lines. In particular the short-term nature of insurance policies makes it difficult to increase the sustainability of insured property through, what are often costly, long-term solutions.
However, we will be working to identify key performance indicators in order to establish a baseline line, so that we can then start to drive improvements by working with our suppliers.
