Cunningham Lindsey. Annual Report - July 2014 Evidence of Action Against ClimateWise Principles

Transcription

1 Cunningham Lindsey Annual Report - July 2014 Evidence of Action Against ClimateWise Principles

2 Contents Introduction 1 Principle 1: Lead in risk analysis 2 Principle 2: Inform public policy making 5 Principle 3: Support climate awareness amongst our customer 6 Principle 5: Reduce the environmental impact of our business 8 Principle 6: Report and be accountable 11 Concluding Comment 12 Appendices Appendix 1 Appendix 2 Appendix 3 Research papers and articles Example training and case study Policies (please see separate file: Appendix3 policies.zip)

3 Introduction This is the Cunningham Lindsey annual ClimateWise report detailing the actions taken against the six principles over the last 12 months and outlining proposed areas of activity for the coming year. We re still relatively new to ClimateWise and this is our second full reportable year of membership. Cunningham Lindsey is the UK s largest loss adjusting and claims management company and we re reporting under business category E loss adjustors. We believe is one of the organisation s minority business groups. Details of the company are available on our website - We ve chosen to apply the maximum exemption provision and exclude reporting from the following sub-principles: 3. Support climate awareness amongst our customers exclude 3.2 & Incorporate climate change into our investment strategies exclude 4.1 & 4.2 We ve done this, as these areas aren t covered in our core business activity. There are other subprinciples which we also don t think relate to what we do at present, but we re unable to exclude these. We hope it s recognised that our main business is to handle claims on behalf of our insurer clients, rather than risk management, policy pricing levels etc (see 1.3). However, we re aiming to make sure our processes lead the adjusting industry in its response to climate change and to allow a sustainable future. We ve detailed our evidence in the tables below. 1

4 Principle 1 lead in risk analysis Sub-principle 1.1 Support and undertake research on climate change to inform our business strategies and help to protect our customers and other stakeholders interests. Where appropriate share this research with scientists, society, business, governments and NGOs in order to advance a common interest Evidence As loss adjusters we see the effects of climate change in the frequency and extent of claims we receive from our insurer clients, particularly those relating to environmental effects such as flooding, storm, escape of water (due to freezing) and subsidence damage. When handling claims we have to liaise closely with customers whose property and lives have been affected. We provide technical support to help clients when required. For example, we ve previously included working on behalf of the Association of British Insurers (ABI), investigating flood resilient and resistance repair costs: One of our Chartered Quantity Surveyors, Rotimi Joseph, has carried out research with the University of the West of England into the effects and responses to flooding. Rotimi concluded his PhD in March. His research investigated how properties could be adapted to withstanding flooding as the frequency, through climate change, increases. In particular he examined the effects on the health of customers and how this could be managed. A list of research papers and articles published in the reporting year are shown in Appendix 1. Planned activities We re currently running projects investigating: Potential CO2 savings which can be made through a new way of drying wet properties Mechanisms for reducing landfill generated during property repair We re keen to offer research assistance to ClimateWise members where we can appropriately use our expertise. Please contact: peter.wassell@oriel.co.uk 2

5 1.2 Support national and regional forecasting of future weather and catastrophe patterns affected by changes in the earth s climate. Over the last 12 months Cunningham Lindsey has remained heavily involved in research in weather patterns through its subsidiary company, WeatherNet. Details are available on its website It has an exclusive network of manned and automatic weather stations around the UK and provides a weather forecasting service to around 90% of the insurance industry. Clients have continued to use the data to support the claim process and receive forecasts of serious weather events and their considerations of climate change. We re mindful of the affects of temperature extremes combined with low rainfall on subsidence, again affected by climate change. To support understanding we regularly issue our surge watch reports to the market bsidence+watch+-+june+2014&utm_content=subswatchjun14&dm_i=40x,2kyq0,vt7db,9fbtg,1 Planned activities 1.3 Use research and improve data quality to inform levels of pricing, capital and reserves to match changing risks. The WeatherNet service and surge reports will continue in the coming 12 months. Our activity doesn t include informing pricing levels, capital etc. However, we do supply our clients with claim data which includes reserves on individual claims which we re handling. We continue to supply the most accurate reserves. Planned activities We ll continue to provide accurate reserve data. 3

6 1.4 Evaluate the risks associated with new technologies for tackling climate change so that new insurance products can be considered in parallel with technological developments We don t provide insurance products. As adjusters we deal with the claims which arise, sometimes through the effects of climate change. As such, our activities don t include risk assessments of technologies which tackle climate change. However, we do review how to deal with claims for new technologies which are connected with reducing climate change. For example, below is a screenshot of our internal adjuster technical resource which shows details of how to deal with claims for damage to solar panels. Planned activities We ll continue to provide information of how to deal with damage to the new technologies. 4

7 Principle 2 inform public policy making Sub-principle 2.1 Work with policy makers nationally and internationally to help them develop and maintain an economy that is resilient to climate risk. This should include supporting the implementation of emissions reductions targets and where applicable supporting government action that seeks to enhance the resilience and reduce the environmental impact of infrastructure and communities Evidence We ve supported initiatives which address emission reductions. Cunningham Lindsey is now a participant in the government s CRC energy efficiency scheme and supports the initiative to reduce the impact of its business operations. We re also committed to membership of ClimateWise and helping support its initiatives. Our building repair network, Oriel, completed over 100m of building repairs in the last 12 months. As part of our support of carbon emission reduction policies and sustainability, it has obtained ISO14001 accreditation this year. Planned activities 2.2 Promote and actively engage in public debate on climate change and the need for action We re keen to work with the ABI Sustainable Insurance Claims Forum and plan to discuss this with the ClimateWise secretariat. We ve taken opportunities to engage in debate. For example, when the insurance press has approached us to comment on environmental issues, we ve promoted a sustainable approach Post magazine article The Green Deal (26/11/13). Our repair network, Oriel, has engaged with its contractors on the issue of environmental management and is encouraging them to disperse the messages through the supply chain. We ll continue to do this in the coming year. 5

8 Principle 3 support climate awareness amongst our customer Sub-principle 3.1 Inform our customers of climate risk and provide support and tools so that they can assess their own levels of risk Evidence The role of adjusting firms is to manage claims in accordance with the instructions from our insurer clients. It s not currently appropriate for adjusters to engage directly with clients about how they might change their behaviour to mitigate climate risk. Unless, of course, we re specifically asked to assist with particular issues or aspects as part of our claims handling. For example, following the UK floods in December 2013/January 2014, we ve worked with some flood affected customers to show how their properties might be reinstated using resistant and resilient materials and techniques. We ve provided specific tailored information, and unique costing details to help customers obtain the government repair and renew grants designed to promote sustainability. Proposed actions 3.3 Seek to increase the proportion of non-life claims that are settled in a sustainable manner. We ll continue to support customers on aspects of climate change when requested. We provided loss adjusting and quantity surveying input to ClimateWise on the development of the sustainable claims guidelines. We re signatories to the agreement and have worked to reengineer the claims process. The sustainable claims initiative identified that the biggest impacts could be made in the handling of wet peril claims and particularly if new drying technology is used. Accordingly, we have: Designed a new wet perils claim process which involves using thermal drying equipment Invested over 100k through Oriel network contractors in the new drying technology Implemented the new approach on escape of water and flood claims when appropriate instructions have been received from our clients 6

9 This new process has entailed significant internal developments including: Staff training Training of over 50 individuals in contractors organisations Engaging our supply chain on the climate advantages of this change We ve included details in Appendix 2: Link to example training video Example training presentation Example case study Proposed actions We re continuing to develop the sustainable claims initiative. We re establishing an internal Cunningham Lindsey and Oriel sustainability forum to investigate other initiatives we can introduce. 7

10 Principle 5 reduce the environmental impact of our business Sub-principle 5.1 Engage with our supply chain to work collaboratively to improve the sustainability of their products and services Evidence We have introduced sustainable procurement, environmental and carbon reduction policies in Cunningham Lindsey and Oriel. Copies are included in Appendix 3. One of the key areas of environmental impact of our operation is staff travel to risk addresses. We ve reduced the impact of our travel over the last 12 months as shown in the Appendix 3. While we support the principles of sustainable products within our services, this can be very difficult in the area of insurance reinstatement and management of our managed building supply chain. Reinstatement policies entitle like for-like repair/replacement, therefore it may be either inappropriate or against customers wishes to reinstate in an alternate form. For example, the replacement of a damaged hardwood window with softwood may not be accepted. One client has though requested that we prepare a green building repair specification which might be offered, in future, in conjunction with specific policies. Repair cost is also a barrier. Where sustainable products are more expensive, we ve generally found clients unwilling to fund the additional costs. Proposed actions We re working to develop a green/sustainable building repair specification. 8

11 5.2 Measure and seek to reduce the environmental impact of the internal operations and physical assets under our control We measure three key areas of environmental impact of our claims management operation: Fuel use Paper recycling Electricity use A copy of the Cunningham Lindsey Environmental Management System (EMS) is shown in Appendix 3. As part of our EMS, we ve recorded: Average fleet vehicle emissions have been reduced to CO2g/km, compared to the UK average of CO2g/km Fuel carbon footprint has been reduced from 3,187 tonne CO2 (2011) to 2,554 tonne CO2 65 tonnes of paper was recycled Our largest office, our Cardiff Claims Centre, has reduced its electricity usage from 3,151 units/day (2012/13) to 2,131 units/day (2013/14) Planned 5.3 Disclose our emissions of greenhouse gases using a globally recognised standard We continue to work to improve the environmental management of our assets. Our building repair network, Oriel, achieved ISO14001 accreditation in 2014 and detailed environmental measures are in place including for network repairers. We ve included details of emissions above. We don t currently disclose these against a standard and have no current plans to do so. 9

12 5.4 Engage our employees on our commitment to address climate change, helping them to play their role in meeting this commitment in the workplace and encouraging them to make climate-informed choices outside work We publicise our approach to the environment to all staff via our intranet, Linkup. We also promote the recycling of paper, cardboard, plastics and printer cartridges in each office. Posters also encourage unused electrical equipment to be turned off. In Oriel, the EMS and our approach to sustainability has been specifically briefed and assessed as part of the ISO14001 accreditation carried out through the British Standards Institution. Planned We re aiming to develop the promotion of our approach to the environment through our intranet articles. We don t yet have target dates for this. 10

13 Principle 6 report and be accountable Sub-principle 6.1 Ensure that the organisation is working to incorporate the Principles into business strategy and planning by encouraging the inclusion of the social and economic impacts as part of the Board agenda. Evidence Mark Henderson, Business Improvement Director sits on the Cunningham Lindsey Executive Management Committee and has responsibility for environmental issues. This includes coordination with Oriel and its environment initiatives. The Cunningham Lindsey CSR committee holds a quarterly forum which considers the high level company environmental response. The committee includes representatives from our procurement team and Oriel. Planned 6.2 Publish a statement as part of our annual reporting detailing the actions that have been taken on these principles. The CSR committee will continue to review our environmental response. This report outlines our progress against the various principles. We think that some of these will continue to be inappropriate for us to respond to, but this remains under review. As stated in the report s introduction, we ve excluded reporting against four sub-principles. 11

14 Concluding comment We re working to implement the ClimateWise principles as business requirements allow. We ve progressed our initiatives in the current reporting period in a number of key areas: Research Promotion Carbon reduction Staff involvement We ve made important advances in the implementation of sustainable claims and the implementation of procedures, such as gaining ISO14001 accreditation. We ll be working in the short term to develop our plans for the next 12 months and expect that when we report again we ll be able to demonstrate further progress with the principles For any queries regarding this report, please contact: Peter Wassell Quantity Surveying Director peter.wassell@oriel.co.uk

15 Appendix 1 Research papers and articles

16 Principle 1.1 List of research publications Contribution to book chapters The cost of flooding on households. In Booth, C. and Charlesworth, S. (eds.) Water Resources in the Built Environment Management Issues and Solutions. London: Blackwell Publishing Limited (2014). Pp ISBN: Link to the book: Flood risk mitigation: Design considerations and cost implications for new and existing buildings. In Robinson, H; Symonds, B; Gilbertson, B and Ilozor, B (eds). Design Economics for the Built Environment: Impact of Sustainability on Project Evaluation. John Wiley & Sons (in print). ISBN No Link to the book: bertson/ben+ilozor/design+economics+for+the+built+environment/ / Journal Papers Application of the concept of cost benefits analysis (CBA) to property level flood risk adaptation measures: A conceptual framework for residential property. Structural Survey 32(2), (2014) Link to the abstract: Assessing the value of intangible benefits of property level flood risk adaptation (PLFRA) measures. Journal of Natural Hazard. (2014) Under review

17 Conference papers Resilient reinstatement: What can we learn from the 2007 Flood event in England? Proceeding of the 4th International Conference on Flood Recovery, Innovation and Response IV (FRIAR). Poznan, Poland. (18 th 20 th June 2014). PhD Thesis Development of a comprehensive systematic quantification of the costs and benefits (CB) of property level flood risk adaptation measures in England. PhD, University of the West of England. (2014) Link to the thesis:

18 Appendix 2 Example training and case study

19 Case study- Escape of Water within 3 flats Incident details The building suffered an escape of water from the toilet cistern in the first floor flat Water ran through into the kitchen below in the ground floor flat and onto the kitchen hardwood floor The water then travelled into the lounge and hall directly below in the basement flat affecting a number of rooms The Ground and Basement flat were uninhabitable as a consequence of the incident Extent of Damage Localised damage to flooring in bathroom to First Floor flat Saturated hardwood kitchen floor to Ground floor flat Water saturation to ceilings / walls / concrete floor in Basement flat Drying approach The drying company initially instructed installed de-humidifiers immediately after the incident, which stabilised the environment and stopped immediate deterioration We attended site to consider if the property could be dried faster using Thermal Dynamic Drying and we were satisfied that there was every chance we could reduce the drying time and extent of repairs The property was surveyed to assess the extent of the escape of water and a scheme designed to use: First Floor Flat: No drying required as heat from below would dry localised wet area Ground Floor Flat:

20 The heated floor drying system was installed to the hard wood plank floor of the kitchen including heated air being injected under the kitchen units, which was monitored by remote monitoring system. The thermal drying system generates dry heated air to increase the ambient air temperature in stages (step drying) so as to remove the potential of stress fracturing to delicate surface materials Basement Flat Heated wall and floor systems installed to the basement flat lounge wall and floor to direct warm dry air directly into the areas affected by the escape of water to promote sufficient thermal activity to increase evaporation. Results The two flats were dried as follows: First Floor Flat: This was dried 16 days faster than tradition drying methods and the hardwood floor was saved, reducing the extent of strip out and replacement costs and reduction in the repair time Basement Flat: This was dried 37 days quicker than traditional drying methods, significantly reducing Alternative Accommodation costs Financial Savings Scope Hardwood Kitchen floor in the ground floor flat and raised area of flooring in the basement flat would not have been saved with traditional drying, replacement and associated costs have therefore been saved as detailed below: Estimated material and labour cost Ground floor flat 1000 Estimated material and labour cost Basement flat 400 Cost of Drying Rental Same cost ( 550) Saving on electricity on traditional drying 590 Consequential costs Ground Floor Flat (Kitchen unusable 16 days) 2 30/ day for 16 days 960

21 Reduced repair works (kitchen in use quicker) 2 30/ day for 5 days 300 Basement Flat (accommodation for 37 days) Family of 3 150/night 37 days 5,550 Estimated Total savings 8,800 Conclusions This was a claim with initial buildings and Alternative accommodation costs expected to be settled at approximately 29,000. By taking a different approach to drying (assuming the same drying costs) we have been able to save Insurers 8,800 which is a 30% reduction in anticipated claim spend

22 Appendix 3 Policies (Please see separate file: Appendix 3 Policies.zip)