icca seminar - 14th november€¦ · a shopper, who slipped on a discarded baby wipe in argos and...

ICCA Seminar - 14th November

Insurance Mark Doyle & Niall O’Neill

14th November 2017

© 2016 Willis Towers Watson. All rights reserved.

Contents

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

✓ Willis Towers Watson

✓ Liability Claims Environment

✓ Accident Investigation and Reporting

✓ Claims Management

✓ Insurance Market

✓ Insurance Options

✓ Questions

Willis Towers Watson Overview

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 3

Willis Towers Watson Colleagues Can Be Found All Around the World

A strong client focus, an emphasis on

teamwork, unwavering integrity, mutual

respect and a constant striving for

excellence are the values at the core of the

new Willis Towers Watson organization.

▪ Domiciled in Ireland

Willis in Ireland

4

We employ over 560 people in our offices in Dublin, Cork, Limerick, Galway and

Belfast.


Experience

5© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

Cleaning Sector

6© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.

The Law – Occupiers Liability Act 1995

Duty to Visitors

➢ To take reasonable care that they and their property do not suffer

harm by virtue of a danger on the premises – (restates common law

duty to invitees)


Case Law – Mullen v Quinnsworth

Mullen v Quinnsworth

➢ Supreme Court Decision

➢ Almost strict liability

➢ Spillage of cooking oil from shelf had occurred only minutes before accident

➢ Supermarkets need to have full-time cleaner covering aisles - response only measures insufficient


Case Law

Conroy v Argos Dublin Circuit Court 2012

A shopper, who slipped on a discarded baby wipe in Argos and damaged his shoulder when he

fell, has been awarded €17,500 in Dublin´s Circuit Civil Court.

After receiving medical treatment, the Plaintiff made a claim for slip in Argos injury compensation

against the store – claiming that their system of checking the store for potential hazards was

inadequate and he had suffered an injury as a result.

Argos denied liability; arguing that CCTV footage revealed the presence of the baby wipe just six

minutes before Declan´s accident and contending that staff could not be asked to constantly

monitor the condition of the floor in a low-risk store.

After hearing all the evidence, Judge Jacqueline Linnane ruled that on the balance of

probabilities it was a woman with a baby buggy who was responsible for dropping the baby wipe

and, as more than ten minutes would have passed between the hazard being present and the

accident, she was attaching liability to Argos. She awarded the Plaintiff €17,500 plus costs.


Contractual Liability

Objective

➢ Avoid “hold harmless”

➢ Only accept liability for your own negligence/breach of duty/breach of contract to the extent that such

breach has caused the accident/injury

➢ Exclude liability and seek indemnity from Employer where you have performed your services in

accordance with the SLA

➢ Exclude liability and seek indemnity from Employer where accident/injury is as a result of Employer’s

own negligence/breach of duty

➢ Contract should be clear and unambiguous e.g.

1. Early morning clean v Continuous monitoring throughout day

2. Building only v Car park included

➢ Meeting minutes/correspondence file notes in run up to contract signing should be retained so as to

prove intent


Accident Investigation and Reporting

Why?

▪ Identify failures in safety management

▪ Prevent a recurrence

▪ Compulsory (H.S.A.)

▪ In contemplation of legal proceedings

▪ Insurance policy conditions


Accident Investigation

Immediate

▪ While scene is preserved

▪ Fresh in people’s mind

▪ More persuasive evidence

▪ Insurers will rely on the quality of investigation

▪ Conducted/Signed-off by “owner”

▪ Not just another form filling exercise

▪ Remember the injured party has 2 years to make a claim

▪ It may take a further 3 years + to reach trial


Accident Investigation - cont

Fundamentals

–Identify and record exactly what happened

–Attention to detail - who, what, where, why, when?

–To whom was it first reported, by whom, and when?

–What was reported? 1st version is often most reliable (although shock may

distort)

–Type of injury? Medical attention?

–Did injured party cease working?



The injured party

▪ Name, address, age

▪ Occupation/Job description

▪ Years service

▪ Previous accidents/injuries

▪ Immediate supervisor

▪ Any other relevant information e.g.

other jobs/hobbies



Examine the locus

▪ Take photos

▪ Retain cctv

▪ Retain baton/cleaning records

▪ Serious injury - preserve the scene

▪ Record findings e.g. Was floor wet/defective/dirty/loose tile

etc?

▪ Beware Third Party engineering inspections –

NO FISHING EXPEDITIONS!



Witnesses

–Identify and record names and addresses

–Eye witnesses and those who saw before and after

–Interview

–Take statement. This will help refresh memories in 3 years time and prevent

witnesses changing their story

–Interview injured party and take statement for same reason (built into

reporting procedure)


Lessons LearnedPreventative Measures

➢ Avoid cleaning during times of high pedestrian traffic e.g. 9am/5pm in offices

➢ Use of yellow warning signs clearly visible from all angles

➢ Area should not be open to pedestrian traffic until dry and safe

➢ Where spillage has occurred:

1. Stand over spillage

2. Cordon off area

3. Clean

4. Do not remove cordon until hazard removed

➢ Training (including refresher) - Supervision - Enforcement

➢ Have unsafe practices evolved and are they condoned? Tacit acceptance?

➢ Is the workplace safe?

➢ Are the systems of work safe?

➢ Is protective clothing supplied and it’s wearing enforced?

➢ Are Managers aware of their responsibilities and duties?

➢ Is there a regular review of all occurrences by H&S Committee?

➢ Local Settlements – vouchers etc


Recent Developments

• Social Welfare & Pensions Act 2013 – Recoverable Benefits

• Increased Courts Jurisdiction

• Court of Appeal

➢ 50% of High Court Awards overturned

➢ Now 12 month backlog

➢ Vacuum in High Court

• New High Court Judicial Appointments – 23/36 < 3 years experience. Unfamiliar with PI

Claims?

• Russell v HSE- Rate of return on investment reduced from 3% to 1% future care

• Periodic Payment Orders

• Revised Book of Quantum

➢ Inflationary

Whiplash €14,400 - €15,700

Fracture ankle: €35,300 - €54,700

Back €85,900 - €92,000

➢ Not Internationally Benchmarked

(ROI €15,700 v UK £5000 standard whiplash)

➢ Consistency is vital – Judicial training

• By-passing the Injuries Board – no penalty

• Estimated cost of fraud - €200m p.a. / €50 per policy

(Insurers should fund Fraud Squad)


Claims Management


▪ Reduce Incidents

▪ Manage & Control Cost

Objectives…

… how we do it…

▪ Agreed Claims Handling Protocol

▪ Maximise prospects of successful defence or settle at lowest

possible cost asap

▪ Proactivity – effective reporting & investigation

▪ Effective investigation – informed decision on

liability/quantum/tactics asap

▪ Balance – early settlement/Injuries Board v Full Defence

▪ Legal costs – 50% is average only – can often exceed award

▪ Participation/Partnership approach – No surprises

▪ Training

▪ Claims Defensibility Healthcheck

▪ WOL – Willis Online – Claims Management Platform

▪ Loss Forecasting

▪ Trend Analysis – Link with Risk Management

▪ Present risk to market in most favourable light

INSURANCE MARKET CYCLE

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Insurance Placement


▪ Achieve optimum

coverage and cost

Objective…

… how we do it…

▪ Start the renewal process early

▪ Prepare detailed financials

▪ Draft Risk Management Presentation ( introduce later )

▪ Claims Review

▪ Early approach to market

▪ Meet underwriters

▪ Assess quotes and make informed decisions

▪ Take a long term view

▪ Develop a Partnership Approach

▪ Promote Health & Safety

▪ Evaluate contract profitability

▪ Site Interventions

▪ Ensure the market is aware of investments in technology and training

✓Present risk to market in most favourable light

LIABILITY CLAIMS TRIANGULATION

Claims @ Claims @ Claims @ Claims @ Claims @

Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Payroll Turnover

2011/12 6,000 43,572 39,492 39,492 39,492 2,960,304 14,082,000

2012/13 - 10,572 108,315 72,909 72,909 3,220,631 18,773,246

2013/14 - - 18,000 57,585 82,085 3,602,093 20,905,870

2014/15 - - - 246,500 233,811 4,231,164 25,171,160

2015/16 - - - 174,000 4,755,663 28,452,068

EL Premium EL Claims Loss Ratio

2011/12 32,419 39,492 - Burning Cost ?

2012/13 39,684 72,909 -

Claims /

Turnover

2013/14 42,041 82,085 -

2014/15 58,919 233,811 -

2015/16 58,814 174,000 -

231,877 602,297 260%

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LIABILITY PROGRAMME – WHICH OPTION ?

Option 1 Option 2 Option 3 Option 4 Option 5

Deductible€320,000 Annual

Aggregate

€5,000 each and

every claim NIL

€10,000 each

and every claim

€20,000 each

and every claim

Total Premium

€

55,000

€

240,000

€

400,000 € 220,000 € 164,000

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“CRUDE” QUOTE COMPARISON

Est Claims No. Cost

Cost Of Collateral ?

Best Scenario? 2 €50,000

Liability Scenarios

Medium Scenario? 3 €175,000

Worst Scenario? 5 €350,000

WORST Claims - 350,000 ( 5 EL ) Option 1 Option 2 Option 3 Option 4 Option 5

Deductible €320k Agg €5k eec Nil €10k eec €20k eec

Potential Claims Cost €320,000 €25,000 €0 €50,000 €100,000

Premium €55,000 €240,000 €400,000 €200,000 €164,000

Total Cost Of Risk €375,000 €265,000 €400,000 €250,000 €264,000

MEDIUM Claims - 175,000 ( 3 EL ) Option 1 Option 2 Option 3 Option 4 Option 5


Premium €55,000 €240,000 €400,000 €200,000 €164,000


BEST Claims - 50,000 ( 2 EL ) Option 1 Option 2 Option 3 Option 4 Option 5


Premium €55,000 €240,000 €400,000 €200,000 €164,000


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Conclusion

✓ Liability Claims Environment remains difficult

✓ Implement and foster an effective accident management system

✓ Control the cost of claims

✓ Work with an experienced broker who will steer you through the renewal process

icca seminar - 14th november€¦ · a shopper, who slipped on a discarded baby wipe in argos and...

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