2005 is the Chinese year of the chicken, which means it is a good year for the reckless and those who think they are always right
Hardly a reassuring thought for those in the insurance industry and in particular those in claims. Personal injury claims costs are already set to soar after Insurance Times revealed that reinsurers will abandon support for periodical payments leaving primary insurers to shoulder the burden.
That creates a hidden minefield for insurers and brokers alike.
The industry is hardly helping itself, according to Philip Robinson, financial crime guru at the FSA. Robinson suggests that evidence exists to show that firms complacently see fraud as a cost of doing business (page 17). Hardly inspiring.
The claims management community also comes under attack for falling outside FSA regulation and being allowed to self-regulate (page 25). Will they be forced to opt in? It could be the making or the breaking of the Claims Standards Council which will be responsible for monitoring the process.
This bizarre situation means that the CSC has to balance overseeing companies that are not regulated and those that are - like solicitors and intermediaries - but use processes that are not regulated. But, ultimately, the ball is in the court of the companies ...
On a more positive note, the commercial claims process is being dealt with more promptly and efficiently after horror stories of delays in the past (page 33). Although it does raise the question why a faster, efficient system with the wide availability of technology has not been adopted before now?
And the industry should take a lead from Zurich's Bill Paton on how to be proactive and innovative (page 7). He has restructured Zurich's claims division and still is seeking ways to better the business. He certainly isn't a chicken.