News in Brief...

Impending recruitment crisis
The claims and loss adjusting panel at the CII conference warned of the impending recruitment crisis in the claims sector unless radical action is taken to address issues such as image and remuneration.
Bob Foster, claims director at Brit Insurance, said the claims division is the most important part of any insurance company through the protection of stakeholders and the control of a very sizeable spend. "There should be no glass ceiling, in respect of entrepreneurial skills or career prospects, and we need greater exposure to the outside world and we need to set higher levels of education," he said.
Ian Muress, managing director of Crawford & Company, fired a warning shot: "If loss adjusters aren't relevant, they won't survive. The insurance market has changed over the past 10 years, so the claims sector should change as well.
"If there's recognition that claims has the potential to be a differentiator, then the relationship between loss adjuster and client must change from short-term to long-term. And the industry needs to recognise a fair price for the service provided."

Prospects remain bright despite challenges
Charles Roxburgh, a director of McKinsey & Company, told delegates at the CII conference that the insurance industry will face a range of serious challenges in the next five years but that its prospects remain bright.
"The industry collectively underwent a bad period in 2001/02, but thanks to radical restructuring it is well on the road to recovery. It now has the potential to reap substantial rewards," he said. Roxburgh outlined seven challenges facing the insurance and financial services industry. These included uncertainty over future events, lack of trust in insurance products and the need for innovation.