London Borough of IslingtonHomes for Islington Leasehold Insurance
London Borough of Islington/Homes for Islington Leasehold Insurance Policy Islington Leaseholder Association Meeting 11 th April 2012 Distinctive. Choice.
Representatives from JLT Public Sector Risks • Julia Reffell – Executive Director • Alison Goodwin – Account Executive • JLT are the appointed insurance broker to London Borough of Islington in respect of the Leasehold Insurance Policy Distinctive. Choice.
Agenda • • • Structure Chart Claims terminology Claims experience and analysis of claims Application of policy excess Questions and answers Distinctive. Choice.
Structure Chart London Borough of Islington Leaseholders Ocaso (Insurer) DMS (Claims Handlers) Distinctive. Choice. Homes for Islington JLT (Insurance Broker) Davies Loss Adjusters (Loss Adjusters)
Claims Terminology • Total Loss Paid • The amount actually paid by insurers to the insured for incurred claims • Current Reserve • The amount that is reserved at that point against all claims but which has not yet been paid • Total Cost Incurred • The total sum of the Total Claims Paid and Total Claims Reserve • Loss Ratio • The Total Cost Incurred divided by Total Premium Paid for one insurance period Distinctive. Choice.
Claims experience and analysis of claims • Seven year claims experience Policy Year Number of Claims Total Loss Paid Total Adjuster Paid Current Reserve Total Loss Incurred Premium Paid Loss Ratio 2005/2006 519 £ 701, 209. 39 £ 90, 693. 47 £ 39, 449. 00 £ 831, 351. 86 £ 941, 621. 19 88. 28% 2006/2007 562 £ 719, 639. 56 £ 94, 963. 15 £ 29, 896. 37 £ 844, 499. 08 £ 820, 268. 20 102. 95% 2007/2008 580 £ 837, 164. 25 £ 113, 489. 04 £ 950, 653. 29 £ 966, 978. 54 98. 31% 2008/2009 513 £ 918, 046. 16 £ 96, 375. 86 £ 94, 450. 00 £ 1, 108, 872. 02 £ 1, 168, 224. 79 94. 91% 2009/2010 532 £ 959, 883. 13 £ 90, 641. 01 £ 6, 500. 01 £ 1, 057, 024. 15 £ 1, 495, 256. 33 70. 69% 2010/2011 423 £ 736, 461. 24 £ 64, 976. 02 £ 145, 540. 27 £ 946, 977. 53 £ 1, 496, 322. 08 63. 28% 2011/2012 343 £ 235, 040. 23 £ 18, 605. 98 £ 348, 348. 62 £ 601, 994. 83 £ 1, 602, 798. 64 37. 55% Grand Total 3472 £ 5, 107, 443. 96 £ 569, 744. 53 £ 664, 184. 27 £ 6, 341, 372. 76 £ 8, 491, 469. 77 76. 67% • • Date of Preparation : Source of Information : Distinctive. Choice. £ - February 2012 Ocaso SA UK
Claims experience and analysis of claims • Claims split by peril for 2009/2010 Loss Description Count of Policy Year Total Loss Incurred Average Claims Cost ACCIDENTAL DAMAGE 124 £ 205, 713. 15 £ 1, 658. 98 ATTEMPTED BREAK-IN 4 £ 7, 995. 61 £ 1, 998. 90 ESCAPE OF WATER 280 £ 733, 016. 19 £ 2, 617. 91 FIRE 11 £ 11, 407. 85 £ 1, 037. 08 FLOOD 2 £ 26, 548. 54 £ 13, 274. 27 GLASS/HOBS/MIRRORS/SANITARY WARE 18 £ 12, 835. 77 £ 713. 10 INGRESS OF WATER 10 £ 6, 973. 00 £ 697. 30 LIABILITY 1 £ - £ MALICIOUS DAMAGE 23 £ 10, 487. 43 £ 455. 98 STORM 8 £ 46, 286. 98 £ 5, 785. 87 SUBSIDENCE 18 £ 25, 780. 00 £ 1, 432. 22 THEFT 12 £ 9, 375. 32 £ 781. 28 UNDERGROUND SERVICES 5 £ 3, 605. 00 £ 721. 00 516 £ 1, 100, 024. 84 £ 2, 131. 83 Grand Total Distinctive. Choice. -
Claims experience and analysis of claims • Claims split by peril for 2011/2012 Loss Description Count of Policy Year Total Loss Incurred Average Claims Cost ACCIDENTAL DAMAGE 60 £ 41, 458. 51 £ 690. 98 ATTEMPTED BREAK-IN 5 £ 2, 380. 20 £ 476. 04 211 £ 422, 516. 15 £ 2, 002. 45 FIRE 5 £ 73, 725. 82 £ 14, 745. 16 GLASS/HOBS/MIRRORS/SANITARY WARE 15 £ 6, 339. 60 £ 422. 64 INGRESS OF WATER 8 £ 1, 140. 00 £ 142. 50 MALICIOUS DAMAGE 9 £ 4, 320. 01 £ 480. 00 STORM 3 £ 2, 379. 34 £ 793. 11 SUBSIDENCE 4 £ 21, 170. 00 £ 5, 292. 50 THEFT 20 £ 26, 300. 20 £ 1, 315. 01 TRACE AND ACCESS 1 UNDERGROUND SERVICES 2 £ 343 £ ESCAPE OF WATER Grand Total Distinctive. Choice. £ - 265. 00 £ 132. 50 601, 994. 83 £ 26, 492. 89
Average Cost of Claims – 2010/2011 vs 2011/2012 Loss Description 2010/2011/2012 Average Claims Cost ACCIDENTAL DAMAGE £ 1, 658. 98 £ 690. 98 ATTEMPTED BREAK-IN £ 1, 998. 90 £ 476. 04 ESCAPE OF WATER £ 2, 617. 91 £ 2, 002. 45 FIRE £ 1, 037. 08 £ 14, 745. 16 GLASS/HOBS/MIRRORS/SANITARY WARE £ 713. 10 £ 422. 64 INGRESS OF WATER £ 697. 30 £ 142. 50 MALICIOUS DAMAGE £ 455. 98 £ 480. 00 STORM £ 5, 785. 87 £ 793. 11 SUBSIDENCE £ 1, 432. 22 £ 5, 292. 50 THEFT £ 781. 28 £ 1, 315. 01 TRACE AND ACCESS £ UNDERGROUND SERVICES £ 721. 00 £ 132. 50 Grand Total £ 2, 131. 83 £ 26, 492. 89 Distinctive. Choice. - £ -
Application of policy excess Current policy excess • • • £ 150 in respect of escape of water £ 1, 000 in respect of subsidence, landslip or heave £ 100 in respect of all other claims Payment of policy excess • • In respect of each and every flat So in the event of an escape of water that affects 2 leasehold flats, each leaseholder has to pay their own excess (total value of excesses paid £ 300) In respect of each and every loss So if one flat suffers 3 separate incidents of water damage, 3 lots of excess i. e. £ 450 will be payable by the leaseholder Distinctive. Choice.
The leaseholder is always responsible for payment of their policy excess When an Insurance policy is in joint names (London Borough of Islington and leaseholders) the insurer can not make a recovery from the other insured party, even if they believe this party are responsible for the damage. Ocaso can only recover settled claims where they believe a third party (i. e. not when the leaseholder or London Borough of Islington) has been negligent so they could consider a recovery from • A contractor • A tenant You can only recover your own money so Ocaso can not recover a leaseholders excess on their behalf nor could a leaseholder recover Ocaso’s money Distinctive. Choice.
• Tenants It is not Ocaso’s policy to recover paid claim costs from tenants for a number of reasons. – The degree of investigation that is required in proving the tenant is negligent – The costs of making the recovery balanced against the likely success Distinctive. Choice.
Questions and answers Distinctive. Choice.
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