Where there’s muck, there’s brass.
And you don’t even have to get your hands dirty to find it.
For those generations old enough to remember, Steptoe and Son was an iconic TV series that ran for over ten years from 1962. Set in 26a Oil Drum Lane, Shepherd’s Bush, it tells the story of a rather dishevelled father and son rag and bone business who, along with their trusty steed Hercules, scoured the streets of London in search of salvage.
Fast forward 60 years and it’s probably fair to say that the impression of salvage remains the same – it’s a dirty, time consuming and thankless business – with a huge amount of effort needed to generate a minimal return.
But as the old master Chinese philosopher, Laozi, once said
“A sound man is good at salvage,
at seeing nothing is lost”.
Price pressure and the green agenda – a perfect storm
The property insurance industry continues to wrestle with the perennial pressures around claim cost – a pressure that is felt particularly keenly right now where premiums are at an all-time low[1]. That, coupled with the ongoing challenges of high inflation, a rise in overall claims, including subsidence, and the unparalled increase in the cost of building materials has made for challenging market conditions.
As a result, indemnity spend is a laser focus for insurers right now, as is reserve control and the economic resolution of claims. And if that wasn’t enough for insurers and the supply chain to cope with, there is now the added ‘burden’ of demonstrably delivering on the sustainability agenda. Already the traditional trinity of KPIs – cost, cycle time and complaints – is being joined by measurable criteria aimed at reducing the Global Warming Potential (GWP) of the industry and its actions.
There is only so much to be gained from conventional thinking, from efficiency drives and cost reductions to reverse the current fortunes of the insurance sector – we need to create something innovative, something that can consistently deliver a return while protecting our natural resources.
What if there was a way to realise a revenue you never knew you had, with no headaches, no risk, no compromise on KPIs and a demonstrable improvement on GWP outcomes? What if…
[1] https://www.abi.org.uk/news/news-articles/2023/2/cost-of-living-boost-for-millions-of-households-as-the-average-price-of-home-insurance-falls-to-lowest-since-records-began/
Zero effort, zero landfill and a new revenue stream
– what’s not to like?
For several years now, Evoque has been recovering all kinds of commercial and HNW salvage providing our dozen or so insurance clients with a high revenue, low touch model that supports their ESG commitments, delivers a risk-free margin and has zero impact on their cycle time.
Like all great ideas, the beauty is in the simplicity. Within 24 hours of FNOL salvageable items are identified and the repair/restore process is undertaken before the items are resold through Evoque’s multiple sales channels. To mitigate any concern about cycle leakage, insurers can stipulate their own cycle time for sales – from as little as 30 days. And there is no upfront investment required – Evoque take on the agreed items with full risk.
The results? Pretty impressive actually, with an average 20% margin on 70% of the items recovered, of which the lion’s share of revenue is returned to the insurer.
There are many truisms about the state of industry and our planet right now, but “what we save, saves us”feels most pertinent. To find out more about the novel Evoque offer, email james.whittock@evoque-group.co.uk and please do follow our LinkedIn page by clicking here https://www.linkedin.com/company/evoquegroup
