SHAPING the FUTURE OF THE CLAIMS PROFESSION · local MEP Julie Ward and representatives from the Environment Agency, County and City Councils. ... My final point brings us back to

THE CHARTERED INSTITUTEOF LOSS ADJUSTERS

SHAPING the FUTURE OF THE CLAIMS PROFESSIONThe Chartered Institute of Loss Adjusters Leading the way in claims

AnnuAl RepoRt 2015/16

The Chartered Institute of Loss Adjusters

Offices CouncilpresidentBenedict Burke BA ACII FCILA

Deputy presidentJonathan Clark MA MScDipEng ACII FCILA

Vice presidentsC.A. Holland BA (Hons ACII ACILA K.C. Wood MA(Oxon) ACII CDir FCILA Mike Jones ACII FCILA

Honorary SecretaryA.J. Considine Bsc Dip CII FCILA

Honorary treasurerK.C. Wood ACII CDir FCILA

Chairman examinations CommitteeL. Exford MRICS, FCILA

Honorary SolicitorTony Dempster (Herbert Smith Freehills LLP)

Honorary AuditorKingston Smith

executive DirectorM.J. Hyde BSc (Hons) Dip (Fr) FCII FCILA

technical Marketing ManagerA.B. Gamble BA (Hons) Dip CII

Registered office20 Ironmonger Lane London EC2V 8EP

tel +44 (0)20 3861 5720email: [email protected]

www.cila.co.ukwww.twitter.com/theCIlA

n.R. Baldwin ACII ACIlA Property SIG

C.A. Holland BA (Hons) ACII ACIlA International SIG

S Burley ACII FCIlA FIFAA Northern Area

n. Croan ACII FCIlA Scottish Area

M.J. Gabbitass ACII ACIlA Liability SIG

M Haynes ACIlA Independent

A.D. Humphrey llB (Hons) MA ACII CIp ACIlA Construction, Energy & Engineering SIG

I. Johnston BSc ACII ACIlA FIFAA Independent

W.A.C. tucker FCIlA FueDI elAe Claimant SIG

J.A. parvin BSc (Hons) MIStructe MapS ACIlA Subsidence SIG

R.D. pitt ACII ACIlA Smaller Independent Practices SIG

n. powell Dip CII ACIlA Future Focus Group

J. eves ACII FCIlA Republic of Ireland Area

t.p. Richardson ACII ACIlA ACFS Anti Fraud SIG

S nock FCIlA Business Interruption SIG

A.J. Walker ACII ACIlA Midlands Area

S.S. Wallace ACII CDipAF FCIlA Northern Ireland Area

W. Wilson BSc ARICS ACIlA High Net Worth & Specie SIG

Council & officers 2015-2016

Annual Report 2015/16 2

Contents

CIlA CouncilCouncil considers, reviews and approves strategy, operational plans and budgets proposed by the Executive Director and Executive Committee. It articulates the views of members on all those matters and delegates the powers and authority conferred by the Royal Charter and bye-laws to the Committees and Executive Director. Council meets frequently throughout the year.

executive CommitteeThe purpose of the Executive Committee is to formulate strategy. The Committee comprises the Officers of the Institute and the Executive Director. The Executive Committee meets frequently throughout the year.

CIlA CommitteesThe Institute has seven Committees as follows:

examinationsFinanceMedia & WebMembershipprofessional ConductSpecial Interest GroupsSynergyEach of the committees meet throughout the year, and report back to the Executive Committee and Council.

The Chartered Institute of Loss Adjusters operates under the terms of the Royal Charter, bye-laws and regulations.

Institute Governance Statement



president’s Report

Benedict Burke, President

When I was first elected President of the Chartered Institute of Loss Adjusters, I told members how proud I was to be a part of this industry.

I encouraged colleagues to be ‘Proud and Shout’ about their individual and collective achievements and almost a year on there have certainly been plenty of examples where our membership has excelled.

We are rightly judged by our performances on the ground and last year’s winter storm season beginning with Desmond in early December certainly put the sector through its paces. I’m very pleased to say the industry delivered a great service, backed up by some uncharacteristically good press as our colleagues in the Association of British Insurers used their influence to inform the media about adjusters making more than 10,000 visits in a matter of weeks.

What may not have been publicised is the fact that many adjusters cancelled their own Christmas plans and spent weeks away from their own families to ensure customers were taken care of in their time of need.

With every passing year, the level of engagement we receive from press, public and policymakers increases. Although the winter of 2015 was far from the worst surge period in recent years, the CILA involved itself in a number of events which helped us put a more public face on the institute and our profession.

First was our invitation to the Carlisle public meeting in January, where I was a panellist alongside flood victim Dr Stephen Gibbs, the local MP John Stevenson, local MEP Julie Ward and representatives from the Environment Agency, County and City Councils. At the meeting we took a great many lessons home, including the simple fact that any opportunity to engage with people directly is worth doing and I hope my successors will be afforded the same chance.

Secondly, we were able to use what we’ve learned from these engagements by performing a new lobbying function on behalf of our own membership.

In March, I presented to MPs at the All Party Parliamentary Group on Insurance and Financial Services to explain what I’d learned at that meeting and also to remind policymakers of the realities our profession faces.

Whilst stretching our operations, the call on additional resource from our members in winter 2015 was manageable, but it is a fact that numbers in the profession are significantly lower than they were when Tewkesbury was underwater in 2007. Therefore I reminded the APPG that the market’s ability to respond to an event of those proportions in line with the customer expectations outlined above remains open.

It is important that we remind both our clients in the insurance industry of this fact and policy makers as well. Without their understanding of the true nature of surge response, we cannot expect to be listened to when a more significant event occurs.

While surge events frequently dominate our industry calendar, I’m very pleased with the CILA’s continuing commitment to sharing knowledge and furthering the education of its membership. To that end, our Special Interest Groups (SIGs) continue to play a key role. I had the opportunity to attend several of the 13 regional seminars that were arranged and delivered by our SIGs this year and was impressed by both the calibre of speakers and the level of engagement and debate from audiences. Our SIG volunteers have also hosted webinars, written magazine articles, produced technical papers and contributed to the CILA examination process.



Encouraging and supporting members to attain CILA qualification is fundamental to the Institute and the growth in number of exams being sat is hugely encouraging. This year we anticipate that over 1,150 exams

will be attempted by CILA members, compared to just 49 in 2008. The reach of our exams is also expanding with a record number of exam centres being required for the October 2016 exams.

Continued on the next page.



Indeed, the development of our international membership has been a major objective as we look to enhance and engage with adjusters round the world. During June 2015, myself, Executive Director Malcolm Hyde and Technical Marketing Manager, Alison Gamble, visited key markets in the East Asia to promote the Institute’s work and build working relationships with like-minded bodies such as the Malaysian Insurance Institute and the Singapore College of Insurance.

My final point brings us back to the original theme of taking pride in what we do and the industry in which we work. For all of the above reasons I am very proud of what we do, but perhaps this year I am most pleased with the steps our Institute has taken towards addressing the elephant in the room; diversity.

Our historically male dominated industry is, I’m afraid, looking anachronistic with every passing year. This is why I was so pleased that the Women in CILA group was formed in 2015, inspired by the appointment of Candy Holland as the first female President of the CILA. The group takes positive action to address the current gender imbalance in CILA qualification progression and looks to break down barriers to female progression, providing role models in loss adjusting, creating networking opportunities and encouraging female participation in Institute activities.

Meanwhile, gender imbalance is only part of the story. On a blog earlier in the year, I said I wanted my profession to reflect the demographics of the communities we support. We created a diversity and inclusivity policy which conveys the benefits of diversity and inclusion not in a moral context, but as a business-critical issue.

Those of us with roles in business development will recognise how requests for proposals (RFPs) increasingly include direct evidential requests on diversity and inclusion policies. Other professional services are leading the way on this and I hope that the creation of these frameworks that support our members to build diversity into their business, are a worthy legacy of my time as President of the CILA.

Finally, I would urge all our members to be proud and to shout about how we come to the fore when the country suffers from extreme weather, about how our technical expertise provides real solutions on the most complex and large claims, about how we give impartiality to the claims process and how we have for over 100 years supported the insurance industry globally, in a governed, compliant and honest way.

Benedict Burkepresident



It is pleasing once again to report an increase in the total income of the Institute. At the 2015 Annual General Meeting we were able to report a continued growth in our reserves and highlighted our intent to use some of those reserves to fund our office move and our international initiatives.

treasurer’s Report

It is pleasing once again to report an increase in the total income of the Institute. At the 2015 Annual General Meeting we were able to report a continued growth in our reserves and highlighted our intent to use some of those reserves to fund our office move and our international initiatives.

I am delighted to report that the office move took place and the Institute’s new location is fit for purpose. It should be noted by members that our previous location was considerably less expensive as it was located in a semi-basement and was provided by our industry “friends” the Association of British Insurers. The move was forced upon us by their need to vacate the building.

The Executive Director set out a project plan to the Executive Committee for the office move. This included stage breaks where the Executive Committee’s approval was required before incurring costs beyond those already approved.

Having reached each stage the Executive Committee were kept informed via the reporting mechanism set and in this way members could be assured of appropriate governance of this project.

Further, members will note that we have developed the new website which is now in place. This was a large project for the Secretariat to undertake but has produced a most pleasing outcome. Again, the Executive Director has kept the Executive Committee fully informed of progress on this project.

Members voted at the 2015 AGM to change our auditors to Kingston Smith LLP. Following discussions with the new auditors and at their recommendation, it was agreed by the Finance Committee and subsequently by Council that the Institute should change the Financial Year to correspond with our Membership and subscription year – that is January to December.

In consequence of the change in Financial Year, we are now in a stage of transition and adjustment, but an audit is being undertaken of the 12 month financial accounts to 30th June 2016 and a further audit will be undertaken in February 2017 of the subsequent 6 month period to 31st December 2016. The results of the full 18 month period to 31st December 2016 will be reported at the September 2017 AGM.

The accounting treatment of the cost of the website has also been reviewed by our new auditors who advised that due to its clear ongoing economic value, this should be “capitalised” and subsequently deprecated over five years. As the project was paid for last year, a prior year adjustment has been agreed and whilst this results in an increase in the Reserves brought forward to the year, the depreciation charge not initially anticipated has added to the deficit.

At the time of preparing this report, I am expecting the Institute deficit to be broadly in line with Budget at around £21,000, this largely accounted for by the cost of the office move and approved international activities.

The provisional forecast for the new 2017 Financial Year is broadly break even, but the Finance Committee have agreed and recommended a small increase in Subscriptions for the year of £10 for Fellows, Associates and Certified members and £5 for Certificate, Diploma and Advanced Diploma holders. It should be noted that there have been no subscription increases for three years and in future, the finance Committee believe that more incremental increases in line with any inflation would be appropriate.

Malcolm and his team continue to ensure that the Institute is run with appropriate fiscal prudence and governance, but in a friendly and efficient manner; for this, we are all sincerely grateful. It is this approach that ensures the Institute continues to play its part in the changes affecting us all, serve the needs of our Members yet remain in a strong and healthy financial position.

Kevin WoodHonorary treasurer

Kevin Wood



Financial Statements

Statement of Council’s responsibilitiesThe Byelaws of the Institute require the Council to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the Institute and of its income and expenditure for that period. In preparing the financial statements, the council is required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• prepare the accounts on the going concern basis unless it is inappropriate

• to presume that the Institute will continue in business.

The Treasurer is responsible for ensuring that proper accounting records are kept which disclose with reasonable accuracy at any time the financial position of the Institute. The Council is responsible for safeguarding the assets of the Institute and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditors’ report to the Members of the Chartered Institute of loss AdjustersWe have audited the financial statements of The Chartered Institute of Loss Adjusters for the year ended 30th June 2016 on pages 9 to 12 which comprise the income and expenditure account, the balance sheet and the related notes. These financial statements have been prepared in accordance with the accounting policies set out on page 12.

The report is made solely to the members of the Chartered Institute of Loss Adjusters, as a body, and our audit work has been undertaken so that we might state to that body those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the members of the Chartered Institute of Loss Adjusters as a body for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Council and auditorsAs explained in our Letter of Engagement the Institute’s council are responsible for the preparation of financial statements in accordance with applicable law. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the Audit of the Financial Statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from materials misstatement, whether caused by fraud and error. This includes an assessment of; whether the accounting policies are appropriate to the Chartered Institute of Loss Adjuster’s circumstances and have been consistency applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Council; and the overall presentation of the financial statements. In addition we read all the financial and non – financial information in the Annual Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we considered whether there are any implications for our report.

opinion on Financial Statements In our opinion the financial statements:

• give a true and fair view of the state of the Chartered Institute of Loss Adjuster’s affairs as at 30 June 2016, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended.

• have been properly prepared in accordance with applicable law and International Standards on Auditing (UK and Ireland).

KInGSton SMItH llp Devonshire House, Goswell Road, London, EC1M 7AD



Balance Sheet

Balance sheet as at 30th June 2016

30/06/16 30/06/15note £ £ £ £

Fixed Assets Intangible assets 54,395 - Investments 2 202,287 211,635

256,682 211,635Current AssetsDebtors and prepayments 116,773 113,160Cash at bank and in hand 505,616 501,574

622,389 614,734CReDItoRS Amounts falling due within one yearSundry creditors and accruals 126,130 75,803Corporation tax (417) 578Income received in advance 344,694 319,973

470,407 396,354

net Current Assets 151,982 218,380

net ASSetS £408,664 £430,015

GeneRAl FunDAs at 31st July 2015 430,015 367,404(Deficit)/surplus for the year after taxation (21,351) 62,611

As at 30th June 2016 £408,664 £430,015

President

Honorary Treasurer

Approved on behalf of the Council on:



Income & Expenditure Account

For the year ended 30th June 201630/06/16 30/06/15

note £ £ £ £IncomeMembership 531,265 513,210Sponsorship 84,943 82,062Educational 80,176 75,973Other 99,583 97,671totAl InCoMe FoR tHe yeAR 795,967 768,916

expenditureSecretariat Expenses 532,542 464,039Officers & Council 34,490 31,057Qualifications 54,104 44,034Member learning & development 43,560 12,632Annual Report 10,763 10,051Computer Expenditure 31,460 21,350Marketing 93,997 108,617International FUEDI 7,054 9,979

totAl expenDItuRe FoR tHe yeAR 807,970 701,759Transfer Investment Revaluation Reserve (9,348) (4,440)

(DeFICIt)/SuRpluS FoR tHe yeAR BeFoRe tAxAtIon (21,351) 62,717

Taxation - 106

(DeFICIt)/SuRpluS FoR tHe yeAR AFteR tAxAtIon (21,351) 62,611

Details of Income Membership Ordinary subs 103,890 103,700Associate subs 144,695 150,220Fellows subs 221,000 215,025Cert 51,600 33,815Diploma 10,080 10,450

531,265 513,210

educational Examination fees 27,662 54,180Book royalties 1,173 707Certificate and diploma 14,067 15,431Training delivery 927 5,655Conferences 36,347 -

80,176 75,973

otherInvestment dividends 7,215 7,482Profit on sale of investments - 6,872Bank interest 427 530Advertising income 2,495 4,142Sundry 1,489 1,220VAT Recovery 4,270 2,074Annual Lunch 83,687 66,496Leonardo Costs recovered - 8,855

99,583 97,671



Details of Expenditure

30/06/16 30/06/15note £ £ £ £

Secretariat Salaries and Pensions and NI 356,060 327,488Rent Rates & Service charges 46,960 30,323Room Hire incl. Council 6,793 8,296Light, Heat and Cleaning 1,577 1,320Insurance 4,565 2,384Travelling and subsistence 8,874 19,866Telephone 4,303 1,990Printing, Stationery and postage 6,215 11,767Bank, & Credit Card charges 7,146 6,321Sundry Expenses 5,224 4,941Audit and Accountancy 18,426 18,225Training 911 12,131Legal and professional 8,927 10,528Office move 47,307 - Investment Managers fees 4,308 5,612Subscriptions to Journals 3,070 1,720Amortisation 1,876 - Recruitment - 1,127

532,542 464,039

officers & Council Meetings 3,965 3,208Travel and Accommodation 30,525 26,553Training - 1,296

34,490 31,057

Qualifications Exam Centre 45,726 35,566ACS 5,378 5,968Accreditation Costs 3,000 2,500

54,104 44,034

Member learning and Development Claims Focus 2,335 4,354CILA Conferences 29,750 (5,187)SIG Events 11,475 13,465 Event Management - -

43,560 12,632

MarketingAwards Sponsorship and PR 8,472 28,800Annual Lunch 81,804 69,763Marketing materials 3,306 7,979PR Consultant 415 920Advertising - 1,155

93,997 108,617



Note to the Accounts

For the year ended 30th June 2016

1. ACCountInG polICIeSa) Basis of AccountingThe accounts have been prepared under the historical cost convention. The accounts are prepared in line with the principles of the Financial Reporting Standard 102 (“FRS 102”) but does not include all of the disclosures.

b) Intangible AssetsAll costs incurred with the design and development of the website have been capitalised as an intangible asset. Amortisation is charged to the Income & Expenditure Account to write off this amount over its useful life. Amortisation is charged on a straight line basis over a period of 5 years.

c) tangible AssetsThe cost of computer hardware and non-computer equipment additions are written off in the year incurred.

d) IncomeSubscriptions and Fees are recognised in the accounting period to which the services covered by those subscriptions relate. Fees and subscriptions received in advance are included within creditors. Other income including exam fees and royalty income is recognised in the period in which the services are provided.

e) InvestmentsInvestments held for the purposes of generating long- term investment income are treated as non-current available for sale investments and are included at the market value at the year end date. Gains and Losses on re-measurement are taken to the Investment Revaluation Reserve initially any excess loss is written off to Income and Expenditure account.

2. InVeStMentS

note 2016 2015Available for Sale Investments

£ £

Listed Investments at cost 211,635 220,689Decrease in value at 30th June 2016

5 (9,348) (9,054)

Market value as at 30th June 2016

£202,287 £211,635

3. VAlue ADDeD tAxThe Institute’s supplies comprise exempt and standard-rated output. Input VAT is recoverable in full only in respect of costs directly attributable to standard-rated output. Input VAT in relation to certain overheads is recoverable to the extent permitted by the partial exemption provisions of the Value Added Taxes Act 1994.

4. CoRpoRAtIon tAxThe Institute is exempt from Corporation tax on its transactions with its members.

5. CHAnGe In VAlue oF InVeStMentS

yearended

30/06/2016£

Brought forward at 1st July 2015 9,054 Transfer form Income and Expenditure Account

9,348

Change in value of investments as at 30th June 2016

£18,402

This amount represents the accumulated loss in the valuation of the investments at 30th June 2016 and has been charged to the Income and Expenditure account.



executive Director’s Report

This comes on the back of the recognition of our Gold standard qualification at Master’s level and putting into place a suite of qualifications from Certificate to Fellowship level. More importantly, this increase is predicated on the dedication of our members to professionalism.

Your Institute promotes the highest standards in claims, delivering the promise in what can be most challenging environments and ensuring the customer is treated fairly. Our qualification framework, syllabi and learning events have this and our members’ career development at their heart.

With a continuous increase in examination candidates, our costs associated with qualifications have increased (largely matched by income from the candidates taking the examinations). However, our costs would be significantly higher and our qualifications poorer were it not for the considerable work undertaken by volunteers in officiating examinations, preparing the questions and marking the examination scripts. To each and every one, I give sincere thanks. This Institute relies on participation of its members in order to grow stronger.

Our members’ determination to exceed expectations is so frequently obvious and in the words of our President, Benedict Burke, something we can be most proud of and certainly something we should shout about.

This is so often demonstrated by the immense number of hours so many of our members put into Continuous Professional Development (CPD). All members with CILA qualifications are required to undertake CPD and when asked to submit details of CPD we usually receive around 90% of members returning details – often far in excess of the required minimum and within hours of the request.

This commitment is again something to be proud of and to shout about. It demonstrates that being a qualified member of the CILA means that you are committed to the highest ideals.

This year, we have moved offices, held around 30 SIG events in the UK, held a lunch for our members in Singapore, run SIG events in Dubai, Hong Kong and Singapore, and held a full-day conference in Kuala Lumpur. Further, we launched our new website. This new website is the Institute’s shop front and it was of utmost importance that the project was a success. It took considerable effort to ensure it was delivered on time and to budget, and the feedback we have received is a clear demonstration of its success.

Your Institute is the voice of authority in the Claims profession, and we will continue to extol the considerable virtues, skills and knowledge of our members. This is facilitated by your high standards and commitment to our profession.

The Institute Council members, Officers and SIG Committees give their time freely to support the core principles of the CILA. Often there is considerable debate about the way forward. This debate is beneficial and only takes place as a result of the unquestionable commitment to the Institute. I thank all of our members who give their time to support, develop and create initiatives for the benefit of all within the Institute.

This report also provides me with the opportunity to thank publicly my team at Ironmonger Lane who work so well together to enhance the products and services this Institute provides to its members, our sponsors and to the public.

Malcolm Hydeexecutive Director

Malcolm Hyde

It is particularly rewarding to witness the continued growth in the uptake of the Institute’s qualifications.



In accordance with the minutes of the Annual General Meeting 2012, the day-to-day management of the Benevolent Fund has been transferred to the Insurance Charities (registered charity number 206860 and company number 74461).

Benevolent Fund

As reported in 2015, the Executive Director, Malcolm Hyde, and our Honorary Treasurer, Kevin Wood, both sit on the Insurance Charities Board and on the Grants Committee and the Finance, Investment and Audit Committee respectively.

The Insurance Charities has undertaken an internal structural review, which both Malcolm and Kevin have voted in favour of. This will result in positive changes to the make-up of the Board.

The Insurance Charities maintain the Institute Benevolent Fund as a ring-fenced fund available to those entitled to claim on the fund in accordance with the Trust deed. The Insurance Charities’ year end is the 31st March and their latest report to the Charity Commission can be found via www.charitycommission.gov.uk and using the registered charity number 206860.

The Insurance Charities’ website provides detail on the Insurance Charities and can be found at www.theinsurancecharities.org.uk



Alison Gamble

For some time, we had been aware that the styling of our website had become dated. Members told us that they found it difficult to locate material, and enquiries into the Institute also indicated that our website did not answer commonly asked questions.

After several months of work, phase one of the website project was completed and launched in April 2016. The new design reflects our ethos of being a modern, welcoming and supportive Institute. Where possible, we have presented information in a question and answer format and introduced sections for Frequently Asked Questions (FAQs). We have also streamlined the content to focus on the most popular sections of our site, namely qualifications and membership.

Our special thanks go to those members who contributed to the development by providing testimonials on the benefits of CILA membership and qualifications.

We are now working on the second phase of the project which will include the roll-out of a new technical library for CILA members. Volunteers from our Special Interest Groups (SIGs) are currently reviewing and updating the material that was published on our old website and we are all looking forward to providing members with a useful, reliable and up-to-date place of reference.

Media & Web This year, the main activity of our Media and Web Committee has been the design and development of a new CILA website.

In addition to the website project, the Media and Web Committee has continued to monitor all forms of Institute communications. A highlight of this year has been the CILA President’s promotion of the expertise and value of CILA members, with the accompanying hashtag #ProudandShout.

The winter floods of 2015 provided opportunities for the Institute to highlight the work and dedication of the loss adjusting profession. The CILA President and CILA Executive Director actively participated in various forms of communication, including national television, industry press, social media and flood-related events. Audiences included insurance industry bodies, the public and the UK government.

In the year ahead, we will continue to analyse our communications and, in turn, focus our efforts on the methods and messages that deliver the greatest return for our members.

Alison Gambletechnical Marketing Manager



On behalf of the Membership Committee, I am pleased to report that the past year has seen us achieve a number of our objectives.

Andrew Considine

Membership

In a broader context, the Membership Committee continues to support efforts to expand the membership of the CILA within the UK as well as providing support as and when required to grow the Institute in an international arena.

This year has seen the launch of the new CILA website which is a significant improvement on the old website. This can only help in attracting new members as it clearly sets out the benefits of the Institute including our excellent suite of examinations and qualifications. For existing members, the ease of access to technical material, qualification routes and information has been much enhanced.

Last year, I reported that in June 2015 the CILA membership totalled 4,729. To compare, in June 2016 the membership now totals 4,671. The collection of subscriptions continues to be well managed by the Secretariat.

Work continues within the Institute to improve our examinations to the benefit of both employers and employees. We continue to see excellent take-up of our entry level qualifications and I can now confirm that the Institute has 685 members qualified as Certificate holders. There have also been increases in the numbers of candidates taking the Diploma and Advanced Diploma qualifications.

The major focus of the Membership Committee over the past year has been improvements to our processes surrounding CPD. This has led to an increasing number of requests for evidence of CPD being issued to the membership. From a regulatory perspective, the ability to demonstrate competence through CPD is becoming ever more important.

I am pleased to confirm that the majority of the membership respond quickly, with the CPD being approved by the Committee. Whilst the Membership Committee will always assist those with genuine reasons for being unable to comply, there are processes in place for those who fail to respond or attempt to delay submission. I must report that a member has been referred to the Professional Conduct Committee for potential disciplinary action in this regard.

Finally, I am delighted to advise that during 2016 Kim Alcock has joined the Membership Committee. Her expertise, fresh approach and enthusiasm will be of absolute benefit to the Committee and I very much look forward to working with Kim and the rest of the Committee through to 2017.

Andrew ConsidineChairman of the Membership Committee



Luke Exford

The Examination Committee has presided over another very busy and rewarding year. The number of candidates taking examinations at all levels proves that the drive to evidence one’s credentials around claims handling is still very prevalent.

It has been a pleasure to have assisted those members who have achieved a qualification or who have taken a step nearer to their goal this year.

The work of the Examination Committee is constant in keeping pace with changes in legislation and industry developments; requiring updates to the syllabi, drafting the papers, invigilating, moderating, delivery of the results and reviewing appeals. I would like to thank all those involved in this process, including members of the Committee as well as those setting and marking the examinations.

This year I would like to highlight the close relationship the Examination Committee has with Bournemouth University (BU), represented by Dr Julie Robson. Julie has a great insight into loss adjusting having worked in the insurance sector for ten years after completing her PhD before returning to university as a lecturer. Julie’s involvement with the CILA initially started in 2010 when BU secured the contract to evaluate CILA’s qualifications (C1, C2, C3 and ACS) against the national qualification framework. This mapped CILA qualifications against university qualifications and established that C2, C3 and the ACS were at level 7 (Master’s). Julie joined the Committee in 2011. Julie’s presence provides impartial and independent advice on the standard of CILA qualifications and the assessment processes used. I am extremely grateful for the professionalism Julie brings, along with her vast depth of knowledge, enabling the Committee to be sure that any changes to or adoption of new exams will be to the highest standards and will meet the due diligence expected and demanded of the Institute.

Julie also introduced the MSc Loss Adjusting at BU, which is a top-up master’s degree for qualified loss adjusters. This year, BU welcomed their second intake of students and I would commend anyone seeking to take their education to the ultimate level to give serious consideration to taking the master’s degree, which will be very rewarding both personally and for career development, whilst also being affordable.

In accordance with the Institute’s Diversity and Inclusion policy, the Examination Committee is continuously looking to ensure that examinations are inclusive, without bias and accessible to all potential candidates. During this year, we have carried out a review of the ratios between male and female candidates sitting the Institute’s examinations in order to consider whether there are any factors or trends arising that might cause concern.

It is interesting to note that, of the total number of examinations sat by both male and female members, the percentage of examinations passed was similar for both genders. It was also noted that the percentages of male and female candidates sitting and passing the Institute’s examinations had been consistent over the last 5-year period. The percentage of male/female candidates sitting and passing examinations is considered to be largely representative of the male/female balance overall within the Institute.

The Diploma qualification will become mandatory from 2017. This will provide a linear format for the examinations offered by the CILA and has given the Examination Committee an opportunity to introduce mandatory papers on Customer Service and Ethics. Both topics are important areas in claims handling. Bespoke reading material is being produced. In the interim, the Committee are making final arrangements for the transition between the old and the new examinations. We are endeavouring to ensure the relevance and benefit of the changes in the qualification, that members are treated fairly in terms of credits for previous examination successes and that there is ample time for candidates to complete on the existing process. This is a positive change.

Finally, I should like to wish all candidates luck in upcoming exams!

Luke ExfordChairman of the examination Committee

examinations



I would like to thank PCC members for the diligent work they have undertaken: Angus Tucker, Iain Johnston, Alan Walker and Malcolm Hyde, ably assisted by the President.

professional Conduct

As a committee, I believe we have addressed the various issues cast in our direction in both a prompt and professional manner.

There have been a steady number of referrals to the PCC, largely presented as alleged breach of the Code of Conduct and more specifically alleging a failure in professional conduct. As per my Report to last year’s AGM, the year has passed without any significant findings against any of our members. Where any minor issues have been found, these have been raised with the Member and guidance provided.

In most cases, the investigation has revealed that the findings are unjustified and often these identify an interested party who feels let down by the claim process or who has been unable to obtain financial satisfaction that meets their, sometimes, unrealistic expectations. We have no authority to intercede in such matters unless a particular member has acted inappropriately.

In a similar vein, we have received questions as to how and when a Company can refer to themselves as a Chartered Loss Adjusting firm. The requirements as set out in the Charter are historic and possibly do not represent the way businesses are run in today’s market. I raised this in 2015 and, whilst the matter is being addressed, no suitable resolution has yet been found.

Questions have been raised in relation to the use of terms that suggest, or maybe at least create an impression, that a Company is governed or overseen by the CILA when in truth only a handful of their staff are even Members. This is an ongoing issue and the PCC are keen to ensure that companies’ references to the CILA are both accurate and appropriate.

After serving as Chair for the last four years, it is now time for me to stand down. I have enjoyed the time and wish my successor the very best in his or her endeavours.

The Guide to Professional Conduct can be found on the CILA website along with a supporting document which captures the process used in dealing with a complaint.

Simon BurleyChairman of the professional Conduct Committee

Simon Burley



The CILA is, of course, a members institute, but matters arise from market dynamics, including legislation and regulation, that create issues for members and so the firms that employ them.

The firms often formulate their own response, but often the interests of the members are better served by CILA-led agreement on the response to the issues, appropriate representation to the interested government agencies and coordination that is completely in accord with proper competition between the firms and related law.

Many of us can remember a time when loss adjusters hardly ever thought of the word “regulation” but it is inextricably woven into so much of what we do because of the FCA regulation of our Insurer clients, Data Protection law, Health and Safety law, etc. Last year I reported that 2014-2015 had been a slow year for changes in laws and regulation that impacted the profession and that members of the Committee might have hoped for a little more “regulatory excitement” in the then forthcoming year! Over the last 12 months though there has been more substance than volume in terms of matters requiring focus from the Committee.

The main attention has been to rationalise and clarify the revised CDM regulations that became effective in April 2015. As is often the case, there were apparently subtle changes from the prior regulation but with potentially significant impact, especially around roles and responsibilities and exposure for members and their firms if the regulations were not understood and followed. Through Synergy, the CILA liaised with the ABI and the Health and Safety Executive to enable the creation of the CDM Guidance that was published in June.

Synergy

Shaun Kelly

We have monitored the EU’s progress in revising data protection law that was created 20 plus years ago when we were using floppy disks, the internet was in its infancy and a “SmartPhone” was the latest Sony Ericsson that Bond used to remotely control his BMW EU 750iL in Tomorrow Never Dies. The EU General Data Protection Regulation has finally happened and will come into force in 2018, shortly before the likely UK exit date from the EU. The UK will though have to update the Data Protection Act 1998 to mimic the new EU law in order to enable the free movement of data and so trade with Continental Europe and beyond.

As soon as the mist clears, Synergy will consider the impact of changes that will include mandatory reporting of data loss/breaches and the potential for fines of up to €20 million or 4% of a firm’s revenue, whichever is greater. Fines and sanctions will apply not just to data controllers as now but also to the loss adjusters’ typical function as data processors.

The work of the Committee could not be achieved without the experience and time provided by Committee members with accommodations from their firms, coupled with engagement of the Secretariat, which is very gratefully acknowledged.

Shaun KellyChairman of the Synergy Committee



Alison Gamble

The CILA Special Interest Groups (SIGs) bring together members who share an interest in a particular type of claim or have a common perspective on our profession.

Special Interest Groups

This year has seen the establishment of a Women in CILA group, led by past president Candy Holland. This group aims to take positive action to address the gender imbalance in CILA qualification progression (only 5% of Chartered Loss Adjusters are female) and the Institute was thrilled to host an event on International Women’s day, celebrating the successful and talented women in our profession.

Our Claims Management SIG has had a renaissance this year, with the appointment of Alan Walker as the new SIG Chair. The Claims Management SIG represents those members who predominantly handle claims at a desk. Over 80 members volunteered to assist with the work of this group and we now have a newly formed committee which includes a wonderfully diverse group of individuals from a range of claims environments.

The annual activities of our SIGs start with the CILA conference in September, and in 2015 the programme included 11 technical sessions which were designed and delivered by the CILA SIGs. Throughout the year, our SIGs have hosted a further 13 regional events, offering 20 CPD hours to members. The total number of attendees to these events was 486 and locations included London, Manchester, Leeds, Birmingham, Nottingham and Bristol.

In addition to events, our SIGs have also contributed to the new CILA website by writing job descriptions for the Careers section. Their input continues with the review and updating of technical material for our new technical library which will be launched later in the year.

Continued on the next page.




Volunteers in our SIG committees

120 Top 5 most popular SIGs by number of members signed up

1148788678572563

Particular thanks must go to the Property SIG who have written and published 3 technical papers for the benefit of members this year:

• The Public Authorities Clause

• Commercial Leases and Insurance Claims

• An Insight into Rebuilding Costs.

We are also grateful to the Property SIG and the Women in CILA group for contributing articles for our membership magazine, Claims Focus.

Finally, our thanks go to the Institute sponsors whose financial support and willingness to share their expertise enables us to provide more learning and development activities for members.

Alison Gambletechnical Marketing Manager

Property

Business Interruption

International

Construction, Energy & Engineering

Claims Management


With #ProudAndShout omnipresent, Benedict set about raising the profile of Loss Adjusters, highlighting the value that adjusters bring, including their dedication, expertise and significant soft skills.

The message was broadcast far and wide geographically, from London to Belfast, Manchester, Singapore, Dubai and Hong Kong. Benedict did not rest at this and he took the message to Parliament, Brokers, the Regulator and even Royalty. Benedict dedicated his time to promoting all members at every available opportunity.

This was exampled by Benedict’s appearance at a public meeting in Carlisle where he supported members’ efforts to flood victims.

Recognising other matters of considerable importance, Benedict promoted projects such as diversity and inclusion, progress on the international project and a complete rebuild of our website.

Diversity and inclusion has become a bedrock within the Institute, the subject being on all agendas and a Women in CILA group being formed by former President Candy Holland. This has stimulated a considerable growth in the number of women involved in committees within the Institute. Benedict’s ambition for far wider diversity is clear and the Institute is proud of the Diversity and Inclusion policy launched in October 2015. Its implementation has been instrumental in changing mind-sets.

With “focus and deliver” the watch words on the international strategy, five international events were held during Benedict’s year in office. These included a lunch in Singapore for members and their guests, SIG events in Dubai, Singapore and Hong Kong, and a one-day conference in Kuala Lumpur. This led to sponsorship of the International Special Interest Group and stronger ties with like-minded international bodies.

Of course Benedict is known by some as a willing challenger of the status quo so it is not a surprise that the Institute moved from a slightly subterranean location to a fourth floor office with light.

You can be #ProudAndShout but you need evidence to back up your cry. With this in mind, Benedict raised the profile of continuing professional development, with compliance rates in excess of 95%. Where members are unable to comply, the Institute seeks to encourage and assist to ensure the safeguarding of the reputation of all our members.

Benedict has will, drive and enthusiasm which he used to promote your profession and your Institute and the positive results are plain to see.

Malcolm Hydeexecutive Director

Review of the president’s year

Malcolm Hyde



Benedict Burke had stood down as the International SIG Representative and a nomination for Candy Holland had been unopposed. Simon Burley had served three years as Vice President having been Deputy President and President in the years before.Simon had been proposed as the Northern Area Representative to Council and his nomination had been unopposed.Niall Pritchard had retired from the role of the Republic of Ireland Area Representative and John Eves had been proposed and nominated and had not been opposed.Simon Cubbage had stood down as Western Area Representative and Malcolm thanked him for his time on Council.Steven Nock had been nominated to take on the role of the BI SIG Representative to Council and Steven had been unopposed.Harry Robert, having served as Deputy President, President and the BI SIG Representative for several years, had stood down. Malcolm conveyed his personal thanks to Harry for all his input on Council. Malcolm Hyde, announced the entire composition of Council and Officers for the forthcoming year.

The remainder of Council:Candy Holland International SIGNeil Baldwin Property SIGMartyn Gabbitass Liability SIGAdam Humphrey Construction, Energy & Engineering SIGRobert Pitt Smaller Independent Practices SIGAngus Tucker Claimant SIGIain Johnston IndependentJohn Parvin Subsidence SIGNeil Powell Future FocusTim Richardson Anti Fraud SIGSteven Nock Business Interruption SIGSimon Burley Northern AreaNick Croan Scottish Area Alan Walker Midlands AreaSteven Wallace Northern Ireland AreaJohn Eves Republic of Ireland AreaBill Wilson High Net Worth & Specie SIG

The President thanked Simon Cubbage, Harry Roberts and Niall Pritchard who were leaving Council for all their hard work on behalf of the Institute.


Minutes of the 53rd Annual General Meeting of The Chartered Institute of Loss Adjusters held on Tuesday 15th September 2015 at 16:30 pm at The Midland Hotel, Manchester.

PresentThe President, Mike Jones, and 87 members.The President welcomed all members present. He requested the Executive Director, Malcolm Hyde, to chair the meeting on his behalf.

1. Apologies for AbsenceApologies for absence had been received from: Alan Henry, Benedict McKenna, Bev Fitzgerald, Brian Clark, Gabriel Karungu, Ian Woodhead, Mike O’Connor, Matthew Roe, David Russell, Harry Roberts, Neil Powell, John Evans, Kieran Rigby, Richard Desker, Roger Gledhill, Shaun Kelly, Sue Willmott, Tony Coxon, Paul May, Graham Burgess, Heather Parkinson, Andrew Homewood.

2. Minutes of the Previous MeetingThe minutes of the 52nd Annual General Meeting held on Tuesday 16th September 2014 were approved.A silent tribute was observed for members who had died during the year: Lawrence Bevan, Robert Jessop.

3. Annual Report 2014/15Malcolm Hyde asked Kevin Wood, the Honorary Treasurer, to formally submit the Accounts for approval. Kevin gave a short overview. On a show of hands the Annual Report and Accounts were unanimously approved and adopted.

4. Election of PresidentThe President, Mike Jones, proposed Benedict Burke as President for 2015/2016. This proposal had received the unanimous support of Council and was approved by the members present.

5. Election of Deputy PresidentBenedict Burke, as incoming President, proposed the appointment of Jonathan Clark as the Deputy President for 2015/16. This was unanimously approved.

6. Election of Hon. SecretaryMalcolm Hyde, on behalf of the President, proposed that Andrew Considine be elected Hon. Secretary. This was unanimously approved.

7. Election of Hon. TreasurerMalcolm Hyde, on behalf of the President, proposed that Kevin Wood as Hon. Treasurer. This was unanimously approved.

8. Election of Examinations Committee ChairmanMalcolm Hyde, on behalf of the President, proposed that Luke Exford be elected as Chairman of the Examinations Committee. This was unanimously approved.

9. Election of Members to CouncilMalcolm Hyde reported that there were a number of members who had served their two year term on Council since being elected or re-elected and not having been opposed following their nominations were retaining their elected positions on Council.

Minutes of AGM 201510. Appointment of Hon. Solicitor The re-appointment of Mr Tony Dempster as Honorary Solicitor was proposed by Malcolm Hyde, and seconded by Jonathan Clark and approved unanimously.

11. Appointment of Hon. AuditorsMalcom Hyde advised members that a few months ago, Paul Marshall advised the Finance Committee of his intention to retire. Southwell Tyrell will no longer be undertaking auditing work. The appointment of Kingston Smith as Honorary Auditors was proposed by Candy Holland, and seconded by Mike Jones and unanimously approved.

12. ResolutionMalcolm Hyde proposed that, in accordance with Bye-Law 66, with effect from 1st January, 2015 all Annual Subscriptions remain the same. Members’ fees will therefore be £325 for an Associate, Fellow or Certified member, £150 for Advanced Diploma, £105 for Diploma Level members, £75 for Certificate Level Membership and £40 for Ordinary/Student member subscriptions. This was approved.

13. Honorary MembershipMalcolm Hyde called Mike Jones to say a few words.

Mike stated that Paul Marshall had almost retired from Southwell Tyrell and he advised members that Southwell Tyrell had been connected with the Institute since its inception.

Mike announced that Council had conferred Honorary Membership to Paul Marshall and asked Paul to come forward to present him with his certificate.

14. Installation of PresidentBenedict Burke was installed as President for 2015/2016 and Jonathan Clark was installed as Deputy President for 2015/2016.

15. Vote of thanksA vote of thanks was proposed to Mike Jones and Council by Stewart Steel.

There being no further business, the new President, Benedict Burke declared the meeting closed.

Malcolm Hyde reminded all members to sign the attendance book if they had not already done so.

President Benedict BurkeDeputy President Jonathan ClarkVice Presidents Kevin WoodCandy HollandMike Jones

Hon SecretaryAndrew ConsidineHon TreasurerKevin WoodChairman Examinations CommitteeLuke Exford


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Documents

SHAPING the FUTURE OF THE CLAIMS PROFESSION · local MEP Julie Ward and representatives from the Environment Agency, County and City Councils. ... My final point brings us back to