Content Claims

Repairing items instead of replacing them

Even though recycling may result in products that are considerably friendlier to the environment, there are still some impacts during their production as additional energy has to be used. An interview with an eSourcing professional, who has spent time researching and implementing ideas in this area provides us with her insight into this topic and reveals that sometimes common household items that are damaged (e.g. chipped bathroom sinks, cracked ceramic tiles, scratched furniture) can be repaired rather than fully replaced.

There are a few companies nowadays that provide on-site repairs, restorations and renewals (e.g. Magicman, Service Master), thus offer greener solutions across various sectors, including the insurance one. Using these services can represent a considerably lesser expense for the insurance company and even lead up to 80% savings. Nevertheless, the main benefits of on-site repairs are environmental. If an item was to be replaced, it needs to be manufactured and transported first,moreover, the damaged item would need to be disposed of, most likely in the landfill. All of these steps only contribute to the production of CO2 and other greenhouse gases.

These efficient repairs can be explained further on an example of damaged leather sofa, whether the damage was caused by cigarette burn or paint splatter. This type of damage is usually small in size which means that replacement is not necessary - all that is needed is a part of leather hide. However, it must be noted that the majority of companies do not deal with large amounts of leather and would need to cost out a leather hide for the entire sofa which is certainly not cost-efficient nor environmentally-friendly, especially if the hide did not have any further use.

Consequently, it might be beneficial to partner up with specialists that provide
leather repairs as they buy leather hides in high volume and can use the rest of them for other repairs. Procurato has identified Insurance companies are struggling to identify the correct opportunities to send to restoration companies, even though the savings can be large. Detailed below is some of our analysis in this area 

Being smart about handling claims

A leading industry source shares experience and knowledge in another area of
sustainability in insurance as well, i.e. how to handle claims more efficiently.
Although sometimes the same item is damaged, the response of the insurance
company should be tailored to the type of peril.

For instance, damage is done in the property on windows. With large damage, the insurance company would usually wait for full confirmation of policy coverage and estimated loss which can take up to several days. When the damage is caused by flood, whole windows (or at least glass) would most likely need to be replaced anyway. But if there was smoke damage caused by fire, waiting for a law suggestion may actually lead to replacement of whole windows again, despite the fact that it can be easily avoided. Because of this, the restoration and recovery company needs to be assigned to clean the property as soon as possible in order to remove the stains on windows before they are set. This can be accomplished either by not waiting for the full approval to be issued or to speed up the approval of fire claims by triaging them differently.