Stephen brings more than 30 years’ experience in the insurance sector, including 11 years at Covéa in a range of senior executive roles. He has also held leadership positions at Home Protect and Aviva, with deep expertise across claims operations, supply chain governance and customer outcome management.

His appointment reflects the continued expansion of SX3’s audit portfolio and the increasing demand for independent, practitioner-led assurance across delegated authority, third-party oversight and claims performance.

Strengthening Leadership as Demand Grows

Over the past two years, SX3 has broadened both the depth and scope of its work across multiple classes of business. The firm now supports insurers, MGAs and delegated partners with audit, governance and operational insight across a growing range of claims environments.

As regulatory scrutiny intensifies — particularly around Consumer Duty, customer outcomes and delegated authority oversight — insurers are seeking greater clarity, benchmarking insight and independent challenge.

Stephen will lead the day-to-day management of SX3, ensuring service delivery remains aligned to the firm’s “Quality First” ethos, while supporting the continued development of both audit and consultancy services.

Founder Adrian Gilbert will remain actively involved in the business, focusing on strategic development, market engagement and innovation, including the evolution of AI-informed audit approaches.

A Practitioner-Led Approach

Stephen’s experience spans both insurer and supplier environments, providing a balanced understanding of operational reality, commercial pressure and governance expectation.

Commenting on his appointment, Stephen said:

“SX3 has built a strong reputation for independent, practitioner-led insight. The opportunity to strengthen and scale that capability at a time when insurers face heightened operational and regulatory expectations is compelling. I look forward to working with clients and colleagues to continue delivering clarity and measurable impact.”

Adrian Gilbert added:

“This appointment is about strengthening the platform. As our work has grown in scale and complexity, it is the right time to expand our leadership capacity. Stephen brings operational credibility, commercial discipline and a shared belief that quality in delivery underpins everything.”

Stephen will begin engaging with clients and partners in the coming weeks.

The post SX3 Appoints Stephen Walker as Managing Director appeared first on SX3 (Re)Insurance Claims Consultants.

MARKET PERFORMANCE

As ever, we start with a high-level view of the trend we have seen through our claims performance reviews across Motor, Casualty and Property claims operations. From the performance reviews we have carried out in 2025 so far, overall, we have seen an increase in performance levels, albeit the worst are getting worse, and the best are getting slightly better:

AI IN CLAIM OPERATIONS – THE ZEITGEIST OF 2025

The stock market is booming on expectations of the improvements AI will bring to businesses, but the Chief Executive of Alphabet is saying, “Don’t blindly trust what AI tells you.” So, what’s the reality for the claim world?

A year ago, conversations about AI in claims handling were cautious, exploratory and even sceptical. Today, they’re unavoidable. The question around AI has shifted from “should we?” to “how fast and how safely?”

I’m very much in the positive camp when it comes to AI in claims operations. We’ve all had to do our fair share of grunt work in the past, and many will argue that this is essential, foundational training, but it can also be mind-numbingly dull and inefficient, which isn’t hugely attractive for customers or those seeking a career in claims. So, if AI can take on the routine tasks, freeing people to focus on cases that genuinely need human judgment and empathy, that feels like progress worth pursuing.

What strikes me from our work across different firms is the variability in AI maturity and appetite. Some insurers and law firms have moved beyond pilots into operational deployment – automated triage, document processing, initial assessments, customer communication etc. Others are still wrestling with foundational questions about accuracy thresholds, regulatory risk and what responsible deployment actually looks like. I hear the same tension repeatedly: nobody wants to be left behind, but equally nobody wants to be the cautionary tale.

The practical challenges clients raise with us are less about the technology itself and more about deployment realities. What accuracy rate is acceptable when making decisions affecting someone’s claim? How do you balance efficiency gains with customer experience? Can you improve both simultaneously, or does faster inevitably mean compromising on quality? I think the answer depends heavily on design and measurement, not just the technology itself.

Then there’s what I believe is the most critical question: what happens to people when AI takes on their routine work? The conversations we’re having suggest firms are grappling with this in very different ways. Some are investing significantly in retraining and upskilling, recognising that the role is changing, not disappearing. Others haven’t quite worked out what that transition looks like yet. It’s not just about learning new tools; it’s about fundamentally different skills when humans focus on the complex and exceptional rather than the routine.

AI technology is moving quickly, but the harder questions about accuracy, oversight, culture and future skills are the ones that will ultimately determine whether AI delivers on its potential or becomes another expensive disappointment. Both the optimism and the caution have equal measures of merit.

DELEGATED AUTHORITY

In 2025, the Financial Conduct Authority (FCA) intensified its scrutiny of delegated authority (DA) arrangements, placing a spotlight on how insurers, MGAs, and TPAs manage outsourced claims.

The regulator’s expectations are clear: firms must ensure robust oversight, fair treatment of customers, effective use of management information (MI), and full alignment with the Consumer Duty — regardless of who handles the claim.

In the past 12 months we’ve reviewed 57 DA arrangements, helping clients across the insurance value chain meet these evolving standards. Our engagements this year have included:

1. 1. • Conducting multi-phase strategic reviews of delegated claims handling across UK and European portfolios, with a focus on Consumer Duty compliance, MI accuracy, and governance consistency.
      • Supporting insurers and MGAs in developing and implementing Balanced Business Scorecards to monitor TPA performance across key metrics such as claim lifecycle, complaint handling, and customer outcomes.
      • Advising on the redesign of oversight frameworks, including the introduction of monthly operational meetings, annual strategic reviews, and real-time dashboard reporting.
      • Providing independent file audits and technical reviews to assess the quality of claims handling and identify areas for remediation.

Drawing on our experience, we recommend the following best practices for auditing delegated claims handling:

1. 1. 1. Adopt a risk-based audit plan, prioritising high-risk portfolios and partners.
      2. Use structured audit templates aligned with FCA expectations and Consumer Duty outcomes.
      3. Sample a representative mix of open, closed, and vulnerable customer claims.
      4. Validate MI accuracy and ensure data integrity across all delegated partners.
      5. Engage delegates in transparent feedback loops and track remediation actions.
      6. Escalate material findings to governance forums and integrate audit results into board-level reporting.

As the regulatory bar continues to rise, firms must treat delegated claims as an extension of their own operations. At SX3, we’re proud to support our clients in building resilient, compliant, and customer-centric claims ecosystems.

You might enjoy…

1. 1. • SX3 Case Study: Driving Better Customer Outcomes in Travel Claims

COMPULSORY MEDIATION IN MOTOR CLAIMS

The MoJ’s mediation pilot for claims under £10,000 (excluding personal injury) is narrow by design, but its ambitions are broader.

Testing whether early dialogue can divert disputes away from the courts and into faster, more proportionate settlement routes, this feels less like a contained experiment and more like groundwork for a wider shift in civil dispute resolution.

Recent CPR changes reinforce that trajectory. Judges can now pause proceedings and direct parties to ADR where settlement looks achievable, moving mediation from a voluntary option.

The Mazur ruling, by tightening the rules on who can conduct litigation, adds a further nudge. As law firms reassess their operating models and authorisation requirements, mediation becomes a more attractive, and perhaps necessary, route to resolution.

Together, these developments signal a move towards mediation becoming, in practice, compulsory across many motor claims pathways.

FCA REVIEW OF TRAVEL & HOME MARKET

The FCA launched a broad review of home and travel insurance claims handling in 2025 after rising concerns about poor consumer outcomes, including a formal super-complaint from Which? highlighting serious failings.

These two insurance markets were targeted because they have among the lowest claim acceptance rates (around 73% for home, 79% for travel) and can cause consumer harm when claims go wrong.

The review uncovered widespread problems in claims handling, summarised in the table below.

Regulatory Response

The FCA is providing individual feedback to reviewed firms and expects all insurers to self-assess against these findings. However, with no public enforcement action announced, Which? deemed the response insufficient – incorporating these findings into their super-complaint demanding concrete intervention by December 22nd. The review revealed an industry struggling with fundamental obligations under Consumer Duty. Whether December’s deadline brings enforcement or merely more review cycles remains the critical question for 2026.

Over the past 12 months SX3 have performed 11 insurer audits of home and travel claims practises as part of a wider program of 26 audits covering broader consumer claims practises.

You might enjoy…

1. 1. • SX3 Case Study: Assessing Fairness & Consistency in Repudiated Home Claims
      • SX3 Article: What Which? Missed About Home & Travel Insurance Claims

FRAUD & THE ECCTA

The Economic Crime and Corporate Transparency Act 2023 (ECCTA) is now in force and it’s changing the way insurance businesses must think about fraud, governance, and compliance.

At its core is the new offence of “Failure to Prevent Fraud”, which applies to large organisations and came into effect in September 2025. If an employee, agent or third party commits fraud for the company’s benefit, the organisation ​can be prosecuted, unless it can demonstrate that reasonable fraud prevention procedures were in place. The extent of these procedures will also influence the prosecuting agency, the Serious Fraud Office and whether to investigate or pursue a Deferred Prosecution Agreement in the event of a breach.

The failure to prevent corporate criminal offence in ECCTA poses specific risks for insurance businesses and Claims in particular, due to the broad ecosystem of businesses servicing insurers and the nature of commercial relationships. For claims managers, this means a shift from reactive to proactive fraud management. Anti-fraud controls must be embedded in daily operations with fit-for-purpose risk assessment, clear documentation, regular training and robust oversight of third-party suppliers and adjusters. Claims teams should also leverage enhanced Companies House data to verify claimant and supplier identities.

The ECCTA also strengthens Companies House’s powers, requiring identity verification for directors and beneficial owners and offering new tools to validate commercial claimants and spot red flags.

At SX3, we’re helping insurers navigate this new landscape. From operational reviews to fraud risk assessments and testing of fraud response plans, we support Claims teams in building resilient, compliant processes that meet the ECCTA’s high bar.

MAZUR V CHARLES RUSSELL SPEECHLYS

September’s Mazur ruling raised a question that probably should have been straightforward: who can actually conduct litigation? The High Court’s answer was that individuals must be personally authorised, not just supervised or employed by an authorised firm, which has created major ripples that are still spreading through the sector.

What makes this particularly unsettling isn’t just the ruling itself, but what it revealed about regulatory clarity. Law firms had built operating models in good faith based on guidance they’d been given, only to find that guidance reversed in court. The SRA had assured firms their supervision arrangements were compliant before changing position. It’s left many wondering whether the judgment’s interpretation of the 2007 Act is even correct, a question CILEX is now taking to the Court of Appeal, though any hearing may not happen until early 2027.

For insurers, the practical impact is more contained than headlines suggest. Pre-litigation claims continue unaffected and given most RTA claims settle through portals without reaching court, operational disruption is limited. But within that smaller litigation space, there are real considerations. Law firms now require greater qualified solicitor involvement, which will likely increase costs. This creates questions on both sides of the fence: claimant firms may point to supervision requirements when defending their costs, while insurers want assurance from defendant panels about compliance.

Then there’s the question of scrutiny – both retrospective and going forward. For cases already in litigation, insurers may demand evidence of appropriate supervision, particularly where costs are being challenged. But this also creates a new pressure point for future litigated claims, with the potential for more frequent challenges to claimant firms around team composition and qualified oversight. Independent review of case files offers a way to satisfy compliance concerns without relying solely on panel self-assessment.

The sector is adapting while awaiting Court of Appeal clarity. For insurers and claimant firms alike, this could strengthen the case for earlier settlement strategies and greater use of ADR – approaches that sidestep litigation complications entirely.

You can download a full version of our 2025 Claims Sector review here

The post SX3 Claims Sector Review 2025 appeared first on SX3 (Re)Insurance Claims Consultants.

Nicola brings a wealth of expertise in claims management, counter-fraud operations, and litigation. She has led teams and developed claims processes for leading insurers and consultancies, including managing audits and quality assurance programs. Her ability to build strong client relationships and implement effective claims strategies makes her an asset to SX3.

Matthew joins us with over 25 years of experience in claims operations, client account management, and auditing. He has held senior roles in firms such as DAC Beachcroft and Plexus Law, where he managed client accounts, oversaw complex audits, and drove operational improvements. His experience aligns perfectly with SX3’s focus on delivering tailored solutions.

Our Client Services Managers are dedicated to serving for our clients, overseeing audit and consultancy delivery, maintaining quality assurance, and providing bespoke advice and support. These appointments ensures we maintain our reputation for excellence and our commitment to staying at the forefront of the industry – delivering insights that help insurers achieve better outcomes and operational efficiencies.

Adrian Gilbert, Managing Director of SX3, commented:

“The creation of these new roles reflects the continued growth of our business and the increasing trust our clients place in us to deliver independent, high-quality claims auditing and consultancy services. Nic and Matt both bring highly relevant expertise and complementary skills that will strengthen our client servicing capabilities.

Our growth has been driven by a clear focus on delivering practical, actionable insights for our clients, helping them adapt to an increasingly complex insurance landscape. These appointments reaffirm our commitment to maintaining the highest standards of quality and value as we expand our services.”

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We founded SX3 on a clear vision – to provide independent, expert support to our peers in the insurance industry. We committed to a set of simple but essential principles that have guided us every step of the way:

1. Deliver Genuine Expertise: Every project is staffed by seasoned insurance practitioners, people who have walked in our clients’ shoes and understand the challenges they face firsthand.
2. Ensure True Value: We only take on projects where we’re confident we can deliver measurable value, ensuring our clients always see a return on their investment.
3. Maintain Independence: Our independence is non-negotiable. We don’t accept commissions for supplier recommendations or introductions, keeping our advice impartial and focused solely on our clients’ best interests.

A decade on, I’m proud to say that we’ve upheld these standards in every engagement, working with over 60 organisations across the insurance market. The feedback we’ve received from our clients reaffirms that our approach continues to make a meaningful difference.

As we enter another year, here are some insights into the ways we’ve been supporting our clients during 2024.

Market Performance

As ever, we start with a high-level view of the trend we have seen through our claims performance reviews across Motor, Casualty and Property claims operations. From the reviews we have carried out in 2024 so far, overall, handling performance has dropped slightly in 2024 compared to 2023, and leakage rates have increased:

Drilling down into the data by specific handling areas, audit performance on recoveries handling has widened between those who have focused on their processes, systems and suppliers, compared to those who have not. The handling audit performance range for recoveries handling in 2024 was 55.17% to 100%, whereas in 2023 the range was 64.29% to 100%.

Total Loss Claims

Following the release of the FCA’s thematic review in March 2024, we responded by providing a bespoke audit/review solution for our clients to test their performance against the FCA’s findings and recommendations of good practice. We also provided validation for data submission requests, and support during Skilled Person audits, helping our clients better understand and explain their situation. The best performers remain those who are able to demonstrate and evidence effective governance and performance oversight of their claims handling and supply chain, whether that is in-house or outsourced.

Consumer Duty

We have seen in practice, with the FCA’s Total Loss review being a prime example, that those who have the consumer at the heart of their claims processes inevitably deliver better audit outcomes. With strong focus already in place by our clients on their in house claims operations, SX3 have been increasingly called upon to look at clients’ external TPA / Delegated Authority claims handling arrangements across a number of classes of business, including Motor, Travel, Household, Warranty, Gadget and Pet. Particular focus has been the practices, governance and performance recording of the identification of Vulnerable Customers, the adaptation of services where required, complaints, and delivery of fair outcomes.

Subrogated Recoveries

This year, through our audit programme, we have identified a deterioration in motor claims subrogated recoveries performance – a key area for hard and soft leakage. There is clear evidence of payment delaying tactics forcing an increase in litigation, adding unwelcome extra cost and delays to claims.  We are supporting clients both with case handling audits and also reviewing practices and procedures to help shorten case lifecycle, reduce leakage and increase returns.

Run Off Oversight

There are many reasons why a capacity provider may choose or need to put a scheme into run off, but those schemes all still require oversight. We have seen more clients asking SX3 to support that work – not to handle the claims themselves – but to help our clients oversee the performance of the entity handling the claims in run off. That support takes the form of data modelling, performance tracking, troubleshooting and auditing. With so many of our team having managed run off schemes in their former roles, it’s a service where we have been able to add significant value to our clients. Read our case study for the outcome.

Complex Case Support

We have seen an increasing requirement of clients seeking advisory support on individual cases. Examples:

• FOS Complaint – Storm damage claim for buildings was rejected by the insurer due to lack of evidence of storm damage. The insurer’s customer had complained to FOS. FOS requested the insurer arrange an independent survey of the property. The insurer asked SX3 to find and instruct the surveyor, so they could demonstrate to their customer that the result of the survey would be truly independent. Read our case study for the outcome.
• Fire Claim – Our insurer client had received an initial estimate from the loss adjuster of a property fire loss that seemed excessive. As SX3 have a number of ex Loss Adjusters within their Associate network, they asked SX3 to attend the fire damaged property and audit the opinion of the loss adjuster. The result was that it did appear that the loss adjuster had been pessimistic in their assessment, but also that the loss adjuster had failed to organise scaffolding to stop rainwater coming in through the fire damaged roof of the property.
• Building Warranty – Our insurer client was in dispute with their policyholders(who were represented by solicitors) over the extent and cost of remediation work required to two barn conversions that could be attributed to the renovation work covered by the building warranty policy. Our client also had legal advisors. With the case heading to litigation and imminent mediation, they wanted a fresh perspective on the claims to include views on available options for bringing the case to a satisfactory / cost effective conclusion. Following discussions with our client and consideration of key documents, we provided a report examining the timing, prudence and rationale for the proposed mediation. In our report we included a series of questions for the client’s own legal team to consider, as well as a cost benefit analysis of the mediation process. Additionally, we suggested possible alternative approaches to resolving the claims to include having the policyholders refer their dispute to the Financial Ombudsman Service. Our outcome focused analysis provided the client with alternative dispute resolution strategies facilitating an enhanced strategic understanding of how an optimal claims outcome might be achieved.

Ukraine Aid Missions

Our Laura Phillips took over the SX3 driver slot for the latest aid mission (number 7), in Nov 24. John Green, John Gibson and the team have managed to procure 7 ambulances and 4x4s for this mission from the generous donations received already, and provided them to medical rescuers on the front line, as well as to two orphanages.

Laura’s personal journal of the mission can be read here

SX3 People

Our team has grown this past year, with the following additions:

• Richard Pilkington – Head of Audit Services
• Kelly Williamson – Operations Administrator

There was also a warm return for Lorraine Bussey as Client Services Manager and we’ll be appointing 2 further Client Services Managers in January 25. Watch this space.

One final milestone worth celebrating – our Associate network has now also expanded to over 50 members and you can see the full range of our services and coverage we offer here

As we look forward to the next 10 years, SX3 remains steadfastly committed to supporting the insurance industry through those principles of independent expertise and unwavering dedication to delivering value and trust in an ever-evolving landscape.

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In the first days of the war, I volunteered to help identify human rights abuses in Ukraine. The images I’ve geolocated ranged from burned out cars to executions. It’s horrifying, but necessary – all records are maintained by the Centre for Information Resilience, a huge catalogue of everything that’s happened in Ukraine.  The press no longer report the details, but if you remember Bucha or Irpin, you’ll know what is continuing to happen in the settlements around the frontlines.

From that work, I’ve seen how similar Ukrainian culture is to ours and I’ve developed a real affinity for the country. It’s like the UK but on a vast scale. Rolling fields, green hills, rich history, and a deeply engrained culture. Its people, like us, just seek happiness in life with the desire to pass that happiness to their children. That is, at least should be, a fundamental human right.

So, when Adrian asked me earlier this year if I wanted to take his spot on a convoy of ambulances driving to Ukraine to deliver aid, I couldn’t refuse. It was a 1,300+ mile trip, 5 days, 6 countries, with strangers, driving a fully loaded (and massive) ambulance to a hospice and an orphanage in a war-torn country.

Our journey took us from Kent, through The Netherlands, Germany, Poland, and ultimately to Ukraine. The days were filled with camaraderie among strangers, creating experiences that will always bring a smile to my face. Like Nicole reversing a 7m long ambulance in the tightest space in a multi-story car park in Krakow. Or Faye telling a border guard he was wrong and making him eat humble pie. Amazing, strong, funny and intelligent women.

Those first 1,000 miles faded into insignificance as we reach the Ukrainian border. Here, there are posters of the atrocities happening across their country. The solemnity of what we’re doing and where we are hits home hard. The group I’m travelling with seems more hushed now, the buoyancy of the first few days fading into determination. I drive the first stretch from the border, passed Lviv and down into the southern part of Ukraine. The sun is setting in a glorious amber haze, with an orange moon rising over fields dotted with houses where wood smoke trickles from chimneys, scenting the small villages we drive through. This is a country I know – albeit not first hand – but from hundreds of images of incidents that changed lives forever. The roads, the trees, the flags, the shops – everything is eerily familiar and I can’t believe I’m here. As we drive through villages, there are rows upon rows of posters of young men who have lost their lives.

Our first stop is at a palliative care unit where we drop off medical supplies. The Ukrainian staff nod their appreciation, knowing we can’t understand them but their broad smiles tell us how grateful they are for the much needed help. Palliative care, like all health care, is depleted by the urgent needs on the frontline. We store everything in a cold, dark basement that doubles as an air raid shelter.

We stay the night in Ukraine, waiting for the almost inevitable warning sirens for incoming missiles. The night before our arrival, Ukraine suffered a huge missile and drone attack but not a single member of the group waivers in our goal, if anything the atmosphere is more resolute.

The following morning we take our ambulances to a children’s home. In this place they care for over 200 children, some orphaned by the war, and some refugees (with their mothers) from the front lines. These kids have lost everything, except hope and love. There’s the sound of little feet pattering around the buildings, buggies parked up under a shelter, brightly coloured wallpapers and crayon drawings from tiny hands. We’re given a tour of the facilities, and what is overwhelming is the love these children are receiving. This place isn’t just about physical care, there is a genuine aura of love in the air, as demonstrated by a small child nicknamed “The Boss” who’s inquisitive, affectionate, cheeky and greets us all with big “hellos”. A born entertainer, his disability seems to fuel rather than hinder him.

I’m pretty thick skinned, but I can feel tears creeping into my eyes. I have no right to cry, I’ve never suffered in my life as these children have suffered. But my heart strings are being tugged hard and despite the lack of language skills on my part, I want to communicate my affection. I sit down next to a young boy, maybe 6 or 7, who is blind and he immediately pulls himself into my lap and begins snuggling up. He’s happy and giggly, a testament to the environment he’s in and the nurses who care for him.

The doctor who runs the unit shows us around the critical care centre. Here are children from all over Ukraine. Many won’t survive. The unit is called the Butterfly unit, because – as the doctor explains – butterflies are beautiful but only with us a short time. As we trail in, there are photos on the wall with remembrance candles underneath for children already lost. Our fellow traveller, companion and translator, Stas, struggles to relay the doctor’s words to us. He can see we’re overwhelmed and it overwhelms him too.

We deliver what we’ve brought with us, beds, mattresses, clothes, and toys. As we leave, a group of children are heading into lunch. Part of our aid package is knitted teddies and the kids are all told they can pick one. Their excitement is tangible, if muted. There’s no squabbling – no pushing to get the largest or the ‘best’ teddy. There’s a small knitted green rabbit, very cute and something I would have bought for my own daughter when she was younger. A small boy picks it up and holds it to his heart. That’s not a toy that will be played with for an hour and then left to gather dust, it’s precious to him.

To everyone who donated time, money or goods to this trip, please know this. Each ambulance we were able to deliver will save a minimum of 10 children’s lives. Every item of clothing will find a grateful home. Every toy will be cherished. Every bed will be a safer place to sleep than the homes they have been forced to leave behind.

I’m amazed by the organisation and leadership of this trip and thank everyone who made it possible. What they are doing is amazing and I’m so grateful for having been able to be a part of it.

The post More Than Just Giving – Laura’s Ukraine Aid Trip appeared first on SX3 (Re)Insurance Claims Consultants.

MARKET PERFORMANCE 

As ever, we start with a high-level view of the trend we have seen through our claims performance reviews across Motor, Casualty and Property claims operations. From the performance reviews we have carried out in 2023 so far, overall, we have seen an increase in performance levels: 

As we predicted last year, leakage rates in 2023 have reduced (after increasing in 2022). One outlier this year has been claims handling performance around reserving, which dropped from 86.86% in 2022 to 85.91% in 2023. 

CLAIMS INFLATION  

Pressure on bottom line is driving claims operations to review every aspect of claims processing to identify opportunities for improved effectiveness and efficiency.  We have supported many clients this year with just that.  

Commonly, the client will perform much of this work in house, comparing their average cost per claim data to a benchmarking service from the likes of Finalta or WTW.  We can then work with clients to get under the skin of that data. 

We also help to identify why existing practices result in the current level of performance, then providing an outside perspective as to how those practices compare with the rest of the market.  

Claims Consultancy – Working with a High Performing Client 

CONSUMER DUTY 

Consumer Duty came into full effect on 31st July 23 and set high expectations for the standard of care firms give to consumers in retail financial markets. Claims Management has had to look at every aspect of the customer claims journey, and the performance of everyone who forms part of that journey to ensure we are fully compliance with these enhanced standards.  

SX3 Associate James Tye provided a clear and concise outline of the basic principles and effects on claims handling: 

https://sx3.co.uk/consumer-duty-are-your-claims-handling-processes-compliant/ 

Our audit and review processes have been enhanced to include measures on Consumer Duty compliance and performance.  We will have more to report on that in the coming months as the changes in claims processes bed in. 

COORDINATED AUDITS

Having been accepted by Lloyd’s as an approved audit service provider, we have already conducted our first coordinated audits. These are a great concept by Lloyds. When we audit a TPA for operational/governance performance and control, we are often covering similar ground to that for other clients. Lloyd’s gather their member’s audit requirements and create a coordinated audit where possible, where one audit firm reviews the same TPA for a number of clients in one process. Of course, there will be additional aspects that need reviewing and reporting separately  for each client – as is the case when looking at their files – but the process is less onerous for the TPA and cheaper for the clients as it avoids duplication of effort.  

There’s no reason a similar approach couldn’t be taken outside of Lloyds. Given SX3 audit most of the UK claims handling TPAs, we would certainly encourage non-Lloyd’s insurers to get in touch with us to explore how we could deliver similar efficiencies to them.  

ESG 

It has been quite a year on the ESG front. In our newsletter last year, we highlighted John Green’s fundraising efforts to help the people in Ukraine. This year, we were actually part of the team driving through Europe to deliver 5 ambulances to Ukraine loaded with aid for an orphanage and their front line.  

Such a worthwhile journey supporting an orphanage and aid workers alike. Here’s a lovely description of how the mission went and short video made by another member of the crew – Nick Hilton of Markerstudy – NICK’S UKRAINE REPORT 

We also continued our usual support of the excellent work done by Insurance United Against Dementia.    

PEOPLE 

Work-Life balance remains one of the most important parts of the way we operate as a team.  Morgan O’Connor is a great example of an SX3 Associate living that dream: 

https://sx3.co.uk/morgan-oconnor-finding-work-life-balance-as-an-independent-consultant/ 

If you, or you know someone who is looking for a change, we are always interested in talented claims professionals to join our team, just get in touch. 

SX3 NEWS 

That going the extra mile with our clients has taken us deep into some of their claims operations, and expanded the range of business classes our experts cover, leading to growth and wider capability:

• Service – This month, SX3 celebrated completing its 9th year of trading, and an unprecedent year of growth for the business. With over 60% growth in a single year, our team’s key priority has been ensuring the continuing quality of the service that our clients rightfully expect. We would like to thank all our clients for their support and understanding this year.  
• Increased Capability – Part of that growth has been achieved through an expansion of capability within our consultancy team – ranging from reviews on Financial Crime, Marine, Aviation, Litigation Funding, Latent Defect, Financial Lines, as well as our usual Property, Casualty and Motor business classes. 
• ISO accreditations – As part of our internal investment, SX3 has now achieved the ISO 9001 and ISO27001 accreditation for our processes and information security. 
• Increased Geographical reach – We continue to support clients who are regulated overseas, such as insurers in Gibraltar, Malta, Bermuda and the Isle of Man, as well as providing training and insights to the regulator teams themselves. 

This next year will be our tenth year in business, that’s some milestone to go for – bring it on!

Seasonal best wishes to you all. See you in 2024.

Adrian

MD SX3

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Making the decision to work with SX3

In March 2022, aged 44, I decided to quit the security of my full-time job working for a broker. I made this decision not having another job to go to after I worked my notice. I knew I still needed an income, but I also needed to get away from the mundane 9-5, five days a week. More flexibility was a must, precious time with my partner and dog Stanley is more important than anything else to me. I needed to find that right balance.

Whilst looking online, I came across SX3 Claims Consultants, and was intrigued by the website. I soon had a conversation with Adrian Gilbert, MD of SX3, who was very informative of what SX3 could offer me. I explained to Adrian what I was looking for and why. Adrian listened intently and then explained the whole process to me, and how SX3 worked. I was free to accept or decline work, put myself forward for many jobs, or not at all. There was so much flexibility surrounding freelance work.

Making friends – Claims is a people business

Within a few weeks, I got a call asking if I was available to do an audit onsite, up north. The team of Associates I would be working with was explained to me and upon meeting them, our personalities clicked. I mention this because SX3 are very good at matching up Associates on jobs, or missions, as I like to call them! A lot of consideration goes into this. I enjoyed regular audits and met the same Associates time after time. A bond was forming between us, friendships, to which I can say these people will be lifelong friends.  As well as onsite audits, there are also lots of remote audits.

Apart from meeting Associates, I also get to meet the people who I am conducting the audits for, SX3 clients – Claims Directors, MD’s, COO’s, Claims Managers etc. Again, making beneficial relationships, having conversations with them in and out of the office.

Using Expertise to add Value for the Client

The audits I conduct are claims reviews and fraud audits, both of which are equally challenging. I need to be on my A game when completing these. If a trend is spotted within the audit, what is that trend?  How can this be avoided in future?  If so, once identified, this will be fed back to the client. Daily debriefs occur whereby feedback is given to the client and an open discussion occurs around the day’s findings. Challenges occur from the client at every instance.  I need to know I have an explainable rationale and be confident in my responses if I do not agree with their challenge.  Whilst these sessions can be difficult and demanding, they are there for a reason.

Continuing to make My Own Decisions

All I can say to anyone thinking about making the leap into Consulting / Auditing is that life as a Consultant is good, very good, much better than I envisaged. I am the decision maker, I decide when to take time off, when to go on my holidays and for what length of time. Obviously, I am going off my own experience, but no regrets here.  If you must have independent confirmation, you just have to Stanley!

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Richard has over 25 years’ experience leading claims audit functions within the insurance sector, ranging from large multinationals to start-up companies. Richard brings senior risk and compliance expertise as well as extensive experience in project management, reinsurance, captive management, and claims outsourcing.

Richard said ‘I am delighted to be joining SX3 with its strong track record and impressive range of clients for its claims audit function. I look forward to the challenge of taking the service to the next stage in scale while maintaining the highest levels of quality customer service.’

Adrian Gilbert, MD SX3 said ‘Richard brings incredible expertise and experience to the Audit role, he really is a perfect fit. Richard’s arrival completes the management team that will build the future of the company. I am delighted to welcome Richard on board.’

Richard starts as SX3 Head of Audit Services 22 May 2023.

The formal press release can be viewed here.

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Matt has established himself as a successful independent consultant since leaving Admiral after 25 years during which he was Head of Liability Claims alongside non-executive director roles with Thatcham Research and the Insurance Fraud Bureau.  His extensive experience of the insurance claims industry adds considerable strength to SX3’s consultancy services.

Matt said “I’ve already seen the very real impact and value SX3 creates for clients, so to lead SX3’s consultancy services pillar is an exciting next step. I look forward to the opportunity to enhance the value proposition for consultancy services at a time of such significant challenge and opportunity for Claims functions across the market.”

Adrian Gilbert, Managing Director of SX3, said “Matt has already demonstrated his capability to us through the successful delivery of a range of consultancy assignments. I am certain this appointment will be of significant benefit to our clients given his extraordinary expertise and insights. I welcome him on board in this new role and look forward to working with Matt in further developing our client services.”

SX3 Press Release – Matt Paterson Appointment

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FSQS registration demonstrates that SX3’s status and processes meet exacting, market wide standards.  The solution is attracting the biggest names in the industry including, NFU Mutual, Ecclesiastical, Hastings Direct, RSA, Covea and First Central.

More information about FSQS can be found at https://hellios.com

FSQS Certificate (SX3 Claims Limited)

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