Claims People is a loss adjuster. It is brought in by insurance companies to help them agree the value of claims. It also helps to raise customer satisfaction, for example by keeping clients informed about the progress of a claim. After all, a happy claimant is likely to renew their policy.

They also help to cut fraud, which rose 50% between 1999 and 2001 and is estimated to cost insurers 1bn a year. Currently, loss adjusters are the best-proven method of reducing fraud.

Claims People is building a new type of loss-adjusting business. This includes an IT system that can receive instructions electronically from an insurer. It may not sound revolutionary, but this is a major innovation for a conservative industry. This means that Claims People, although tiny compared with, say, Capita, can compete with much large companies.

Claims People are targeting the retail insurance sector, including household claims. Since 1996 the vast majority of insurers have outsourced the external inspection aspect of visiting claimants - a market worth around 200m a year. Claims People has already won contracts for this work with HSBC and Norwich Union and just this year Liverpool victoria who have over 1 million members.

The Claims People will be one of only two loss adjusters handling Liverpool Victoria's personal lines property claims.
The contract will run for 3 years, starting on the 1/1/2003.

Barry Whyte, the Chief Executive Officer, said "We are delighted to have secured this very important contract. The competition was fierce and we regard it as a great compliment that we were successful. It is certainly a great start to 2003." Following on from the successful 2001 Norwich Union bid, The Claims People are now find themselves firmly established as cutting edge competitors in the loss adjusting market, and continue to evolve and shape their business according to market forces.

Shares Magazine, 10th April 2003.

Loss adjuster Claims People offers a service that insurers need. Rodney Hobson reports on a company with potential that has yet to be recognised.

The share price is derisory, the company name has unfortunate connotations, the operations make a loss and the line of business causes eyes to glaze over - so what is it that makes Claims People (AIM:CLM) potentially interesting?

Claims People joined AIM in October 2000 and is still there, which is more than a lot of contemporaries can boast. It processes claims, mainly small domestic ones, for insurance companies, visiting claimants where necessary and negotiating settlements. This is an important but potentially costly activity for insurers: domestic policies account for more than 80% of claims by number but only a tiny percentage by value.

Employing Claims People has two advantages. With its centralised operations based in Bristol, its network of experts working from home rather than branch offices and its specialized technology, it can handle claims at less cost than the insurer. And although its fees are paid by the insurer, it does retain an element of independence that reassures the claimant.

Whyte says: 'We have a professional responsibility to be independent and ethical. From the insurer's point of view, the cost of attracting new customers is so great that they would prefer to pay an honest claim and keep the business. Honest, yes, but Whyte's people are needed in harsher economic times because fraud, theft and malicious damage rise in line with unemployment.

Claims People does intend to grow, and that may mean acquisitions. There is no shortage of five-person specialists but any takeover has to be structured to keep key staff. Finance director Peter Morgan professes to be risk averse as far as acquisitions are concerned, a good thing given that a placing might be needed to fund empire building.

Shares up 18% today.

Something up?

Share price rises again after a flurry of director dealings


Insurance group Claims People rose 3% to 2.125p this morning after a flurry of director dealings. Over the last five trading days its shareprice has jumped 70%.

Three of its directors, Peter Morgan (finance), Barry Whyte (chief executive) and David Croston (operations director), today purchased a total of 300,000 shares of 1.5p each in the company at 1.875p per share. As a result of the transactions Morgan has a 3.55% stake in the company; Whyte 5.31% and Croston 4.19%.

In addition John French, chairman, has purchased a total of 48,000 Ordinary Shares of 1.5p at 1.96p per share. He now has a 0.06% interest in the company.

On 5 March the company issued its full year results showing a narrowing of pretax losses for the year to Dec 31 2002 to 304,032 from 934,186 a year earlier on turnover of 1.04m, up from just 302,985.

The group said at the time that it continues to extend its presence in the insurance market and that it was entering 2003 with a broader client base and new business opportunities.

Thanks Exotoxin.

I was starting too talk to myself

Another good rise today.

Onward and upward........................