In disaster recovery, job cycle times make all the difference.
Generally, the shorter the cycle, the less expensive a claim is for an insurer.
Charles Brindamour, CEO of Intact Financial Corporation, told financial analysts that he plans to cut the cycle time of On Side Restoration, a loss restoration company acquired by the insurer, in half.
In fact, Intact has already managed to rapidly reduce the cycle time by 15 per cent, Brindamour said. He praised two executives for the progress achieved: Craig Hogarth and Alain Fortin.
"The growth there is impressive. I think the margin has improved meaningfully as well. But we’re just starting. And my own view of the upside, there’s a big capacity issue in that space. There’s a quality issue in that space. It’s super fragmented. So our thought process on On Side is very much consistent with what we tried to do with BrokerLink a decade ago, to build capacity at scale and then do this profitably.”
The insurer is even ahead of where Brindamour thought they would be in the acquisition of On Side. "We’ll put more capital there and certainly leverage this platform in the RSA integration, which will really help the platform as well, and the customer experience. So I’d say this is a second source of business that’s, first of all, inversely correlated with the underwriting performance that investors should keep an eye on in the next three to five years.”
