The Co-operators Group Limited says 98 per cent of insurance waste following claims, finds its way to landfill. However, technologies are making it such today that more environmentally conscious choices are affordable and practical – many times more affordable than the traditional approach where belongings are often scrapped and replaced entirely.
Craig Bran, vice president of claims with the cooperative says the approach is saving the organization millions. More, it is building infrastructure that other insurers are able to use in turn. In Ontario and Quebec, for instance, the company has sourced a bumper recycler that has in turn begun serving other insurers, as well. “We’re an organization with five per cent market share but we’re having an impact well beyond our five per cent market share. That’s what we intend to do – impact Canadian communities in a significant way. If we can influence the insurance marketplace, we’re glad to do that.”
Other sustainable claims practices include drying-in-place and soft contents cleaning, both of which Bran says are made possible by the development of new technologies.
“If you have a clean water damage claim, we have the technology now to go in and be able to dry drywall to its original state. We can dry flooring and avoid the entirety of that rip out and reduce the time it takes to bring the client back to their pre-loss condition,” he says. “It’s really impressive stuff. In our vendor contracts, we require that now.”
Breaking the cycle of escalating costs
As for why, Bran says the efforts are needed to break the cycle of escalating claims costs and premiums. “This is one of the ways where we can contribute today and break that chain and get Canadians in a better position.”
The cooperative plans to use the savings from its practices to in turn fund and enhance coverages now available under other programs offered (it recently launched a product called TomorrowStrong), which give clients the option of building back with more resilient roofing materials, hurricane straps and household preventative solutions such as water alarms, surge protectors or sump pumps.
Consumer support
The consumer research conducted by the organization would appear to support the direction it is taking, as well. A Co-operators survey of 1,500 adult Canadians in May 2024 found that three quarters said it was critically important for companies to responsibly manage their waste. “The demand for corporate responsibility was prominent among younger Canadians. Nearly half of Gen Z believe that sustainability is more the responsibility of corporations than individuals. In the same survey, 65 per cent said they would prefer to repair items if they can be restored to their original condition.
“A significant number of Canadians want to impact the environment more positively. When we put these options out to them, many are very receptive,” Bran says. “There’s a compelling reason behind what we’re doing.”
