Sedgwick to expand in Europe and Africa

US claims management and loss adjusting group Sedgwick is looking to expand its global footprint and build out its offering for multinational companies, according to the company’s chief executive for continental Europe, the Middle East and Africa (CEMEA), Stewart Steel. Until five years ago, Memphis, Tennessee-based Sedgwick was a North America-focused claims management company with less than a handful of offices in the UK and Ireland. However, the company has expanded rapidly in recent years through acquisitions and is now present in 65 countries. Sedgwick acquired international claims management and loss-adjusting firm Cunningham Lindsey in 2018, having previously purchased VeriClaim in 2014. Now that the three businesses have been consolidated into the Sedgwick brand, the company is looking to build its footprint and replace local network partners with its owned offices, explained Mr Steel. “There are a number of territories where we do not currently have our own operations, so we are now looking to set up offices or make acquisitions to balance up our proposition in the major complex-loss space,” he said. “By expanding our network of owned offices, we can better respond to market needs and provide a more consistent service offering. We aim to provide exactly the same services as a global corporate programme but in a way that is appropriate to the business culture and practices of the client’s head office, whether that is in the UK, Germany or US,” said Mr Steel. In particular, Sedgwick wants to expand its owned offices in Europe and Africa, as well as its services to corporate customers. At present, Sedgwick’s European operations employ about 1,250 people in eight territories, while in Africa it has a sizeable operation in South Africa. “We are the largest claims management company in South Africa but our strategy is to grow in Africa, where we are looking at opportunities to set up our own operations. We are also looking at opportunities in central and eastern Europe where we do not have owned operations,” said Mr Steel. “This could be achieved through acquisition, but we are also keen to attract talent to grow the business. We want to be the employer of choice for major complex claims,” he said. Sedgwick has made a number of acquisitions in 2019 as it expands internationally and builds out its service offering. In November, it bought Maphilindo International, one of the largest loss adjusters and claims management firms in Malaysia, following a deal earlier in the year to acquire Singapore-based Insight Adjusters. In September, Sedgwick acquired US-based third-party administration (TPA) provider and loss adjuster York Risk Services Group. The group is also looking to grow its claims management business for insurer and corporate clients. A growing number of commercial and specialty insurers – mostly startups but also some established players – are looking to outsource claims management, while corporates can outsource management of low-value, high-frequency claims that typically fall within retention levels, explained Mr Steel. “Some insurers are beginning to question the necessity for a claims department and look to use a TPA. Property claims, for example, are easy to outsource, but are hard to maintain expertise where you do not generate a significant number of claims. This is something we see particularly in the UK market but there is also some appetite among European insurers,” said Mr Steel. Sedgwick also sees opportunities to expand its TPA business outside the US. “Sedgwick is a big TPA provider in the US and there is an opportunity for TPA work with large corporate clients around the world. This opportunity was one of the drivers behind the acquisition of Cunningham Lindsey,” said Mr Steel. The group is also growing its forensic accounting services and its forensic investigation business. Traditionally, insurers employ in-house forensic claims investigators to establish the facts and gather evidence to claim from third parties, but a growing number of insurers now outsource this activity. “We are expanding our forensic investigation business in the US to international businesses in the UK and Europe,” said Mr Steel.

Sedgwick to expand in Europe and Africa

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