Avoiding IT Disputes Andrew Sellers – UK Media & Technology Claims Manager ATMT - Hiscox Zurich th May 2005

“Clients need help in understanding what to notify and when to notify. Specialised Insurers who want long term relationships can help address this need by encouraging their expert claim departments to forge relationships with clients well before a claim arises. Providing a more personalised, focused claims service is as important as being accessible, approachable, and effective. Only when Insurers provide all of this, will clients think of us as part of their company’s executive team if things go wrong.” Andrew Sellers, UK Media & Tech Claims Manager

Where did Beter go wrong?  Why does Alpher want this system?  What are we going to supply?;  Who will do it?;  How will we do it?;  When will we do it? and  How much will it cost?

Where did Alpher go wrong  Was the decision making process rushed?  Should they have completed a detailed requirements document?  Should they have visited reference sites?  Should they have involved their end-users?  Was it in their commercial interests to agree this contract?  How did they handle the dispute escalation?

Could Beter have done things differently?  Should Beter have signed this deal at all?  Should they have taken further steps to understand their clients needs in greater detail?  Should they have negotiated sensible contract terms with the assistance of a lawyer?  Should they have talked more with their Insurance brokers?

Slide 2.  Could communication have been better? How?  Did either party “connect” with stakeholders? Who were they?  Should Beter have attempted to re-negotiate the contract before May 1 st 2004?  What happened to Beters own internal complaint “Traffic light” escalation system?

Was this a good contract?  No Change Management Mechanism.  No clarity on who was supposed to do what.  Contractual Limits of Liability were unfairly high and left Beter with an uninsured liability of £45m on a worse case scenario.  Delivery dates were unrealistic.  No complaint/ADR process.  Contact was not negotiated - terms were imposed.

Could the insurance relationships have been better?  Beter’s FD did not communicate until it was too late.  Should the FD of Beter have spoken with his brokers/Insurers about the difference in his contractual limits and his limit of liability in his policy?  At renewal he was out of his depth and clearly had not thought through the potential consequences of his actions.  Should the broker have introduced the new FD to his insurer? Would the Insurer have been responsive to this?

What could Insurers have done?  Insurers are not IT experts but are very experienced in resolving disputes.  World-wide access to IT experts; trouble shooters; Forensic accountants and lawyers.  We can be very objective and “bang heads”.  We have salvaged relationships.  We have secured contract re-negotiations.  We have prevented escalations.

QUESTIONS?