In my two plus decades as an insurance adjuster, I’ve adjusted losses for a Fortune 500 insurance company, as an independent adjuster, as a catastrophe or storm adjuster, and am now a public adjuster. Depending upon which side of the fence you sit on this has been either a downward spiral or a successful climb to the pinnacle of guru-hood. Personally, I’m not sure, but I do like working for the policyholder’s recovery more than the shareholder’s profit maximization. Over the years, I’ve noticed a disturbing trend within the claims adjusting profession. The first trend is the polarization of the industry into a mentality of us versus them and the second has to do with the experiential level of adjusters in general.
In an Insurance Journal article entitled Small Florida Insurer, Sunshine State Brings Storm Clouds, Susan Straker, President of the company is quoted as referring to public adjusters as vultures. These types of comments by an insurance executive underscore just how deep the animosity and the rhetoric have become amongst insurance companies. While is may play to her constituency to refer to public adjusters as vultures, it is unprofessional at the very least and ignores the benefits that we bring to the table. Let me give you an example: a client of mine called me a year ago to assist them with their insurance claim. It seems their adjuster had adjusted the loss and after applying the policy deductible offered them $21,892.00. (This was not a Sunshine State loss) I asked for a new adjuster to re-inspect the loss and we agreed the loss was substantially in excess of the $21,892.00 previously offered. We also agreed to use a contractor provided by the insurance adjuster. After several months of inspections and negotiations the insurance company acknowledged additional monies were due. How much? $861,700. If those kinds of results to my client generate the “vulture” moniker then I’m satisfied. So is my client! However, this does raise a question: why didn’t the insurance adjuster recognize a claim value of $400,000 or $500,000? The answer should be disturbing for homeowners and business owners alike.
The National Underwriter in an article entitled Human Factors Drive Demand For Tech To Bolster Claims-Function Weaknesses cite a growing shortage of qualified adjusters as an alarming trend in the industry.
"Badri Narasimhan, vice president at Insurity, a Hartford-based business process management firm, said that after his company’s annual customer focus session with executives, adjusters and supervisors, the firm determined one of the claim sector’s biggest problems is a shrinking talent pool of experienced adjusters.
He said adjuster training typically involves giving new recruits an 8,000-page manual to memorize and having them look over an experienced adjuster’s shoulder as they process claims.
His firm said Mr. Narasimhan is “betting the house” they have the answer for the loss of experienced adjusters by creating anautomated system that looks at a claim and automatically tells an adjuster the best methods for handling it and what steps to take. "
The problem with betting the house is that your house and my house are the ones on the loosing side of that bet. If poorly trained or unqualified adjusters show up at the door how is the poor unsuspecting policyholder supposed to even the scales?
Public adjusters offer a valuable service to the insuring public. They ensure claims are paid at a fair price, the insurance company’s protestations notwithstanding. If you need a public adjuster and don’t live in Florida send me an email and I’ll help you find one.
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