After The Fire

On May 1, 2009, the day after a massive fire devastated the Herring Cove/Sryfield neighbourhood of Halifax, Marlene was invited to join fire victims for a bus trip through the charred neighbourhood. The experience gave her heightened insight into our industry’s approach to claims handling. This is her account.

The trip started with speeches from the fire inspectors and the police officers. We were told that the smell of smoke would be heavy and there would be many smouldering sites. Nobody would be permitted to leave the bus for the duration of the trip. Anybody who was not comfortable with that, was asked to step off the bus.

Although well warned, I was not prepared for what I saw. This had been an upscale neighbourhood: custom-built homes, secluded lots and private roads. The houses had contained artwork, antiques, studio equipment, cars, jewels, fine china and irreplaceable items from all over the world.

It looked like a war zone.

Some houses were gone completely, others were burned-out shells. The grass and trees were charred and black. Many of the homeowners had moved here to share in a piece of Nova Scotia’s world-famous coastline. The views these people once enjoyed now looked like another planet. These weren’t just houses that had gone up in smoke — they were dreams.

I was sitting near the back of the bus. The fire inspector had announced an IBC representative was on board. He introduced me and said if anybody had any insurance questions, I could help. I heard a collective sigh from the group. They seemed a little shocked at my presence, but glad I was there. I squirmed a little in my seat, hoping I could be helpful and wondering how I could possibly bring any sort of comfort to these people at a time like this. I was glad I was wearing jeans and had left my briefcase back at the office. It was better that I not look like I was there on official business, especially because many of the victims had been wearing the same clothes for a few days.

The victims included me in everything they were seeing and feeling. They helped me visualize what life was like before the fires — pointing out in great detail what stood where, who owned what and what they had lost. The bus was filling with smoke as they all had windows open trying to snap pictures. There were many tears because in some cases pets were still inside the houses and their fate was not known.

I had tears too.

The fire victim sitting next to me told how he and his wife had moved to Halifax two years ago to build their dream home. His wife owned expensive clothes, artwork and artifacts from their homeland. Fortunately, their house was still standing, but many of these expensive possessions may have sustained smoke damage. He told me he didn’t have most of the items insured separately because he knew they were irreplaceable and a dollar value would be hard to determine.

During our conversation, he received a phone call from his insurer’s local representative. Afterwards, he could not remember half of what she had told him. His failure to remember parts of that phone call made me realize how much these people were suffering and how they were not in any frame of mind to be making decisions around contents, blueprints, reconstructions and engineers. Their bodies were in survivor mode; their minds were numb.

I helped this man fill in the blanks of the conversation he had with his insurance representative. In retracing their discussion, I realized his “blanks” mostly revolved around what to do next in the claims process.

Later, after the tour, back in the “real” world, the residents of this burned out neighbourhood had many questions. Fortunately, there were several of us from the industry to help bring clarity. Representatives from the brokers association and the claims managers association were also on hand.

I wish all the answers were simple. I wanted so much to guarantee everything would run smoothly, but all I could do was reiterate that rebuilding after disaster is our industry’s expertise, it’s what we do best, and if policyhold- ers do run into issues they could call me and I would do my best to answer their questions or concerns. I made it clear that I might not always have the answers they want to hear, but I would get them the facts.

The most heartbreaking question I heard was “What if I don’t want to rebuild here?” To those who asked this, we said their policies may very well permit them to rebuild elsewhere. But we urged them not to make such a hasty decision in their current state of shock and remorse.

Nature has a way of repairing itself, and within months you will begin to see the landscape return to some form of normalcy. Colour will return. Green will replace black. We tried to reassure them that once the rebuilding of their homes begins, their community will come alive again. It takes time, but it does happen. They should not give up on their dreams.

The tour was a stark reminder that we are an industry which deals with people in crisis. For many years, I’ve put myself in the customers’ shoes and listened to their stories of loss. In talking to those going through the claims process, I’ve found some people need time to vent about what’s happened to them, and others are just angry. Some people need to cry and others just need to hear that everything will be okay. Most people just want to know someone cares; that they are their insurance company’s number one priority.

Our industry is put to the test when we handle customers during their most traumatic experiences. For example, the community affected by the Halifax fire is tightly knit. People talk. As they proceed through the claims process, they will compare notes. If insurers deliver excellent claims service, the neighbours will know. If a claim is not handled well, that too will be known.

For this reason, our industry must continue to recognize the need for crisis management and soft skill training. Insurers train claims staff to understand how to handle the processes, but not necessarily how to deal with the people impacted by the loss. We need to understand the emotional effects a total loss can have on an insured. We must have the ability to recognize when a client is traumatized and know that individuals deal with trauma in different ways.

Claims handling needs to be more than just getting down to the business of assessing damage and settling the claim. For people in distress, the language of insurance can be overwhelming. After the Halifax fire, I saw the difference it makes to customers when they are treated like people and not paper files. Understanding a client’s thought process after a loss will help adjusters effectively communicate with an insured. It’s amazing to see how a few extra minutes of compassion can create loyal, lifelong customers.

Inspired by Marlene’s story, the Insurance Institute has created a soft skills and crisis management webinar. For more information turn to page 53.

Marlene Landry is the consumer information officer for Insurance Bureau of Canada’s (IBC’s) Atlantic office in Halifax.