Balancing Act

While every firm, whether small, medium or national, will face its own set of unique challenges, for many the issue of staffing dominates. How to ensure that there are enough trained staff to replace those retiring? Where to find good, quality adjusters to handle an influx of weather events? Do we have the capacity to handle an extreme surge of events, such as those that have plagued the industry on a global level? Here are the challenges faced by 10 independent adjusting firms, presented in alphabetical order by company name.

Blair Boilard
senior adjuster
Algom Insurance Adjusters

An insured paid for installation of a propane line on their premise when a loss occurred to the line a week later. The contractor had initially charged a lump-sum price.

We attempted to secure a repair estimate from the contractor, requesting cost details for materials, labour and identifying sub-contractor’s pricing (including landscaping, as some digging was required), but this proved to be quite a challenge. In the end, the contractor did not comply with our request. That’s usually when “the spidey sense” starts tingling.

Initially, competitors were not interested in attending as the insured had a contract in place with a particular supplier.

In the end, adjusting skills were put to the test, competitive estimates eventually secured and the insured realized they significantly overpaid on original work.

No doubt this will affect the relationship with the original contractor.

I remember reading an article written by Fred Plant, which expressed the need to  “verify, verify, verify.” I couldn’t agree more. Some basic principles include verifying the proximate cause of the loss, the scope of the emergency work required and the scope of repairs, ascertaining that spoliation does not occur (in the event that there is an opportunity for subrogation) and addressing the potential for any salvage.

Controls are needed and quality adjusting is an important service that we provide as independent adjusters.

We often wonder what would be the consequences if the police no longer patrolled the highways?

We have many examples of realizing savings for our principals of $2,000 to $20,000 or more on a loss. Such examples are the result of experience, ongoing education and the use of technology, along with common sense.

Be accountable and challenge yourself and staff to learn something new everyday.

David Riddell
president
Canadian Claims Services

The biggest challenge for 2011 was an overall shortage of good, qualified people. This was not only an issue for us as independents, but for the industry as a whole, including service vendors, such as contractors.

The summer of 2011 was another year that saw significant weather events, as well as the devastating wildfires in Slave Lake.

The weather events were spread out all over the Prairies, and Slave Lake was a considerable draw on insurance company, independent adjusters and contractors’ resources. The sheer number and severity of the claims suffered in each of these catastrophes taxed the human resources to the maximum, and required all parties to come up with creative solutions on how best to use those resources.

Slave Lake was an eye-opening event for many parties, on what a large-scale major catastrophe – which displaces thousands of residents – will look like, and the logistical challenges that an event like this presents.

Overall, I think the industry as a whole responded and adapted to these challenges very well.

The shortage of good qualified people will continue to be a significant problem, not only for this coming year, but for the foreseeable future. More people leave the industry each year than join it for a variety of reasons.

Regardless of the reason, this has created a huge loss in claims handling experience and expertise. This presents a considerable problem for the industry as a whole.

Insurance still appears to be a career that the majority of people fall into, rather than choose.

As an industry we need to do a better job of communicating that insurance is a rewarding, honorable and viable long-term career choice.

John Sharoun
CEO
Crawford & Company (Canada) Inc.

This past year presented many challenges for independent adjusters and the industry in general. The one that concerns me most is capacity, and our industry’s ability to handle the large events that have plagued our counterparts in overseas events.

In Canada, we have seen our share of surge events in 2011 and we have responded admirably. The reality is, none of what we have seen here approaches the magnitude of global events.

In underwriting/loss control there is much modeling discussion, but are we doing enough to follow through on what claims resources would be needed to respond? Events of this nature require a heightened sense of urgency and customer response and tax resources over lengthy periods of time. Are we ready?

CIAA has begun to liaise with our industry counterparts. Setting aside the ever-present debate around external/internal and allocated/unallocated expense, we, as a collective industry, require more dialogue and pre-loss planning to make sure we are there when the time comes to do what we do best – help people attach to the policy promise when they need it most.

As independent adjusters we invest heavily to help drive our business and deliver leading customer-centric technology solutions. Over the last 18 months the proliferation of I.T. solutions, both hardware/software, and the pace of change in this space, is remarkable.

We see internal operational-dashboards, external performance-dashboards, predictive analytics and a real push on fraud solutions using relational databases to gather and analyze data from multiple sources.

There are a myriad of process improvement technologies designed to reduce cycle-time/expenses, manage indemnity and improve customer experience.

Our challenge as independents is where do we invest our dollars when getting it wrong could have disastrous consequences? And once we chose, how do we make sure the technology delivers the results our clients want and need? As if that’s not enough, how do we connect systems with client/industry databases functionally and in real-time?

How far are we from virtual industry-wide connectivity?

Peter Hammill
senior partner
Delong & Associates Inc.

As a partner in a small, eight employee, independent adjusting firm, the greatest challenge of the past year – and indeed the past number of years – has been building capacity for busy periods, then struggling to keep those employees busy, motivated and challenged during periods of lower claims volume.

Accepting that claims volume can be driven by seasonal factors, insurers need to appreciate that the capacity we have created to handle their overflow during December to March needs to be supported through the spring, summer and fall, as well.

I am not suggesting insurers do this on purpose; they clearly have their own capacity issues to deal with, and most attempt to level the workload on their employees. Insurers must understand that if we are going to be here when they really need us, they must provide year-round support so that we are able to maintain adjusting staffing levels. We do not want to lower the peaks, but we need to level the valleys.

The challenges going forward will be similar as in the past. We need to continue to show insurers the benefit and importance of a healthy independent adjusting industry. More must be done on our part to reduce the adjusting activities being performed by restoration companies, but that can only happen if insurers can see the value we bring to both them and their insureds as a professional and truly independent set o
f eyes and ears. 

Michael C. Holden
president & CEO
Granite Claims Solutions

A major challenge faced by independent adjusters in 2011 was the attraction of adjusters in a shrinking pool of human resources. While various industry associations provide awareness and career-focused educational programs to attract new talent into the field of claims adjusting, we are seeing a definite void in the intermediate and senior adjuster categories. To be viewed as a desirable place of employment, Granite Claims Solutions has developed various employee-engagement initiatives that assist all colleagues in achieving a desirable work/life balance. New and enhanced employee engagement programs offering flex hours, virtual offices, corporate share options, relocation packages, as well as continuing education and training programs, have greatly contributed towards establishing a positive workplace climate and culture.

As we, as an industry, strive to attract new adjusters into the field of claims management, we must also make available to them increasingly interactive and leading-edge technology. Entrants into the field of adjusting will look for independent adjusting firms that offer both flexible work environments, as well as technologically-driven claims management tools such as touch-screen reporting devices with mobile internet access, “on demand” training programs and 24/7 online resources. Therefore, we believe a major challenge for 2012 is the need to allocate the necessary I.T. resources to the development of increasingly sophisticated and user-centric claims management and reporting tools. 

Russ Fitzgerald
Edmonton branch manager
Kernaghan Adjusters

Looking back at the past year, I would have to say the biggest challenge we faced was staffing. Being one of the busiest years in some time, the challenge was complicated by claims volume. Our company recognizes the difficulty we confront when hiring qualified independent adjusters and supports the managers nationally.

But, as anyone who is in a position of trying to hire in today’s market knows, attracting competent staff is extremely tough. There are very few adjusters with twenty or more years of experience.

On top of the challenges associated with hiring new staff is that many qualified seasoned adjusters are close to retirement. As we hire new staff, it creates an ever-increasing need for training to replace the retirees. Unpredictable claim volumes complicate our smaller markets.

During the Slave Lakes fires, and the weather-related volume this summer, we dispatched a number of our adjusters to deal with volume needs. Taking experienced adjusters away from the day-to-day business further accentuates the need for expertise on the job and in the field.

There seemed to have been a drop in staffing new adjusters in the early nineties, which created a hole in the twenty-plus-year adjuster resources. With the approaching retirements in the next five to 10 years, and the unpredictability of claim volumes, independent adjusting companies will have to change their philosophy regarding the staffing of new adjusters.

I believe 2012 must be the year independent adjusting companies start looking at hiring new adjusters as an investment in the future. We need to build training and mentorship programs for new employees or graduates of the Insurance Institute. These programs need to start now to preserve our profession and guarantee that the great wealth of knowledge our soon to be retirees have will be passed along to the up and coming young adjusters.

J.R. (Jim) Matheson
vice president and general manager
Marsh Adjustment Limited

The challenges Marsh Adjustment Limited faces are not unique to 2011, nor are they to the claims adjusting profession. Like many industries, ours has a unique workforce, and a multi-generational workplace needs flexibility and innovative methods to accommodate younger employees who present varied demographics as they balance work with their personal lives. Through detailed and effective planning for both ownership and management, we are attempting to address these issues.

The lifeblood of an independent adjustment firm is regular support from our clients. We, like other businesses, also face escalating costs in running our company. There continues to be pressure from clients not to increase our fees, hence we face a challenge in maintaining not only our current staff but also the hiring of new employees.

Originally incorporated in 1956, our firm underwent a name change in 2011. We firmly believe the quality of our product has resulted in the ongoing support from our clients. We are proud to be employee owned and to provide adjusting staff, who live in the communities where our offices are located. This results in prompt response times when claims are received and is appreciated by the insured, their broker and the insurance company. Our goal is to continue to stay on the cutting edge of technology, and expanding our staff to ensure our firm remains young, vibrant, and professional.

We are broadening our knowledge base to offer experience in a multi-diverse culture to ensure we are prepared to deal with an ever-changing claims environment. Our commitment to quality control and education remains a strong focal point going forward. We remain confident we will be able to continue to weather the storms from not only Mother Nature, but also the ever-changing insurance industry.     

Rob Johnston
claims representative
Midwest Claims Services

The biggest challenge Midwest Claims Services faced in 2011 was trying to find and acquire trained and qualified individuals to assist with claims handling. Even when posting positions, we found that, locally, we were unable to find individuals that fit the criteria we were looking for in an adjuster. As a local firm, it is hard for us to justify moving someone across the country to fill that position. However, in order for us to continue growing and moving forward, that day may come.

In addition, we are finding that the age of the adjuster who is qualified is increasing. This presents a challenge when you are looking to, and planning for, the future. The hope is that the new insurance program currently being run at the Saskatchewan Institute of Applied Science and Technology will assist in the re-population of the insurance workforce in Saskatchewan.

The biggest challenge facing Midwest Claims Services in 2012 will be keeping up with a fast-paced and growing Saskatchewan population and economy. As mentioned, the issue is finding qualified and competent people to assist with an increasing and rapidly growing Saskatchewan marketplace. In addition, the types of claims that we are seeing in the province are diversifying, therefore the need for continued training and education is a must in order to be able to continue to provide service to our clients growing needs.

Miles Barber
president
Network Adjusters Ltd.

When I first learned that Network Adjusters had been selected to participate in Claims Canada’s cover feature for December/January I was both surprised and grateful.

I immediately began the process of examining all that had occurred in 2011 for both my company – Network Adjusters – and for me.

Foremost, this was the year Network Adjusters would celebrate its four-year anniversary, while also opening a branch in Brandon, Man.

I was fortunate to have been able to engage Craig Shanks as my branch manager in Brandon. Craig is a long-time friend and respected colleague.

Interestingly, it seemed that during this past year, no matter the venue I have been in – industry function in Winnipeg or boardroom in Toronto – I had participated in discussions on personnel.

“Where can we find quality people for our com
pany?”

Thus, the biggest challenge I faced this year was one that I dare say all of the p&c industry faced: finding the right person with the right skill set to bring into your organization.

I believe this was not only the challenge of 2011, but of 2012 and beyond.

To attract quality employees I believe you need to provide your employees with security and the resources they need to do their jobs in an environment that is respectful. Allow them independence and the ability to prosper and watch how they grow.

The profession of independent adjusting is a rewarding one. A career in the p&c industry can be fulfilling. We should all be grateful for what our industry does for its policyholders in their time of need and for what we draw from our industry through our own careers.

Maybe we should loosen the lid on this secret; that just might open up new possibilities.

David Cernak
president
PCA Adjusters Limited

This past year brought us four large weather-related events in our geographical territory, and, with them, the challenge to successfully meet the clients’ service expectations, despite the volume of claims!

As is widely known, our industry faces a shortfall in experienced claims people, and, coupled with this, companies continue to seek out ways to reduce expenses. So the pressure builds, whether it is in an under-staffed claims department, or examiners with exceedingly high file loads. It is often customer service, and therefore peace of mind (the very item an insurance policy is expected to provide), that suffers.

We are all still feeling the ongoing effects of the 2008/2009 financial meltdown, and, given the present situation being played out in the European financial markets, people are on edge. This requires that we, as independent adjusters, focus even more on providing the customer service, reassurance and expertise that the policyholder needs. We must remember that although we may have many files on our desk, the policyholder has one claim they want properly handled.

Looking ahead to 2012, the challenge will continue to be customer service in tough economic times. We must continue to balance excellent customer service with a thorough and proper investigation to ensure that both the policyholder and the insurer get what they paid for. We can only do our very best to keep all lines of communication open, clear and concise in order to confirm to insurers the value of the independent adjuster, and confirm to the policyholder of their value as a client.