Being Boutique

Michel Demers distinctly remembers the advice his late father, Marc, also an adjuster for 35 years, gave to him. “He told me: ‘Don’t offer the same services as everyone else; you have to be able to stand out from the rest of the pack by specializing,'” Demers recalls.

He has taken that advice to heart. As president of Demers Insurance Adjusters Inc., located in the Montreal suburb of Saint-Lambert, he has carved out a solid reputation as a claims specialist and an enviable client list in a tough marketplace.

“We are a boutique adjusting firm focused on personalized service to our clients,” Demers notes. This extends to their various divisions, which encompass commercial property, liability, casualty, inland marine/marine cargo, warehouse and environmental risks. Demers Adjusters also handles a significant volume of large and complex claims.

“As adjusting professionals, we have built a core of expertise in several areas of business,” Demers says. “I believe this has allowed us to succeed in a challenging claims environment of fluctuating volumes, in-house insurer adjusting staffing trends and national insurance company service contracts.”

Boutique means that Demers Insurance Adjusters caters to local insurers and multinational firms, including aerospace/transportation companies and utility providers. This extends to petro_chemical firms, pipeline suppliers and environmental risks.

It also means that the firm tends to handle larger claims. For instance, Demers Adjusters recently handled one of the largest claims in Quebec history – a warehouse theft that resulted in a multi-million loss exposure.

“Insurers involved in complex cases know that we can provide the specialized services they require,” he adds.

Michel Demers has been building up this area of specialization for a period of 40 years in the loss adjusting profession. Starting his career in 1972, he worked as an adjuster for his late father’s firm Marc Demers Limited, learning the ropes and getting important training. He has since been involved with several Quebec-based firms. In 1987, Demers founded an adjusting firm together with associates, and in 1999, he decided to strike out on his own, creating Demers Insurance Adjusters Inc.

“Since the very beginning, we have provided quality claims handling in specialty risks and loss adjustment by giving utmost priority to customer service,” he observes.

When asked about the qualities that make a successful adjuster, Demers cites the old adage that all a man really has, when everything else is stripped away, is his reputation. “Integrity is very important in this profession,” he says. “The reputation of your firm amongst insurers and end clients is really what counts at the end of the day.”

Another trait that Demers identifies as key to the adjuster personality: curiosity. “If you are not a curious person, I don’t think you can execute a complete investigation. When someone assigns a file to us, they are assured of the quality of the investigation.”

For Demers, this also implies keeping up to date on current trends in various fields, including legal, liability and environmental issues. “If someone raises a question or has a concern, I am not satisfied until I get the right answer,” he says. “That is a critical part of being an adjuster.”

Service, communication and attention to detail are also vital attributes of an insurance adjusting firm, according to Demers. “We work as a team. What this implies for me and my senior managers is that our doors are always open to staff,” he explains.

“If there is a problem or concern with a claim, we need to find the right solution and communicate this to the client to get the proper results. As an adjuster, you must follow the claim through to its final resolution with the client’s best interests in mind.”

Expertise and the ability to handle complex losses are crucial characteristics for firms like Demers Insurance Adjusters, he says. His experienced team is well equipped to deal with all losses involving fire, spills, general liability, casualty, warehousemen’s liability, cargo and commercial theft. Demers Insurance Adjusters’ specialization is also reflected in its extensive affiliation with various industry organizations.

The firm is a member of the Quebec Independent Insurance Adjusters’ Association (AESIQ), which is linked with the Canadian Independent Adjusters Association (CIAA). In terms of commercial and industrial risks, it is also involved with the Risk Insurance Management Society Inc. (RIMS), Quebec Risk and Insurance Management Association (QRIMA), Canadian Board of Marine Underwriters (CBMU), Canadian International Freight Forwarders Association (CIFFA), Canadian Maritime Law Association (CMLA) and Canadian Association of Fire Investigators (CAFI).

Even with its specialized niche, Demers Insurance Adjusters is not immune from the competitive pressures in today’s insurance marketplace. Demers says he is fully aware of trends towards fixed adjusting fees, task assignments and national contracts.

“All insurance companies are looking to reduce costs,” he observes. “Sometimes, we’re provided with a task assignment, and the first thing we discover is that there is a strong the possibility of litigation, thus requiring a thorough investigation. The reality is that certain claims require extensive resources and investigation.”

This is particularly true as it pertains to casualty claims. “We have also seen a notable increase in the number of casualty claims that have been assigned to our firm,” he says. “Most of these losses are very complex; it is imperative to obtain the right information. There are no shortcuts to handling some of these cases, when they may potentially give rise to litigation.”

In terms of industry trends, Demers notes he has also seen the effects of large insurance consolidators keen to keep more claims in-house and hire more staff adjusters. But he also says he sees this trend extending to other forms of “service providers.”

The concept of “one-stop shopping” and volume claims processing is the opposite of Demers’ boutique business model. “I am looking to work as part of a team with my client, whether this entails receiving claims directly from an insurer or a corporate client,” he explains.

When Demers, who is married and a father of three children, is asked about what kind of advice he would provide to his kids who may potentially be pondering a career in loss adjusting, he replies that he would give them the same sound advice as he has received from his late father.

“There’s no question independent adjusters are facing a lot of challenges in the marketplace today and it is not an easy profession,” he concludes. “But I am optimistic that specialized firms can survive – and continue to thrive. My father had a clear vision: to specialize and gain expertise in key areas. I would say that if you pursue this sort of specialization and emphasize personalized service, you will always be successful in this business.”