Northern Lights

Unlike a lot of 70-year-olds, you won’t find Gary Gauthier lining up shots on the links or taking an afternoon nap in the workweek. You will find him, well, at work.

After starting up SCS Insurance Adjusters Ltd. in 1964 in Sudbury with his older brother Hazen (now retired), Gary has stayed closely involved with the operation. “I still adjust claims and bring in accounts,” says Gary, who is proprietor. “But the overall running of the business has moved to Greg and Jennifer.”

That would be his son Greg Gauthier, president of the five-branch adjusting firm, and daughter Jennifer Gauthier, vice president, both being senior claims adjusters. SCS Adjusters is an independently owned and operated family-run business well known in the Nickel Belt and beyond of northern Ontario.

“I am in the office on a day to day basis, but I see my role more as guiding, ” Gary observes. “I like this profession, I like the business and I like being able to see my family working and succeeding at what they do.”

SCS Insurance Adjusters Ltd. is headquartered in Sudbury, but covers a vast swath of northeastern and northwestern Ontario with branch offices in North Bay, Sault Ste. Marie, Timmins and Thunder Bay. It employs eight adjusters and six support staff.

Gary notes that SCS used to have more branch offices, but it consolidated to five to reflect broader changes in the insurance industry. “I recall when it used to be primarily brokers in charge of assigning claims files, but that shifted some time ago,” he says. “Insurance companies have taken on that role and internalized the claims assignment function. Brokers are still involved, but not as much.”

Now, it is common for independent adjusters to see direct assignment of contractors by the insurance company in claim situations. Gary says he doesn’t believe there is anything particularly wrong with this strategy – if handled properly. “The contractors’ responsibility is to the insurer and sometimes they send estimates without notifying the adjuster,” he observes. “There can be an issue with communication and coordination.”

While he has seen trends come and go, Gary holds that the business of adjusting and insurance still involves the human element. “It really comes down to relationships, ” he says. “We demonstrate a commitment to our business partners, and we take care of their clients. If there is a problem, we fix it. They key is to establish that level of confidence with your partners. You have to sell your company and stand behind your product.”

As a general insurance adjusting firm, SCS Adjusters offers 24-hour service and access to a full complement of staff to serve individuals in English, French and Finnish. Gary says employee loyalty and longevity is a key factor contributing to the firm’s success over the years.

“We have good people who are qualified, many of whom have been here for 20 years or more,” he notes. “You know who you are dealing with.” Gary adds this stability is complemented by a sharp focus on expertise, industry designations and ongoing education.

A dedicated team of administrators underpins the adjusters. “Strong support staff and administration has been vital in keeping high production standards and assistance to clients, examiners and adjusters in day to day operations,” he says.

While SCS Adjusters handles all general classes of insurance, it also has some specialty areas. One is municipal work. Currently, it represents the City of Thunder Bay and, for several years prior, held the contract for the City of Greater Sudbury. Through these municipal accounts, it has been called on to adjust several catastrophic losses.

For example, when heavy rainfall led to severe flooding in Sudbury in April 1997, SCS Adjusters was called on to handle more than 800 claims. This flood resulted in $21 million in insured losses and remains one of the most significant insurance payouts in northern Ontario.

Gary says his firm has set up a comprehensive catastrophe plan to kick in when crises occur.

“We have a solid CAT plan and we have used it on several occasions,” he remarks. “One of the biggest issues in a crisis event is talking to the people who have suffered the loss. If you can get there quickly and show empathy, you have addressed their main concern. For many of them, this is the most important thing in their lives at the moment – they want someone to show understanding. Let’s face it, if you were wading around in three-feet of sewage back-up in your basement for four days, you wouldn’t be a happy camper either.”

SCS Adjusters’ crisis planning could also come into effect this year, as recent flooding in Thunder Bay and wildfires around the Timmins area have caused significant damage. Another niche aspect of the firm is heavy equipment losses and Gary notes that there will likely be several claims in the wake of the blazes around Timmins, particularly when the main highway, 144, into the area is re-opened.

“A big part of the difficulty when there is a natural disaster is waiting to see what the files are going to look like,” Gary says. “In many cases, the area is closed, highways are shut down, so you have to be prepared to kick in when it is re-opened and move as quickly as possible on the files.”

While SCS Adjusters primarily handles adjusting in Ontario, it has relationships with other firms across the country for more extensive claims. Here, Gary has found the breadth of geographical representation of the Canadian Independent Adjusters Association (CIAA) invaluable.

“We primarily rely on the CIAA for networking with other firms across Canada on out-of-province claims,” he notes. “We have found several firms we are comfortable working with; we pass business to them and vice versa. These networking opportunities are a key part of the association.”

Gary Gauthier says he is a “property specialist,” yet he appreciates the specialization and knowledge required to adjust other types of claims, particularly accident benefits in Ontario (to which he defers to his daughter, Jennifer). When it comes to this expertise, he sees a looming concern on the horizon for independent adjusting firms: available talent.

“The problem right now is where we will turn to for new adjusters,” he observes. “It is pretty thin. This is going to be a problem down the line, especially when it comes to specialist areas like AB. There is a lot of training required. I think we used to see more generalists in this industry, but now there is segmentation and specialization, which means more training in defined areas.”

Even with this challenge, Gary remains highly optimistic about the future of the independent adjuster in Canada.

“I think adjusters will always be around because we provide an important service in the field and in the community,” he concludes. “Insurers have tried doing it themselves, often more as an expense-savings factor. But when there is a crisis in Smooth Rock Falls, for example, it is hard for them to get there. Economically, it doesn’t make sense. And that’s when they need us.”