May 25, 2022 by Yasser Korany, Mario Delorme and Mazen Habash
Extreme weather events have become common, some bringing unprecedented levels of destruction to structures and facilities, overwhelming owners, property managers and insurers. In response, nearly all major insurers have created centralized Cat units dedicated to handling claims arising from extreme weather events.
But while these units have improved coordination, the industry’s event response continues to follow the traditional claim-based model; that is to say, multiple claims are adjusted one at a time. When rural areas and smaller towns and cities are hit by extreme weather events, the sheer volume of insurance claims can overwhelm the capacity of local engineers and contractors.
To speed the process, we propose development of rapid response integrated teams (RRITs) to handle multiple claims from a single extreme weather event. Teams would consist of a forensic structural engineer, a drone pilot, an estimator and a restoration project manager.
RRITs provide:
Drones can be used to inspect and digitally document properties since extreme weather events often render buildings unsafe to access. Drone pilots can maneuver into confined spaces, such as attics, and photograph areas of interest. This speeds damage assessments by sharing real-time broadcasts with the handling adjusters.
Likewise, tethered underwater drones can safely inspect and document flooded basements and damaged shore properties.
Applying an RRIT to a cluster of losses can maximize benefits. Some advantages are:
Key preparedness measures must be coordinated between the restoration contractors and forensic engineering firms. They should:
This approach benefits carriers by proactively processing claims and speeding decision-making. It also lowers the cost per file by grouping multiple losses together and harnessing efficiencies provided by advanced scanning equipment.
Yasser Korany is founder and practice lead of Origin and Cause Structural Forensics Practice. Mario Delorme is Origin and Cause vice president for central and eastern Canada. Mazen Habash is the president and strategic lead of Origin and Cause. This article is excerpted from one that appeared in the April 2022 issue of Canadian Underwriter.
Feature image courtesy of iStock.com/E4C