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New firm to serve as liason between insurers and contractors


June 19, 2007   by Canadian Underwriter


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At a time when independent adjusters are voicing concerns about a shrinking job market due to insurers working directly with contractors, a new network is set to enter the Canadian market that will work as a third-party administrator between insurers and contractors, delegates of the Disaster Restoration Contractors Conference & Trade Show, in Toronto were told.
Paul Gross, president of CodeBlue, a product of Wisconsin-based Harmon Solutions, announced the Canadian launch of the service during the seminar, CodeBlue ” How Outsourcing of the Claims Department will Impact the Restoration Contractor.
The company processes between 40,000 and 50,000 property loss claims a year in the U.S. market, Gross said.
Essentially, CodeBlue is a pool of contractors who enlist free of charge with the program. The insurance carrier contacts the CodeBlue call centre and the agency farms out a suitable contractor.
Gross believes that the new service will help to reduce severity for insurers by reducing response time.
The announcement came at a time when the Canadian Independent Adjuster Associations incoming president, Fred Plant, expressed concern during an interview with Canadian Underwriter that about insurers increasingly subtracting the independent adjuster from their claim management processes.
Plant stressed the need for conversation between adjusters and insurers to determine how more value can be added to the relationship.
CodeBlue will handle small property losses, usually under $10,000, said Gross.
He could not confirm a date when the service will be marketed to Canadian insurers, but the DRC trade show marked the inaugural recruiting of contractors.