KATRINA ANNIVERSARY SPAWNS NEW HURRICANE THREAT

Today marks the one year anniversary of this nation's greatest natural disaster, and the affected areas look remarkably similar to how they looked the day after the storm. Has our industry lived up to the challenge of Katrina? Click here for “Katrina: Claims Greatest Challenge".

Some say yes, some say no, and some say it's not over yet and only time will tell. Yet now...one year later almost to the date, another hurricane, and another even greater threat, bears down on the coast of Florida.  Is the insurance and claims industry ready to meet the challenge of Earnesto, or any other hurricanes that blow in, but also that of another new and ongoing threat?

To do so, our industry must face up to its own challenge in the deployment of qualified forces to address the financial and emotional needs of victims of disaster...

In addition to hurricanes, the past two seasons have spawned a plethora of hurricane adjusters and vendors, all claiming the ability to handle the needs of our industry. Unfortunately, such a supply typically comes at a time when the demand can no longer be met with traditionally trained resources, and there is no time for qualification of that supply.  In short, "any warm body" will do.

Those who have spent their entire life careers dedicated to the mission of claims watch as:

• the reputation of our profession is torn apart by those whose sole objective is to chase the financial opportunities such disasters create;
• those same carriers and administrators pay enormous sums of money for unacceptable quality and response in adjusting services;
• regulators bring great pressure to bear on carriers and administrators to address the needs of the public;
• consumers/policyholders become even more confused and jaded in their view of insurance and the role it plays in their lives.

Because the population of experienced claims professionals has shrunk tremendously over the past fifteen years, and supplies are short, there is a tendency of claims and CAT managers to simply return to the vendors of the past, in hopes that renewed promises will bring a renewed commitment to and delivery of quality performance.  Unfortunately, in many cases those promises, and the performance, of those retained continue to fall short of expectations.

It has been said that one definition of insanity is “doing the same thing over and over again and expecting a different result.” Perhaps it’s time to break the mold and try something new...

If you are a manager or executive responsible for the deployment of adjusting personnel during times of hurricane or other catastrophe, try to resist “warm-body-itis”.  When the financial resources of your company and your customers are on the line, go with those in whom you can trust the leadership and claims performance, not as it has been done, but as it should be done.

Keep expectations realistic, and seek some type of performance guarantee.

And whether you are a new or experienced claims adjuster working in the property, casualty or workers’ compensation claims industry, please resist the urge to purse CAT adjusting as simply a way to make quick money. Find the place where you can do the most good, relative to your training and experience, and pursue your claims career with dedication and commitment. Take care of the needs of others in the best way you can, without concern for personal interest. It will come back to you ten-fold.

James W. Greer, CPCU
AE21 Incorporated - Leading by Example
Association of Property & Casualty Claims Professionals (PCCP)
Association of Workers’ Compensation Claims Professionals (WCCP)