Wat is the future for loss adjusters? Changing the rules of engagement

The world of the loss adjuster is ever changing. The rules of engagement have changed so significantly that one may feel that they are engaged in guerilla warfare where the enemy wages an unconventional war.

In an effort to negate this, insurers are implementing different types of claims assessing models that either remove or limit the use of loss adjusters. What does the future hold for the adjuster?

Rapid progression

The processing of claims is progressing rapidly as technology progresses, specifically in the high volume and commoditized space and the appointing of loss adjusters or assessors is certainly not immune from this process.

Claims management costs have also become a major priority for insurers in the high volume area of claims which typically include motor claims and the smaller value buildings, all risks and content claims and systems and assessing companies with strong back office systems are being used more and more by insurers to validate and quantify these claims on their behalf.

Large volume companies and systems can cater for this, and will be far more cost effective when dealing with claims where the requirement is standard checking and quantification which is an objective all insurers share.

Not the norm

This is not the case with all claims however, and certainly not in the commercial and corporate field where claims are more specialized and are of higher quantum.

Potentially, the insurer’s bigger objective will always be to have the facts of the claim properly investigated so that the right conclusions can be drawn. The facts of the claim will be far from standard given the cover against which the claim is submitted, unlike a motor or geyser claim submitted in terms of the building section where quantum and reasons for the claim are reasonably standard.

The need for specialized skills

With more varied sections such as liability, loss of profits or engineering claims that occur in the commercial space; a specialist loss adjuster with a background in the particular area he/she is investigating applies their skill to be able to report to the insurer precisely what took place and what facts are relevant with respect to the cover being given.

An example would be an engineering works claim where a loss adjuster cannot simply quantify commoditized items; there are specific investigations that need to be done to determine the cause of the claim - which generally only an engineer would accurately be able to determine - and when proposing ways to indemnify the client.

Only a specialized loss adjuster would be able to achieve this and a strong back office based assessing firm or an in house assessing division of an insurance company would not be able to achieve this. The same would apply to a specialist liability or marine claim.

In summary specialist claims would always require a specialist loss adjuster. More commoditized adjusting may well be consolidated into the internal divisions of insurers or high volume companies.