The Future of Catastrophe Adjusting
It is a great time to be an Insurance Claims Adjuster! The future of catastrophe adjusting includes lots of money, but it is not on a silver platter. You have to be that certain type of individual that will not let adversity stand in your way. This is an industry where only the strong survive.
At this point in time there is a lot of latitude given the independent adjuster. This makes it challenging, exciting and rewarding. But nothing stays the same. Change is inevitable. If you want to be successful in this career, you have to have the vision to see what is coming.
Before we get into what is in the future, you need to understand a bit of our history. The Independent Claims Adjuster was born out of a need insurance companies had when disasters required more adjusters than they could provide. Independent adjusters filled the gap as independent contractors. The insurance companies were able to adequately work disasters without maintaining a large and expensive staff.
Independent adjusting, or CAT adjusting, has been “wild & crazy!” All the regulations from state to state have been difficult to keep up with. Proper training requirements vary depending on the state. Safety regulations are vague and rarely enforced.
Because of all of the craziness, changes are coming to make things better for all involved. This is the future of catastrophe adjusting!
Adjusting Firms have played an essential role in the way Insurance Companies do their business today. Instead of maintaining an army of employees, the Insurance Company merely contacts one of the adjusting firms they work with to supply the needed adjusters for a deployment.
Outsourcing the working of claims is risky. Companies must relinquish control over such things as customer satisfaction in order to grow their company. Because there are so many variables that can go wrong, efforts are being made to streamline the process.
Change always brings opportunity for those that adapt. Insurance companies are looking to outsource more and more. The Adjusting Firms that can meet the ever increasing demand, will be positioned for the expansion that is certain to come.
The “wild & crazy” days are coming to an end. You need to get ahead of whatever changes are coming. Get yourself positioned with an Insurance Adjuster License, more specifically, become a Texas Adjuster. Take advantage of the different adjuster training opportunities. The more certifications under your belt, the more attractive you will be to the Adjuster Firms. And the more prepared you will be to role with the changes.
Wild & Crazy goes indoors (air conditioning!):
“Inside Adjusting” is going to be a big part of the future, even for CAT adjusting. Once all the infrastructure is in place and the kinks are worked out, most catastrophe claims will be able to be worked remotely. This will be supported by technology and field adjusters.
Inside adjusting will typically take place in a call center type setting. Rather than physically inspecting a claim, videos and pictures are viewed along with the documentation necessary to the claim. Communication with the policy holder will be done by phone or other devices. For claims that are too extensive to be done entirely by Inside Adjusters, the blanks will be filled in by coordinating with a field adjuster on location.
Perhaps the biggest challenge for Inside Adjusting is the reliance on the policy holder for a truthful description of damages. Because human nature is what it is, there will always be a need for adjusters to be on location for conformation of damages that seem excessive.
In the future, the field adjuster’s work will be less focused on closing claims, and more on spot inspections. This will complete the work of the Inside Adjuster who is located at the insurance company’s center. So instead of handling a claim from start to finish, they will work more as part of a team. The team’s collective effort finalizes the claim. A huge benefit to this is the elimination of the fear of screwing up a claim!
Insurance adjusters are needed because settling insurance claims ultimately requires human judgment. Every claim is unique, so call-in centers can only do so much. Field adjusters are relied upon to inspect and interpret the particular demands of each claim. It is reassuring to know that insurance adjusters will always be needed. Outsourcing to technology can decrease the workload for adjusters, but will never eliminate the need for adjusters themselves.
Technological advances in videos, scanning, digital photography, drones, etc., have made it possible for Claims Adjusters to obtain almost all the data necessary to work a claim by these technologies. This process is not going to be as accurate as having an adjuster working the claim the way it has been done in the past. In many cases the payout will be more than the claim actually warrants.
In the event of a large disaster, hundreds of claims adjusters from several Adjusting Firms, can all work together at one facility. The insurance company can supervise this collective effort. This makes training less confusing. However, there will no longer be the freedom the industry has previously offered.
Instead of one adjuster working a claim to its completion, it will be more like an assembly line process. More efficient and more streamlined.
Adjusting Firms will focus more on specific qualification instead of requiring adjusters on their rosters to have a working knowledge of every aspect of the business. In the past, a new adjuster on their first deployment had to hit the ground running in a ‘sink or swim’ scenario. For many, it was overwhelming. Many would quit after just a few days. The process is being broken down into more manageable work loads. This greatly increases the success probability for new claims adjusters!
This has been an industry notorious for its’ difficulty to break into. This new move to inside adjusting, makes your success more of a team effort. New adjusters start out handling simple things. Over time they are cross-trained to expand their value. This will go a long ways to open the industry up more for girls, who have been more reluctant to take on the physical demands of climbing on roofs, etc. Older Adjusters will be able to stay in the business much longer!
Cat Adjusters have had to work under extreme conditions, Such as no electricity, down cell towers, no hotel vacancies, road closures, adverse weather conditions, language barriers and distressed and unpleasant policy holders! Inside adjusting is not affected by any of these challenges. Since adjusters will no longer be deployed for one particular event, deployments are much longer.
Tomorrow’s claims industry will be very different than it was 20 years ago. Some changes will be considered good, some bad, but all are likely to stick around. Veteran claims adjusters will struggle the most with the transition. There will still be field adjusting opportunities for those wanting that type of work. Field adjusting will never disappear. Field adjusting will just become a more specialized part of the entire business. The future of catastrophe adjusting is constant change. Change is inevitable. The big question is what to do with change. Adjusting firms see this change to inside adjusting as OPPORTUNITY!
Settling insurance claims ultimately requires human judgment. Every claim is unique, so call centers can only take insurance companies so far. Field adjusters are relied upon to inspect and interpret the particular demands of each claim. It is reassuring to know that insurance adjusters will always be needed. Outsourcing to technology can decrease the workload for adjusters, but will never eliminate the need for adjusters themselves.
The future of catastrophe adjusting is bright. The need for adjusters is huge. And it’s harder to find good adjusters than you think.
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The Future of Catastrophe Adjusting