{"id":885777,"date":"2015-11-24T16:49:14","date_gmt":"2015-11-24T23:49:14","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=885777"},"modified":"2015-11-24T16:49:14","modified_gmt":"2015-11-24T23:49:14","slug":"the-changing-face-of-independent-claims","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/the-changing-face-of-independent-claims\/","title":{"rendered":"The Changing Face of Independent Claims"},"content":{"rendered":"

Adam Gardiner | AdjusterPro\u00ae Blog | October 2, 2015<\/p>\n

First in a seven-part series on the evolving state of the claims industry.<\/h6>\n

The independent claims industry is a bit like the Wild West: unpredictable, with few rules only erratically enforced and where only the strong survive.<\/p>\n

It\u2019s tough. It requires grit. \u00a0But often enough, you get to be the good guy wearing the white Stetson.<\/p>\n

Yes, for the right cowboy (or cowgirl), independent adjusting<\/a> is a rewarding career. \u00a0But you should know something.\u00a0 While it\u2019s still rough and tumble, the West is slowly being tamed.<\/p>\n

Changes are afoot and those that best anticipate and adapt will win out in the new dispensation.<\/p>\n

But before we understand how the West is being tamed and what it means, we need to look at how it was born.<\/p>\n

AN INDUSTRY GETS ITS SPURS<\/h2>\n

Independent claims<\/a> adjusting arose in the early 70\u2019s from a simple need: to buffer spikes in claims volume. \u00a0Insurance carriers began to outsource \u201coverflow\u201d claims to independent adjusters. \u00a0Because these adjusters served as independent contractors, carriers saved money by not directly employing a massive army of adjusters \u2013 which they would otherwise need in the event of a major catastrophe.<\/p>\n

Otherwise, a permanent Hurricane Katrina-sized workforce would largely sit idle.<\/h4>\n

To insurance carriers, the use of independent adjusters ceased to be a luxury decades ago \u2014 becoming instead an economical necessity. \u00a0And a billion dollar independent claims industry got its spurs.<\/p>\n

THE WILD WEST OF CAT ADJUSTING<\/h2>\n

Until recently, independent adjusting was been virtually synonymous with catastrophe adjusting. \u00a0And, since mobilizing thousands of adjusters in a matter of days in response to a catastrophe is expensive and messy, there were consequences. \u00a0Industry regulation was spotty, career paths unclear, training was all over the map, and safety rules were only randomly applied. \u00a0Things got tense and untidy.<\/p>\n

Independent adjusting firms and adjusters tough enough to survive were paid handsomely.<\/h4>\n

Carriers, it turned out, were willing to pay millions to clean up claim spikes quickly enough to keep them out of trouble with regulators and skirt the wrath of the public.<\/p>\n

And the industry still prefers the open range: low regulation, high expectation, unpredictability, and the chance of a big pay-day. \u00a0It\u2019s a maverick industry, from the family-owned firms to the adjusters riding solitary in the field.<\/p>\n

But industries evolve, and the claims industry is in an important evolutionary stage right now.<\/p>\n

INDEPENDENT ADJUSTING IS THE FUTURE<\/h2>\n

Rather than outsourcing as an economic necessity, carriers increasingly see a real strategic advantage in the use of independent adjusters<\/a> \u2013 in particular, a long-term advantage.<\/p>\n

They\u2019re transferring the expense, hassle and liability of employees onto independent adjusting firms.<\/h4>\n

In effect, the independent industry is becoming a human resource solution: \u2018leasing\u2019 employees rather than hiring; outsourcing an entire \u201cdepartment\u201d of an industry. \u00a0And, as they lean ever more heavily on independents as a long-term solution, carriers gradually tame the Wild West.<\/p>\n

CARRIERS TAKE A RISK<\/h2>\n

Outsourcing claims as a department is a bold move. \u00a0It means relinquishing full control of customer satisfaction for a growing percentage of non-catastrophe claims.<\/p>\n

On the other hand, outsourcing grants carriers some enticing advantages.<\/p>\n

One advantage is flexibility.\u00a0 Cumbersome employee rights make it onerous to fire or lay off salaried employees, but independent adjusters<\/a> are easily hired or let go in direct proportion to fluctuating claims volume.<\/p>\n

Another advantage is financial. Using leased employees evades the burden of costly employee benefits. \u00a0This adds up to millions of dollars saved \u2014 a massive competitive advantage for the carriers and their shareholders.<\/p>\n

CHANGE MEANS PAIN\u2026AND OPPORTUNITY<\/h2>\n

Predictions are that the culture and the nature of the independent industry will continue to change until it is…<\/p>\n

To finish reading this article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Adam Gardiner | AdjusterPro\u00ae Blog | October 2, 2015 First in a seven-part series on the evolving state of the claims industry. The independent claims industry is a bit like the Wild West: unpredictable, with few rules only erratically enforced and where only the strong survive. It\u2019s tough. It requires grit. \u00a0But often enough, you… Continue reading The Changing Face of Independent Claims<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[3],"tags":[8634,8943,339,3],"class_list":["post-885777","post","type-post","status-publish","format-standard","hentry","category-insurance-claims","tag-independent-adjuster","tag-independent-claims","tag-insurance-adjuster","tag-insurance-claims","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nThe Changing Face of Independent Claims - 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