Back to basics.

- Alex Gargolinski
- 12 Oct 2000
- Indicative reading time: 3 minutes

Loss adjusters need to reassess their role in the claim management process, in order to ensure they are satisfying the needs of the broker and their client, says Alex Gargolinski.

Consolidation and competition continue to reshape the commercial
landscape of the insurance business. And as policyholders shop around for
the best value in products and customer service, it is often the broker's
reputation which is at stake. It is time loss adjusters realised this and
redefined their relationship with brokers and their customers.

Recent research indicates that on average a claim generates seven phone
calls and that simply reducing this from seven to six would free up to
five weeks of processing time for many companies. For brokers, the result
would be more selling time available to build the business, and that is
increasingly important in an insurance climate dictated by tight margins
and fierce competition.

Customer service

These days customer loyalty is critical and, for brokers, can make the
difference between renewals and refusals. Policyholders will only renew
with a broker if they think they are getting good service. That is why
loss adjusters must realise that part of their role is to help maintain
customer loyalty by providing good customer service for brokers and their
clients.

Historically, the loss adjuster has been indifferent to the effect of
their service on broker/client relations. That just does not work
anymore.

In most instances, the relationship between the broker and the
policyholder is much stronger than the sudden relationship which the
policyholder must have with the loss adjuster. Loss adjusters should take
these relationships - and what is at stake for the broker - into account
when dealing with the claim.

The specialists selected by loss adjusters must also have the mindset that
they are there to be as helpful as possible in the relationship chain
between the insurance company, the broker and the policyholder. The loss
adjuster is not the middle link of that chain; they are an extra element -
a highly skilled outsource appointed by the insurer to handle a claim.

The quality of their work, while representing the insurance industry,
reflects upon the broker.

These days, there is no need for a loss adjuster to go in with size 10
feet to speak to the policyholder without first telling the broker what
they are going to say, or to convey incomplete information because they do
not have all the policy details to hand. With the systems we have in place
today there is no excuse for that kind of service - or lack of it.

But while indifference must go, this is not about indulging the
policyholder either. It is about finding the middle ground of efficiency.
Keeping a customer happy, and therefore at arm's length, is one of the
most important things the loss adjuster can do for the broker.

The way a loss adjuster handles a claim can also help the broker maintain
a positive position within the local community. Respect for the service a
broker provides will ultimately generate more business.

At the end of the day, the broker's role is to sell; the loss adjuster's
role is to free up the broker's time to do just that by managing claims
efficiently. Because the majority of brokers are SMEs, they cannot afford
to be bombarded with pointless, time-consuming phone calls or to be
troubled by people phoning up to see what's happening with a claim. That
is the most unnecessary phone call of all and, with the sort of
information and communication we have today, there is no need for it.
Better information from first contact on, is the way forward.

Another way which can improve communication and customer service, could be
the early nomination of a loss adjuster. This would allow the policyholder
to get to know the loss adjuster and how the company works before a claim
arises, eliminating unnecessary - and unhelpful - surprises in a claim
situation. Evidence suggests that one out of two customers offered that
service by insurers has been receptive.

Our industry has come up with useful information on the claims process
with documents and leaflets containing practical information in plain
English. Brokers can leave these with their customers to let them know
what they can expect in the event of a claim, the role of the loss
adjuster and what he might ask the insured to do in proof of claim and
why.

Better communication

Another more widely used approach has been advice, comment and updates, in
the form of leaflets about what to do and expect in a catastrophe
situation.

Flooding is a prime example where customers appreciate notice of the
effects of flooding to their property and likely time-scales for
reinstatement, including drying out process and repair. Use of project
management tracking software helps to give clear guidance to every
contributor involved in the management of a loss.

The more time brokers and loss adjusters put into the upstream part of a
claim and the planning and agreement of responsibilities, then the more
problems will be avoided in time of trauma. Ensuring that everyone is well
informed at an early stage is a significant element in achieving efficient
claims handling and settlement.

Better communication, consistent customer service and effective claims
handling is not rocket science: it is common sense. It is about using
intelligent systems intelligently, and not using systems for systems'
sake.

It is about knowing what information to send brokers and policyholders and
when - not inundating them with useless information and legalese.

It is about adopting the personal approach, developing good working
relationships with brokers and their customers. It is about good time
management, good file management and good office management - in other
words, good working practices that make life easier for everybody.

This approach would make a difference. For brokers and loss adjusters, the
result will be fewer problem cases and fewer phone calls and for the
broker, more renewals and more time to do what he does best - sell.

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