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Posts Tagged ‘catastrophic insurance coverage’

Catastrophe Claims

Saturday, August 27th, 2011

The insurance industry, as a whole learned a great number of lessons from Katrina and believe we are much better prepared to handle catastrophe claims.  When these occur, most insurance companies do not employ the number of staff adjusters and look to outside adjusting agencies.  Many of the agencies employ what is called “storm troopers”.  They are adjusters, usually independent adjusters, who are called upon to enter a storm ravaged area to settle claims for a particular company quickly and efficiently on an overflow basis.  Obviously every company would prefer to handle claims themselves, but due to number and severity of claims, it sometimes is not possible so outside claims adjusting companies are called in to bid on these jobs.

 

The bidding is where some adjusting agencies took a beating in Katrina.  To obtain the contract these companies may have over estimated their ability and skills of staff.  To fill numbers of adjusters, many were employed without sufficient claim experience.  Even today, insurance companies find themselves re-opening claims closed over 5 years due to inadequate estimates.  In addition, insurance companies sometimes failed to adequately project the possible number of potential claims, adding to the problem.

 

Today, companies have the technology in place and foresight to project the possibility in numbers of potential claims, and have the ability to forecast several scenarios.  Adjusting workloads, training programs, level of experience are also programs put into place and managed.  Systems have been implemented to aid immediate claims response.  These programs are all designed with customer service in mind.  If you have questions about you insurance policy, please ask your local agent or one of ours.

 

Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect.  Always check with your chosen professional as to statements made in this blog for your particular situation.