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JimF
USA
1014 Posts |
 Posted - 04/04/2003 : 17:59:50
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Thought the following letter, received today, from the NCA Group, might be of some interest to catastrophe adjusters.
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NCAGROUP
Insurance Adjusting Services
EXCITING NEWS
Dear Valued Adjuster:
We are excited to share with you an upcoming announcement that will favorably impact your income potential. As you know, NCA has always been very well regarded as a premier provider of catastrophe claims services to many core clients. GAB Robins North American, Inc. will be joining our client list, as we will soon be publicly announcing that NCA will become the sole provider of CAT operations for GAB Robins. NCA Group Inc. will retain all of our current client base and catastrophe operations, and in addition will assume all catastrophe-related obligations currently held by GAB Robins. We will also be providing adjustment services for GAB in projects outside of weather-related events, wherein NCA can provide improved client services.
This incredible expansion will provide significant opportunities for our CAT personnel, including an increase in claim volume, increased needs for technical skills, a reduction in our dependence upon weather-driven events, and most importantly, AN INCREASED INCOME POTENTIAL FOR OUR ADJUSTERS. NCA understands the importance of maintaining a ready force to serve our clients’ CAT needs, and have always focused our efforts to find increased field assignments to maintain the economic viability of the independent adjuster. We are in an ever-changing business that provides a key role and value for the insurance industry, and are excited about this opportunity for growth.
As a key player, we wanted you to know first! We at NCA are very active in planning for this program as we continue the pursuit of new client relationships in anticipation of an active storm season. Your ongoing support is paramount for our success in these initiatives.
More details regarding our expansion and other growth opportunities will be forthcoming. In the interim, should you have any questions, we encourage you to visit the NCA web site (www.ncagroup.com), as well as the web site of GAB Robins North American, Inc. at www.gabrobins.com
Thank you for your ongoing commitment to NCA. We look forward to a successful and profitable year together as we effectively serve the needs of our clients.
Respectfully,
The NCA Group
9785 Crosspoint Boulevard, Suite 100• Indianapolis, Indiana 46256
Telephone 317-915-8888 • Facsimile 317-915-8889 • www.ncagroup.com
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CCarr
Canada
1200 Posts |
Posted - 04/04/2003 : 18:35:12
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Jim, thanks for that information.
Can you give us any 'background', interpretation, or speculation, concerning this news? |
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ChuckDeaton
USA
373 Posts |
Posted - 04/04/2003 : 21:12:36
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| My understanding is that this arrangement fell through. |
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JimF
USA
1014 Posts |
Posted - 04/04/2003 : 21:18:42
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Chuck, the letter received was postmarked March 27, 2003 although there was no date on the letter. Check the GAB and NCA websites for more information as well.
There are and have been some rumors floating around about this transaction for a short while, and I am never surprised at rumors I hear nor are you I am sure. The real challenge is in discerning fact from fiction, and the letter direct from NCA at this point is the latest most authoritative information that I have to go on.
I have edited this post only to add, that if your information does indeed turn out to be true, the fact that there was a 'deal' which fell through, still suggests a situation among two prominent vendors worthy of watching for possible corporate changes, mergers or divestitures, and to me at least, strongly plays right into trends in our industry which Clayton among others, has mentioned on this Forum in a more general manner, and which I concur in believing are noteworthy.
If anyone else knows anything more about the NCA-GAB Robins announcement, please share your information with all of us.
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Edited by - JimF on 04/04/2003 21:26:00 |
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CCarr
Canada
1200 Posts |
Posted - 04/04/2003 : 22:27:52
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'GAB Robins Capital Partners' did issue a press release on March 28, 2003, from NYC, stating that they and the NCA Group, ".... today announced that they have signed a letter of intent to enter into a strategic relationship ....according to the arrangement, GAB Robins will assume NCA's daily claims relationships .... and NCA will become GAB Robin's preferred provider for temporary adjusting staff ....".
It is clear from later quotes in the press release by executives of each company, that "temporary adjusting staff" is NYC parlance for 'cat adjusters'.
This appears to me, to be a "focus swap".
There are no noted press releases by GAB Robins after the aforementioned March 28th.
I did note in a previous press release by GAB Robins on January 15, 2003, of their announcement of the formation of GAB Robins Capital Partners Consulting Group, the first entity noted at the top of my post.
A close review of the GAB web site is a humbling experience, this is much more than an 'adjusting company'. |
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Ghostbuster
476 Posts |
Posted - 04/05/2003 : 08:37:34
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Why? The key question is WHY? Why would the Give-Away-Boys want to engage in this tactical line in the first place?
In the business world there are basically four classes of economic activities; Tall Cotton, Fair Grazing, Stems & Seeds, and Sucking Wind. Just exactly which of these classes do the Give-Away-Boys fall into as well as NCA? Given the parcity of CAT work these past two years with only the Mold Wars to even out the income line on the balance sheet, it is fair to observe that no one is in Tall Cotton and scarce few doing much Fair Grazing.
So, again, what is behind this rather odd line of logic? |
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Davey
USA
38 Posts |
Posted - 04/05/2003 : 10:39:25
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| Hey Ghost, who says it has to be logical? The largest vendors have always been merging, upscaling, downsizing, changing names and whatever else for as long as I can remember. Obviously, they both feel they can make a buck with this "new deal". Just as long as it's not a buck that I could have made. |
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CCarr
Canada
1200 Posts |
Posted - 04/05/2003 : 11:04:01
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I don't know if it is appropriate to soil this thread with a discussion of the "why", but maybe in a fashion, it does provide some insight into the background, interpretation or speculation of the noted 'event'; as it sits in a more broad picture. I say this only because these comments seem well suited for a number of other threads, that contain the thrust of this commentary.
However, I have an opinion on the "why", relative to the GAB / NCA "relationship". Unfortunately, it is not a different opinion than one that I have been expressing for over a year; but simply it is a way to perhaps tangibly give an illustration of the pendulum's continuing swing away from what were considered as "traditional" claims concepts.
If "king", "knight", or "pawn" relationships of companies to each other are not clear through the glasses of a spectator; they do become evident in reading a press release. It is clear in this situation at hand, that GAB is the former, and NCA is the very latter; ".... GAB will assume NCA's daily .... NCA will become GAB's preferred provider ....".
One then should study the GAB web site. This is a large multinational risk management company. To call them just an adjusting company, is akin to calling an apple a meal. GAB's present corporate direction, stature , and focus; is the result of an evolution that has occured over a number of years. Like any vibrant corporation, nonperforming elements, or elements that do not have a future upside; are evaluated and often discarded.
It is also worthy to reflect on the language or description of what it is that GAB is discarding - "temporary adjusting staff". With that 'language' used for 'cat adjusters', it is easier to recognize how that element does not fit into GAB's vision of "today". GAB is focused and poised to deal with "today" issues and problems; whether they be pure risk management or claims functions and management issues.
As with any transaction, there must be a willing seller and a willing buyer. In this case, whatever "today" claims business NCA had, GAB can comfortably assimilate that into their culture and add it to their continuing growth. For NCA, they turn their hopes to "tomorrow", building on whatever cat relationships they had, and adding GAB as a 'client' for cat work that GAB is in a position to assign or direct to a "preferred provider".
It is my conclusion that GAB clearly recognize that the traditional concepts of handling cat claims, as we know it, is a failing concept; and they have chosen to divest themselves of that nonperforming element. Further, I think you will see additional signs of GAB aligning themselves with the future technologies of claims handling and management. In that regard, I refer you to the "Claims Department as a Profit Center?" thread of 03/20/03 in the "General" forum; where a review will indicate GAB's focus in this area.
In relation to the four classes of economic activity, so appropriately classified by Buster, I see GAB as a healthy 'fair grazer' with the foresight and intelligence to find the opening in the fence; to move cleanly and quickly into the 'tall cotton'. Whereas with NCA, they gave up all their daily 'seeds' from their former forage in the 'seeds and stems' field, and I don't see any better foraging ahead for them; other than the promise of more 'stems' in their trough, should they be blown from the new hybrid trees in the old orchard. |
Edited by - CCarr on 04/05/2003 11:06:07 |
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Justin
USA
137 Posts |
Posted - 04/05/2003 : 11:38:29
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| This is just my humble opinion, so here goes. Maybe the Give Away Boys are merging with the pretty bad service boys to form what Ghost catagorizes as the Sucking Wind Adjusting Company. Now they are giving away bad service. This new K-Mart of the adjusting world will probably do more to employ the newest elements of the adjusting community than previously anticipated. These new adjusters will no douby to delighted to have $700. week adjusting positions and will inturn solicit all their friends to quit burger flippin and join. Take heart Ghost, your burger flippin job is safe. The rest of us better get training. How about it Ghost, a new Burger Flippin School????? |
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RLott
USA
5 Posts |
Posted - 04/05/2003 : 16:08:45
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| I just cannot see the GAB Branch managers utilizing the "CAT" services. They have too much invested in marketing to let the NCA boyz into their market and a piece of the action. Now maybe some of those NCA newbies can get that $700 a week temp assignment, But the meat assignments I do believe are going to be controlled by the branch. |
Russ |
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CCarr
Canada
1200 Posts |
Posted - 04/05/2003 : 16:32:39
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Russell from Eldridge, as opposed to the "mega Lott" from Florida, I wouldn't put too much stock into using the term "cat services" relative to GAB functions in the future.
The operative term seems to be "temporary adjusting staff". The perceived or required need for temp adjusting can come with a varying range of definitions and triggers.
With that in mind, and with GAB's turning away from traditional cat services, I don't believe that they will have a heavy reliance on NCA as their "preferred provider" of temporary adjusting staff. |
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Catmannn
42 Posts |
Posted - 04/05/2003 : 22:27:47
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What does NCA bring to the GAB Table?
Houtz |
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slowhandfan
USA
26 Posts |
Posted - 04/08/2003 : 17:34:12
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| What does NCA bring to any table? Nothing |
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KnowingJackSht
1 Posts |
Posted - 04/12/2003 : 19:30:16
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Tall Cotton for those loyal to either company.
NCA will take over all GAB Cat work. GAB will take over all daily work. Effective 4-15-2003
Too bad for everyone else... |
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JimF
USA
1014 Posts |
Posted - 04/12/2003 : 20:09:35
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Ok, here's an update for everyone.
First of all, the announcement between GAB and NCA indicated that a 'Letter of Intent' had been signed which is not tantamount to a binding contract or agreement.
Sources which I deem reliable, have informed me, that the news which was announced by GAB and NCA has now been abandoned and the cross transfer of work between GAB and NCA will not take place.
I am further informed, that what transpired in initiating the tentative agreement between GAB and NCA was this:
Citizens Insurance, which is the successor to the FWUA, has abandoned the catastrophe plan which FWUA had in place, which would have allocated hurricane claims through a multitude of vendors.
Now, Citizens Insurance will be utilizing the services of 6 or 7 vendors for hurricane work in Florida, among them GAB.
When NCA realized they would not be a vendor for Citizens, they then approached GAB in order to 'find a backdoor' into handling claims for Citizens by way of the announced cross transfer of work (cat to NCA and daily to GAB).
I am further informed that when Citizens found out the news of the proposed relationship between NCA and GAB, they informed GAB they wanted GAB to handle their claims and not NCA. Thus, the latest rumor being that the cross transfer of work agreement has now been abandoned.
Again, while my sources for this scenario have been reliable in the past and I deem them reliable, as always, readers may take away whatever conclusions they may choose or may be predisposed to choose. This information has not been confirmed and I report it here as only one of several rumors floating around.
If anyone else has other information, or if representatives from NCA and/or GAB would like to add to, clarify, or renounce any information which I or others have posted here, please feel free to do so.
Changes in relationships among vendors, carriers, and other support services as always may have a serious financial bearing on the futures of individual catastophe adjusters and cat adjusters in general, and that is the reason this information is shared.
We welcome the 'facts' from the parties at interest to enlighten the CADO and cat adjuster audience to any important changes in the future of this profession. |
Edited by - JimF on 04/12/2003 20:12:18 |
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ALANJ
USA
159 Posts |
Posted - 04/13/2003 : 16:20:42
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| I heard GAB bought out NCA. This came from a GAB employee. Let's watch and see what happens. |
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NCA Group Takes Over GAB Robins Catastrophe
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