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1 Posts

Posted - 05/29/2003 :  15:37:24  Show Profile
I am a new CAT adjuster and I have concerns about the future of the industry for us CAT adjusters.

It seems, from another discussion on this board, that many adjusters are sstanding by, even though there have been quite a few storms and tornados in the past few months.

Does this bode ill for the industry as a whole? Are more insurance companies doing their own cat work in-house?

Harold Gregg


310 Posts

Posted - 05/30/2003 :  13:15:25  Show Profile
Jump in Harold. There's work for anyone with a ladder and a heartbeat. Like any industry, its going to have its high and low times but as a whole, this one isnt going anywhere. It pays more than being a bus driver and the drama is better than what you see on TNT. Except for the managers that estimate from polaroid photos, the insured's that call your voicemail 6 times a day, the 'inside click' that knocks you way the vendor's call-out list, the carrier that wants a test square on EVERY slope, the cheap hotels that charge you 50 cents for every local call, the nightly Chinese buffets that give you the heartburn, and the price of gas,..........THIS IS A GREAT JOB!

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373 Posts

Posted - 05/30/2003 :  13:59:37  Show Profile
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310 Posts

Posted - 05/30/2003 :  17:12:49  Show Profile
Nothing escapes....not even light!
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bryan newell

45 Posts

Posted - 05/30/2003 :  19:56:44  Show Profile
I too am new to the industry. Fortunately the first two years of my CAT life have been a good experience. I have worked 21 months out of 24. I do see problems on the horizon. Call centers & direct repair are putting a dent on our ability to produce a good income. I think new CAT IA's should concentrate on working for 1 vendor & moving up on the core list. Once the vendor sees the money you make for him, he will see to it that you are kept busy. A top rate product, good customer service skills, mean fewer re-opens. This is what I concentrate on & it has worked for me.
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1 Posts

Posted - 05/31/2003 :  13:40:00  Show Profile
Our industry is going through some changes that for one is making it hard to make the money needed with rising hotel fee's and the rising high cost of estimating programs. with the insurance company's continuing to lower or profit margin.

I just hope the trend that we have been seeing starts changing back to a profitable direction.

the insurance co. and the IA co. have to remember we only travel and be away from family and freinds for the $$$$$MONEY$$$$ most of us don't need the experiance of climbing more roofs.

Edited by - tnaholl on 05/31/2003 13:50:42
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42 Posts

Posted - 06/09/2003 :  06:08:06  Show Profile
Henry Ford said years ago that "You don't make your reputation on what you are going to do"

Whatever way the tide turns in our industry, there will always be a need for cat adjusters.
The only thing one can do, is produce the best file product you can. This is the only way
cat adjusters can influence the tide.

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231 Posts

Posted - 04/08/2004 :  19:06:47  Show Profile
While adjusting is not going away some things have come to my attention lately that may lead to a sharp decrease in claims filed even though the number of losses may remain the same or even increase. Some of the thoughts came from a spokesperson for the Service Master type industry. He gave some numbers about the average size of claim for that industry was about $1500 and while the number of losses continues to climb as our population increases the number that will be covered by insurance will continue to decrease as deductibles are moving up into the $1500 on many new policies in some areas.

It seems in talking with folks from that industry that many of their calls come from local insurance agents. To compound the problem some property carriers are taking the auto carrier approach of one strike and you are out I am told so even if a loss is greater than the deductible the homeowner does not want to spend time shopping for another carrier at possibly higher rates so they do not call the agent who does not call a service company or an adjuster.

Recently I was talking with an adjuster that when with a very high deductible (like $4K-$5K) but was able to save that amount the first 2-3 years in premium cost. With the average claim size around $2500 insures on average that he will never report a claim, therefore never creating a need for an adjuster to be called. If he is sure the carrier has a one strike and you are out practice he may not even report a $6K-7K loss. Why get a check for $1K-$2K only to be on the market looking for another insurer.

One carrier that I work with had their claims department reviewed by an industry consultant and they called for a 40% reduction in the number of adjusters at that one carrier that will be on the market for the next CAT perhaps. While I do not know the details of why this carrier is 40% overstaffed I do think moving adjusters to using estimating software is expected to reduce the number of adjusters required to handle the same number of files.

Has anyone experienced or noticed this trend of more losses never being reported developing in your area?
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476 Posts

Posted - 04/08/2004 :  22:01:49  Show Profile
Thank you, Gale.

As we approach the Easter weekend, you're above post illustrates the collective agonies of our crusafixtion imposed by the Pontius Pilates CEO's of the carriers.

Will we, who have done the good deed and been the financial savior to the Insureds and companies alike, be resurrected in perfect glory? Or, cry out in finalty, "Have we been forsaken by the Judas' who seek to increase their bag of silver thru cost containment measures?"
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10 Posts

Posted - 04/08/2004 :  22:07:34  Show Profile
Gale, you hit the nail on the head. My area has been experiencing this very thing for the past several years. Consequently as an independent shop our claims have trickled down to just about nil. Too often on the claims we would get the priviledge to inspect, the insured advises that cancellation is around the corner for reporting the one loss. (this as told to them by their agent) While our area has done nothing but grow in the past 10 years, claims have been kept "inside" and handled by desk reps. Even the prefered contractors are getting desperate.
I myself carry a 2k ded and am considering higher to save on premium. But I also have the background to handle most any type repair short of a total and even then could general that.
I did see a weird attitude east coast versus west coast this past storm season.
While west coast folk are absolutely petrified to submit a claim for fear of cancellation, East coast folk seemed to be a lot less concerned and very rarly ever indicated a fear of cancellation. Fortunately for cat adjs they kept right on putting in those claims that keep us somewhat employed.
The carriers cant get rid of us completely as they will just be lost when a major event hits. They dont have the staff that is capable or high enough in numbers to respond. For the catastrophe action we are it. But for the day to day stuff even if you walk on water or will pay them to work their claims the bz gets slimmer and slimmer.[Sigh...]
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315 Posts

Posted - 04/09/2004 :  01:43:36  Show Profile
Let's all learn the "Hurricane Shuffle", perhaps this year?

Who do you like in this name calling contest?

2004 Hurricane Names


Edited by - katadj on 04/09/2004 09:19:38
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875 Posts

Posted - 04/09/2004 :  08:13:24  Show Profile
Wasn't there a big, bad Bonnie back in the 60's that did alot of damage?
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106 Posts

Posted - 04/09/2004 :  08:17:48  Show Profile
I just got home from a deployment to work ice dams and water damage in a northeastern state. I heard more chatter and questions regarding cancellation due to claims activity from the insureds than on any previous deployment.

I also had more claim withdrawals this time than previously. The insureds had obtained an estimate that was higher than their deductible but they thought they could absorb the cost rather than risk cancellation.

This may not be a "west coast" trend but all across the US.

I'll pay attention on the next assignment and see if this trend continues.

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8 Posts

Posted - 04/09/2004 :  10:25:30  Show Profile
The carrier I work for has doubled its CAT staff last year with no signs of slowing this year.
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Todd Summers

99 Posts

Posted - 04/09/2004 :  11:16:30  Show Profile
I like Danielle, it is my daughters name.
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8 Posts

Posted - 04/09/2004 :  11:17:46  Show Profile
definatly Otto, by the way
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