Claims adjusters are stuck between a rock and a hard place. Bosses pressure them to close files—one way or another—as quickly and cheaply as possible. Policyholders—always impatient, rarely up-to-speed about the claims process, and sometimes very angry—want their money now, and the paperwork be damned. But with the proper training, this doesn’t have to be a thankless job. Carl Van--master trainer and claims guru--has been teaching this for years, but I often wonder whether enough people in this cynical, battle-hardened industry are listening.
While adjusters are usually well-trained when it comes to contract language and standard operating procedures, where they are most likely to come up a little short is on the “soft” skills—dealing with people as human beings, rather than as nails sticking out, waiting to be hammered into place.
I’ve never been a claims adjuster, but I’ve sat through enough seminars given by Carl Van to appreciate what goes into the job, and how potentially explosive situations can be diffused.
Carl—president and CEO of the International Insurance Institute—has been working his magic for years as part of NU’s National Trends program at the annual Workers’ Compensation Educational Conference in Orlando. His expertise covers a wide range of skills, but his WCEC sessions focus on how claims reps can deal effectively (yet compassionately) with recalcitrant folks over the phone.
He’s a master of communication jujitsu, showing how to firmly but delicately turn confrontation into cooperation.
Carl has a good book out—“The 8 Characteristics Of The Awesome Adjuster”—but I love to see him work live. He is a performance artist—always on the move as he speaks, actively engaging adjusters set in their ways in exercises to bring hypothetical scenarios to life.
He even rewards those who role-play or answer his challenges with prizes ranging from candy to bottles of wine—a very effective way to generate enthusiasm and audience participation that I’ve shamelessly copied as part of the “game show” we run at the WCEC, “Name That Emerging Exposure.”
But the key to his success remains his message—the heart of which is that those who call with injuries or property losses are not merely “claimants.” They are customers—those we all serve to earn our living—as well as real people, just like us, in a difficult situation.
How claims reps treat people when they try to get medical bills paid, or damages to homes, cars and businesses repaired will go a long way toward polishing the industry’s tarnished reputation.
Carl’s background isn’t just academic. He’s been on both sides of the fence—as a claims rep and manager himself, as well as a vulnerable claimant after his Louisiana home was damaged by Hurricane Katrina.
Unfortunately, he recalled, his insurer treated him more like a burden than a valued customer. Adjusters kept missing appointments, and when he called to complain, he was told he didn’t appreciate what the insurer was going through after Katrina!
Did the rep really think someone whose home was damaged in a hurricane was going to feel sorry for his insurance company? It would have been far better, he noted, to simply acknowledge the disservice and make sure an adjuster got out there ASAP.
In a blurb for his book jacket, I wrote that Carl is a “coach and therapist combined, and all claims people will benefit from his ‘first, do no harm’ philosophy.” Will the industry get the message and start teaching claims people the spirit as well as the letter of the industry’s mission—to make people whole again?
Let me put it this way—I don’t think Carl will be hard put looking for work anytime soon.
Comments (6)
Claims adjusting is, in many ways, like accident investigation. The policyholder wants a determination that he is not culpable as fast as possible, and that either a third party is responsible and will pay, or the insurer will be ponying up the money for the loss.
Looking at very large fire losses as well as all types of industrial and personal lines losses, I've become accustomed to being massaged, cursed, praised and everything in between.
The unusual part of the job is on the worker's comp side--it doesn't matter who was at fault, the company pays and then subrosa takes over if a third party is negligent or involved, so the policyholder doesn't have much to complain about, except the usual comment that his rates will increase if he's at fault. Sounds like a vehicle loss scenario from that aspect!
A good claims adjuster looks at a loss from a humanistic scenario as well as a company standpoint. You are dealing with people who have their lives in turmoil, and regardless of whether the loss is partially or fully covered, or even not covered at all, a caring attitide goes a long way. There is no need to be callous and condescending in any way. Questions can be deferred until you have time to make a careful and full assesment. Shooting from the hip is dangerous and can be deadly to a career and to the company and insured as well.
In 40 years of investigations, I have learned to defer judgment until all the facts are in and I can provide the best possible assessment of what went wrong and how, who, and why.
One time standing on the highway on a sub-zero snowy night, it would be easy to say the driver with the broken bottles of alcohol in the vehicle and what appeared to be the smell of alcohol on his breath was clearly at fault as a DUI, and wrap one up before my fingers froze.
But that wouldn't be fair or prudent, and in his case, the bottles were never opened and the smell on his breath was actually ketone, an issue with some diabetics who fail to eat properly. He had become dizzy and lost control of the vehicle and crashed. He was still at fault, but for an entirely different reason, and this was not going to be a criminal case.
Neither accident investigation nor claims adjusting, regardless of current and emerging technologies, will ever be finite to the degree we would like. But working with a touch of humanity and a smile sure helps most of the time.
Posted by BJ | October 19, 2007 9:41 PM
Posted on October 19, 2007 21:41
Having been self-employed as a commissioned adjuster for 34 years, I think that being human and compassionate towards insureds and claimants makes one a little happier doing a job that traditionally deals with misfortune of some kind.
You have to enjoy the human interaction for any type of career longevity. Abnormal hours, long periods away from home, ordinary pay, little thanks from employers--these are not the reasons most good adjusters enjoy this job.
I as well have dealt personally with claims reps for my own claims and was amazed at how few of them have proper people skills.
Carl's job is not in jeopardy. I reiterate that a"degree" in adjusting teaching all facets of the job should be considered by the industry.
Putting qualified claims people in front of insureds would go further in improving the image of the industry than caveman commercials.
Posted by Marc Dubois | October 22, 2007 4:11 PM
Posted on October 22, 2007 16:11
First we need to have the carriers drop the hammer. We have heard, read and been told by customers that carriers are taking their money and not paying anything. At times it feels that way when new procedures come out that seem one-sided.
In too many instances the demands on the adjuster from just carrier standards and workload alone can be enough to break their backs.
Add on the commericals that say we are here 48/7 to take care of your needs, then the state requirements and higher than ever customer expectations because of the advertising and no wonder burnout is so high. This leads to the perception of poor communication.
Companies need to learn or remember that before the bottom line became the driving force, adjusters were able to emphatize with the customer. There was time to pay attention to the needs of the customer--be it the premium-paying insured or the potential insured, the claimant.
With the reduction of staff in many companies, very few adjusters have time to discuss a loss. Many times it is the customer cussing the adjuster, not discussing the claim, as they feel second rate because the adjuster had not taken the time to explain and listen.
Long ago in a time called pre-computers is when I began adjusting. The carrier is no longer in business, but I do remember claimants asking how they could get insurance with my company because it seemed we cared.
Guess it was because in those days, companies looked at retention of the customer if the loss ratio was in line, and possibly getting the claimant as a customer if we showed we cared, treated them fairly and promptly, which was a mantra in that company.
Posted by J.R. | October 22, 2007 9:04 PM
Posted on October 22, 2007 21:04
It is a lot more fun being friendly and trying to make the insured as comfortable as possible.
Posted by John Hawk | October 22, 2007 10:03 PM
Posted on October 22, 2007 22:03
Good subject. Mr. Van knows his stuff, and the two comments so far seem to be right on track.
Like the others, I have been doing this for over 40 years. I rarely used 'the hammer' because I found it to be unproductive. It made the other side bring out their own "hammer."
The only time I was successful in using 'the hammer' is when I threatened to throw a public adjuster down a flight of stairs. He complained to my claims manager, who gave me an "attaboy" on my return to the office.
Other than that one time, I have found professional behavior and the knowledge to apply it is the ONLY way to go!
Posted by James P. Reilly | October 23, 2007 9:25 AM
Posted on October 23, 2007 09:25
As a longtime adjuster, I have dealt with the full spectrum of emotions that go along with an insured loss. Each has to be handled individually, and wtih time set aside at each loss to just talk.
I have found that 99% of the time, an extra 10 minutes spent with an insured explaining the timeline and claim process will keep them from calling me or the carrier a week later and asking, where is my money?
An assistant that is also a licensed adjuster has made my life much easier over the past several years, and given me more time to spend on the human side of this business.
Like Marc stated above, qualified adjusters that are well trained makes a huge difference in customer satisfaction and policy retention.
Posted by Mike Fuller, E.G.A. Baron Catastrophe Services | October 24, 2007 10:14 AM
Posted on October 24, 2007 10:14