Time to reflect on hurricane lessons learned

There is no doubt that 2005’s unprecedented hurricane season stretched the human resources of the entire claims industry. Qualified, experienced adjusters were in high demand and short supply. While there are still many losses that need to be adjusted, what once was a Herculean task is now merely a monumental one. Now that adjusters have more manageable caseloads and closing reports are finally outpacing incoming losses, we, as an industry, have time to reflect on lessons learned from the 2005 hurricane season, and to analyze our pool of resources both quantitatively and qualitatively.

Despite long-range forecasts of increased hurricane activity, companies can ill afford to staff themselves year-round for peak periods. Moreover, while the industry can almost certainly handle a single storm such as Katrina, should we realistically expect it to handle a Katrina, Dennis, Emily, Rita and Wilma?

Even stand-by roster exhausted
At Crawford & Co., in addition to a team of core catastrophe adjusters who work year-round, a roster of trained catastrophe adjusters is on-hand and can be called on in the event of a disaster such as Katrina. However, with the multiple large loss events this year, the roster was exhausted and there still was a need for additional qualified adjusters.

In response to the industry-wide demand for property adjusters, the company increased recruiting, training, and licensing of catastrophe personnel.

Exhaustive training essential
The results of those efforts were phenomenal. The company trained more than 100 individuals in basic property adjusting. At the in-house training facility, Crawford University, the company implemented an expedited version of its catastrophe training classes.

All of the trainees went through an intensive 10-day classroom course that emphasized the basics of property adjusting, including the use of technology.

After their initial classroom training was complete, new adjusters were turned over to seasoned adjusters for practical experience and mentoring, prior to being allowed to handle claims on their own. The new adjusters were given simple claims, freeing up the more experienced adjusters to handle complex claims.

Important role of supervisors, managers
Let’s not forget that during the kind of sequential catastrophic events we experienced this year, the supervisors and managers who take on the increased responsibility of managing less-experienced adjusters are just as important as staff in the field.

Technology played a key role
As an industry, we must also look at the impact of technology and the requirements for claims handling (e.g., the number of forms necessary for each claim file). New technology enables adjusters to operate more efficiently and carry higher case-loads, sometimes even without brick and mortar offices (e.g., after Hurricane Katrina, Crawford had supervisors in other regions reviewing files electronically). During the 2005 hurricane season, the company deployed a number of satellite communication trucks, each of which supported more than 250 adjusters providing them the freedom to work from virtually anywhere under extreme conditions.

Balancing need for adjusters
So, what will the industry do with these new claims adjusters in a year or two, when all the claims from Hurricanes Katrina, Wilma, and Rita have finally been closed? Will the industry have a surplus of catastrophe adjusters?

We look at it this way: We have trained and developed property adjusters, not only for our company, but for the industry. We view it as an infusion of quality adjusters.

In the end, it all boils down to delicately balancing current needs, probable future needs and possible future needs. Of course, without a crystal ball to know what the future holds, we must use what we have learned in the recent past and try to apply that to the future.

We are committed to building the best catastrophe response organization in the industry by training and developing new property adjusters and developing and using the most innovative new technology.

Crawford is president and CEO of Crawford & Co., an independent provider of claims management solutions to insurance companies and self-insured entities. The company headquarters in Atlanta oversee a global network of more than 700 offices in 63 countries.

Topics Catastrophe Natural Disasters Claims Tech Hurricane Property Training Development