I am snowed in after taking the deposition of a 1099 temporary claims adjuster in South Carolina. Much of his testimony has me thinking about the plight of the modern independent claims adjuster doing catastrophe work.
During his deposition, the independent catastrophe adjuster said he had asked to have his claims load reduced. Management did not or could not do this. Eventually, he had a heart attack. We discussed the stress brought about by doing property insurance claims catastrophe work.
I often speak with current and former independent claims adjusters who do significant catastrophe adjustment work during breaks, lunches, dinners, and cocktail parties at various conferences where I am presenting. Many are giving up the trade and are now only doing appraisals. Some have told me stories about why they have become public adjusters so they can help people. Some complain of the lowered pay scales. Others talk about the lack of authority or companies having unlicensed vendors do what licensed property adjusters should be doing. Others often talk about inexperienced desk adjusters refusing to listen or follow their suggestions and advice on the handling of claims. These conversations occur at almost every conference I attend.
Steven Bush and I have spoken to many claims adjusters who have stories about their experiences trying to do their jobs correctly and not being able to do so. Most love and want to be independent claims adjusters. They seem upset with their treatment, directives told to follow, or their opinions not being disregarded without a valid basis. Many want to “whistleblow” because they feel the claims processes are not honest with policyholders.
Has anybody been reading the various social media posts and journalist reports about the independent adjustment firm Alacrity? The company has been severely criticized by everybody and appears to be in financial shambles. Private equity unsuccessfully tried its hand at claims adjustment. Alacrity Solutions entered into restructuring talks with private credit lenders in late October 2024, less than two years after being acquired. By January 2025, the private credit lenders who had made a $1 billion wager on the business via senior debt had taken control of the company.
Is it just me, or is there a morale problem within the independent property claims adjuster community? If so, this is a significant issue. Independent catastrophe adjusters doing high-level claims work on complex claims play an important role in getting the monies from the treasuries of the insurance companies into the pockets of the policyholders as fast and as fully as possible.
From what I can tell, most independent adjusters have far less line payment authority today than they had 20 years ago. Do insurance companies no longer trust field catastrophe adjusters? Do companies believe that the field adjusters are no longer competent to decide how much is owed and paid on the claims they adjust?
To me, there seems to have been an enormous shift in the trust insurance companies place in independent claims adjusters since I first entered the business. Where have the General Adjusters with actual authority and experience gone?
Thought For The Day
“Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful.”
—Albert Schweitzer
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