Independent Adjuster Morale
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.
Is this an issue? While I appreciate many independent field adjusters feel fulfilled in their profession, the number of those telling me of a different narrative seems to be a significant trend suggesting a broader problem within the claims industry. What do you think?
The problem with the IA world is that the pay is not keeping up. Looking at fee schedules, they are paying the same amount today as they were nearly two decades ago. Right now a staff adjuster is making nearly the same pay as an IA. Especially when you factor in benefits. Also due to claim handling timeframes carriers are bulking up on IAs at the beginning of an event. So the the amount claims an IA receives from an event are much lower. IAs have to cover all their own expenses and it’s just not enough. More people day in and day out are joining the IA pool and because of this non stop new labor, companies feel they don’t have to pay the price the adjusters are worth. On the desk IA side, these firms are taking a huge chunk of money and then in some cases even turning around and W2ing their desk staff. Some firms are getting paid $600-900 a day and then paying their worker $20hr ($160 a day). IA firms are competing so hard for contracts with carriers that they are accepting these week fee schedules to secure the contracts. The carrier is jumping on these discounts because what sane company wouldn’t.
CEO | EGA | Dispute Resolution | Workplace Ministry
1 个月Yes, this has been a trend for a while, and started when several firms began merging and ladder assist companies began inspecting losses at lower rates. It’s less local competition, and just a few large firms at the top negotiating with the top insurance carriers. IA work has become less about expertise and more about quick turnaround of assignments with strict adherence to estimating guidelines. It’s a large expense for carriers, so it makes sense they would seek the most cost-effective ways of handling field work, but the availability of independent talent becomes less and less as the industry tries new methods to cut expenses. There is a lot of smart and experienced talent in this industry, professionals who have 15+ years of experience as adjusters, who are very good at what they do, but don’t know where to take their career because there isn’t a clear path ahead for them. We have several veteran adjusters on our team of building consultants where they found it difficult to continue their careers as IA’s as their primary source of work. This experience works great for helping firms resolve more complicated claims and for work in dispute resolution and appraisals.