In this look at the result of the recent BrightClaim-sponsored Property Claims Survey, we will focus on how the 71 insurance carriers we surveyed are using contents evaluation services to manage personal property losses.
Over half of the companies had a formal process for managing personal property/contents claims. When establishing a contents program, carriers were primarily focused on loss valuation followed by speed of settlement.
The most common approach to contents evaluation was to use an external contents vendor. Thirty-two percent of the companies that had a formal contents program used an external vendor. When using an external contents vendor, insurance companies had access to a wider array of services such as product research pricing software, onsite contents creation and specialty item pricing.
Eleven percent of the carriers also had "contents only" adjusters who specialized in personal property losses.
According to Ward Group, who conducted the survey, the best practice consideration to be taken from this survey is that "a company-wide contents program helps ensure consistent handling across all adjusters. This allows for better comparison of results throughout the organization," the survey report concludes.
The first step to better management of contents claims is to establish a formal process and guidelines all adjusters should follow when adjusting Coverage C losses. In addition, carriers should consider using the services of an external contents specialist to provide on-site contents inventory creation, inventory review, pricing research and other important services.
If you have questions about how to create a contents evaluation strategy, BrightClaim can help.