The more reliable their claims adjusting base, the better able carriers are to respond to a changing market. Even if they had a solid group of adjusters in the past, newer storm conditions can test carrier resources, especially if several events happen at the same time. Paying attention to accuracy is crucial when policies are first issued, and it shouldn't be any less important when resolving claims becomes an issue.
A Property Casualty 360 article recently addressed the mistakes carriers can make when first selling to prospective clients. The last of these, and the one with the most commentary, involved incorrectly assuming policy contents are accurate at the beginning of the process. The initial insurance proposal should be compared to other policies later on, the source said.
The Insurance Information Institute that disaster losses may grow for coastal properties, perhaps as large as doubling every 20 years, according to an unnamed source. As of July 2016, the source said that the current claims threshold for catastrophes is $25 million.
Whether or not this comes to pass, growing storm rates could still change what policyholders expect in their coverage, as well as the claims adjusting services carriers rely on the most.
For instance, the III stated that 40.4 percent of catastrophe losses between 1993 and 2012 were due to hurricanes and tropical storms. Hurricane Katrina still stands as the catastrophe with the highest estimated insured property loss in 2015 dollars.
Insurers need to be assured the providers they partner with are claims experts and will handle a high volume of claims. Outsourcing claims processing allows for better response times and helps give extreme cases the proper amount of attention. Insurers that find themselves swamped in times of severe weather disasters may benefit from seeking outside help.