Adjusters Are from Mars, Attorneys Are from Venus
May 2004
Why is there a chasm between attorneys and
insurance adjusters? The reason may be due to a breakdown in trust. Trust is
a critical factor when it comes to relationships between men and women, and
the same is true between adjusters and attorneys. To reestablish trust, adjusters,
insurance/risk management claims executives, and attorneys need to take positive
steps to close the chasm.
by Michael
R. Boutot
International
Litigation Management Association
Several years ago author John Gray created a storm when he wrote the book, Men Are from Mars, Women Are from Venus.
The subtitle of the book was, appropriately, The Classic Guide to Understanding the Opposite Sex. With respect to
Mr. Gray, my goal here is to explain the love-hate relationship and history
between insurance adjusters and defense counsel, with the goal of helping each
to understand the other side and basically assisting both to recognize and understand
the other's needs, wants, and desires.
A few of the chapters in Dr. Gray's book have the following titles.
- Speaking Different Languages
- Discovering Our Different Emotional Needs
- Scoring Points …
- How To Communicate Difficult Feelings
- How To Ask for Support and Get It
And he closes with:
- Keeping the Magic of Love Alive
Unfortunately, while Dr. Gray has the ability to deal with that subject at
length in his book, I am limited to a brief article and thus will not even attempt
to provide all the "How To's" associated with the task of truly helping all
parties understand this crisis. My primary goal is to help each "side" understand
first that there is in fact a chasm and begin the process of healing, such that
we can "keep the magic alive."
Why the Chasm?
I am sure everyone has a different opinion as to why there appears to be
such a gap in the relationship between adjusters and attorneys. And as you would
expect, I have mine as well. Through the years there has been what I would call
a lot of "finger pointing" going around. The attorneys blaming the insurance
industry for the communication breakdown, and the insurance executives blame
the attorneys. It is what I would call "blame-storming."
We have all heard the phrase "there are two sides to every story," and quite
honestly there no doubt is accuracy on both sides of the issue. However, the
problem is we ought not be looking to see who is the blame, but instead seek
ways to rectify the situation. The key is we need to get on track in identifying
why the chasm. In other words, treat the problem … not the symptom. I believe,
simply put, the chasm is primarily due to the fact that we do not understand
the needs, wants, and desires of the other side.
The Horse &#%@ Principle
Imagine that after a long 3-day weekend you show up for work early Monday
morning. As you walk down the hall toward your office you notice an awful smell.
As you get closer, the smell gets worse and you notice flies buzzing all around.
In the corner of the conference room, you notice a large pile of horse &#%@
and realize that's the cause for the smell and the flies.
Being the smart business manager that you are, you call your early morning
staff meeting in the lobby (remember, the horse &#%@ is in the conference room)
and tell everyone to go to local DoorMart to buy ergo-dynamic flyswatters and
TruSol air fresheners to kill the flies and get rid of the smell.
Everyone does as they're told, because that is what good faithful employees
do, buying flyswatters and air fresheners, spraying and swatting, and, before
you know it, the flies are all dead and the smell is gone. Right? Wrong! At
least not for the long term. Why? Because you treated
the symptom … not the problem. What is the solution? Get rid of the &#%@.
The Good Old Days
If we truly want to get back to the "good old days," we need to treat the
problem—the chasm. When I started in the insurance claims industry, times were
different. Staying on point as relates to adjusters and attorneys, let me share
what some of those key differences were as relates to litigated matters.
- Generally, we did not have "staff" counsel.
- Attorneys were held in high regard and with great respect.
- Guidelines were simple: "Here is this case … win or settle for the best
price."
- Billing was done at the close of a matter.
- Those "invoices," when submitted at the close of a file, were one page
in length.
- The invoice did not have to be itemized because it said, "Services Rendered:
$13, 485.65."
- The attorney was paid the next week.
- Reports were simple and to the point.
- Nuisance settlements, for the most part, did not exist.
- Audits were not conducted on invoices because there was nothing to audit.
- If a law firm was not trusted, it was either not hired or fired.
To Trust or Not To Trust?
I believe the creation of the chasm is due to a breakdown in trust. Undoubtedly,
trust is a critical factor when it comes to relationships between men and women,
at least in the realm of marriage. I think the same is true in the relationships
between adjusters and attorneys. If we cannot trust each other, the relationship
cannot work.
To reestablish trust, adjusters (and insurance/risk management claims execs)
need to do the following.
Spend time:
- Truly getting to know your attorneys personally:
- What did it take to get their law degree?
- Why did they want to be an attorney?
- How much time they put in at work each week (not "billable hours")?
- How much time they spend with their spouse and children?
- What are their career aspirations?
- Truly getting to know how they operate:
- Are they "Type A" or a "Type B" personalities?
- What are their strengths?
- What are their weaknesses?
- What do they enjoy working on most?
- What do they enjoy working on least?
- What type of pressures are placed on them by the managing attorney
of the firm and/or pressures to make (or maintain) partner level?
- Understanding their commitment to excellence in representation:
- Is it just to submit a bill; or
- Do they take pride in "winning"?
- Appreciating their communication preferences:
- Do they prefer talking over the phone?
- Would they rather have face-to-face discussions?
- Can they better express themselves in writing
- Understanding and appreciating their role and responsibilities on each
matter:
- First and foremost, at least with third-party civil litigation,
remember they are the ones representing the legal interests of the client
… not you as the adjuster.
- Don't automatically think they are trying to disregard your direction
if they challenge an issue. Nor think they are filing a motion just
to bill more time. If you truly trust them, show some discretions.
Likewise, I want to encourage attorneys to do the following.
Spend time:
- Truly getting to know your adjusters personally:
- What was their major in school?
- Why did they want to be an adjuster?
- How much time do they put in each week?
- How much time do they spend with their spouse and children?
- What are their career aspirations?
- Truly getting to know how they operate:
- Are they "Type A" or "Type B" personalities?
- What are their strengths?
- What are their weaknesses?
- What type of files do they like most?
- What type of files do they like least?
- What pressures are placed on them by management to make 1-to-1 closing
and lower average cost-per-case numbers as well as legal spendings?
- Understanding their commitment to client representation:
- Is it just to "settle" or do they care about their policyholders?
- Do they take pride also in winning?
- Appreciating their communication preference:
- Is their manager demanding letters?
- Do their guidelines require status reports?
Now, You May Kiss the Bride
Let's face it: the overall objective should be for us to live in harmony.
The honeymoon cannot just be a week; it must be lifelong and take a commitment
on both sides.
- Get to understand each other better.
- Learn to appreciate one another more.
- Value the other's roles and responsibilities.
- Listen.
- Learn from one another.
Attorneys and adjusters will still be from different planets, but at least
they will be able to coexist in the grander scheme of things.
The views, content, and opinions
expressed herein are solely those of Michael Boutot and are not those, nor intended
to be those of the Board of Directors and/or the membership of the International
Litigation Management Association (ILMA). For more information about ILMA, visit
their web
site.
Opinions expressed in Expert Commentary articles are those of the author and are
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