Stress-Free Claims Adjusting
August 2010
Phones ringing, e-mails piling up, supervisors
and insureds demanding information—claims adjusting is not a stress-free job.
Summer is supposed to be a time to rest and relax, yet claims practitioners
seem to be more "stressed out" than ever!
By Elise
Farnham
Illumine Consulting
Can anecdotal "stress" be backed up by facts? And, more importantly, what
techniques can the claims professional initiate to relieve the pressure? The
answer to the first question is yes, and as for the latter, there are definitely
techniques that claims professionals can use to relieve the stress they are
now feeling. This article addresses those techniques.
Anecdotal Stress
The motto of President Bill Clinton's campaign team some years back—"It's
the economy, stupid!"—sums up the current situation pretty well. According to
the Insurance Information Institute,
employment in the claims segment of the insurance industry is down by 16.3 percent
in 2010 as compared to December 2007 when the recession began. The U.S. employment
decline overall is 7.2 percent. It is not an illusion that there are fewer claims
practitioners available to do the job that is required of them.
Some of this employment decline is due to a reduction in claim frequency
as a result of the slowing economy. However, claim severity has been steadily
increasing. Claims are staying open longer, there is less churn, and claims
handling activities are more complex.
The Soft Market
Continued pressure on premiums has resulted in a buyer's market for insurance
coverage. To survive the protracted soft market, insurers have no choice but
to increase revenue and cut costs. They increase revenue by enhancing coverage
through expanded limits or offering broader language. They cut costs by assigning
more claims to each adjuster. Claims practitioners are being asked to handle
larger and larger caseloads.
The Effect on Insureds
With U.S. unemployment at the highest levels many have ever seen, it's important
to understand the economic pressure placed on insureds and claimants. Many people
have used up their entire savings trying to hang on. Many others have filed
for bankruptcy at astounding rates. Whatever the reason, they have only limited
or no access to emergency funds. They may see the insurance claim as an opportunity
to make a little extra cash or an opportunity to discard an asset by "selling"
it to the insurance company. They may need money more quickly and therefore
be more demanding of the claims practitioner.
Fraud
According to the
Coalition Against Insurance Fraud, vehicle give-ups have become more prevalent.
Dumping vehicles in lakes or rivers, setting fire to the vehicles, and abandoning
vehicles that are subsequently stripped or taken to a chop shop all result in
allegations of total loss, claims that are difficult to investigate and more
difficult to resolve. And, while home arsons have increased, more troubling
is the incident rate for theft of personal possessions. With arson cases, the
claims practitioner will most likely have solid evidence with which to work;
bona fide theft leaves little evidence, and "faked" theft even less.
Pressure Relief Tools and Techniques
To effectively deal with these and other stressors, claims professionals
use a number of different pressure relief tools and techniques. Some of these
techniques have the ability to alleviate the stress altogether.
Time Management
Everyone has the same 24 hours bequeathed to them each day. Some people are
able to produce significantly more in their
24-hour period than others. They've learned certain techniques for getting more
done in less time, and they have become more productive by doing so. They may
have taken advantage of an educational opportunity offered by their organization
or by an association to which they belong that generated ideas about time management.
Techniques that help the claims professional develop a work plan and follow
a diary ensure that activities are prioritized and deadlines are met. Not getting
caught up in office politics or gossip means more time to deal with cases. Managing
distractions such as family calls and texts by instructing family members when
to call, with agreed upon times except for dire emergencies, will help the claims
professional remain focused. Maintaining a "to-do" list and a calendar for recurring
or special events ensures that promises are kept.
Utilizing vendors and experts that don't require follow-up, who meet the
agreed upon deadlines, and who provide outcome reporting as agreed actually
serves to reduce the workload and moves the cases forward more quickly.
Knowledge and Education
A credentialed professional has a distinct advantage because stakeholders
will be more respectful and will accept the professional's decisions more agreeably.
Keeping up with new laws and regulations as well as judicial actions is a challenge.
By participating in education programs, the claims professional will attain
the knowledge necessary to make appropriate decisions.
Credentials such as the Associate in Claims (www.aicpcu.org)
and Claims Law (www.aeiclaimslaw.com)
clearly demonstrate the commitment of claims professionals who are dedicated
to providing superior service to their constituents.
With the plethora of delivery options—webinars, teleconferences, in-classroom
programs, and archived presentations—it is more convenient than ever to keep
up with current topics and issues. For claims professionals, too, "it's the
economy, stupid." Many companies pay college tuition or expenses to obtain designations.
Claims professionals take advantage of these opportunities to increase their
value quotient and to earn bonuses or conferment trips.
Physical Condition
A healthy body portends a healthy mind. To prepare the mind and body for
each day's marathon, the claims practitioner must eat right, get plenty of exercise,
and enough sleep. Tests have shown that brain function increases with exercise.
Parking the car at the back of the lot, taking the stairs, and going for a walk
at lunch are all little ways in which the claims professional can add exercise
to the daily routine without wrecking the schedule.
Participation in industry or charitable golf, tennis, or marathon events
provides exercise for its own sake, not as competition. Exercise will give the
brain additional oxygen to allow the mind to think more clearly.
Work as Play
If it's not fun, it's not worth doing. The claims profession should be fun!
It's not like fiction where things have
to make sense. It's nonfiction, so anything can, and does, happen! Keep a "humor"
file and tuck away funny claims stories, oddities, and accounts of humorous
events. They will be available for your review after a particularly difficult
telephone call or meeting. Humor calms the mind, distracts it from the stressful
event, and may even facilitate the creation of new ideas or ways of thinking
that can help to solve a particularly thorny problem.
Find/Be a Mentor
Inexperienced practitioners will want to find knowledgeable and experienced
claims professionals who are willing to share what they know. The textbook answer
isn't always the best answer to solve a problem. Practical experience of what
works and what doesn't is important, too. A good mentor will steer the claims
practitioner through dangerous waters to a safe harbor, helping the practitioner
avoid the sharks and traps along the way. These are skills that can't be taught
and are more likely to be obtained through trial and error.
Experienced claims professionals will enhance their work life by serving
as mentors. Taking the time to help a less experienced person provides a meaningful
break from the day-to-day work, affirms the value of the knowledge held, and
ensures the future of the profession.
Build a Network
While each claim is unique, there are very few circumstances that haven't
been experienced by other claims professionals. Business networks such as
LinkedIn allow professionals
with similar specialties to exchange ideas and relay experiences. Group discussions
help claims professionals to explore problems from other angles in order to
resolve them as quickly as possible.
Industry associations bring together claims professionals who share a single
specialty or who hold a variety of skills. There is an association to fit each
professional's particular needs and desires. Associations can be locally focused
or nationally spread. Involvement will provide enrichment, create contacts,
and help the claims professional become more knowledgeable.
A Final Thought
There is no single panacea for dealing with the stress that claims professionals
feel—there are many. Using a variety of techniques is the key to stress-free
adjusting.
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