Every September, the editors at Claims pore over a ream ofsurvey responses in an attempt to better understand the workingconditions and salaries of the claim professionals for whom wewrite, and this year marks our 17th attempt at capturing thezeitgeist.

We shuffle through spreadsheets of statistics, and we read everywritten comment (surprise, surprise…claim professionals aren'tafraid to voice their opinions), coding them with three differentcolors: green for positive, pink for negative, and yellow foreverything in between. And for those who are wondering, this year'shighlighted comments could pass as wallpaper in Barbie's dreamhouse.

With all of this knowledge in hand, we begin calculating,analyzing, and theorizing. It's a painstaking process that requiresan extraordinary effort not only from the editors, but also themagazine's IT, marketing, and circulation departments, who enableus to conduct the survey and receive responses electronically whiletargeting it to a specific audience via e-mail. New to the surveythis year was a link on our web site, too, which made participatingin the survey easier than ever — and more anonymous.

But we would be remiss if we did not recognize the professionalswho make this survey possible: our readers. Without you, we wouldnot be able to adequately convey the workplace you represent. Norcould we give you salary figures for claim professionals out in thefield doing the work, including everything from independent claimadjusters to insurance company vice presidents — and all of thosewho fall between. If you shared your confidential salary figures ortook the time to write a comment, give yourself a pat on the back.You are helping other professionals better understand the industryand giving them incontrovertible evidence to use when those annualsalary negotiations begin.

Woks and Chopsticks

“Work smarter, not harder,” is a mantra for successfulprofessionals, and that often means effectively using new andexisting technologies. While there have been some gains in a few ofthese categories for independents, many company claim professionalsare apparently being forced to do more with less.

For instance, laptop computers have traditionally been suppliedto insurer claim staff at a much higher rate than independents. Infact, last year's results showed that 65 percent of company claimprofessionals had the ability to take their work on the road withthem, compared with just 46 percent of independents. This year,however, just 58 percent of company claim professionals can layclaim to having a mobile office, an 11 percent decrease. Moresurprising are the gains made by independents. While last year'srespondents claimed that 46 percent utilized laptops, this year'ssurvey-takers indicate that 56 percent are using them, nearly a 22percent increase. That means the two groups are almost equal interms of laptop usage for the first time in recent years.

This year's survey results also show that company claim staffsaren't receiving cell phones from their companies with thefrequency they used to enjoy. In fact, less than half are nowgetting them, down 25 percent from just last year. While this bigof a drop might be chalked up as a one-year blip, a look at pastyears' percentages indicate that this is a continuing trend. Butit's one that is not being reflected in the independent ranks.These professionals continued to report company-provided cellphones in record numbers, with 68 percent of respondents affirmingits presence in their pockets, more or less free of charge.

Company claim staffs also aren't getting those sought-aftercompany cars at the rates that have been reported in the past.While nearly one in two had their wheels reimbursed in 2006, thisyear saw that number plunge to just one in four. It's a significantdrop, considering previous years' results reliably fell near the50-percent mark. Meanwhile, independent claim personnel continuedto contradict company claim statistics, with 46 percent reportingcompany cars. That's an increase of 53 percent from last year. Andwhen it comes to getting around town and from claim to claim, onein four independent claim professionals utilized company-providedglobal positioning systems/navigation units. Company claim staffbarely registered on this question, with only seven percentresponding that navigation was a cost picked up by theircompanies.

Where's the Beef?

But there were far greater worries on the minds of claimprofessionals than the tools of their trade. Given a soapbox, manystood up and voiced their complaints. By far the most prevalentconcern this year centered on the relationship between workload andsalary — a complaint also featured prominently in the previous 16iterations of this survey.

“While salary is always important, unreasonable workloads andthe amount of hours needed to accomplish my job have really becomeobjectionable,” said one insurer claim manager located in theSouthwest. Even though he says his hours have declined over thelast 12 months, he still works more than 60 hours a week for his$90,000 salary.

“I believe that compensation in general for the profession isnot in keeping with the training and the responsibilities thatclaim personnel have in relation to other industries,” said acompany claim manager in the Midwest making $104,000 annually. “Itis getting harder to attract young professionals to our industry.The workload expectations and demands of the public are turningyounger people away from claims and, with the aging of the currentclaim personnel, this is a crisis waiting to happen.” She said sheworks 45 hours a week, which is about the same she averaged lastyear.

This concern for the future of the profession wasn't justmentioned by insurance company claim professionals. Independentsalso expressed awareness of the problem. Some were blunter thanothers.

“For the type of work and the pressures involved — especiallyrunning my own business — we are not compensated like otherindustries. It seems like everyone we deal with wants instantaneousgratification and results no matter what kind of workload we have,”said an independent owner from the Northeast, who reported hissalary at $95,000. “Fortunately, I have a good client base and mostof my customers understand the time constraints on our business.Unfortunately, the majority of the industry has not been verysupportive and the larger carriers are moving toward in-house claimhandling. I have seen a drop in claims from some clients who nowoutsource their business to restoration companies and contractors.There does not appear to be anyone new getting into our side of thebusiness due to the workload, pressures, and lower salaries forthose individuals.”

“I work far more hours than I get paid for,” groused anindependent adjuster who is located in the Northwest and makes$56,000 while working 70 hours a week. “It is expected and demandedas a requirement of the job. The company standards cannot be metwith the workload demanded by the company.”

Many respondents also complained about staffing levels, whichthey deemed too low to handle the high volume of work.

“Workloads have become much greater over the last 10 years,”said one insurer claim manager making $89,000 while working 50 ormore hours a week. “We are now staffed at the minimum level we needto get the job done. If someone is on vacation or sick, we fallbehind.”

“Our claim loads have increased because management does notreplace those who leave, and there are requirements for moredocumentation, more reports for files, and more frequent followups,” lamented a company claim adjuster making $53,000. “It used tobe that during the busy times, you were able work the overtime andthen regain your sanity and catch up during the slower times. Nowit is just continuously busy and stressful. There is no time tocatch up and you have to work hard just to stay above water.” Shereports that her hours have increased substantially this year,working as many as 60 hours a week.

There were also a few stunning examples of disconnect betweenthose handling claims on the front lines and the vice presidentsabove them, who might be accused of spending too much time in theivory towers.

“We are expecting more and more of our claim staff, but we areoffering the right placement of tasks and IT methodologies thatallow them to focus on their jobs,” explained an insurance companyvice president from the East Coast, who reported his salary at$125,000.

“Upper management makes too much of the fact that we havetechnology and believes that makes us more efficient,” corrected acompany claim manager from the same area of the country, who makes$89,000 while working at least 50 hours a week. “While in many waysit does, it does not add time to make or return calls, reviewrecords and estimates, or sufficiently answer a claimant'squestions to allow for the increased expectations in dailyassignments and inventory handling.”

“Our company has continued to cut the number of employees in theclaim department despite our growth,” complained a Midwest claimmanager making $92,000 and working 50 hours a week. “This has ledto a huge deterioration in claim handling and service to ourinsureds. However, as profits have been up the last few years, ourtop management thinks they are doing a great job. It appears ourcompetition is likely doing the same thing.”

Finally, a few survey takers reinforced the notion that theprofession may be facing a talent shortage in the future, which islikely to cause future customer service issues. This also isreflected in the age statistics we collected, which show very fewpeople under the age of 35 (see sidebar, Look Who's Talking, at theend of the article).

“I would not recommend any of my children get into thisbusiness,” said an independent owner from the West Coast making$100,000. “If I did not have self-insured clients, we would be outof business. What is irritating is that the insurance companies,who have eliminated the independent adjuster and appraiser, expectimmediate loyalty when their staff is too busy and they are forcedto give outside assignments.”

Sunny Side Up

While it might be easy to focus on the negative aspects of ajob, it's clear that not all claim professionals view the industrywith the same sort of cynicism. Despite the gloom and doomcontained in the majority of this year's survey responses, manyfelt their jobs offered them an adequate salary and more.

“I feel my salary is a little lacking, but they more than makeup for it in the work environment provided and overall benefits,”said a claim examiner making $43,000 in the South. She reported herweekly hours are holding steady at 40.

“I used to work for a larger staff company, working 50-60 hoursa week under extreme stress, for what I considered an above-averagesalary,” said another claim manager who declined to include hislocation or exact salary. “Several years ago, I made a careerdecision to change companies for less salary, but worked fewerhours and had a less-stressful work environment. It was the bestdecision I have ever made. I have also determined that with betterbenefits, the overall compensation is not that much less. Decidingto sacrifice a little money for a much better quality of life hasbeen a refreshing change.”

“My job is very satisfying,” agreed another claim representativeon the East Coast who is making $20,000 while working just 30 hoursa week. “My company is very flexible and lets me work around mychild's schedule. My hourly rate is probably a little low, but Ican't beat the flexibility!”

Beyond tangible benefits, a few shared their feelings on howtheir jobs impact their lives and the lives of those aroundthem.

“I must admit that even after 37 years in the business, I stillenjoy the daily thrill of sharing my knowledge with both new andveteran claim associates,” said a claim manager from the South, whomakes $75,000 and works 38 hours a week. “There are many gray areasin casualty claims. The best way to balance our service to ourcustomers and our company is through open lines ofcommunication.”

“Insurance and the associated by-products (underwriter,brokerage, risk management, loss prevention, claim adjusting) is agood way to make a living while helping others,” said a vicepresident from the West Coast, making $100,000 a year.

Finally, one claim manager summed up what others failed toexpress as eloquently. If claim professionals feel valued and arerecognized in the workplace, salary might not always be the mostimportant thing.

“If salary was the only item I was looking at, I would belooking for another job because I know it is well below my peers,”she said, while reporting her weekly hours in the 40+ range. “Oneperk I can say I do have is job satisfaction. This may not help paythe bills, but it goes a long way towards making it easier to comeinto work each day. I work for a company in which the vicepresident of claims knows me by name and invites me to meetings,allowing the supervisory ranks to have an input in the decisionsmade by those higher up. At our company, we are allowed to have avoice and be a real part of the decision-making process. This isgreat motivator and really helps one look at the job as more thanworking claims. I know that with changes in compensation we nowhave hourly employees with overtime who make more money than I do,but I guess I refuse to place money above job satisfaction. So Iguess the new vehicle will have to wait, but at least I can come towork and feel like I am contributing and making a difference.”

Salary Survey Methodology

A random sampling of 1,000 Claims subscribers was sent oursalary survey in Aug. 2007, and a link to the survey also waspublished on claimsmag.com. We received 288 usable responses, aresponse rate of almost four percent. Insurer claim staffs wereheavily represented, with a 62 percent response rate (180respondents). Independent claim staff responded at a rate of 38percent (108 respondents).