Those of us in the insurance business are also consumers of theproducts we distribute. On occasion, we experience a loss of somekind and have to file a claim. Of course, this is why we boughtinsurance in the first place—to transfer the risk of financiallosses that we otherwise do not want to absorb.

Agents and brokers make choices that determine what type ofclaim service their clients will receive during a disaster, andthis choice becomes an important part of an agency's strategicplan. As independent agents make decisions about which carriers torepresent, it is important to contemplate the claim servicingcapabilities of their insurers.

In the aftermath of widespread catastrophes, the claimsinfrastructure at some insurance companies can buckle. Puttingaggrieved people on a long queue to make a claim, speak to anadjuster or receive payment is no way to treat these customers, butthe carriers' resources are strained to the limit.

Keith McCombs, director of personal insurance at INSURICAInsurance Management Network, lives and works in Oklahoma City, sohe knows about catastrophe claims. “When disasters happen, manyinsurers simply say 'pick a number and get in line,'” he says.“That's the last thing anyone wants to hear at a time of greatstress and need.”

Yet the problem persists, accumulating into negative publicityfor the entire industry. McCombs says that many carriers,particularly newer ones without adequate resources, are to blame.“They have to rely on external, independent adjusters when adisaster hits,” he says. “Sometimes these adjusters lackempathy—it's simply a business to them. They set up these commandposts in the affected area and it's like a zoo—pandemoniumeverywhere you look. It's all very confusing to policyholders, whoare in an emotional bind and need help and money.”

Command posts and mobile claim operations may sound responsive,but insurers that take this approach ask customers to come to theminstead of sending resources to the customers. “This is just thebeginning of the nightmare,” McCombs says. “Due to the deluge ofclaims, some claims take over a year to adjust. You can't imaginethe anxiety it all produces.”

Required Re-Assessment

Some insurers send claims professionals from across the countryto pitch in when a catastrophe strikes. They are trained to handlecatastrophe claims.

Even if a carrier uses independent adjusters, internal staffadjusters oversee their work, making the decisions and confirmingthat all claims are investigated, processed and paid. Without theseprofessionals, the claims process suffers—to the detriment of thepolicyholder.

Bad experiences have a way of lingering and can deeply andprofoundly affect customer loyalty. Our customers deserve empathy,promptness, fairness and technical expertise when they need to filea claim. These services should be as fundamental as answering thephone.

Alternatively, call center personnel can recognize the situationand, when a policyholder calls, treat them with respect and provideaccess to an experienced adjuster who can answer questions andoffer service at the time of the loss instead of the next businessday. That claimant is a customer for life.

Agents and brokers want to know that their vital accounts areprotected. It's what we would expect were we to file a claim. AsMcCombs says, “You only know the value of insurance when you have aclaim.”