When most people think of catastrophe (cat) adjusters, they may envision claims professionals dealing with first-party natural or weather-related events. But the universe of potential catastrophic claims is far broader than that and is growing, especially third-party and man-made catastrophe events.

These catastrophe events can range from environmental disasters and massive transportation events to technology and financial crises. In all of these situations, time is of the essence. In delivering responsive service during a crisis, the cat adjuster represents the essence of the promise made to policyholders by their respective insurance carriers, and in fact, is to the insured the embodiment of the policyholder's insurance company during that troubling time.

Regardless of the type of disaster involved, the goal of everyone involved in the process should be “getting back to normal” by demonstrating certain skills and behaviors. Claims' Christina Bramlet consulted Sean Upton, senior vice president of environmental claims at Aspen Insurance about core competencies of the cat adjuster. His answers are outlined below.

Bramlet: What, in your opinion, are essential attributes a cat adjuster must possess?

Upton: Any competent catastrophe adjuster must have strong organization skills, be able to process large amounts of information quickly, possess technical understanding of the subject of the claim, be able to prioritize issues, and be confident in his or her ability to make good decisions.

Organization: This is especially true as it relates to resources, whether referring to people, technology, or data. The adjuster needs to know where to find it and how to use it.

Information processing: All catastrophe events generate enormous amounts of information. Adjusters need to be able to process the information quickly and efficiently, and target the appropriate information to assist in making decisions.

Technical Knowledge: The adjuster must have sufficient technical knowledge of both the risk and the loss components, be they structural or financial, to be able to identify which information is accurate and or relevant as it comes to him or her.

Prioritizing: This goes hand in hand with the volume of data being processed. Adjusters have to be able to understand the big picture as well as the individual claims and execute accordingly.

Confidence: Catastrophe events are incredibly stressful on all and adjusters need to have the knowhow and experience to project confidence in their ability to get the job done, and communicate how they will get the job done.

In addition to claims handling expertise, cat adjusters must effectively communicate with those who have suffered a major loss. Is it possible to teach them empathy?

Yes, but this is often a cultural issue within an organization as much as a specific adjuster issue. I think people who have experienced a major catastrophe event want to know that everything is going to be OK when it is all said and done.

Having the knowledge, experience, and ability to clearly articulate the plan of action will go a long way to helping people cope with a major loss. While knowledge is power, it needs to be communicated effectively, and I think presentation and/or communication skills can be taught.

How can adjusters strike the right balance between formal education and on-the-job experience?

While formal education is the foundation for handling claims, and specifically catastrophe situations, there is no better 'instructor' than actually going out and doing [the job]. While you can never teach or experience every scenario, an adjuster who is well-trained in the classroom and has actually handled catastrophe claims will be far better equipped to deal with a situation that has not been taught or previously experienced.

It is critical that investments be made in both theoretical and practical training for adjusters and that new adjusters get the opportunity to go out and experience real live situations as part of their training. Never under estimate the value of interaction and camaraderie among adjusters. This is where you truly learn the nuances of adjusting. I think you learn more about real life claims adjusting by listening to war stories from more seasoned adjusters and watching seasoned adjusters practicing their craft, than any classroom or book. Listen, watch and learn.

What about designations? Are certain ones more crucial than others?

I am not sure that any one designation is more crucial than others, and there are many factors that go into the analysis to decide what designations to get. Designations are excellent foundations, and wonderful teaching tools, and I would encourage adjusters to keep refreshing and expanding their knowledge base. Obtaining additional designations is one way of doing this.

While it is important to keep the focus on the area the adjuster predominantly practices in, I believe that having a working knowledge in other areas is hugely beneficial, and will enable adjusters to better understand their claims within the context of the entire catastrophe event. That being said, it is critical to make sure that all adjusters are properly licensed.

What keeps your adjusters up at night? What are the most vexing challenges of the job?

Knowing that regardless of how involved they become in the claims process or how much energy they devote that they can't fix everything. Also knowing that every decision will be subject to post game analysis, often in a completely different environment and context, can be very difficult for adjusters to adapt too.

Conversely, what is the most rewarding aspect?

Seeing and meeting the victims in a disaster and knowing that you, as their adjuster, are part of their solution and not part of their problem.

Aside from tenacity and expert knowledge of multiple lines of coverage and regulations, what does a person need to excel in the profession?

All of the above and more. I would add that someone who is inherently inquisitive and needs to know more, someone who wants to dig deeper and truly understand how things work, why roofs fail, how chemicals react, how the accident occurred, dose response to chemicals, someone who is always looking to learn from past experiences and flexible enough to change their way of doing things. You cannot sell it if you do not properly understand it.

Special Reports /

Claims Q&A: Cat Adjusting Competencies

Related Stories

Recommended For You