In his new book, Average is Over, Tyler Cowan maintains that America is dividing itself into two main groups: At the top will be 10 to 15 percent of achievers, whose self-motivation and mastery of technology will allow them to soar into the future. Then there will be, well, everyone else.

Might the vocation and profession of claims likewise stratify itself into tech-savvy winners and bumbling losers, where the keys to success exist largely in technological fluency and literacy? This is to say nothing of crucial soft skills insurance professionals, particularly those in claims, must possess to be successful. What is the optimal combination of soft and high-tech skills for a workforce undergoing a major transition?

Valued Low-Tech Skills?

Let's begin with technology. Is it a given that a claims professional has not only mastered MS Office but is also savvy in using spreadsheets and conducting fruitful internet searches? Furthermore, are skills like these really necessary, so long as an adjuster possesses knowledge and skills pertaining to claims-handling and specific subject matter?

Many still see low-tech skills as primary. Denis Smith, a vice president and executive adjuster at Cunningham Lindsey (Vancouver, B.C.) feels that a strong insurance knowledge of policy language, principles and protocols is essential. The rest are practical tools to help commute the process to a result. He cautions that, “without understanding doctrines of proximate cause, proper policy interpretation/application plus strong people and communication skills, you just don't get there.”

Michael Spence, a claims training specialist in the Buffalo, New York area says requisites include the capability to search the internet on an advanced level, at least 40 wpm typing skills and MS Office proficiency. “Too few companies provide real Word training,” he says. “So adjusters waste countless hours by knowing only a small portion of what this tool can do.”

Each company has its own preferred tech skills that it desires its workforce to possess. Alexis Neel, an independent adjuster based in the Atlanta, Georgia, area, wants to know more than what the carrier requires him to know, in order to be that much more valuable in today's market. Neel views the must-haves in claims adjusting as MS Office Suite, mainly Word, Outlook, Excel and maybe PowerPoint, then Xactimate, and two other estimating programs (Symbility and Simsol), along with intelligent internet search skills.

Techno Navel Gazing?

Are there limits, however, to just how tech savvy adjuster should be? At some point, does technologically focused adjusting obstruct the fundamentals of sound claims handling? Christopher Reid is an independent claims consultant in the Houston, Texas area and former vice president of claims at Brit Global Specialty USA. Reid believes line adjusters should not be creating Access databases or preparing PowerPoint slides.

“They should have Word and Outlook skills, and probably some Excel skills,” he says. “Beyond that, they should be able to learn and use whatever claims-handling system and/or estimating software that their employer uses, and be able to conduct fruitful internet searches.”

Reid, however, does not equate technology proficiency to adjusting proficiency: “I can go to any middle school and find someone more technology proficient than I am.”

Barry Zalma, a veteran claims expert, attorney and contributor to PropertyCasualty360, urges the industry not to under-value low-tech attributes. “Technologically,” he says, “the adjuster should be able to type using all ten fingers, understand and use effectively the insurer's computerized log system; understand how to estimate—using computer programs—the cost to repair buildings and vehicles; and most importantly how to read and interpret an insurance policy.” If adjusters have claims-handling skills, Zalma adds, the only technology they need is a pencil, paper and a telephone and the ability to operate a vehicle to get the adjuster to the scene of the loss.

The Softer Side

Meanwhile, Jennifer Peranteau, vice president with Wardlaw Claim Service, sees soft skills as critical for industry success. “You must be able to relate to people to succeed in claims, whether you are a fresh trainee learning the adjusting ropes or are the vice president of claims,” she says.

Peranteau sees estimating software with ads boasting that “anyone” can be an adjuster. “I have not found this to be true,” she counters. “You must have great people skills, be able to think on your feet, and be willing to get dirty.” Adjusters must also possess certain technical skills (including a solid grasp of math and science), software skills, and the ability to realize when a price does not make sense and thus requires further probing. “They call it 'adjusting' for a reason,” Peranteau adds.

Mark Smith, vice president and claims manager at Frye Claims in the San Francisco, California area, is a fan of technical skills, as well. However, he cautions that, as an industry, we “must acknowledge that basic technology is now so prevalent that it has become essential.” An adjuster who cannot complete a simple spreadsheet or internet search is simply creating more work for someone else, who will have to do it for them.

“We pay for the training for some of our experienced field staff because clients expect to get their data and reports electronically these days, and we are in the business of meeting their expectations,” he says.

Quick Studies Needed

None of this suggests that the claims professional must possess all of these skill areas simultaneously. It would be quite difficult— if not impossible—to find a claims person fluent in every single one of these technologies. However, it would also be challenging to place a claims professional lacking familiarity with any of them. To an extent, the issue is one of adaptability, the ability to learn quickly. Can a claims professional become a quick study to rapidly get up to speed on the software, applications, and tech tools used by his or her organization?

Given the brisk turnover within the claims industry, adjusters and other claims professionals must realize that each company has its own preferences about software, applications, and hardware. Increasingly, more are inclined to use iPhones or Android devices as opposed to Blackberry. Some may use proprietary, bespoke databases as their claims management information systems. Others may use off-the-shelf software, with some tweaks.

Whatever software, applications, or hardware insurers and their claims organizations use, today's successful adjuster must have the flexibility, adaptability and willingness to gain proficiency in the tools at hand to get the job done. To an extent, this quality may be more important than subject matter expertise on any piece of software or hardware.

Clearly, today's adjusters must be comfortable with various software and hardware to effectively function in their jobs. This does not mean that machines are ready to replace claims adjusters, although perhaps some CFOs and “bean counters” might fantasize about such possibilities. Until they invent an app that replaces living, breathing claim adjusters, the successful claim practitioners will blend high-tech fluency with high-touch soft skills. In 2013 and beyond, that is likely to be the winning combination.

Five Skills to Complement Tech Fluency

Jennifer Peranteau, VP with Wardlaw Claim Service, cites five key soft skills that today's adjuster must have in addition to technology skills:

People skills. Patience and empathy go a long way in establishing a rapport with anyone.
Time management and attention to detail. Every adjuster must develop a system that works for them and often these systems vary from adjuster to adjuster. Managing the expectations of a manager and a policyholder, multi-tasking, and using time wisely can make or break success.
Integrity. Doing a job well, preferably the first time and being proud of what you are doing, matters. It comes down to simply caring: about the people you serve and the results you give.
Insurance policy knowledge. Being able to understand (and fully read) an insurance policy is fundamental to adjusting. But applying policies within the context of very specific aspects of a particular insurance claim makes the difference between a good closed claim and a bad one.
Innovation and determination. Almost daily, adjusters can face uniquely difficult situations. Annoyances can seem neverending, from claimants who won't return calls to impassible roads, language barriers, and tools that won't cooperate. The lack of a phone signal, a crashed computer or being forced to perennially “do more with less,” can make insurance adjusters question why they chose this profession. Adjuster must nonetheless take the initiative and persevere with a commitment to learning.

Special Reports /

How Soft Skills Complement Tech Fluency

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