What's wrong with tradition? Nothing, unless following traditional practices and procedures are ultimately costing your insurance companies big money. And that just might be the case if you're not savvy to opportunities to save — or make — money during the claim-handling process.
To seasoned adjusters, this philosophy might seem completely foreign. After all, adjusters traditionally have been charged with processing claims in a timely manner, conducting thorough investigations (with the help of their SIU's) to uncover fraud, making fair and fiduciarily responsible settlement decisions, and avoiding litigious scenarios whenever possible. That's all well and good. But actually creating profit during the process? It begins to sound like a potential bad-faith scenario.
Here is a better scenario that works for everyone. Say you're working a sizeable commercial claim that's resulted in large amounts of damaged or otherwise impaired materials, such as a train derailment, storm-battered marine assets, or even an overturned tractor trailer. You could release the damaged items back to the insured and close the claim on the basis of lost value. Depending on any number of variables, that might work out fine. However, another method favored by many involves paying off the claim and putting the salvaged material up for auction through any number of salvage companies, most of whom operate through Internet bidding. You recover some of your claim payout when the material is sold and you don't compromise on fair market value.
Sound complicated? Oh, come now. We're sure you have encountered more challenging scenarios than those involving a viable salvage solution. Pesky? Yes, sometimes. But if you're judicious and savvy, you could be saving your company sizeable amounts of money in the long run. Look at our salvage report, beginning on page 26. It's accompanied by our 2007 Salvage Directory (page 31), which will help you locate salvage companies that can make a big difference on your bottom line.
Speaking of traditions and bottom lines, perhaps you have noticed the completely redesigned look of Claims, courtesy of our talented art director, Jason Williams. We've literally thrown a few old Claims traditions to the wind in favor of establishing newer, more modern ones. Beginning in this issue, you'll see more graphics, easier-to-read typefaces, more dynamic covers, and the addition of new (or revamped) departments, columns, and new feature treatments (some of which will be added in future months).
All this is being done to make Claims even more relevant and attractive to our loyal readers. For all of the continued support we get from you, it's the least we can do. And that's our bottom line as we strive for mass appeal. Let us know what you think of our efforts. We look forward to hearing your thoughts and suggestions, via claims_editor@nuco.com. Be sure to put the word "Redesign" in the subject line. Thank you in advance and here's hoping your holiday season, however you celebrate it, is the best ever.
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